#Japan #Tokyo #Booost #Itochu #ESPR-T

Collaborative Effort for EU Compliance

Recently, Booost Inc., a Tokyo-based company known for its sustainability ERP, has joined forces with Itochu Fashion System to address the European Union's stringent environmental regulations affecting the textile and apparel industry through the launch of the ESPR-T project.

This initiative responds to the EU's Eco-Design Regulation for Sustainable Products (ESPR), which will go into effect in July 2024. The regulation necessitates that the textile and apparel sector comply with various environmental performance and traceability requirements, including the establishment of a Digital Product Passport (DPP). Products failing to meet these criteria may be banned from entering the EU market, thus making compliance a vital management issue for Japanese companies.

In light of the complexity of Japan's textile supply chain—which encompasses multiple parties involved in raw materials, fabric, dyeing, processing, sewing, logistics, branding, and retail—gaining and managing the extensive information required by the ESPR is too arduous for any single entity. Companies are therefore at a disadvantage when it comes to interpreting EU regulatory documents, creating data-sharing frameworks, and submitting opinions to European authorities, underscoring the need for a collaborative approach.

Why ESPR-T is Critical

The primary goal of ESPR-T is to support the textile and apparel sector across Japan in navigating EU environmental regulations as a collective industry initiative. Instead of competing against each other, the focus of this project is on collaborating in areas of mutual interest to reduce individual burdens and enhance the industry's overall capacity to adapt.

Moreover, ESPR-T aims to systematically organize the common challenges faced by Japanese companies, and may also involve drafting and submitting public comments to European authorities. By combining Itochu's established networks and expertise in the textile and apparel sector with Booost's capabilities in sustainability data management, the project seeks to provide comprehensive support from regulatory understanding to practical implementation and data utilization.

Roadmap of Activities

The project will unfold in three primary phases:

• - Phase 1 (Until October 2026): Understanding Regulations and Sharing Information

- Latest trends in ESPR and related textiles.
- Explanation of relevant reports.
- Analysis and preparation for DPP compliance.
- Organize required data disclosure items.
- Address regulations for unsold goods and recycling.
- Provide easy-to-understand expert information on compliance and certification processes.

• - Phase 2 (From September 2026): Data Integration Across Supply Chain

- Identify necessary data items and responsible parties among companies.
- Investigate data flow and process standardization suited for Japan's textile and apparel industry.
- Compile common issues faced by Japanese companies and promote public comments and joint proposals to European authorities.

• - Phase 3: Support for Practical Trials and DPP Implementation

- Conduct practical trials with real supply chains.
- Assist with DPP operations and integration with existing systems.
- Return insights gained to the industry to improve collective responsiveness.

Call for Participation

All interested businesses and organizations involved in the textile supply chain, such as fabric manufacturers, trading companies, OEM/ODM companies, processing, dyeing, sewing companies, and IT providers, are invited to become part of this groundbreaking initiative. It's important to note that ESPR-T does not establish a new legal entity; rather, it is operated by a dedicated joint secretariat consisting of Booost and Itochu.

Participation is based on the agreement with the project’s mission and requires submission of a participation commitment letter. The initial phase of participation is free of charge.

Comments from Leaders

Takaki Komatani, President of Itochu Fashion System
"Addressing European environmental regulations cannot be resolved by a single company within Japan's complex textile and apparel supply chain. To showcase Japan's exceptional manufacturing capabilities globally, we must shift from competitive efforts to a unified cooperation across the industry. Together with Booost, we aim to share information and facilitate implementation, creating an environment where Japanese enterprises can confidently navigate global markets and thrive sustainably."

Hiroshi Aoi, CEO of Booost
"Responding to ESPR and DPP should be viewed not merely as regulatory compliance costs but as opportunities to validate the value of Japanese manufacturing on the global stage. Our commitment to sustainability sales is grounded in Japan's unmatched quality. Yet, without appropriate data representation now becoming necessary, the time has come for collaborative efforts like ESPR-T, promoting collective industry evolution from regulations to implementation."

About the Companies

Itochu Fashion System Inc. is part of the Itochu Group, focusing on marketing, branding, business development, and promoting sustainability within the fashion and lifestyle domain. Its mission encompasses bolstering businesses by merging consumer and industry insights for value creation.

Booost Inc. specializes in visualizing sustainability information's financial impact, facilitating managerial decisions and capital distribution. The company emphasizes transforming non-financial sustainability data into essential operational metrics and fostering ongoing value by utilizing AI to enhance corporate governance.

Booost's stronghold lies in a broad coverage across diverse sectors, making it uniquely positioned to support companies in achieving greater sustainability while enhancing their international competitiveness and societal progress.