It’s fair to say that expectations around circularity in manufacturing are moving away from just being desirable to becoming a requirement. There are a few giveaways of this industry movement, such as the EU ramping up its regulatory requirements, investors demonstrating a growing interest in sustainability investments, and consumers also powering this demand. According to a recent Morgan Stanley report, 88% of investors now express an interest in sustainable investments, while it has previously been revealed by PwC that consumers are willing to pay an impressive 9.7% premium for sustainably produced items.
We can expect to see the first delegated act under the Ecodesign for Sustainable Products Regulation (ESPR) in 2026 - which will define more detailed requirements for what sustainability data needs to be captured within mandated Digital Product Passports (DPPs). This is only one example of how circularity is being transformed into concrete, data-driven expectations that begin at the product level, signalling a broader move towards an era of verified sustainability in manufacturing. For businesses, this means circularity can no longer exist in long-term strategy documents or brand campaigns. Instead, it is becoming a measurable part of how products are designed, manufactured, and then used by customers.
With that in mind, there are three key considerations manufacturers should focus on as they prepare for the year ahead:
1. Sustainability is a core operational metric, and not just a nice ‘add on’
Sustainability has long been considered through the lens of brand messaging, focused on external pledges or annual reports. But, as we see regulatory and market scrutiny grow, alongside industry competition, solid business metrics for sustainability are no longer a ‘nice to have’ and more of an essential business tool.
At the end of the day, data on carbon emissions, recyclability, repairability, and material composition within manufacturing businesses need to be collected and managed with the same importance that we place on financial data. Additionally, any external messages around circularity must reflect metrics that can be showcased internally. If a business claims that its products are manufactured in a recyclable or environmentally friendly way, then it must be able to point to the precise underlying data and processes that support this.
2. Make proofing circularity claims the default process
As we enter this new era of verified sustainability, every claim made about circularity or environmental performance needs to have tangible proof behind it. As a result, businesses need to focus on strengthening their underlying data infrastructure. This process includes understanding where product and lifecycle data currently live within the business, how this information is collected, and how reliable it is.
For the businesses that were built on fragmented data collection and siloed systems, moving into more integrated processes that consider the full product lifecycle will become a necessity. This urgency is heightened by the array of sustainability-related regulations on the horizon for manufacturing businesses in 2026, such as the ESPR and its DPP mandate. The process to prepare offers a unique opportunity to build up a body of proof in one fell swoop.
It is interesting to note that, by design, DPPs can act as a structured, digital record of a product’s key attributes and lifecycle, hosting this information from across the value chain. Therefore, a business with robust DPP-ready data is better equipped to demonstrate compliance, respond to regulatory requests in a timely manner, and provide credible information to customers and partners. Looking ahead, the priority for manufacturers should be to improve internal data integrity by clarifying the data sources, improving data quality, and identifying where gaps exist. This is because businesses that can trust their data will find it much easier to adapt to evolving regulations as the pressure to prove environmental claims increases.
3. Identify the three key audiences that now expect to see verifiable sustainability information
Sustainability data isn’t just a requirement from regulators anymore; it is important to consider other businesses (such as partners), as well as end users.
Many businesses in the supply chain have their own data collection obligations, whether these are purely regulatory or to put them in the best position for tenders and contracts. As such, businesses increasingly need information on carbon emissions and material composition from partners.
On top of this, consumers who are constantly faced with unsubstantiated sustainability claims are now expecting to see verified claims, and trust will be built with the businesses that can provide them with concrete, understandable information about how long products last, how easily they can be repaired, and how to handle them correctly when they come to the end of their life.
When it comes to regulators, it is important to showcase that claims are consistent across channels and that there are systems in place to maintain this process over time. Organisations with a clear overview of their lifecycle data and an accessible way of presenting this information will find the compliance exercise easier.
Expectations of circularity have picked up pace, and it isn’t slowing down in 2026. Manufacturers can expect to be met with an even more demanding regulatory and market environment. Businesses that see sustainability as a core operational priority will be the ones best placed to navigate this changing environment.
Matthew Ekholm bio:
As Digital Product Passport and Circularity Specialist at Provenant, Matthew is focused on helping businesses understand what DPPs can mean for their business, understanding and translating customer needs into value-adding solutions.
A former Director of Circular Services at a Multi-National Packaging company, and a former Operations Manager for Circular Economy Transformation, Matthew has years of experience helping companies develop new circular business models and unlock new opportunities through an increased focus on circularity.
