Keeping your business safe in an increasingly streamlined regulatory environment
In a time of unprecedented disruption, some changes are noticeable, such as new technologies; new environmental, social and corporate governance (ESG) reporting requirements; and a new world of hybrid work.
In manufacturing, another factor implies a significant additional disruption: a rapidly changing regulatory landscape. In 2021, there were an average of 2.4 rule changes per day worldwide, according to a study by UL. In 2022, the average is five days and rising. For global organizations, this pace of change can hinder strategic planning, disrupt supply chains, increase distribution challenges, create legal risks, and threaten reputation and revenue.
Manufacturers need to keep pace with regulatory changes to meet customer commitments. Continuous compliance management helps ensure that products are released and sold on time, without penalty or interruption. Effective compliance management provides real-time intelligence combined with flexible rules strategies to deal with many laws in multiple markets.
Compliance seems to be a mobile goal. Even the full intent of an organization may be against the law enforcement authorities consistently communicating changes. Therefore, it is essential for organizations to work with regulatory experts to build relationships with key authorities and provide technology to understand in real time how regulatory changes affect their business and when and how to do so.
In a world of regulation that is constantly adapting to the needs of the market, two aspects of manufacturing are driven by regulatory change above all else: technology and sustainability.
A product like TV was built 25 years ago, using very different hardware and software than the one used today. Emerging technology means creating regulations to ensure that the capabilities, materials, and production processes for employees, partners, and end users are safe and sustainable.
These revolutionary advances can lead to critical decisions that could jeopardize the security of an increasingly sophisticated artificial intelligence (AI) product. Because the Internet of Things (IoT) enables remote management of connected devices, this convenience increases the risk of privacy and the threat of cyberattack on customer data. As advances in wireless and cellular technology are spreading across different markets at different speeds and the use of mobile data is growing exponentially, a global patch of new laws is constantly spreading, leading to research and development (R&D).
At the same time, the growing demand for sustainable products and processes is driving a regulatory boom.
Manufacturers may have once seen sustainability as a point of pride; today, sustainability is a market priority and a legal issue. The European Union (EU) is adapting its environmental laws to reduce carbon emissions and enforce compliance processes. With policies such as the European Green Agreement and the 2020 EU Circular Economy Action Plan, the region continues to improve its regulation on the right to repair, batteries, vehicles and building rights.
Beyond climate change, sustainability is also emerging as a human rights issue. The latest German Supply Chain Diligence Act (GSCA) requires organizations to implement risk management systems by assessing any human rights risks in their supply chains.
The two main challenges facing manufacturers with the rule change are: controlling regulations and maintaining compliance with the product portfolio.
With new agreements and logistics technologies increasingly facilitating global trade, manufacturers need to control hundreds of rules and requirements that are evolving faster than ever before. Every day four rule changes only affect the electronics sector.
Each addition or change requires a lot of time in product development and compliance revalidation and requires high labor supply adjustments, which can delay marketing time and hurt profits. Each change could put organizations, their partners and customers at risk of vulnerabilities in cybersecurity, data privacy, security, wireless and interoperability.
Maintaining conformity of certified products should be continuously evaluated to measure how regulatory changes affect products. This means re-testing products, re-inspecting them, obtaining regulatory certification, and deciding whether or not to update the components or production processes for those products.
Manufacturers need a strong foundation in knowledge and impact assessment as companies work in an environment that is constantly evolving and expanding to comply with regulations and products.
An organization that seeks to monitor and respond to hundreds of regulations on environmental security, electromagnetic compatibility, wireless and telecommunications, cybersecurity, fire, and chemicals — in a variety of markets, formats, and languages — needs extensive resources to monitor them. . own. Moreover, it can be tremendous to evaluate and report on what these changes mean for the certification, development, and distribution of current and future products. Documentation, audits, surveillance visits, supply chain certifications, and technical requirements are all matters beyond the capabilities of spreadsheets.
Collaborating with regulatory experts using specialized technology can help manufacturers focus on the big picture of a business strategy that promotes customer satisfaction, industry leadership, and revenue growth.
To prevent violations, manufacturers should work with global experts to support their global compliance management requirements. A partner like UL can provide a fully integrated platform to manage extreme compliance needs to help businesses focus on strategy and growth. The benefits of this relationship include:
Proper expertise can help facilitate resource planning for manufacturers, product introduction and maintenance, and certification and oversight testing, facilitating all regulatory requirements in an end-to-end service.
Just as technology and sustainability don’t slow down, so does the rule change. But partnering with an expert who brings specialized technology is essential for manufacturers to anticipate compliance issues, grow, and be a leader.
Learn more about how UL can help your organization anticipate global regulations, improve your marketing speed, and better manage compliance with your portfolio.
Christian Salvans is UL’s Director of Global Market Access.
Which industries are the most sustainable?
Which industries are leading sustainable innovation by 2020?
- Architecture & amp; Building. Today’s buildings account for more than 40 percent of the world’s energy use. …
- Consumer Goods. …
- Energy, Process & amp; Availability. …
- Life Sciences. …
- Transportation & amp; Mobility. …
- In our experience
How can industries be sustainable? Development of more efficient machinery for resources that generate less effluent, waste and pollutants. Apply circular economy thinking when designing products to improve end-of-life product reuse and recycling.
Which company is most sustainable?
|2022 G100 level||2021 G100 level||Company|
|1||21||Vestas Wind Systems A / S|
|2||24||Chr Hansen Holding A / S|
|4||1||Schneider Electric SE|
What are the 3 sectors of sustainability?
Sustainability is often represented schematically. The image at the top of this page suggests that there are three pillars of sustainability: economic viability, environmental protection, and social equity.
Is Apple a sustainable company?
Apple pledged to be carbon neutral by 2030 last July and has made sustainability a major selling point in the marketing of new products.
What is Apple’s sustainability? Apple’s Commitment to the Environment Since 2018, Apple’s global operations, such as stores, offices and data centers, have been 100% powered by renewable energy. Following this milestone, Apple has made another commitment to make its supply chain and products 100% carbon-neutral by 2030.
Is Apple environmentally sustainable?
This is an area where Apple’s latest phone shines. iPhone is based on recycled materials. Apple’s latest flagship materials include 100% recycled rare earths, tungsten, tin and, for the first time, all 100% gold components. In addition, 35% recycled plastic is being used in this year’s design.
Is IKEA a sustainable company?
CONCLUSION. IKEA’s overall rating is GOOD. IKEA is showing good leadership in the overall home and furniture industry in terms of sustainability and ethics. If it meets its ambitious goals, it will be a great place for conscious consumers to shop by 2030.
What does sustainable IKEA material mean? Since 2015, all cotton in IKEA products has come from more sustainable sources. This means that production requires less pesticides and fertilizers. Much work continues to develop even more effective farming practices and better water management.
Is IKEA considered sustainable?
We are also focusing on using more sustainable materials in our products. By 2030, we are committed to using only renewable and recycled materials and reducing the total climatic footprint of IKEA by an average of 70% per product.
Is IKEA sustainable 2021?
The 2021 Sustainability Report shows that IKEA is on track to achieve its 2030 climate commitment. The pandemic continued and called for measures to mitigate the effects throughout the value chain. At the same time, IKEA continued to make significant gains in sustainability and continued to make improvements in absolute terms.