Compliance for Garment Factories
EU buyers under CSRD/CBAM requirements increasingly require operation-level traceability and digital production records from supplier factories. Scan ERP provides the data infrastructure to meet these requirements.
Key Compliance Areas
Digital Product Passport (DPP)
EU regulation requiring digital product information for textiles by 2027.
- Digital Product Passport for Garment Factories
- What it requires: Material composition, country of origin, recyclability, repair info
- How Scan ERP helps: Bundle-level traceability captures origin data automatically
CSRD (Corporate Sustainability Reporting Directive)
EU regulation requiring detailed sustainability disclosures from large companies and their suppliers.
- CSRD Garment Factory Reporting
- Affects EU buyers’ tier-1 suppliers
- Scan ERP captures: Production records, energy use proxies, worker count
CBAM (Carbon Border Adjustment Mechanism)
EU carbon import tariff phasing in 2026-2034.
- CBAM Garment Factory Guide
- Requires: Embedded carbon reporting per shipment
- Scan ERP integration: Per-bundle carbon footprint estimates
Carbon Footprint Tracking
Scope 1, 2, and 3 emissions tracking adapted for garment factories.
- Garment Factory Carbon Footprint Tracking
- Energy consumption data
- Material flow tracking
- Transport emissions
Why This Matters
Buyers like H&M, Zara, M&S, and Walmart have started requiring digital production records as a condition for new orders. Factories without traceability infrastructure lose tier-1 buyer relationships within 12-24 months.