What do you really know about the products you purchase? You see them in their finished form, but do you know how they were made, how recently they came off the assembly line, or how sustainable the manufacturing process is? A digital product passport (DPP) can help answer all of these questions.
DPP technology is relatively new, but the European Union is spearheading its adoption across an array of industries. If you manufacture or sell physical goods, join the group of businesses using DPPs to convey valuable insights about their merchandise.
What is a digital product passport?
A digital product passport (DPP) is a digital record with detailed information about a physical product’s environmental impact and the corporate social responsibility efforts that went into making it. Product data on digital product passports include the origin, materials, manufacturing processes, and recycling or repair instructions.
You can access DPP data by scanning a QR code embedded in its packaging or on the product itself. Digital product passports enhance transparency, traceability, and regulatory compliance, improving the relationship between manufacturers and consumers.
Information included in digital product passports
Digital product passports serve as a digital record, tracking material sourcing, resource efficiency, and repair data. It helps ensure compliance with environmental regulations while providing consumers transparent insights into the goods they purchase. Here are some of the data points you might find on a DPP:
- Product origin. This includes the product name, model number, product category, manufacturer, country of origin, and ownership history if the item has changed hands.
- Material composition. This describes the raw materials used to make the physical product. For instance, the DPPs on electric vehicle batteries would mention lithium and cobalt compounds.
- Manufacturing process. In addition to material data, a DPP can provide detailed information about the product’s carbon footprint, energy consumption during manufacturing, and overall sustainability metrics.
- Social and ethical impact. This category includes information about the product’s social and ethical impact, such as labor practices and fair trade certifications.
- Maintenance and repair information. This includes information related to the disassembly, repair, or replacement of components with the goal of extending product lifetimes and reducing waste.
- Recycling or disposal guidelines. This includes instructions on how to properly dispose of the product, including recycling options.
- Product lifecycle information. This includes warranty details, expected lifespan, and sustainability certifications if applicable.
Why are digital product passports required in the European Union?
Like many global markets, the EU market is undergoing a system-wide digital transformation. The European Commission has chosen to adopt DPPs as part of its Circular Economy Action Plan to promote sustainable production and consumption. The Commission believes detailed data from DPPs will help consumers make better purchasing decisions, thanks to the increased transparency about products.
The EU’s goals include:
- Encouraging circularity. DPPs support reuse, repair, and recycling by providing a complete guide on dismantling and repurposing products.
- Bolstering consumer confidence. Data transparency offers insight into a product’s sustainability and quality. European market customers can draw upon DPP sustainability data to decide whether a product aligns with their values.
- Combatting greenwashing. Greenwashing exploits environmental concerns by crafting sustainability claims to obscure a company’s actual environmental impact. DPPs combat this by standardizing product information, enabling consumers to critically examine a business’s carbon footprint and verify compliance with sustainability goals.
- Creating innovation and market opportunities. DPP compliance can drive innovation and open new business opportunities for brands that place a premium on ethical supply chains and sustainable production. The EU’s sustainable products regulation steers sustainably minded customers toward the right companies.
How to prepare for digital product passports
- Familiarize yourself with DPP regulations
- Implement advanced data collection systems
- Choose high-tech data carriers
- Create a value chain model aligned with your DPP
- Consider DPP requirements when looking for new revenue streams
As more businesses adopt digital product passports, they must update their internal processes to meet new regulatory requirements. Here’s how to prepare your business for DPPs:
Familiarize yourself with DPP regulations
Study DPP regulations and delegated acts relevant to your industry. If you sell electronics, textiles, and batteries, pay particular attention to the evolving requirements. Committing to this helps ensure compliance and lets you maintain a competitive advantage within your industry sector. Visit the European Commission’s website to follow the rollout of these regulations.
Implement advanced data collection systems
Collaborate with DPP service providers to create a continuously updated data system that spans your entire supply chain.
With the help of these providers, you can remotely update DPPs via online databases as soon as any components of your production process change. Implementing supply chain analytics has the added benefit of helping your business identify efficiencies and manage disruptions.
Choose high-tech data carriers
Use data carriers like QR codes or radio frequency identification (RFID) tags to store and transmit information. Each data carrier—like a single RFID tag —can contain a unique identifier for a product. This allows consumers and stakeholders to view data instantly via a web page with detailed product information.
Create a value chain model aligned with your DPP
A value chain analysis helps you optimize your business activities to create a competitive advantage. By examining every stage—from raw material sourcing to post-sale services—you can add value, improve customer satisfaction, and drive profitability. Add transparency to your value chains by collaborating with suppliers and logistics providers to integrate data and meet DPP standards.
Consider DPP requirements when looking for new revenue streams
Use DPP implementation to unlock new revenue streams by offering services like extended warranties, repair kits, or take-back programs. Aligning with DPP regulations supports longer product lifetimes. It simultaneously helps you create value-added business models that resonate with eco-conscious consumers.
Digital product passport FAQ
What industries will digital product passports affect?
Digital product passports primarily affect products sold in the following industries: electronics, textiles, batteries, automotive, and packaging. They could also impact other sectors with significant environmental or circular economy considerations.
Are digital product passports only being required in the EU?
While the European Union is leading the charge for digital product passports, the concept is gaining global attention as a way to promote sustainability, transparency, and circular economy principles.
What is a digital product passport?
A digital product passport is an electronic record that provides detailed information about a product’s lifecycle. This includes its origin, materials, environmental impact, and recycling or repair instructions.
