Published: March 2024
A Digital Product Passport (DPP) is a digital record that provides comprehensive information about a product and its entire value chain. This includes everything from the origin of the product, materials used, environmental impact, and disposal recommendations.
DPPs' main purpose is to close the gap between the transparency demanded by consumers, investors, and other stakeholders and the current lack of reliable data on product journeys.
Because more and more people are demanding this type of information, the EU has introduced the DPP as a key component of the proposed Ecodesign for Sustainable Products Regulation (ESPR), which is set to be implemented in 2024.
In this blog, we'll cover what an EU DPP should cover, when it's expected to become mandatory, and what products are affected.
What’s a Digital Product Passport?
A DPP is a tool aimed at enhancing transparency about a product’s environmental impact by offering relevant and comprehensive information about its lifecycle.
Similar to traditional passports, each product has a unique identity that’s linked to one source with information about just that specific product.
What is the EU's Ecodesign for Sustainable Products Regulation (ESPR)?
In December 2023, the EU reached a provisional agreement on a new regulation, the Ecodesign for Sustainable Products Regulation (ESPR). The ESPR’s all about making sustainable products the norm on the EU market and reducing their overall environmental and climate harm.
The new rules will apply to all products on the EU market, regardless of whether they are produced inside or outside the EU. The regulation includes strict requirements on how companies manage their products. This includes a ban on destroying unsold clothing and footwear, as well as rules aimed at making products last longer and easier to repair.
The new digital product passport
The new digital product passport, known as the PPD, is a key feature of the ESPR initiative. The EU Commission will manage a public web portal, enabling consumers to search for and compare the sustainability information provided in the product passports. This initiative will require companies with complex supply chains to thoroughly understand each stage of their value chain to gather the necessary data for the PPD.
This means that once ESPR is formally adopted, sustainable products will be the new benchmark for smart business.
Is the EU digital product passport mandatory?
Right now, a DPP isn’t mandatory yet, but it will soon be required for a range of products. Starting in 2024, DPPs are anticipated to be adopted by the EU and mandated between 2026 and 2030. This rule will extend to all 27 EU member countries and apply to a wide range of product categories. According to the ESPR's provisional agreement from December 2023, products with a high environmental impact and potential for improvement will be prioritized. These products include:
- Textiles (notably garments and footwear)
- Furniture
- Chemicals
- Batteries
- Consumer electronics
- Electronic devices
- Construction products
What should the EU Digital Product Passport cover?
For a Digital Product Passport to be compliant with the EU’s DPP data requirements, it should or may include:
- A unique product identifier (UID)
- A global trade identification number as provided for in standard ISO/IEC or equivalent of products or their parts
- A TARIC code and other relevant commodity codes
- Compliance documentation, including declaration of conformity, technical documentation, and conformity certificates
- Requirements related to substances of concern
- User manuals, instructions, warnings, or safety information
- Relevant information related to the manufacturer, operators and importer
- Relevant information related to unique facility identifiers
- Relevant information for consumers and end-users on how to install, use, maintain, and repair the product to minimize negative impact and ensure long-term durability.
- Relevant information for consumers and end-users on how to return or dispose of the product at end-of-life
- Relevant information for treatment facilities on disassembly, recycling, or disposal at end-of-life
- Other relevant information that may influence the way the product is handled by parties other than the manufacturer
Exactly what should be included in your product’s DPP depends on product type and will be specific to the ESPS’s delegated acts.
What are the benefits of implementing digital product passports?
- Enhanced transparency: DPPs provide companies with detailed information about their products’ origin, materials, and environmental impact. This enhances global visibility for a company’s brand and towards its customers.
- Improved supply chain management: The passports offer a comprehensive digital record that spans a product's entire value chain. This enhanced visibility enables companies to optimize processes to reduce environmental impact and ensure a more sustainable and efficient supply chain.
- Regulatory compliance: The DPP ensures that companies can easily adhere to environmental standards and regulations, fostering a commitment to responsible and sustainable business practices.
- Identifies risks: The DPP spots potential and actual risks by collecting clear information, real-time monitoring, and collaborative data sharing. It helps companies catch problems with authenticity, compliance, and environmental impact, taking a proactive approach to minimize risk.
- Builds trust: By providing transparent and verifiable information on a product's origin, authenticity, and compliance with relevant standards, the passports will help you to build trust among your customers, investors, and other important stakeholders.
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