EU Digital Product Passport: What it means for the textile industry

Published: September 2024

The European Union's Ecodesign for Sustainable Products Regulation (ESPR), entered into force on 18 July 2024. It is a central component of the EU's efforts under the European Green Deal, which aims to reduce the environmental impact of products, including textiles, by setting sustainability requirements that cover their entire lifecycle. This includes improving product durability, reusability, repairability, recyclability, and overall environmental footprint.

The ESPR is part of a package of measures that are central to achieving the objectives of the 2020 Circular Economy Action Plan. These new measures and regulations will contribute to helping the EU reach its environmental and climate goals, doubling its circularity rate of material use and achieving its energy efficiency targets by 2030. The ESPR replaces the current Ecodesign Directive 2009/125/EC and establishes a framework for setting ecodesign requirements on specific product groups.

The ESPR will introduce a Digital Product Passport (DPP), a digital identity card for products, components, and materials, which will store relevant information to support products’ sustainability, promote their circularity and strengthen legal compliance. 

“The war in Ukraine is underlining that it is essential that we live within our means and find ways to be more geopolitically independent with our materials in Europe. A well-designed Digital Product Passport will be an invaluable policy and business tool in support of this goal, as it will enable businesses to create more sustainable and circular materials and products by monitoring how they are made throughout the supply chain. It will also support consumers to make well-informed choices based upon sustainability criteria. This could be game-changing in the effort to build a European circular economy.”
- Eliot Whittington, Director of Policy, University of Cambridge Institute for Sustainability Leadership, Source

What are the main design features for the EU Digital Product Passport (DPP)?

In the EU's Online information session on May 22 this year, the EU shared its update on the expected design features for the upcoming EU Digital Product Passport (DPP). The information to be included in the DPP will be product-group specific and identified in the delegated act process. The DPP needs to include information on one or more of the following areas:

• Technical performance
• Environmental sustainability performance
• Circularity aspects (durability, repairability, etc)
• Legal compliance
• Product-related information (e.g., manuals, other labels)
  
  

Additional DPP requirements: 

• DPP is based on a decentralized approach for data storage
• The DPP shall be uniquely linked to a product
• Access to data will take place through a (persistent) product unique identifier, embedded in a data carrier and relying on a look-up mechanism
• Access to DPP-data based on a need-to-know basis (there will be public and restricted data)
• 3 possible levels of granularity: (i) model, (ii) batch, (iii) item
• 4 unique identifiers will always be required:
  • Product identifier
  • Facility identifier
  • Economic operator identifier
  • Registration identifier (not public)

• Economic operators shall make a back-up copy of the DPP available through a [certified] independent third-party DPP service provider
  
  

The information shall be accessible electronically, making it easier for consumers, manufacturers, and authorities to make more informed decisions related to sustainability, circularity, and regulatory compliance. It will allow custom authorities to perform automatic checks on the existence and authenticity of DPPs of imported products.

To view the full list of the requirements for the EU DPP, read our previously shared blog: The EU’s new Digital Product Passport (DPP): everything you need to know

What are the key aspects of the EU ESPR and DPP for the textile industry?

To be in line with the requirements of the EU Ecodesign for Sustainable Products Regulation (ESPR) and Digital Product Passport (DPP), companies are expected to make the following adjustments:

Design requirements:

• Durability and quality: Products must be designed to last longer, withstand frequent use, and be less prone to wear and tear. This includes stronger seams, more robust fabrics, and treatments that maintain fabric quality.
• Reparability: Textiles should be easier to repair, meaning components like buttons, zippers, and fabric patches should be accessible and replaceable. This will encourage repair over replacement, and thereby reduce waste.
• Recyclability: The use of mixed fibers will be limited to make sure that textiles can be recycled more easily. Materials that can be fully broken down and reused will be preferred, supporting a circular economy.
• Material choice: Preference will be given to sustainable materials, such as organic or recycled fibers. There will be restrictions on harmful chemicals to reduce environmental and health impacts.
  
  

Transparency and information:

• Labeling requirements for EU Digital Product Passports: These will provide detailed information on product composition, origins, environmental impact, and recycling instructions. Consumers and recyclers will have access to these details, ensuring that products are properly recycled or disposed of. The EU DPP labels should be easy to understand and inform consumers about the product’s environmental impact and sustainable practices. This could include manufacturing details, energy usage during production, carbon footprint, and the type of materials and their origins.
  
  

Circularity and waste reduction:

• Collection and recycling: Companies will be required to implement or participate in textile collection. This will make sure that end-of-life textiles are collected and recycled properly.
• Extended Producer Responsibility (EPR): Companies might have to take responsibility for the entire lifecycle of their products, including post-consumer waste management. This incentivizes the design of products that are easier to recycle.
  
  

Environmental footprint:

• Reduction of water and energy use: The textile industry is a significant user of water and energy. The ESPR will set standards to reduce these inputs, promoting more sustainable production methods such as waterless dyeing technologies and renewable energy sources.
• Emissions and chemical use: There will be limits on the emissions and chemicals used in textile production, with a focus on reducing pollution and ensuring safe working conditions.

How will the textile industry be impacted by the EU ESPR and DPP? 

The EU Ecodesign for Sustainable Products Regulation (ESPR) and Digital Product Passport (DPP) are expected to transform the textile and apparel industry moving away from fast fashion by redefining how products are designed, manufactured, and managed throughout their lifecycle. Below is a list of the key ways this regulation will impact the textile industry.

Innovation and R&D investment:

• New materials and production techniques: Companies will need to invest in research and development to innovate new materials and production techniques that meet the new sustainability standards. For instance, developing textiles from recycled ocean plastics or investing in biodegradable materials. This might include partnerships with technology companies and academic institutions to pioneer new sustainable fabrics and processes.
• Logistics and supply chain management: There will be a need for innovation in logistics and supply chain management to ensure traceability and compliance with new regulations.
  
  

Financial impact:

• Initial investments: The initial investment in new technologies, compliance measures, and sustainable materials is likely to be high. Costs could also rise due to the need for certification and compliance audits. However, these costs could be offset in the long term by savings from energy efficiency, waste reduction, and potential funding or incentives from governments for sustainable practices.
• Fines or restrictions: Brands that do not comply might face fines or restrictions on market access, which could affect profitability and market position.
  
  

Market opportunities:

• Brand loyalty and reputation: Companies embracing sustainability will benefit from enhanced brand loyalty and a positive public image, leading to increased market share.
• Brand protection: Fighting against greenwashing, compliance, and trust issues brands can keep their name safe and make sure that the things people buy are real. This helps both the brand and the consumers.
• Consumer trust: A transparent overview of a product’s lifecycle provides consumers with increased trust and confidence when making purchase decisions as they are provided a guarantee as to a product’s authenticity, sustainability and state.

• Export opportunities: Compliance with the EU’s strict standards could open up export markets, particularly in regions with similar sustainability requirements.
  
  

Supply chain adjustments:

• Supplier compliance: Textile companies will need to make sure that their suppliers also follow and adhere to sustainability standards. This will involve supplier data collection, supplier audits, sourcing new suppliers that meet the criteria, and or investing in supplier development programs.
• Supply chain transparency: Increased transparency in the supply chain will be necessary. Companies will need to adopt digital tools for tracking and reporting on sustainability metrics throughout the supply chain.
  
  

Risk management:

• Regulatory compliance risks: Non-compliance with ESPR could result in penalties, recalls, and damage to brand reputation. Companies will need robust compliance management systems to monitor and ensure adherence to regulations.
• Operational risks: Transitioning to new materials and processes can pose operational risks, including production delays or quality control issues. Companies will need to manage these risks through careful planning and testing.
  
  

The EU ESPR and DPP timeline: key dates to know 

Legislative adoption:

• The Ecodesign for Sustainable Products Regulation (ESPR) has been adopted by the European Parliament and the Council. Final adoption occurred in June 2024, entered into force on July 18 2024.
  

Implementation plan:

• 2024-2025: Preparatory phase where detailed implementing measures and guidelines will be developed. During this phase, industry stakeholders will be consulted, and specific requirements for different product categories will be defined.
  
  
• 2025-2026: The adoption of specific implementing measures for high-priority sectors, including textiles. This period will focus on establishing clear criteria for design, labelling, and information requirements.
  
  
• 2026 onwards: Full implementation phase where companies will need to comply with the new standards. Enforcement mechanisms will be in place, and regular audits will begin. Companies must demonstrate compliance through digital product passports and other required documentation.
  
  

Nilörn and Worldfavor have partnered to offer supply chain transparency and traceability for the textile industry

One-stop-shop for consumer-facing traceability

Worldfavor and Nilörn have partnered to offer companies a solution supporting supply chain transparency and help the textile and apparel industry meet the requirements of the digital product passport.

Get started today!

1. Add & invite your tier 1 suppliers setting your foundation for your data collection process.
   
   
   
2. Create products (or directly integrate order data from Nilörn:CONNECT).
   
   
   
3. Build out your product and value chain by requesting the data from your tier 1 suppliers.
   Gain clarity on suppliers you are connected with further down the value chain, tier 2 – tier n.
   
   
4. Manually or automatically choose suppliers to connect with and what data to gather. Understand supply chain performance and gain access to data such as;
   1. Certificates held by suppliers tier 1 – tier n
   2. Certificates specifically related to the product & raw material transactions
   3. Manufacturing processes relation, such as which supplier performs weaving, spinning, coloring, as well as origin
   4. Raw material fabric, supplier details, and origin
   5. Raw material yarn, supplier details, and origin
      
      

Performing these steps, you will gain an understanding of suppliers further down the tiers, where they come from, and how they are connected to you, your products, and your other suppliers. Gather data on product and supplier level to ensure you gather the data required for the EU Digital Product Passports as well as other regulations. Our integration with Nilörn lets the data be visualized with a QR-code in Nilörn:CONNECT.

Experience our combined offering: Learn more & book a demo

Related blog posts you might like:

• The EU’s new Digital Product Passport (DPP): everything you need to know
• The EU Deforestation Regulation (EUDR): What you need to know.
• What is sustainable sourcing and how can it benefit your business in 2024?