The Surprising Way Companies Can Shape Environmental Regulations

Article Highlights:

• Proactively engaging in reporting mandates and open comment periods enables businesses to prepare for upcoming requirements, leading to competitive advantages, cost savings, risk reduction, and long-term sustainability.
• Companies that actively participate in open comment periods can advocate for more realistic compliance requirements, identify unintended consequences, and help create regulations that balance environmental goals with operational practicality.
• Proactive participation in regulatory processes strengthens corporate credibility, and companies that engage in reporting mandates and comment periods demonstrate environmental responsibility to regulators, customers, investors, and the public.

Why Regulatory Engagement Matters More Than You Think

Environmental regulations play a crucial role in shaping business operations, especially for industries with complex supply chains, resource-intensive processes, or hazardous materials. These regulations are designed to minimize environmental impact, ensure responsible resource management, and promote sustainability. While compliance can sometimes feel burdensome, businesses that take a proactive approach can not only meet legal requirements but also gain strategic advantages.

One key way businesses can stay ahead is by participating in reporting mandates—formal requirements set by regulatory bodies that compel companies to disclose specific environmental data. These reports help governments and stakeholders assess industry impacts and track progress toward sustainability goals. While some mandates apply strictly to in-scope businesses, many also offer "optional" participation opportunities for those beyond the targeted requirements.

One key way businesses can stay ahead is by participating in reporting mandates—formal requirements set by regulatory bodies that compel companies to disclose specific environmental data.

Additionally, businesses can influence future regulations through open comment periods—designated time frames during which regulatory agencies seek public input on proposed rules before finalization. Engaging in these comment periods allows companies to voice concerns, suggest modifications, and advocate for feasible compliance strategies, ensuring that regulations are both effective and practical.

Proactively engaging in reporting mandates and open comment periods enables businesses to prepare for upcoming requirements, leading to competitive advantages, cost savings, risk reduction, and long-term sustainability.

Understanding Data Calls

Understanding data calls—whether through reporting mandates or open comment periods—is essential for businesses navigating the evolving landscape of environmental regulations.

Reporting Mandates

Reporting mandates require businesses to collect and submit detailed environmental impact data, including greenhouse gas emissions, energy and water usage, chemical management, and overall compliance efforts. These reports, often submitted to government agencies, industry bodies, or international organizations, help track industry-wide trends, assess environmental risks, and evaluate progress toward sustainability goals. The data informs regulatory decisions, helping authorities determine whether existing policies are effective or if updates are needed to address emerging environmental challenges. Non-compliance can result in penalties, reputational damage, or operational restrictions.

Current Reporting Mandates in North America:

• U.S. Toxic Substance Control Act (TSCA) Section 8(a)(7) PFAS Reporting: TSCA requires manufacturers and importers of per- and polyfluoroalkyl substances (PFAS) to report data on PFAS production, use, disposal, and exposure dating back to 2011. The rule aims to provide comprehensive data to support future regulatory decisions and risk management measures.
• Canadian Environmental Protection Act (CEPA) PFAS Reporting Rule: Canada’s PFAS reporting directive mandates that companies manufacturing or importing PFAS or PFAS-containing products above specific thresholds submit detailed reports on substance identity, quantities, uses, and environmental releases. This data helps the Canadian government assess PFAS-related risks and determine the need for further restrictions or phase-outs.

Open Comment Periods

Open comment periods provide businesses and other stakeholders with an opportunity to shape regulations before they are finalized. Regulatory agencies publish proposed rules and invite feedback from the public, including industry representatives, environmental groups, and affected communities. This ensures that multiple perspectives—such as technical feasibility, economic impacts, and industry-specific challenges—are considered before implementation. Companies that actively participate in open comment periods can advocate for more realistic compliance requirements, identify unintended consequences, and help create regulations that balance environmental goals with operational practicality.

Open comment periods provide businesses and other stakeholders with an opportunity to shape regulations before they are finalized.

Examples of Open Comments Periods:

• European Chemicals Agency (ECHA) REACH Candidate List Additions: ECHA regularly holds comment periods for proposed additions to the EU REACH Candidate List of Substances of Very High Concern (SVHCs). Companies that manufacture, import, or use these substances can provide input on the availability of safer alternatives, potential supply chain disruptions, and technical feasibility. Industry feedback has led to refinements in regulatory approaches, including extended compliance timelines or exemptions for specific applications within the restriction list.
• EU PFAS Ban Proposal (Under REACH): This proposed PFAS ban underwent a public consultation period that permitted businesses, industry groups, and scientific experts to provide feedback on the feasibility and economic impact of restricting PFAS use across multiple industries. Many companies highlighted concerns about the lack of viable alternatives in critical applications such as medical devices, semiconductors, and renewable energy technologies. As a result, regulators are considering exemptions and extended transition periods for certain industries.

By participating in both reporting mandates and open comment periods, businesses can position themselves as proactive industry leaders, influence policy decisions, and better prepare for regulatory changes. This proactive approach enhances compliance, mitigates financial and operational risks, fosters innovation, and strengthens long-term sustainability strategies.

Benefits of Regulatory Participation

Early engagement in regulatory discussions provides businesses with a valuable opportunity to shape policies before they are finalized. Regulatory bodies rely on industry data to develop practical, effective rules. Companies that actively participate in data calls can provide real-world insights that prevent impractical mandates, unnecessary burdens, or unintended consequences. Instead of being caught off guard by new rules, businesses that contribute to the regulatory process can influence outcomes that align environmental protection with operational feasibility.

By submitting comments and sharing industry-specific data, companies ensure that sector-specific challenges are acknowledged. One-size-fits-all regulations may not account for differences between industries, supply chain structures, or technological constraints. For example, industries relying on specialized materials may face significant compliance barriers not immediately evident to regulators. Proactively engaging in comment periods allows businesses to advocate for exemptions, reasonable transition timelines, or alternative compliance pathways that align with their operational realities.

Staying ahead of regulatory changes can also serve as a competitive advantage. Early awareness of potential restrictions enables companies to invest in research and development, explore innovative materials or processes, and implement sustainability strategies before mandates take effect. Rather than scrambling to react when new rules are enforced, businesses that anticipate regulatory trends can position themselves as industry leaders, gaining a market edge through forward-thinking environmental stewardship.

Proactive participation in regulatory processes strengthens corporate credibility. Companies that engage in reporting mandates and comment periods demonstrate environmental responsibility to regulators, customers, investors, and the public. This transparency fosters trust and enhances brand reputation, making businesses more attractive to sustainability-conscious consumers and investors. Additionally, building positive relationships with regulatory agencies can lead to more constructive dialogues, where businesses are seen as partners in achieving environmental goals rather than as obstacles to compliance.

Environmental regulations also have significant implications for supply chains. Engaging in reporting mandates and open comment periods helps businesses assess risks related to material sourcing, supplier compliance, and the long-term availability of key components. For instance, if a critical raw material faces potential restrictions, early awareness allows companies to evaluate alternatives, secure reliable suppliers, or adjust product designs in advance. Staying informed about proposed regulations enables strategic decisions that mitigate supply chain disruptions and ensure business continuity.

Engaging in reporting mandates and open comment periods helps businesses assess risks related to material sourcing, supplier compliance, and the long-term availability of key components.

Ultimately, active participation in regulatory data calls can position businesses as proactive, responsible, and adaptable. Those that engage early and consistently are better prepared for compliance; more thoroughly equipped to innovate when circumstances call for it; and able to portray themselves as sustainability leaders in their industries. 

How to Participate in Reporting and Comments Periods

To ensure meaningful participation in regulatory data calls, businesses should establish a proactive approach to tracking and responding to proposed environmental regulations:

1. Monitor Regulatory Developments
   
   • Use government websites, industry associations, regulatory bulletins, and legal advisories.
   • Subscribe to newsletters, attend regulatory briefings, and leverage compliance management software.
2. Engage with Industry Associations
   
   • Collaborate with trade organizations to present a unified industry perspective.
   • Utilize association resources for comment submissions and regulatory advocacy.
3. Submit Well-Researched Feedback
   
   • Provide data-driven, constructive insights rather than generic objections.
   • Include quantitative analysis, case studies, and alternative compliance suggestions.
4. Maintain Accurate Environmental Records
   
   • Track emissions, resource consumption, hazardous material usage, and sustainability initiatives.
   • Use internal data to support regulatory discussions and best practices.
5. Assign Regulatory Engagement Roles
   
   • Designate environmental compliance officers, legal teams, or sustainability managers.
   • Consider external consultants or legal advisors for additional expertise.

By engaging in these best practices, businesses can effectively influence environmental policies, while still positioning themselves as responsible and engaged stakeholders.

Strategically Shape Regulations

Rather than viewing environmental regulations as a burden, businesses should see reporting mandates and open comment periods as strategic opportunities. By actively engaging in these processes, companies can shape policies, reduce compliance risks, and position themselves as industry leaders in sustainability. Proactive participation not only benefits individual businesses but also helps create more effective, balanced, and innovation-friendly environmental regulations that drive long-term growth.

Rather than viewing environmental regulations as a burden, businesses should see reporting mandates and open comment periods as strategic opportunities.

Businesses that want to enhance their awareness and expertise around major worldwide regulations can benefit from the compliance functionalities offered by a supply chain risk management (SCRM) tool like Z2Data. The Z2Data platform helps companies keep track of key directives like REACH, RoHS, TSCA, and the UFLPA, and provides organizations with full visibility into the compliance of their products and parts. To learn more about Z2Data and how its tools can help you increase your regulatory proficiency, schedule a free demo with one of our product experts.