Fabacus is making itself good and ready for major legislative changes heading towards the consumer products sector by teaming with the AI verification service, Compare Ethics to bolster its newly launched Digital Products Passport technology.

The integration of this technology will, Fabacus states, offer the retail and licensing industries ‘a full spectrum and trusted solution that verifies and authenticates all data claims’ that businesses will soon be required to make when incoming climate and human rights regulations finally land.

First presented at Brand Licensing Europe last when when Fabacus and Compare Ethics joined Products of Change for a dedicated panel session, the EU Commission will soon require that brand owners and their supply chains deliver environmental, social, and governance data sets through Digital Product Passports (DPPs) to validate their circular economy, decarbonisation, and climate credentials.

These DPPs will also be required to disclose a brand’s entire data journey and product provenance information.

‘The collaboration with Compare Ethics’ AI-powered compliance automation will bring Fabacus customers assurances in the accuracy and integrity of their supply chain data at scale,’ read a statement from the Fabacus team.

For many products sold in Europe and other key markets, directives like ‘ecodesign’; Directive 2009/125/EC’ and multiple others for non-compliance reporting on supply chains, are set to become obligatory. Companies that do not meet the rigorous standards may incur higher operational costs or financial penalties.

Sanctions could include taking noncompliant goods off the market and imposing penalties of up to 4% of worldwide revenues.

This comes alongside the UK Government’s Green Claims Code which is already being implemented to ensure companies are not greenwashing. Compare Ethics also provides data compliance here for Fabacus clients in line with CMA guidelines to ensure businesses with consumer-facing products are compliant with green marketing rules.

Compare Ethics already verifies data of leading retailers and assures all climate claims are verified at scale globally. This positions the new technology as ‘a unique game changer for sustainability reporting standards and wider retail ecosystem,’ says Fabacus.

Fabacus and Compare Ethics collaborated to launch Nobody’s Child DPP last month and to date the organisation has verified over 10,000 product SKUs with over 90,000 data points verified and 2 million compliant products for their clients.

Fabacus’ collaboration with Nobody’s Child to deliver a first-out-gate Digital Product Passport will be the subject of a special talk delivered by the teams at this year’s Sustainability in Licensing Conference. To learn more on the subject, tickets are available to purchase for the event, taking place on November 8 at the Royal Geographical Society in London, now.

Andrew Xeni, Fabacus founder and CEO, said: “I’m delighted we are collaborating with Compare Ethics and integrating their state-of-the-art AI verification and authentication services within our DPP platform.

“Regulators, investors, and customers are rightly demanding accurate environmental claims with open and sustainable ethical supply chain accountability. This is increasingly important for companies as more consumers consider the protection and preservation of our planet, influencing their purchase decisions.

“At Fabacus, we believe sustainable innovation is the lifeblood of next generation global brands committed to eco-friendly circularity and reducing carbon emissions. Our technology manages and collates data on climate and human rights compliance at scale for the commercial advancement of the retail and licensing industry.

“This partnership enables us at Fabacus to further future-proof brands, by providing them with the assurance that ESG claims are verified at scale. This signifies a game changer for brand owners, licensors, licensees, manufacturers, and wider partner ecosystems.”