Digital Product Passports as a Step Towards Smarter Consumerism

Digital Product Passports (DPPs) are a new way to collect and share data about a product’s lifecycle, from its raw materials to its eventual disposal. This data gives everyone involved, including consumers, a clearer understanding of a product’s environmental impact and its journey through the supply chain.

These passports are an important part of the Ecodesign for Sustainable Products Regulation (ESPR), a central element of the EU’s Circular Economy Action Plan (CEAP). The ESPR will require certain products, such as textiles, batteries, and construction materials, to have DPPs. The goal is to make products more sustainable and help businesses and consumers make more informed decisions.

Goals Achieved by The Implementation of DPPs

Promote Sustainable Production– DPPs encourage businesses to use the “r-strategies” (reduce, reuse, recycle) to boost material and energy efficiency and extend product life by providing detailed data.
Encourage Circular Business Models– With better access to product data, companies can more easily develop new business models focused on services, repairs, and resource recovery.
Empower Consumers– DPPs give consumers the information they need to understand the true impact of their purchases, helping them make more sustainable choices.
Streamline Legal Compliance– DPPs serve as a digital record of a product’s compliance with various standards, simplifying the auditing and verification process.

Who Needs to Comply with Digital Product Passports?

While the concept of digital passports started with batteries, the ESPR expands the requirement to several other product categories. The first wave of products that will need DPPs includes textiles (especially clothing and footwear), construction materials, industrial and electric vehicle batteries, consumer electronics, furniture, tires, detergents and paints.

More product categories will be added over time as the European Commission updates the list.

DPPs are part of a larger effort to connect data across different sectors, reflecting a growing focus on digitalization, interconnected data sets, and a comprehensive assessment of a product’s environmental impact. This initiative is also linked to other EU regulations on traceability, supply chain collaboration, and data sharing, all of which are designed to standardize access to data within the EU’s Digital Transition and Data Spaces plans.

Information That Must Be Included in a Digital Product Passport

The specific data requirements for DPPs can vary by product. However, the ESPR outlines a core set of criteria that all DPPs must meet-

A Unique Product Identifier– Each DPP should be linked to a unique product ID, which can be accessed via a data carrier like a QR code or barcode on the product or its packaging.
Compliance with Global Standards– The DPP must adhere to standards like ISO/IEC 15459:2015 to ensure consistency and global compatibility.
Structured, Machine-Readable Data– All data must be structured and easily readable by machines, making it searchable and compatible with various digital systems.
Comprehensive Product Information- The DPP must contain important details about the product model, batch, or individual item to provide transparency.
Controlled Access to Information– Access to the data within the DPP is regulated, with different levels of access for different stakeholders, as specified in the ESPR.

The data requirements for battery passports are a good example of how DPPs will work. Starting in 2026, all industrial and electric vehicle batteries must have a DPP that includes information on material sourcing, carbon footprint, percentage of recycled content, battery durability, and guidelines for repurposing and recycling.

Implementing a Digital Product Passport System

Implementing a DPP system can seem like a challenging task, but it doesn’t have to be a bureaucratic burden. The process can be streamlined and automated with the right approach.

Define the Data Framework– Once the required information for a specific product is defined, companies can use traceability software to standardize data from their existing systems (like ERPs).
Utilize Existing Technology– The unique product identifiers can be created using familiar technologies like barcodes, QR codes, or RFID tags.
Automate the Process– Much of the data collection and submission can be automated to minimize manual effort.

Data Infrastructure for DPPs

The biggest challenge for many companies is creating an open, interoperable data infrastructure that meets the ESPR’s requirements for machine-readable, structured, and searchable data. Emerging technologies like blockchain offer a solution for this. Decentralized systems can meet these standards while allowing for secure and efficient data transfer.

Protecting Proprietary Information

Data security and the protection of trade secrets are important. The EU has stated that DPPs will use a decentralized approach, meaning the data doesn’t have to leave its source. This approach is more secure and prevents the reliance on a single, centralized system that could be vulnerable to tampering.

Data encryption is also essential. While traditional methods like RSA and end-to-end encryption are useful, zero-knowledge proofs offer a more flexible solution. This technology allows companies to verify claims (e.g., that a product meets a certain standard) without revealing the underlying sensitive data. This balances the need for transparency with the need to protect confidential business information.

Growth Opportunities from Digital Product Passports

While implementing DPPs requires an initial investment, it also presents significant opportunities for businesses to differentiate themselves and grow.

Gain a Competitive Edge– Companies can use the data from DPPs to make verifiable sustainability claims, boosting consumer trust and market share. Products with strong durability data can also stand out from the competition.
Introduce Circular Business Models– DPPs create a digital link across the entire supply chain, enabling new revenue streams through circular models focused on services, repairs, and material recovery. This can also strengthen supply chain security by diversifying material sourcing.
Become a Sustainability Leader– Companies can make impactful improvements and position themselves as leaders in the circular economy by using DPPs to get a clearer view of material flows and process efficiencies.
Use Compliance to Your Advantage– Early adoption of DPPs and voluntary certifications can give companies a significant market advantage. As traceability becomes a fundamental requirement, businesses with strong systems will be well-positioned for the future.

In the short term, DPPs empower companies to make credible sustainability claims and innovate with new circular strategies. Over the long term, they will align businesses with evolving regulations and consumer demands, contributing to a more sustainable and circular economy.

References

https://www.sciencedirect.com/science/article/pii/S2352550923000441

https://ftsg.com/digital-product-passports-a-new-era-of-informed-consumerism/

https://www.circularise.com/blogs/digital-product-passports-dpp-what-how-and-why