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Regulatory pressure is increasing – data exchange becomes a critical cost factor

Date

November 2026

With the upcoming implementation of Digital Product Passports (DPPs) under the Ecodesign for Sustainable Products Regulation (ESPR), as well as additional regulations covering areas such as batteries, detergents, furniture, mattresses and tyres, the volume and complexity of data exchanged across value chains is increasing significantly.

The chemical industry already manages large volumes of mandatory safety, compliance and material declaration data. As regulatory requirements continue to expand, companies face growing effort and costs associated with collecting, managing and exchanging regulatory information. Efficient and scalable data exchange is therefore becoming a critical success factor.

Against this backdrop, two independent value assessments, one conducted within the Chem‑X consortium and one by Porsche Consulting, analyze the economic and strategic impact of Chem‑X. Despite contrasting methodological approaches, both studies arrive at consistent conclusions: Chem‑X enables substantial recurring value creation for the chemical industry, with an overall productivity potential of approximately €1.2–2.4 billion per year (Chem‑X assessment), complemented by additional industry‑wide efficiency gains of around €1 billion annually and further revenue potential (Porsche Consulting study).
Value assessment conducted by Porsche Consulting: https://www.porsche-consulting.com/de/de/artikel/wie-chem-x-die-chemieindustrie-digital-vernetzt

This convergence of perspectives provides a robust and validated basis for assessing the impact of Chem‑X, indicating that the initiative addresses systemic inefficiencies and unlocks measurable economic value across company, industry, and cross‑industry levels.

Current baseline: structural inefficiencies in data exchange

Today’s data exchange within the chemical industry remains largely manual, fragmented, and document-based. Companies rely on PDFs, spreadsheets, and emails to exchange information such as safety data sheets or sustainability data. This leads to repeated data entry, long processing times, and human effort for low-value tasks such as formatting, validation, and reconciliation.

Across approximately 30,000 companies, this ties up an estimated 1-3% of the industry’s ~1.2 million full-time employees, resulting in annual costs of approximately €1-3 billion. With the introduction of DPPs, additional manual data handling could generate a further €2-4 billion per year in industry-wide costs if no automation is implemented.

This is consistent with broader industry findings. According to Cefic, regulatory compliance costs for the European chemical industry could reach approximately €9 billion annually, underlining the growing economic importance of efficient and scalable regulatory data exchange solutions: https://ecomundo.eu/en/blog/regulatory-costs-european-chemical-industry

Chem‑X approach: standardized and automated data exchange

Chem‑X aims to establish a data ecosystem enabling standardized, secure, and automated exchange of material data across company boundaries.

This provides a foundation for potential long-term benefits in compliance processes, data transparency, and data-driven decision-making.

The focus is on delivering value on company level, industry level and cross-industry level. These dimensions also form the basis for both value assessments.

Chem-X is designed to deliver value across the entire chemical ecosystem. Unlike many company-specific digital solutions, Chem‑X is designed to be accessible to organizations of all sizes. Standardized interfaces and shared data models can help both large enterprises and small and medium-sized businesses reduce compliance effort, lower integration costs, and more efficient data exchange processes.

The value generated by Chem-X is not limited to consortium members. Standardized data exchange can create benefits across entire value chains, including suppliers and customers that interact with participating companies.

Quantified economic impact

The combined analysis identifies a substantial economic potential:

  • €1-2 billion per year avoided costs from non-productive DPP-related data handling
  • ~20% efficiency gains on current expenditure (€1-3 billion annually)
  • Total productivity potential: €1.2-2.4 billion per year

On a broader industry level, the assessment from Porsche Consulting indicates:

  • Approximately €1 billion annual efficiency gains
  • Approximately €150 million additional revenue potential per year

These figures represent recurring effects and exceed estimated implementation and operational costs multiple times.

From regulatory obligation to value lever

While regulatory requirements such as Product Carbon Footprints, Digital Product Passports and extended sustainability disclosures are often the starting point, the value potential of Chem-X extends beyond compliance. The Porsche Consulting assessment identifies nine value dimensions across company, industry and cross-industry levels, covering efficiency, risk and compliance, growth potential, structural inefficiencies, economies of scale, harmonized compliance, interoperability, new markets and sustainability. By enabling standardized and trusted data exchange, Chem-X can therefore support not only more efficient compliance processes, but also cross-industry collaboration and new data-enabled, circular and sustainable business models.

Methodological Approach and Data Basis

The results of both assessments are based on a structured and multi-source analytical approach. The study conducted by Porsche Consulting combines qualitative and quantitative inputs, including more than 25 expert interviews and a survey across 14 companies from the chemical and adjacent industries. These inputs were complemented by subsequent analyses and validation through dedicated governance bodies.

The internal Chem‑X assessment complements this approach through expert interviews, industry benchmarks and scenario-based modelling focused on future regulatory data exchange requirements.

Across both studies, value potentials were systematically derived along defined value dimensions (efficiency, risk and compliance, and growth), and assessed at three levels: individual company, industry, and cross-industry ecosystem.

Conclusion

Both value assessments arrive at a consistent conclusion: Chem‑X addresses a structural challenge that is expected to become increasingly relevant as regulatory requirements and data-exchange obligations continue to grow.

By enabling standardized, secure, and automated data exchange across company boundaries, Chem‑X has the potential to significantly reduce manual effort, improve data quality, and increase process efficiency throughout the chemical value chain. The analyses indicate annual productivity gains of approximately €1.2-2.4 billion, complemented by additional industry-wide efficiency and revenue potential.

Beyond cost savings, Chem-X contributes to greater interoperability across industries by establishing shared standards and reusable data structures. This reduces integration complexity, supports regulatory compliance, and creates a scalable foundation for future digital business models. Chem-X can therefore create value beyond compliance and efficiency by enabling cross-industry collaboration, new markets, and data-enabled circular and sustainable business models.

Taken together, the findings from both assessments provide robust evidence that Chem-X can generate measurable value at company, industry, and cross-industry level while helping organizations prepare for an increasingly data-driven and regulated environment.