Cost cuts don't have to mean sacrifice. Three levers—cost-out, carbon-out, inventory-out—can create value. EU and California regulations on disposal, product labeling, and chemical restrictions force supply chains to invest in transparency and traceability, which become competitive advantages.
Thinking, for example, about any cost reduction could be an opportunity creation. So we're all— it's always going to be cost out. It is going to be carbon out. It's going to be inventory out. The cost of disposal of obsolete inventory in the EU and in California is going to change significantly. How do we think about ESPR, for example, and product-level labeling? And so if you're trying to market to a particular subset of consumers that has this type of desires and needs, well, where is the providence? Where is the data? What's the substantiation? That's going to come from your supply chain. Let alone, let's think about where REACH goes and chemicals of high concern and the rest of it. So some degree, all of those risk reductions are actually investments in traceability and transparency.
