The Digital Product Passport

What is a Digital Product Passport? 

Like its travel-friendly namesake, the digital product passport will become a necessary document that accompanies a product on its journey, consolidating detailed information from material sourcing and extraction all the way through to end-of-life recycling. However, instead of a paper booklet, the DPP will be permanently affixed to each product in the form of an NFC chip, QR code, or RFID tag. 

The data collection starts at a product’s design phase, documenting the materials it contains, where they were sourced, and where the product was assembled. From that point on, the DPP is continuously updated, showing when and where the product was sold, if it has been repaired, or if any parts were replaced, for example. 

Over the course of its lifetime, anyone who interacts with the product – including manufacturers, shoppers, and repair staff – can scan the DPP to instantly reveal all this underlying product information.  

Once implemented, the DPP will solve a major challenge that’s been standing in the way of a circular economy: transparency. It will give industry stakeholders and consumers deep insights into every step of a product’s supply chain, laying the groundwork for a huge new range of sustainable business models.  

The Technological Backbone

The foundation of the Digital Product Passport system relies on advanced data technologies such as blockchain. This digital ledger securely stores and verifies each product’s data, providing a reliable source of detailed information for the entire supply chain. Blockchain’s tamper-resistant structure ensures that every stakeholder, from manufacturers to consumers, can trust the accuracy of the data recorded, enhancing transparency and fostering accountability across industries.

What data is stored in a Digital Product Passport? 

The EU Commission is still mapping out all the DPP requirements, which include standardizing definitions and data collection practices. However, here are some examples of what the DPP is likely to include: 

• Basic product data: Product name, make, model, batch number, manufacturing date, and warranty details.
• Material data: Including origins of raw materials and components, plus the suppliers involved in sourcing.
• Ownership data: Details on current and past owners (especially relevant for long-lasting products that can be sold and resold). 
• Repair data: Information about the overall repairability of the product, plus specific repair events and reasons.
• Sustainability data: Such as the carbon footprint of the manufacturing and distribution processes, as well as the use phase. 

Data Accessibility for Stakeholders

One of the DPP’s unique aspects is its customizable access settings. Stakeholders across the supply chain, from consumers to regulatory authorities, have varying levels of data visibility. For example, manufacturers might have access to in-depth material data, while consumers can view only the product’s repair history and sustainability metrics. This layered accessibility ensures that each party can access the information most relevant to them without compromising sensitive details.

Who does the Digital Product Passport affect? 

There’s no denying that the DPP will have a major effect on brands and manufacturers. Complex products have complex supply chains, and for years the links between the players in those chains were often extremely opaque.  

The DPP signals the end of that era. Companies will no longer be able to operate without having a deep understanding of the design, production, use, and recycling phases of their products.  

In the early stages of implementation, many brands and manufacturers will need to completely rethink how they do business – and with whom. But once in place, the DPP will give companies valuable insights into their environmental footprint, accelerate the achievement of sustainability goals, and enable them to charge a premium for more responsibly made products. 

The DPP will also directly benefit the other players in the value chain: 

• Material suppliers will be rewarded for transparent processes emphasizing environmental safety and worker welfare. 
• Repair professionals will be able to see a product’s full repair history (including reasons for repair) and better diagnose new issues. 
• Recyclers will have detailed component and material composition information to optimize take-back programs and material recovery. 
• Governments and public authorities will have a new set of standards and an easily accessible way to verify compliance. 
• Retailers will gain new opportunities to offer eco-friendly programs, like product buy-backs and recycling options, which can enhance consumer loyalty and support sustainable purchasing decisions.
• Consumers and end users are empowered to make better buying decisions and improve sustainable choices like repair and recycling. 

The global reach of the Digital Product Passport

While the DPP is an EU regulation, its reach will extend far beyond Europe. For example, a global electronics manufacturer headquartered in North America that produces laptops in Asia and then sells them in Europe will still need to comply with all relevant DPP regulations. Therefore, it applies to any product that is bought or sold in the European market. No matter where the product is made or the manufacturer is located, the digital product passport will become a globally relevant standard.

What is the timeline for the DPP? 

The Digital Product Passport (DPP) timeline is guided by the European Union’s Ecodesign for Sustainable Products Regulation (ESPR), which came into force on July 18, 2024. Batteries, particularly industrial and electric vehicle batteries, will be the first category to adopt this requirement, with legal enforcement starting in 2026. However, industry leaders are already taking steps to comply, as seen in pilot programs initiated through the CIRPASS project.

After batteries, next in line for DPP adoption are textiles and electronics. Deployment roadmaps for these categories, published in early 2024, outline a phased implementation extending through 2027. These developments ensure a gradual and comprehensive integration of the DPP across industries. Here’s an overview of some crucial DPP dates manufacturers should keep in mind: 

Digital Product Passport implementation

The implementation of the Digital Product Passport (DPP) represents a significant shift in how businesses approach product lifecycle management, requiring detailed data collection and coordination across supply chains. To ensure compliance, manufacturers, suppliers, and retailers must begin taking proactive steps to align with upcoming regulations. Here’s how brands can prepare for DPP implementation:

1. Centralize Product Data:
   • Establish a clear system for collecting, organizing, and storing product data, from material sourcing to end-of-life instructions. Many companies are investing in Product Information Management (PIM) systems to streamline this process.
2. Collaborate with Suppliers:
   • Alert your suppliers about the new transparency requirements and work closely with them to document raw material origins, worker welfare, and sustainability metrics.
3. Conduct Data Audits:
   • Assess your current data collection practices and identify gaps, such as missing repairability information, carbon footprint details, or recycling instructions. Fill these gaps to create a complete picture of your product lifecycle.
4. Invest in Technology:
   • Explore technologies like blockchain to ensure data security and traceability. NFC chips, QR codes, or RFID tags will also need to be integrated into product design to house the DPP.
5. Pilot DPP Systems:
   • Start small by rolling out the DPP for one product category or region. Use this pilot to identify potential challenges and refine your processes before scaling up.
6. Stay Informed on Legislation:
   • As new product categories are added and standards evolve, businesses must stay updated on the latest requirements. Regular engagement with industry bodies and compliance organizations will ensure your company remains ahead of the curve.

By beginning the implementation process now, companies can avoid compliance bottlenecks and leverage the DPP to strengthen their sustainability credentials, build consumer trust, and unlock new revenue opportunities.

The importance of data for the digital product passport

Even if the exact deadlines for certain product categories remain flexible, the digital product passport timeline serves as a critical indicator of when industries must prepare.

In the meantime, the best way for brands and manufacturers to prepare is to get their product data in order. That includes defining clear processes for data collection and storage, alerting suppliers about new transparency requirements, and identifying knowledge gaps that might slow down the path to compliance.  

The DPP plays a pivotal role in promoting sustainable production and consumption practices by tracking environmental impact metrics. These include a product’s carbon footprint, energy efficiency during manufacturing and use, and recyclability potential. By integrating this data into the DPP, manufacturers can showcase their commitment to sustainability, and consumers can make more informed, eco-conscious purchasing decisions