Introduction
Digital Product Passports (DPPs) are digital tools that track a product’s entire lifecycle, recording key data like raw material sourcing, manufacturing processes, and sustainability metrics. This data is obtained from the different peers across the supply chain, with the goal of supporting businesses and consumers to make environmentally responsible decisions. Blockchain technology will be a crucial tool for DPPs to ensure secure, traceable data, making it easy to access vital information and increase transparency.
The concept of lifecycle tracking has been introduced previously. DPPs take it further and focus on user accessibility and driving value for both businesses and consumers, being positioned as pivotal tools in building a circular economy.
The European Union is taking serious momentum on this matter, and through various legislative actions, has identified industries like batteries, vehicles, plastics, electronics, chemicals, and of course, textiles, as the first to adopt DPPs by the late 2020s. Under this roadmap, DPPs will become crucial in tracking the sustainability of products and ensuring companies comply with EU environmental regulations.
In this article we will walk you through different pressure points, such as the current implementation status of the DPP, the different pressure points, what is the legislative landscape of the different sectors and how will the DPP will look like.
How the EU is Driving DPP Adoption
DPPs are being pushed into action by the European Green Deal (EGD) and the Circular Economy Action Plan (CEAP), and are well overpassed the common trend.
These initiatives aim to make Europe climate-neutral by 2050 and push for reduced waste and improved sustainability, and Digital Product Passports are central to achieving these goals.
Several keys directives have been introduced by the European Union aimed at fostering sustainability and transparency, with Digital Product Passports (DPPs) playing a central role:
Ecodesign for Sustainable Products Regulation (ESPR): Implemented on 18th July 2024, this regulation promotes circularity by improving the sustainability of products. It sets benchmarks for durability, resource efficiency, and energy use. DPPs help capture and share this data, giving stakeholders a detailed breakdown of a product’s environmental performance.
EU Green Claims Directive: Came into action on 12th March 2024 in response to growing concerns about greenwashing. The goal of the EU Green Claims Directive is to ensure that environmental claims made by companies about their products and services are verifiable, accurate, and transparent. DPPs offer a reliable method for companies to validate their claims by providing clear, traceable sustainability data that consumers can easily access. This proposal allows consumers to stay protected from misleading information and encourages businesses to adopt greener practices.
Corporate Sustainability Reporting Directive (CSRD): As of January 2024, large companies and listed firms are required to report on their environmental, social, and governance (ESG) impacts. This regulation covers companies that meet at least two of the following criteria: 250+ employees, a turnover of €40 million or more, or total assets of at least €20 million. Through DPPs, companies can document and share their sustainability practices, which helps contribute to a greener economy by holding businesses accountable.
EU Strategy for Sustainable and Circular Textiles: This regulation was implemented in March 2022 to target the circularity of textiles, aiming to enhance the durability and recyclability of textiles found not only in clothing but also in buildings and vehicles, not neglecting the full sector. Using DPPs provides consumers means to verify the sustainability claims made by companies, in a way that fosters trust and transparency. The overarching goal is to promote sustainable fabric materials, provide a clear holistic view from the source and value chain, while reducing waste.
Construction Products Regulation (CPR): In the implementation stage since March 2022, this is a key regulation focusing on construction materials across Europe, CPR ensures safety and environmental sustainability. It mandates that construction products meet certain environmental and safety criteria, with DPPs providing the framework for tracking and sharing compliance information.
Other relevant directives include:
EU Battery Regulation: Currently in the proposal stage since December 2020, this regulation aims to enhance the sustainability and safety of batteries used within the EU and is set to be implemented around 2026/2027. This directive will focus on increasing recyclability, particularly for industrial and electric vehicle batteries. The regulation will leverage a Digital Product Passport (also known as the Battery Passport) as a key component to support its objectives.
Toy Safety Regulation: This regulation introduces more stringent rules regarding chemical substances in toys, refines conformity assessment procedures, and requires the use of Digital Product Passports in the toy industry. DPPs will be mandatory for all toys, providing detailed compliance information to ensure transparency and traceability, maximizing child safety and reducing the risk of unsafe toys being sold.
EU Detergents Regulation: This regulation oversees the market placement, composition, labeling, and biodegradability of detergents and surfactants within the EU. Its primary aim is to safeguard both the environment and human health by ensuring that detergents are both safe and effective. The updated regulation is anticipated to be fully implemented by the end of 2024, with compliance required by 2025, giving manufacturers time to adjust to the new standards.
The ultimate goal is to ensure that businesses, consumers, and regulatory bodies are equipped with the necessary tools to make more informed, eco-friendly decisions, as well as to push for transparency, durability, and resource efficiency.
Not to mention that it will also provide as a roadmap for other regions outside of the EU looking to adopt similar initiatives. Regardless of these being EU footsteps, the product compliance will apply to all companies that are in non-EU territories with products entering the EU market. And to avoid drag due to the possible (and inevitable) complexity associated to the business environment, the EU will be open to provide support to all nations to guarantee compliance with the DPP infrastructure.
How will the DPP work
Imagine your a consumer and you want to know more about your piece of clothing. You have your phone with you, and with just one snap you get your product’s ID, where you can find information on the product’s sustainability, ownership history, recycling instructions, etc.
The Digital Product Passport creates a virtual replica of a physical product, recording essential data about the product’s journey through its lifecycle. This digital counterpart is linked to the physical item via technologies like QR codes, barcodes, or NFC tags, called data carriers, and can be easily accessed through a mobile app or similar device.
The current focus of regulations set over comprehensive lifecycle data to enhance sustainability, recyclability, and circularity, and leveraging the potential applications of Digital Product Passports extends beyond these areas. Ultimately, the aim of this technology is to foster broad applicability beyond just textiles or batteries. It is designed to be used across multiple industries, enhancing transparency, traceability, and tradability in various sectors.
Cases like ASKET impact receipts for its customers, Pangaia ReWear Digital ID and Nobody’s Child DPP are clearly early champions and set good examples of how this technology should be developed and spread.
Data & Requirements
Here’s a breakdown of the types of data that can be collected and shared through Digital Product Passports:
General Information: Includes details like product ID, batch numbers, weight/volume, and manufacturing dates. This helps consumers verify authenticity and avoid counterfeit products.
Source Data: Details the origin of raw materials and components, including chemicals and recycled materials used. It may also include information on the sustainability and ethical practices of the manufacturing process, enabling consumers to validate green claims.
Footprint Data: Provides information on the product’s carbon footprint, waste generation, and overall environmental impact, including energy use, emissions, water, as well as usage and end-of-life estimations.
Ownership Details: Tracks the history of ownership, including duration and significant events. For instance, it can manage resale of luxury goods and transfer of ownership through the Digital Product Passport.
Maintenance Records: Logs information on repairs, including locations, details of repairs, and associated costs. This helps track the repair history of products, such as luxury watches.
Documentation: Stores digital versions of warranties, service agreements, insurance, and guarantees, along with expiration dates. This facilitates easy verification of claims and coverage.
Instructions: Contains guidance on disassembly, recycling, end-of-life disposal, and procedures for repair, refurbishment, and reuse, smoothing the transition of products into remanufacturing processes and circular economies.
As Digital Product Passports continue to develop, their range of uses and applications will broaden. Presently, the focus is on improving sustainability, repairability, and recyclability, and as more businesses implement this technology, its potential use cases will multiply, offering greater advantages to manufacturers, consumers, resellers, and recycling entities.
The data requirements for digital product passports are still being developed and will be tailored to each product category through a process involving industry-wide stakeholder consultation. Creating these passports will require full cooperation across the supply chain to identify key information that can help prevent products from becoming waste. However, some data requirements have already been established. Chapter III of the proposed Ecodesign for Sustainable Products Regulation (ESPR) outlines a general and technical specifications for creating, accessing, and sharing digital product passports, listed bellow:
Linked to a Unique Product ID: The passport must be connected to a unique product identifier through a data carrier.
Data carrier on Product: The data carrier must be physically placed on the product, its packaging, or accompanying documents, as decided in specific regulations.
Follow Approved Standards: The data carrier and product ID must meet certain European or international standards until official standards are set.
Open and Accessible Data: All information in the passport must use open formats that are easy to read by machines, searchable, and can be shared without being tied to a specific software.
Customer Data Protection: Personal information about customers cannot be stored without their clear permission, in line with privacy laws.
Product Info: The passport should include information specific to the product model, batch, or individual item, as decided in the regulations.
Controlled Access to Data: Access to the passport information must follow rules set in the specific regulations, including who can view the data.
Updates by the Commission: The Commission can change or add standards for the data carrier and IDs to keep up with technological advances.
Other Legal Data: If other laws require specific data, that information can also be included in the passport, based on the regulations.
Sharing with Sellers: Companies must give sellers and online platforms a digital copy of the data carrier or product ID so customers can see it if they can’t view the product physically.
Free Digital Copy: Companies must provide a free digital copy or website link within five days if requested.
Backup Copy: Companies must also have a backup version of the passport available through a service provider when selling the product.
Implementation Panorama
With Digital Product Passports yet to be standardized for each industry, several key industries have been identified as priorities for enhancing sustainability and circularity:
Industry | Implementation Period | Goals |
Textiles | By 2027 | Reduce textile waste, provide recyclability and sustainability data |
Batteries | By 2027 | Ensure sustainable sourcing, circularity, and safety for LMT, industrial, and EV batteries |
Construction | By 2027 | Promote environmentally conscious decisions in projects |
Chemicals | 2026-2030 | Improve supply chain traceability and recyclability |
Plastics | 2026-2030 | Track carbon emissions, support greener practices |
Electronics | By 2030 | Enhance e-waste recycling rates, provide material transparency |
Furniture | By 2030 | Boost recycling rates, verify green claims |
Luxury Goods | By 2030 | Tackle counterfeiting, provide sustainability data |
In December 2025, the European Committee for Standardization and CLC Joint Technical Committee 24 (CEN/CLC/JTC24) are set to deliver harmonized standards for the Digital Product Passport (DPP) system. This milestone will mark a significant step toward aligning industry practices across Europe, ensuring that the DPP system fully operates within the framework of the Circular Economy Action Plan.
For the textile sector, the delegated act specifically addressing textiles is expected to be published in January 2026. This regulation will likely provide companies with an 18-month transition period to comply, setting a deadline for full compliance by July 2027.
Why Act Now?
By today, only a small number of retailers have seriously considered incorporating Digital Product Passports into their technology roadmaps, with even fewer beginning the implementation process, posing a risk of a last-minute scramble as the regulations come into force. Early adoption of DPPs will take a crucial twist on you stand in the market, where you’ll have two powerful allies by your side: credibility and competitive advantage. Here are the key ways DPPs can give retailers an edge:
Stay ahead of regulations: Get a head start on upcoming legislation to avoid last-minute compliance challenges, fines, and operational disruptions when DPPs become mandatory.
Enhance brand credibility: Early adoption positions your brand as a leader in sustainability, showcasing your proactive commitment to environmental responsibility and transparency.
Build consumer trust: Providing detailed product information strengthens transparency and fosters deeper connections with customer, gaining trust and long-term brand loyalty in an increasingly eco-conscious market.
Gain competitive advantage: Harness the rich data from DPPs to drive innovation, optimize supply chain processes, and make data-driven decisions that set you apart from competitors.
Improve supply chain management: Become fully transparent, from raw materials to end-of-life disposal, allowing better tracking, reducing inefficiencies, waste, and operational risks.
Attract eco-conscious consumers: Capitalize on the growing market demand for sustainable products by aligning your offerings with the values of shoppers who are environmentally aware.
Prepare for market shifts: Early adoption helps future-proof your business, ensuring resilience and adaptability to evolving sustainability trends and consumer expectations.
Foster industry collaboration: Become an industry leader by setting best practices for DPP adoption, driving cross-sector partnerships, and shaping the future of sustainability.
“But where should I start?”
The first steps of integrating Digital Product Passports can look overwhelming. It will likely have layers of complexity, especially when key details around requirements, timelines, and legislation remain undefined for many industries. Despite this early stage, there are proactive steps businesses can take to begin preparing for DPPs:
Research Relevant Regulations: Conduct thorough research into applicable regulations to understand how they affect your business.
Develop a Phased DPP Strategy: Create a detailed strategy that outlines clear, measurable goals and actionable plans for DPP implementation.
Engage Stakeholders: Involve both internal and external stakeholders to facilitate change and plan for the transition effectively.
Identify Data Requirements: Assess the data needed for DPP compliance and evaluate current data availability within your company.
Conduct a Gap Analysis: Analyze the internal and external technical landscape to identify gaps in capabilities and explore potential DPP solutions.
Establish a Cross-Functional Team: Form a dedicated team with representatives from various departments, including compliance, supply chain, IT, and marketing, to ensure a collaborative approach.
Invest in Training and Awareness: Provide training sessions and resources to familiarize employees with DPP concepts, requirements, and benefits.
Stakeholder Mapping: Identify key stakeholders impacted by DPP initiatives and tailor communication strategies to address their interests and concerns.
Explore Technology Solutions: Investigate available technologies that can support data collection, management, and reporting related to DPPs.
Develop a Communication Plan: Create a clear communication strategy to keep stakeholders informed about the DPP initiative, its importance, and progress updates.
Pilot Testing: Consider running a pilot program to test DPP processes on a smaller scale before a full rollout to identify challenges and refine strategies.
Set Metrics for Success: Establish key performance indicators (KPIs) to measure the success of your DPP strategy and track progress over time.
Looking Ahead
Digital Product Passports represent a transformative shift in how we perceive and manage our products. It’s crucial for companies now more than ever to have topics such as sustainability and circularity rooted in their decisions. Embracing DPPs will allow businesses to innovate, enhance their operational efficiencies, and build stronger relationships with consumers who are increasingly seeking accountability and sustainability in the products they choose.
Furthermore, as the legislation progresses, companies must understand that integrating DPPs is not a distant regulatory obligation but a strategic investment with immediate and escalating benefits. The sooner DPPs are implemented, the more advantages they can unlock.
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