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ESPR (or European Digital Product Passport) is not the only regulation designed to transform product lifecycle management and promote sustainability in the EU market. In France, AGEC is another effort to transform the linear economy, “produce, consume, discard”, into a circular economy.
For brand executives and decision-makers, understanding and complying with this law is crucial for legal adherence and leveraging brand trust. Here’s an in-depth guide tailored for you.
What is the AGEC Law?
The AGEC Law, officially known as the Anti-Waste for a Circular Economy Act, is a French regulation that went into effect on Jan 1st 2023. It aims to reduce waste, promote recycling, and transition to a circular economy.
Who is impacted?
This decree impacts any entity producing or placing products on the French market and applies to all new consumer goods (except second-hand products).
Manufacturers and Producers: Manufacturers are required to design products with durability, repairability, and recyclability in mind. They must also provide consumers with information on product lifespan, repairability scores, and instructions for proper disposal.
Importers: Importers must ensure that products brought into the French market comply with AGEC regulations. This includes adherence to eco-design principles and proper labeling.
Distributors and Retailers: Distributors and retailers are responsible for ensuring that the products they sell comply with AGEC requirements. They must provide consumers with accurate product information and facilitate take-back schemes for end-of-life products.
Consumers: Consumers are encouraged to participate in recycling programs and make informed choices based on product longevity and environmental impact. The AGEC Law empowers consumers with information to drive demand for sustainable products.
When Does It Apply?
The AGEC Law's requirements have been progressively implemented since January 1, 2023, with further specifications like the durability index for electronic products coming into effect on January 1, 2024.
Timeline
Companies were required to follow AGEC requirements based on their annual turnover and volume of products sold within France.
- Jan 1, 2023: >50M€ turnover, >25,000 units
- Jan 1, 2024: >20M€ turnover >10,000 units
- Jan 1, 2025: >10M€ turnover >10,000 units
Scope
- All new products that generate waste. Reconditioned or second-hand products are exempt.
- Some have additional obligations (textile in particular).
- For electrical and electronic equipment, information obligation includes the reparability index (already required) and the durability index as from January 1st 2024. (lien)
Key Principles and Requirements
The law mandates comprehensive consumer information obligations regarding the environmental characteristics of waste-generating products throughout their lifecycle.
Environmental Characteristics Disclosure
Brands must inform consumers about the environmental characteristics of their products, including details on provenance and materials.
Product Sheet Accessibility
This information must be compiled into an aggregated "product sheet" accessible free of charge on the brand’s website at the time of purchase. The product sheet must be in dematerialized form, and public authorities will ensure that the formats used are reusable, exploitable, and automatically aggregable. "Accessible" means the information must be easily accessible on the producer’s website, not necessarily visible in a physical store or online.
Data Availability and Language
All data must be provided in French and remain publicly available for two years after the product's last unit is brought to market.
Prohibited Environmental Claims
Brands are prohibited from using certain environmental claims in association with their products. Terms such as "environmentally friendly" (écologique), "eco" (éco), "green" (verte), and "sustainable" (durable) are not permitted on product pages or packaging.
Type of Information
Depending on the product category, the information required includes:
- Incorporation of recycled material
- Use of renewable resources
- Durability
- Compostability
- Reparability
- Reusability
- Recyclability
- Presence of hazardous substances, precious metals, or rare earths
For example:
For textiles and footwear, the AGEC Law requires detailed information on:
- Recycled Content: Percentage of recycled materials used.
- Recyclability: Potential for the product to be recycled.
- Hazardous Substances: Presence of any hazardous chemicals.
- Microplastics: Percentage of synthetic fibers and their environmental impact.
- Product Traceability: Information on the product's origin and supply chain.
Specific requirements for electrical and electronic equipment include:
- Reparability Index: A score indicating how easy it is to repair the product.
- Durability Index: Starting January 1, 2024, a score indicating the product’s expected lifespan.
- Recycled Content: Use of recycled materials in the product.
- Hazardous Substances: Presence of hazardous substances.
- Recyclability: Information on the product's recyclability.
Sanctions
- Non-compliance can result in administrative fines of up to 15,000 euros.
- Misleading environmental claims can lead to criminal fines of up to 10% of the company’s average annual turnover or 80% of the expenses incurred for the misleading practice.
Solutions
A product sheet, according to regulatory requirements, is persistent data about a product, detailing all its specificities and the manufacturing process.
For brands aiming to go beyond mere compliance and unlock additional value, this product sheet can be transformed into a digital passport. This digital passport serves as a new touchpoint to engage users in a contextualized and valuable way, offering services and utility built around the product experience.
The best Digital Passport infrastructure combines both cloud-based and blockchain-based solutions. The infrastructure will be composed of several layers:
1. Physical Access: Utilizing QR codes and NFC tags, this component will be integrated into the product throughout its lifecycle, providing access to the passport content.
2. Cloud-based, brand-owned data: This layer involves consolidating product data from your PLM, ERP, PIM, performing impact calculations, ensuring compliance with various regulatory frameworks, and managing the publication of product pages.
3. Blockchain-based, customer-owned data: Blockchain technology is used to create an immutable record of the product’s ownership and maintenance history. Passport data is stored in an NFT on a public blockchain, confirming product authenticity and ownership, and supporting resale. The passport operates within an open, interoperable ecosystem, enabling access to additional services such as insurance or repair. Users can store their tokenized passport in a digital wallet.
This multi-layered approach allows users, regulators, and resellers to access information about the product and its history at any point during its lifecycle.
Arianee for AGEC compliance and beyond
- NFT Management Platform (Passport Management Platform): Aggregate data, tokenize products, distributing passports, communicating with your holders, and extracting campaign insights
- Dynamic Product Page: From a simple link or QR code, users are directed to a dynamic web app where they can visualize the digital product passport, read product transparency details and act on the passport before collecting it. Ensuring compliance with regulation requirements.
- Embedded Wallets: Allow users to collect the digital product passport seamlessly and conveniently manage it in a digital wallet embedded in their client account or in a decentralized app.
Conclusion
The AGEC Law represents a significant shift towards sustainable production and consumption in France. For brand executives and decision-makers, embracing this regulation is not just about compliance but also about opening new business opportunities. Ready to streamline your AGEC compliance management?
Talk to us at https://www.arianee.com/book-a-demo
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