What is the Aim of the Digital Product Passport (DPP)?
The EU's Digital Product Passport aims to advance transparency and sustainability by providing relevant information to downstream industry stakeholders, enabling circularity to make fashion value chains sustainable. It promotes sustainable manufacturing, extended product lifetimes and improved end-of-life handling of products in the EU. A DPP also enables authorities to check a brand's regulatory compliance, and at the same time helps consumers to make well-informed, sustainable choices.
But what exactly are the requirements, and when will they be enforced? Time for an overview of what we already know to help you prepare for DPP regulations.
What Is the DPP and what Technology is Needed?
DPP is a structured digital repository of product-related information, including data on traceability, sustainability, and circularity. The passport must be linked to a data carrier with a unique product identifier, physically present on the product, its packaging, or accompanying documentation. For example, in the form of a QR code.
Who Does the DPP Impact?
Manufacturers, importers and distributors, material suppliers, repair professionals, recyclers, governments and public authorities, as well as consumers and end-users.
The Road Towards a European Digital Product Passport
- European Green Deal: On 19 December 2019, the European Commission adopted the proposal of the European Green Deal. The goal is to reach climate neutrality by 2050. The EU aims to transform into a fair and prosperous society with a modern and competitive economy with policy initiatives.
- Ecodesign for Sustainable Products Regulation (ESPR): On 30 March 2022, the European Commission adopted a proposal for a regulation framework for setting Ecodesign requirements for sustainable products. The goal is to improve product circularity, energy performance, and other environmental sustainability aspects of all product groups in the EU.
- EU Digital Product Passport: One aspect of the ESPR is the creation of an EU DPP that supports new business models. The goal is to transition to a circular economy by providing relevant information to downstream industry stakeholders.
The EU Timeline for the DPP
The DPP will be rolled out by revenue scale starting in 2024, with full implementation by 2030. In the meantime, the digital collection of data is a lengthy process that brands need to start now to ensure compliance by the time it takes effect. The fashion industry is one of the first sectors targeted by the European Union.
- April 2024: The European Parliament holds a plenary vote on the final text of the Ecodesign for Sustainable Products Regulation (ESPR). This vote formalizes the regulatory framework, setting the stage for the introduction of the Digital Product Passport (DPP) and other sustainability initiatives.
- July 2024: The ESPR officially enters into force. During this phase, the Ecodesign Forum is being established, which provides governance and oversight for sustainable product standards, including the DPP. Brands should start preparing for data collection and product transparency in line with future requirements.
- Q3 2024: The Ecodesign Forum is being formally set up. This forum will be responsible for shaping and guiding the development and implementation of the DPP, as well as other initiatives under the ESPR.
- Late 2024/2025: The Ecodesign Forum will hold its first official meeting. During this meeting, discussions will focus on technical standards and compliance measures for the DPP rollout, along with other sustainability objectives.
- Q2 2025: The first ESPR Working Plan will be adopted. This plan will outline priority actions, sectors, and timelines for implementing the ESPR, including the DPP for industries such as fashion.
- Mid-2025: Legislation is expected to be passed that will enforce the ban on the destruction of unsold goods (with specific exemptions to be defined). This is part of the broader sustainability goals tied to both the ESPR and the DPP.
- Late 2025: Regulations on key elements of the DPP will be passed. These regulations will include the establishment of the DPP registry, rules for service providers, product identifiers, data carriers, and digital credentials.
- Q4 2025-Q1 2026: The first set of measures for prioritized sectors, such as textiles, will be adopted. These measures will apply to products in these sectors, laying the foundation for full compliance with DPP requirements.
- Late 2027: The first product-level requirements under the DPP will apply. By this time, fashion brands must have DPP-compliant systems in place to ensure full product traceability and transparency.
- Full Implementation by 2030: The DPP will be fully implemented by 2030. Brands need to begin the digital collection of product and supply chain data now in order to ensure compliance when the DPP takes full effect.
Digital Product Passport Requirements
The EU is still defining all data requirements, including the standardization of definitions and data collection practices. Information to be included in the DPP will be product group specific and identified in delegated act process.
The DPP is likely to include:
- Product’s technical performance (e.g. durability, reliability)
- Materials and their origins (e.g. recycled content, presence of substances of concern)
- Repair activities (e.g. possibility of maintenance and refurbishment, reparability)
- Recycling capabilities (e.g. possibility of recovery of materials)
- Lifecycle environmental impacts (e.g. environmental impacts, including carbon and environmental footprint)
By using Retraced, you're already taking the first step towards meeting the DPP requirements. As new aspects and requirements are released, our Product Team will promptly integrate them into the platform. We'll ensure that by the time the DPP is implemented, you and your data will be ready to showcase on our Digital Product Passport feature.
What Will Companies Have to Do to Prepare for the DPP?
Make sure that:
- A product passport exists, and it is in compliance with essential requirements established in articles 9 and 10 of the ESPR – exceptions are possible
- The product passport is complete, meaning it includes all the mandatory information listed in the corresponding product groupspecific Delegated Act.
- The information included in the passport is authentic, reliable and verified in accordance with requirements established in the corresponding product group-specific Delegated Act.
- A back-up copy of the DPP is stored by a (certified) third-party product passport service provider.
- A copy of the data carrier or unique product identifier are made available to dealers and online marketplaces selling the corresponding product.
What Kind of Data Will Be Needed for the DPP?
From durability to environmental impacts, stakeholders will need to provide comprehensive information.
Data for the Digital Product Passport
The exact data requirements for meeting DPP regulations remain unclear, posing challenges for individual stakeholders such as end-consumers and downstream businesses.
Transparency and Traceability
DPP aims to enhance transparency & traceability throughout the product lifecycle, addressing concerns such as substance presence and energy efficiency.
Sustainable Practices
Stakeholders will need to assess factors like resource use, recycled content, and remanufacturing potential to promote sustainable practices.
Addressing Environmental Impacts
DPP will facilitate the assessment of environmental impacts, including carbon footprint and waste generation, driving towards more eco-friendly solutions.
Case Study
Löffler’s Mountainsports Summer Collection 2024 is Fully Traceable
This is how Retraced supports Löffler:
- Customers get full transparency by scanning a QR code on each product for real-time supply chain details.
- The QR code also leads to an interactive map displaying the production journey and each manufacturing step.
- Customers can also access sustainability certifications and standards for each product.
Apart from that two-thirds of the collection is made from renewable or recycled materials. Löffler produces in Austria and Europe, maintaining close supplier relationships based on their code of conduct.
"We are proud of our first traceable Mountainsports collection, which we have made possible in collaboration with Retraced. This gives our customers full insught into our supply chain."
Markus Reisegger-Huber
Sustainability Manager at Löffler