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What is a Digital Product Passport?
Digital product passports are a digital representation of physical products that display product information together with life-cycle sustainability data. A unified digital representation of a physical product enables improved information exchange along the value chain, allowing product sustainability to be verified and managed.
The product passport means that each product has a unique identity that can be linked to one or more data sources containing information about that particular product. Product passports allow businesses and consumers to access product information directly from the supplier or from other data sources chosen by the supplier. This information can include the product's durability performance, origin, warranty, recycling and assembly or repair instructions.
What are the requirements for DPP’s?
The Ecodesign for Sustainable Products Regulation (ESPR), which entered into force on 18 July 2024, is the cornerstone of the Commission's approach to more sustainable and circular products. Digital Product Passports are a mandatory part of the Ecodesign for Sustainable Products Regulation (ESPR) and one of the key actions of the Circular Economy Action Plan (CEAP).
Products and the way we use them can have a significant impact on the environment. Consumption in the EU can be a major contributor to climate change and pollution. The overall aim of the Green Deal is to provide EU consumers with more sustainable products. Support consumers, buyers and purchasers to make sustainable choices. Products and the way we use them can have a significant impact on the environment. Consumption in the EU can be a major contributor to climate change and pollution.
The ESPR is part of a package of measures that are key to achieving the objectives of the Circular Economy Action Plan 2020 and to fostering the transition to a circular, sustainable and competitive economy. It will help the EU meet its environmental and climate goals, double the rate of circularity in material use and achieve its energy efficiency targets by 2030.
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The Impact of Digital Product Passport
The Digital Product Passport (DPP) will include important details such as a unique product identifier, documents showing that the product meets the necessary standards, and information on substances that may be harmful. It will also provide user manuals, safety instructions, and guidance on how to dispose of the product. By keeping a detailed digital record of a product's lifecycle, the DPP will improve supply chain management, ensure that the rules are being followed, and help companies identify and reduce risks related to authenticity and environmental impact.
The DPP will be based on open data principles. By making detailed product information available to the public, the DPP supports open data initiatives that emphasise transparency and accessibility. This approach will not only improve product visibility and sustainability practices, but also facilitate better data sharing and collaboration across the industry. The role of open data in this context highlights the importance of accessible, standardised information in promoting transparency and accountability.
In conclusion, the Digital Product Passport represents a significant step forward in product transparency and sustainability. As the EU moves towards full adoption of this regulation, it will promote a more open and responsible marketplace. By using open data principles, the DPP will improve how visible and trustworthy product information is, which will benefit businesses, consumers and the environment.
Who does the Digital Product Passport affect?
While battery passports have set a precedent for digital product passports, the Ecodesign for Sustainable Products Regulation has set out specific requirements for different sectors. These requirements focus on specific product categories in line with the EU's Circular Economy Action Plan. According to the EU ESPR, the first set of products to be required to have DPPs include:
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Iron and Steel
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Aluminium
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Textiles (especially clothing and footwear)
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Furniture
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Tyres
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Detergents
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Paints and varnishes
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Lubricants
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Chemical products
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Energy related products with eco-design requirements
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Information and communication technology products and other electronics
The upcoming legislation will affect all those selling products within the EU, including those located outside the EU but selling their products to the European market. Product owners will need to keep track of all their data as they are responsible for the data, validating the data and being able to convert the data.
How are DPPs beneficial for businesses?
Digital Product Passports can be used as more than just a compliance requirement – if implemented wisely, with a good DPP supplier, they're a way to make your business more competitive and sustainable. Here are some good reasons and business opportunities why DPP can be used for other purposes than only reporting on sustainability:
Communication with customers and consumers
Maybe needless to point out, but this opportunity is almost inherent in the DPP. Just by implementing the DPP you instantly increase communication around your products with customers and consumers. Scan the QR code and there you are, a whole new communication channel is opened up. That channel can carry communication about product information, usage, manuals connected to the product and so on, as well as taking charge of the communication itself.
New business models
DPPs can help companies track individual products from birth to decommission, but for sure, not all DPP suppliers will offer this in a good and business supportive way. However, if the DPP supplier is chosen wisely you could gain extensive control over your product from a Life Cycle Management or Asset Management perspective. With those kinds of functions implemented, companies could offer services such as rentals, repairs, and upgrades throughout the entire lifecycle. This creates new ways for companies to make money and create more value through circular business models.
Making brands stronger by making better decisions
If companies provide clear and organised product information, they can show that their products are sustainable. This makes their brand stronger and helps it to appeal to the growing group of people who care about the environment in both the business and consumer markets. This makes the brand more reliable and transparent.
Protection against counterfeiting
DPPs show exactly where a product comes from and what it's made of. This makes it easier to prove that it's real. This is useful for all companies, but especially companies dealing in high-risk items like luxury goods and electronics.
Regulatory compliance
The new Eco-design Regulation will apply to almost all product categories and provide a harmonized framework for setting requirements for specific product groups. The idea is that in addition to being energy and resource efficient, which is already required, products should also be more durable, reliable, reusable, upgradeable, repairable, recyclable, and easier to maintain.
In 2024, the new legislation Eco-design Sustainable Product Regulation (ESPR) is expected to be adopted under the ordinary legislative process. Shortly thereafter, the rules for the first priority product groups will be set out in delegated acts. After a deadline of about 18 months after the delegated acts are published - the first products will need to have a Digital Product Passport to be sold in the EU - regardless of where they are manufactured.
The priority product groups are batteries, textiles, electronics, construction products, furniture, plastics, chemicals, etc. Before 2030, all product groups will have a digital product passport with a few exceptions, such as food, pharmaceuticals, and animal feed.
The purpose of DigitalProductPassport.com is to help companies in this change with aggregated information and help to simplify the processes companies need to work through for the transformation to go smoothly and without disrupting normal operations.
The timeline for ESPR and Digital Product Passports
On 18 July 2024, the ESPR legislation entered into force. An Ecodesign Forum has been created in Q3 2024 where the specific design of the ESPR will be discussed among all stakeholders. The first meeting of the Forum will take place in February 2025. Nine months after the entry into force of the legislation, on 18 March 2025, the adoption of the first ESPR work plan will take place, including textiles and steel.
Twelve months after the entry into force of the legislation, on 18 July 2025, delegated (product-specific) legislation on the destruction of unsold products will enter into force. Reporting requirements start in 2025. First reporting will be required in 2026. By late 2025, the Delegated Legislation on the DPP, such as how registers, data carriers and how the digital information should be organised. In 2026, the first ESPR requirements will be adopted, most likely on textiles and steel. At some point between 2027 and 2028, the first product requirements and DPP will apply to products.
To get an overview of the timeline, you can go to our timeline page which provides a clear overview.
The background to the Digital Product Passport (DPP)
On 11 December 2019, "The Green Deal" was presented by the European Commission to serve as a roadmap to make the EU economy sustainable by turning climate and environmental challenges into opportunities across all policy areas and making the transition fair for all.
Fresh air, clean water, healthy soil and biodiversity
The improvements the Green Deal strategy will ensure
The 'Green Deal' is the basis for the growth strategy that will transform the EU into a fair and prosperous society with a modern, resource-efficient and competitive economy. The goal and clear intention is that by 2050 there are no net greenhouse gas emissions and economic growth is decoupled from resource consumption.
The Green Deal
Renovated, energy-efficient buildings
Healthy and affordable food
More public transport
Cleaner energy and pioneering clean technological innovation
Longer lasting products that can be repaired, recycled and reused
Future-proofed jobs and skills development for the transition
Globally competitive and resilient industry
What data should be stored in a Digital Product Passport?
Regarding what data will be in the digital product passport, we can currently only guess, as work is currently underway to develop the standard. Standards are part of the regulatory ecosystem in Europe. The European Commission can request the production of standards by the European Committee for Standardisation (CEN) needed to fulfil the requirements of regulations and directives (mandated). These standards can be published in the Official Journal of the EU (OJEU), and are then harmonised. In the standardisation request, the DPP should be built primarily on existing standards. There are long lists of existing standards that can be used for product passports.
Information on the technical requirements for a digital product passport is clearer and can be found in the Ecodesign for Sustainable Products Regulation.
Technical requirements for Digital Product Passports:
While battery passports have set a precedent for digital product passports, the Ecodesign for Sustainable Products Regulation has set out specific requirements for different sectors. These requirements focus on specific product categories in line with the EU's Circular Economy Action Plan. According to the EU ESPR, the first set of products to be required to have DPPs include:
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Barcode on the products
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The standard ISO/IEC 15459 (or equivalent) should be used for ID and labelling
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Data according to open standards, in interoperable format and be machine readable, structured, and searchable
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Lock-in effects to DPP service providers are not allowed.
What are the
challenges of DPP?
Introducing a Digital Product Passport system with all the data that needs to be managed can be very time-consuming and costly, and the main business can suffer. So it's important to start early and work smart and systematically. Instead of letting it become a bureaucratic burden, make sure that you as a company get growth opportunities from and in the digital transformation. When the digital data is in place in a company, there are excellent conditions for adding value, building in more access to valuable information about the entire product life cycle, changing the business model with e.g. service and repair agreements, etc.
Advantages with Digital Product Passports
Future requirements for the contribution of products to achieving the EU's climate goals involve three broad actions: promoting sustainable product design, empowering consumers and public purchasers, and promoting circularity in production processes.
There are many benefits of DPP. Some are listed below for different groups of users,
issuers, control bodies and society:
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Digital product passports contribute to accelerating the sustainable transition with more sustainable production and consumption production and consumption with increased circularity, transparency and traceability.
Help reduce impacts on climate, environment and biodiversity.
The Environment
Remove the most polluting products from the EU market.
Reduce negative impacts along product value chains.
Support and help consumers to be able to compare products and make sustainable choices at the time of purchase and throughout the product life cycle.
Extend the lifetime of products.
Consumers
Save energy, resources and costs.
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Decouple economic growth from energy and resource use.
Increase resilience to external shocks, reduce dependencies.
Benefits for the economy
Strengthen market for recycled materials.
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More efficient administration and easier to verify the compliance of products with legal requirements.
Authorities and control bodies
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Business is favored for companies that want to be at the forefront and have the ambition to contribute to a sustainable transition.
Increased transparency also benefits businesses and cooperation between different actors in the supply chain.
Businesses
Resource management with more efficient recycling and waste management will promote a circular use of materials and resources.
Healthier competition with a fair and level playing field.
Reduce administrative and compliance costs.
Create a competitive edge globally.
Reducing the risk of counterfeiting and simplifying product recalls.
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How to overcome challenges of DPP
The initiation of Digital Product Passports is not merely a matter of compliance; it signifies an opportunity to propel innovation, efficiency, and trust within the industry. Companies that adopt this initiative at the earliest stage will be better positioned to capitalise on emergent business opportunities, reduce expenditure, and spearhead the transition towards a more sustainable future.
In the event that a company is likely to be impacted by the impending Digital Product Passport (DPP) legislation, prompt action is recommended in order to gain a competitive advantage and ensure compliance with the new regulations prior to their mandatory implementation. The following are the key benefits of early adoption:
Communication with customers and consumers
It is imperative to ensure compliance with the EU Ecodesign for Sustainable Products Regulation (ESPR), which will soon mandate companies to implement DPPs. Timely preparation can avert last-minute compliance challenges, mitigating the risk of fines or product bans. Demonstrating compliance before stipulated deadlines can enhance credibility with regulators and industry stakeholders.
Competitive Advantage and Market Leadership
The early adoption of Digital Procurement (DPP) by a company can result in its positioning as a leader within its industry in terms of sustainability and digital innovation. The adoption of DPPs by businesses at the forefront of industry will serve to establish the prevailing standards and benchmarks for the sector as a whole. Engagement with DPPs proactively enables a distinct brand positioning, setting it apart from competitors.
Cost Efficiency and Smooth Transition
The financial and operational risks associated with the implementation of DPPs can be mitigated by a phased approach, as opposed to a last-minute implementation. Early integration facilitates the optimisation of internal processes within companies, thereby circumventing the necessity for costly last-minute system upgrades. Investing in DPP infrastructure at this stage helps to spread costs over time, thereby rendering the adoption process more manageable.
Supply Chain Transparency and Efficiency
DPPs provide real-time tracking of products, components, and materials, thus improving supply chain traceability. This enables better inventory management, leading to a reduction in waste and inefficiencies. Furthermore, it ensures seamless collaboration with suppliers, retailers, and recyclers.
Strengthened Customer Trust and Brand Reputation:
In the contemporary consumer landscape, there is an increasing demand for product transparency and sustainability. DPPs (Digital Product Passports) provide detailed product information, including the origin, materials and carbon footprint of the product. This enhanced transparency has been shown to increase brand credibility. Early adoption of DPPs can help to build customer trust and position a brand as an eco-conscious leader in its field.
Unlock New Revenue Streams and Business Models:
The utilisation of Digital Product Passports (DPPs) facilitates the emergence of innovative opportunities, including product lifecycle services, repairs, resale, and take-back programmes. These DPPs offer valuable data insights, enabling optimised product design for enhanced sustainability and recyclability. Furthermore, they foster enhanced customer engagement through digital experiences, such as the scanning of QR codes for sustainability-related information.
Stronger Partnerships and Industry Collaboration
Early adopters have the opportunity to engage in collaboration with policymakers and industry leaders, thereby contributing to the shaping of the DPP framework. The establishment of relationships with suppliers and partners who are conscious of sustainability is a key benefit. The likelihood of receiving government incentives or funding for digital transformation projects is increased.
The implementation of Digital Product Passports (DPPs) in today's context is not merely a regulatory obligation; rather, it constitutes a strategic initiative with the potential to foster long-term business success. By taking a proactive approach, companies can ensure compliance with regulations, enhance operational efficiency, and cultivate trust with consumers and stakeholders. Furthermore, the implementation of DPPs can facilitate the adoption of new revenue models, enhance supply chain transparency, and promote sustainability leadership, thereby providing early adopters with a substantial market advantage. Rather than perceiving it as an obstacle, businesses would be well-advised to view DPPs as a catalyst for innovation and growth, thereby ensuring their continued competitiveness in an increasingly digital and circular economy.
Implementation of DPP technology
Digital Product Passports (DPPs) are a way to make products clearer, track them better, and be more environmentally friendly. DPPs are digital records that contain all the information about a product's lifecycle, including the materials it's made from, how it was made, and how it will affect the environment. This initiative follows regulations like the Ecodesign for Sustainable Products Regulation (ESPR), which says that DPPs must be used for certain products to help with a circular economy.
Steps to Implement Digital Product Passports
1. Data Collection
First, identify and gather relevant data covering the entire product lifecycle. This includes raw materials, production processes, transportation, usage, and disposal. Make sure the data sources are reliable and up-to-date.
3. Creation of the Digital Product Passport
Use software tools, such as product lifecycle management systems and applications, to create the DPP. Give each product a unique identifier and design the passport so that users can find the information they need using barcodes, QR codes, or similar.
5. Monitoring and continuous improvement
Keep an eye on the DPP and look for problems like data that is old or wrong and ways to do things that are not working well. Use the collected data to understand how to improve the supply chain and reduce the environmental impact.
2. Data Analysis and Categorization
Then, analyse and categorise the data to make sure it is accurate and complete. Organize information in a secure and accessible format for easy updates.
4. Integration and Implementation
Integrate the Digital Product Passport into the company's existing systems and processes. Provide training to the relevant people to make sure it is used effectively and emphasise the importance of accurate data collection and analysis.
Implementing DPPs helps businesses to follow new rules and make their supply chains clearer. They also help the environment and give consumers more information about the products they buy. As the rules change, if you start using DPPs now, your business can be a leader in sustainability and the circular economy. This provides a significant advantage in terms of preparedness for the impending legislation, which will require the implementation of digital product passports on all products placed on the market.
Digital Product Passports: Everything you need to know
The Digital Product Passport (DPP) is a digital representation of a physical product that provides access to information about the product's lifecycle, such as its origin, composition, and sustainability credentials.