Getting the right data on supply chain performance can be complicated. Can DPI offer a new, collective approach to tackle the challenges?

With the emergence of due diligence regulations, sustainability reporting and disclosure obligations, supply chain performance data is increasingly complex. 

Different regulations require different datasets, in different formats. Solving these challenges is inefficient for individual companies or individual sustainability systems.  

DPI can address these challenges collectively, through an ecosystem approach to data interoperability and sharing. 

Similar to how physical infrastructure enables economic activity, DPI establishes digital foundations for sustainability data that enable digital identity verification, efficient payment networks, and secure data exchanges. 

This integrated approach has the potential to streamline many of the complex due diligence processes that currently burden businesses. For example, coffee importers conducting multiple audits or apparel brands tracking paper certificates across global supply chains might find DPI systems offer more efficient solutions. 

DPI emphasises collaborative data management across stakeholders—a methodology particularly relevant as businesses adapt to regulations like the EU Deforestation Regulation (EUDR).

Businesses and DPI; the path to alignment

To align with DPI, businesses can:

1. Align definitions and standards – Ensure internal sustainability metrics (e.g., deforestation cut-off dates) comply with regulatory requirements, updating due diligence processes accordingly.
    
2. Adopt interoperable data models – Integrate recognised data standards (e.g., WSG84 for geolocation) to enable seamless data exchange with government systems and supply chain partners.
    
3. Leverage existing DPI tools – Utilise centralised platforms like the EU’s Due Diligence Registry or the International Trade Centre’s Deforestation-Free Trade Gateway to streamline reporting and avoid redundant data collection.
    
4. Foster collaboration – Share verified supply chain data (with consent) with national or sectoral DPIs, improving transparency while reducing compliance costs.

By embracing these steps, businesses can transition from isolated compliance efforts to active participation in digital ecosystems - enhancing efficiency, ensuring regulatory alignment, and strengthening sustainability outcomes. 

This shift positions them to thrive in an increasingly interconnected and regulated data landscape.

Sustainability systems in the DPI landscape

Credible sustainability systems are well-positioned to contribute to the development of DPI. Their expertise in multi-stakeholder governance aligns with the ecosystem approach’s emphasis on collaborative frameworks.  

The ISEAL primer specifically notes how such cooperation can address fragmentation in sustainability data: a challenge particularly evident in origin traceability requirements for regulations like EUDR.

“DPI offers a transformative approach to sustainability challenges—enabling businesses to move from fragmented compliance efforts to collaborative, data-driven solutions,” said Patrick Mallet, ISEAL Director, Credibility and Innovations. 

“The ISEAL Primer underscores how DPI can address critical gaps in supply chain transparency, particularly for regulations like EUDR. This isn’t just about compliance; it’s about building a digital foundation for sustainable trade that benefits all stakeholders.”

Involvement of sustainability systems could also help to ensure DPI solutions remain accessible to small-scale producers, small and medium enterprises and marginalised communities, a key consideration for realising equitable implementation of regulations such as EUDR.  

Implementation pathways

For sustainability systems to participate actively in DPI, there are several practical considerations:

1. Alignment with existing frameworks
2. Gradual integration
3. Cross-sector collaboration

The ISEAL primer suggests building from current systems rather than creating entirely new ones.  This might involve mapping DPI capabilities to specific regulatory requirements or certification standards.

Early-stage pilots could test integrations between certification systems and national DPI components, following the primer’s recommendation for phased implementation.

Successful ecosystem development typically requires coordination between businesses, standards organisations and technology providers.

Emerging opportunities

DPI builds on the concept of an ecosystem approach, where stakeholders come together to map, share and use data effectively, across organisations and systems.  

DPI is the foundation upon which data can flow and generate value more easily. This approach is increasingly important in today’s data-driven world, where organisations and individuals rely on data to innovate, make decisions, and solve complex problems.

As DPI initiatives evolve, they present opportunities for businesses and sustainability systems to enhance both compliance efficiency and sustainability impact, particularly when implemented through collaborative frameworks that address the needs of all stakeholders.  

To find out more, read ISEAL’s Ecosystem Approach primer.