What is supply chain transparency software for ESG, and how smarter product data power it

What is supply chain transparency software?

Supply chain transparency software enables brands to track, verify, and report product-level data across suppliers, sourcing regions, and manufacturing tiers.

It provides tools to go beyond estimates and work with structured, auditable data. This type of software enables operational transparency for companies under pressure to meet ESG targets and comply with rapidly evolving regulations.

What does it do?

• Data aggregation: Pulls product data from suppliers, internal systems, third-party databases, and certifications into one usable source.
• End-to-end traceability: Follows materials, components, and finished goods from origin to shelf.
• Real-time visibility: Surfaces supply chain risks and ESG gaps when there’s still time to act.
• Compliance validation: Supports the documentation needed to pass audits, satisfy regulators, and prove ESG claims.

Without it, ESG reporting remains generic. With it, product claims become verifiable, supply chain gaps become manageable, and compliance becomes scalable.

Why does ESG visibility depend on product data?

ESG reporting isn’t just about emissions. It’s about products. Every material, component, packaging choice, logistics route, and disposal method leaves a data trail, which lives inside product information.

If product data is incomplete or spread across disconnected systems, ESG claims quickly fall apart. Brands can’t afford to rely on averages, estimates, or vague supplier disclosures. Regulators and stakeholders want data tied directly to what’s being sold.

Here’s why product data is essential for ESG visibility:

• It tracks what matters
  Source location, packaging types, transport methods, labor conditions—all live in product data fields.
  
• It connects sustainability to actual SKUs
  ESG reporting must reflect real products, not generic categories.
  
• It powers audit-ready documentation
  With traceable product data, teams can prove how each ESG claim was made.
  
• It drives better decisions
  With centralized data, teams can respond quickly when regulations change or risks emerge.

Sustainability isn’t just a brand value anymore. It’s a data challenge. And product information is the bridge between ESG ambition and measurable action.

Which ESG regulations are raising the stakes for brands?

Global ESG regulations are shifting fast, and brands that can’t back up their claims with data are falling behind.

Today’s regulations demand product-level disclosures backed by verifiable data. That means brands need more than supplier estimates or marketing claims. They need traceability, documentation, and control.

Here are just some of the major regulations driving urgency:

• CSRD (EU)
  The Corporate Sustainability Reporting Directive requires companies operating in the EU to provide detailed sustainability disclosures. That includes data on environmental impact, supply chain practices, and human rights, all tied to product-level reporting.
  
  
• SEC Climate Disclosure (US)
  The U.S. Securities and Exchange Commission now requires public companies to disclose climate-related risks and emissions data. Product design, sourcing, and logistics are all part of the equation.
  
  
• EPR (Global)
  Extended Producer Responsibility laws are expanding across markets. These rules hold brands accountable for what happens to their products after sale, especially packaging and materials.

What’s shifting is the burden of proof. Regulators are no longer accepting broad, estimated data from suppliers. Brands are responsible for the accuracy and completeness of their ESG disclosures.

To stay compliant, companies need:

• Accurate, up-to-date product data
• Traceability across all supply chain tiers
• Audit-ready documentation for every claim

Product transparency has become a requirement, and the cost of getting it wrong continues to rise.

How does traceability support supply chain transparency?

Traceability is the foundation of supply chain transparency. It enables brands to pinpoint the origin of a product, its manufacturing process, and the individuals involved, down to the material level.

For ESG reporting, that detail isn’t optional. It’s expected.

With traceability in place, brands can:

1. Track material origin
   Identify raw materials and map them back to certified or verified sources.
2. Monitor supplier tiers
   Gain visibility into Tier 1, Tier 2, and Tier 3 suppliers to uncover risks that typically stay hidden.
3. Measure lifecycle emissions
   Capture emissions across the entire supply chain, from sourcing to production, transport, and disposal, not just final outputs.
4. Prove responsible sourcing
   Align sourcing claims with certifications, documentation, and verified product data.

With traceability in place, ESG reports become verifiable records that can withstand audits, investor inquiries, and consumer expectations.

It also lets brands move faster. If a risk arises, such as a sanctioned supplier or banned material, teams can instantly trace its impact and respond before it disrupts business.

Transparency starts with traceable products. And traceability only works with accurate, structured data.

That’s exactly what Fluidra achieved when it centralized product information across 45 markets using Inriver. With better control and visibility, its teams now move faster, reduce risk, and support transparency at every step of the product lifecycle.

“We were manually creating each SKU in our previous databases because we didn’t have any connection with any ERP. PIM has allowed us to reduce manual maintenance by connecting with the different ERPs that we have in the company.

– Carolina de Rubertis Albarellos

PIM Product Owner at Fluidra

Read the full case study

What role do Digital Product Passports play in ESG reporting?

Driven by EU regulations, DPPs, or Digital Product Passports, are becoming a central requirement for ESG transparency.

These passports attach standardized, accessible data to every product, covering everything from material sourcing to recyclability.

But DPPs only work when powered by real product data, actual data tied to actual SKUs.

When built on structured, traceable information, DPPs can:

1. Provide product-level transparency

Each item receives its digital record, detailing its origin, manufacturing process, and recommended reuse or recycling methods.

2. Enable data portability

Information travels with the product, from supplier to shelf to end-of-life, supporting both compliance and circularity.

3. Ensure regulatory readiness

DPPs will be mandatory in the EU for key industries like textiles, electronics, furniture, and cosmetics. Brands without the data backbone to support them will be forced to catch up.

4. Strengthen consumer trust

DPPs provide customers with direct access to ESG data, thereby closing the gap between brand promises and product realities.

Building DPPs at scale requires connected systems and complete data visibility, especially when regulations change and new reporting fields emerge.

How are industries using DPPs to power ESG?

Digital product passports are already being adopted in industries where traceability and compliance aren’t optional. However, none of these efforts can succeed without reliable, structured product data at their core.

Here’s how different sectors are applying DPPs to turn complex ESG requirements into action:

Textiles

DPPs track fiber composition, material origins, and recyclability, key data points for meeting EU circular economy targets.

Electronics

From repairability scores to carbon impact, passports document what matters for compliance, right down to the component level.

Furniture

Brands utilize DPPs to document the sourcing of wood, chemical content, and end-of-life instructions, which are essential for sustainability reporting and customer transparency.

Footwear

Traceability of materials, durability data, and recyclability insights help verify claims and prepare for the expansion of EPR rules.

Cosmetics

Ingredient sourcing, safety records, and environmental disclosures are delivered in standardized formats, improving both compliance and customer trust.

Each of these applications turns product data into provable ESG outcomes. But building and managing DPPs at scale requires a centralized product data system with traceability baked in.

Looking to see how PIM supports DPPs in your industry? Explore how structured product data is driving circularity in the textiles, furniture, footwear, and cosmetics industries.

What should you look for in supply chain compliance tools?

Not every compliance tool is built for ESG. Many offer dashboards and alerts, but often fall short in terms of data accuracy, audit readiness, or product-level detail.

With regulations evolving rapidly, the right tools must do more than track; they need to verify, adapt, and integrate.

Look for compliance solutions that offer:

1. Data standardization

Automatically align data from suppliers, sourcing platforms, and internal teams into a single, usable format. Standardized data reduces the time spent cleaning spreadsheets and accelerates ESG reporting.

2. Integration with product information management systems

Compliance tools should connect directly with your product information management (PIM) platform. This ensures that ESG data is tied to actual products, rather than existing in isolation.

3. Audit-ready documentation

Every ESG claim should be supported by traceable, time-stamped data that meets the requirements of third-party or regulatory review.

4. Regulatory agility

Tools should adapt to shifting requirements, whether it’s CSRD, EPR, or DPPs, without lengthy reconfiguration.

5. Cross-team usability

Merchandisers, compliance leads, and sustainability teams all need access to the same data. The right tool supports collaboration and alignment.

How does smarter product data make ESG measurable?

Many ESG strategies fail because they rely on disconnected systems or high-level estimates that lack accuracy and precision. Without structured, connected product data, brands can’t prove progress or compliance.

Smarter product data changes that. When information is complete, standardized, and accessible across teams, ESG becomes measurable at scale.

When product data is structured and connected, brands can:

• Track impact at the SKU level: Measure emissions, sourcing, and recyclability for each product, not broad categories.
  
• Monitor performance in real-time: View ESG progress by product line, region, or supplier and act quickly when issues arise.
  
• Align with global regulations: Link product data directly to frameworks such as CSRD, EPR, and DPPs, reducing manual reporting time.
  
• Unify teams around the same data: Give merchandisers, compliance leads, and sustainability teams shared visibility and confidence.

Elevate sustainability with connected product data

To achieve absolute transparency, brands need more than supplier visibility or one-off audits; they need complete, connected product data from the start.

ESG performance, digital product passports, and regulatory compliance all rely on structured, traceable data tied to every product SKU.

Supply chain transparency software plays a vital role but relies on a solid product data foundation. That’s where PIM comes into play.

Inriver equips brands with the PIM capabilities to organize, enrich, and activate product data at scale.

With a centralized system, teams can move faster, confidently prove ESG claims, and build digital product passports without starting from scratch.

Regulations are evolving. Penalties are real.

But more innovative brands are already ahead, using PIM to align ESG goals with business growth and market agility.

If you’re ready to elevate your product data strategy, let’s discuss how Inriver can help.