What is data minimization, and why is it relevant in the EPD Pilot?

• A. Collect as much data as possible for future analyses.
• B. Collect data from external sources only.
• C. Collect only necessary data to reduce risk, protect privacy, and simplify compliance.
• D. Avoid data collection entirely.

Answer: (C)

Data minimization is about gathering only the information that is truly needed to accomplish a clearly defined purpose. In the EPD Pilot, the goal is to accurately assess and report environmental performance while keeping privacy and governance manageable. So you collect just the data essential to calculate the environmental indicators and support validation, and you avoid collecting anything that doesn’t influence the outcome.

This approach reduces privacy risk because there’s less personal or sensitive data stored or transmitted, lowers the chance of data breaches, and makes compliance tasks—like data retention, consent, and sharing requirements—simpler. It also helps data quality and efficiency: fewer variables mean easier data cleaning and more reliable results. For example, you’d gather the necessary inputs such as material quantities, energy use, and emissions factors, but you wouldn’t collect unrelated details like personal contact information or marketing data unless they’re directly needed for the assessment.

Choosing data minimization supports the pilot by aligning data collection with a stated purpose, limiting risk, and streamlining compliance, while still delivering the essential environmental insights.