The Procurement Playbook for Environmental Compliance

Estimated reading time: 4 minutes, 45 seconds

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Published May 29, 2025

Just one missing compliance certificate can result in weeks of shipping delays, expensive redesigns, and even a halt in production. This reality can change the role of procurement professionals today.

Procurement professionals aren’t just buyers. They’re the gatekeepers of all regulations and must ensure that every sourced component complies fully with the plethora of existing guidelines. The broad set of regulations can seem endless since electronic components are subject to so many layers of compliance, including the following:

• Safety and electrical standards (e.g., UL, CE, FCC Part 15) that ensure products meet safety and electromagnetic compatibility requirements.
• Industry-specific certifications (e.g., AEC for automotive, MIL-STD for aerospace) that focus on performance and durability.
• Trade and sourcing regulations (e.g., ECCN, HTS codes, conflict minerals) that control material sourcing and export control.
• Environmental and sustainability regulations that ensure compliance with hazardous substance restrictions, chemical safety, and responsible disposal practices.

While procurement professionals must interact with safety and performance regulations, those are often addressed at the design stage. Conversely, environmental regulations play a direct role in the initial phases of procurement, impacting component selection and supplier engagement.

Environmental and Sustainability Regulations You Need to Know

The regulatory responsibility falls on procurement professionals, who must ensure that components meet legal requirements, align with corporate sustainability initiatives, minimize penalty risks associated with non-compliance, and enhance product value with environmentally friendly components.

Here, we’ll look at some of the most common and crucial regulations to help you navigate the waters.

Restriction of Hazardous Substances (RoHS)

RoHS is an environmental regulation that restricts the use of hazardous materials such as lead, mercury, cadmium, and hexavalent chromium in electronic components.

Buyers typically encounter RoHS when reviewing supplier documentation or filtering components on distributor platforms or procurement systems for RoHS-compliant products. To ensure compliance, you’ll need to obtain a certificate of compliance from suppliers. If components are discovered to be non-compliant during regulatory audits or customer inspections, it can lead to customs delays, fines, or redesigns.

Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH)

This regulation governs electronic components’ chemical safety, focusing on substances of very high concern (SVHCs). While REACH is a European Union (EU) regulation, it can still affect companies in the US and globally.

Procurement professionals typically encounter REACH requirements in suppliers’ material declarations (MDs), which list any regulated chemicals present in components. Buyers should verify compliance, especially for materials like semiconductors, connectors, and passive components, by reviewing supplier-provided MDs and ensuring those products meet SVHC limits.

Non-compliance with this regulation could result in products being banned from the EU market, as well as customer rejections and supply chain disruptions.

California Proposition 65

California Proposition 65 requires that warning labels be on products that contain chemicals known to cause cancer, congenital disorders, or reproductive harm.

To ensure compliance, procurement teams must identify if listed chemicals are present in components and request documentation, such as Material Safety Data Sheets (MSDS). It’s important to work with suppliers who have clear Proposition 65 labeling and disclosures to avoid penalties and disputes.

Waste Electrical and Electronic Equipment Directive (WEEE)

The WEEE Directive is another EU regulation that affects electronics development and purchasing in the US. It lists the requirements for the disposal and recycling of electronic waste. Compliance is usually managed by sustainability or compliance teams, but procurement may still play a significant role.

First, you should check that suppliers offer WEEE compliance documents and participate in recycling programs. It may be helpful to prioritize suppliers with sustainable packaging initiatives and clear end-of-life recycling policies.

Procurement teams may include WEEE compliance clauses in supplier contracts to support EU standards for components embedded in consumer or industrial electronics.

Toxic Substances Control Act (TSCA)

TSCA is a regulation that restricts the use of toxic chemicals in manufacturing. This includes certain flame retardants and industrial solvents. It is essential to obtain documentation from suppliers confirming TSCA compliance and ensure that restricted substances are not present in components such as coatings, circuit boards, and semiconductors.

By confirming compliance ahead of time, you prevent legal issues and help ward off supply chain disruptions.

PFAS Restrictions

Perfluoroalkyl and polyfluoroalkyl substances (PFAS), also known as “forever chemicals,” are becoming more restricted in places like California and the EU. These synthetic compounds are used for their durability and resistance to heat, water, and oil and are, therefore, commonly found in coatings, wire insulations, adhesives, and industrial applications.

However, they have become heavily regulated because they are linked to health and reproductive issues.

Procurement teams should request an MSDS from suppliers to confirm that components are PFAS-free. When sourcing wire insulation, connectors, or adhesives, buyers should select suppliers offering PFAS-free alternatives to stay ahead of regulatory bans and meet sustainability goals.

Environmental Product Declarations (EPD)

EPDs are reports that provide clear and standardized information about a product’s environmental impact, like energy use, emissions, and resource consumption.

You can use EPDs to compare different components based on environmental footprints. It may also be helpful to work with suppliers that provide life cycle assessments (LCA), which show a product’s total impact from production to disposal. Reviewing EPDs during sourcing helps meet company sustainability goals and respond to customer requests for eco-friendly products.

Your Role in Compliance

Compliance is not just a procedural task. It’s a safeguard against penalties, fines, delays, and disruptions. You are not just buying components but also defending regulatory adherence to make sure every sourced component meets the standards.

Safety and performance standards are also critical and should be addressed, but first, understanding the environmental regulations will help prioritize sustainability and reduce serious risks.

Effective procurement practices protect your business from compliance failures and position it for long-term success.