EPD as a competitive parameter

For many material manufacturers, the investment is accompanied by significant considerations, due to documentations such as this being meant to give the manufacturer a competitive advantage in the market.

Commissioning an EPD demands a commitment of both time and resources, and it should be considered if the competitive advantage outweighs the costs. However, a rising demand in EPDs – especially abroad – indicates that the market is changing. In order to make the correct decision one should consider the manufacturers business model, which should answer the four following critical questions:

What do you offer your costumer?

How do you sell this?

How do you manufacture this?

How do you generate income from this?

 By using the business model as a decision-making tool, one can determine the specific parameters that a company can work with, in order for an EPD to give the desired advantages in the market.

The value of an EPD
The value generation for the costumer is essential, though judging by the current state of the market, the value of an EPD is highly dependent on the costumer. For buildings certified with DGNB – or another environmental certification – an increasing demand for materials with EPDs can be observed. For other buildings there is not yet as clear of a value for the costumer – as seen in certified buildings – but the general focus on sustainability is growing.

The value of an EPD for the manufacturer is also influenced by the sales channels, as products in general are sold directly to customers such as construction contractors or hardware stores, while the requests for EPDs can come from architects or consultants. It is therefore critical that manufacturers know how to navigate the value-chain and ensure that the documentation reaches the intended recipients.

An EPD can also influence the manufacture of the building component, as changes in the composition - or utilization - of the product can positively affect the EPD parameters, thereby positioning the manufacturer better compared to the competition. This ‘analysis’ – or product optimization – will in most cases be based on the EPDs underlying Lifecycle Assessment (LCA).