As part of the European Union's effort to become carbon zero by 2050, companies are introducing the Digital Product Passport (DPP) so consumers can fully trace the manufacturing and souring of the product with transparency.

Image source Ondernemend Netwerk Noord Oost

Starting in 2024, The EU will implement a new regulation that requires nearly all products sold within the EU to have a Digital Product Passport to create transparency across value chains. The passport will feature information about the product's origin, materials, environmental impact, and disposal instructions offering a digital record of the product's lifecycle.

The initiative is part of the Ecodesign for Sustainable Products Regulation (ESPR) as part of the European Circular Economy Plan.

Circular Economy Action Plan (CEAP)

The European Union’s Circular Economy Action Plan (CEAP) is a comprehensive strategy aimed at fostering sustainable practices across various industries by promoting a circular economy. A pivotal component of this plan is the introduction of the Digital Product Passport (DPP), designed to enhance product transparency, facilitate recycling, and reduce environmental impact.

Image source Circularise

Who / what will need a Digital Product Passport?

Nearly all products that enter the European Union will require a Digital Product Passport.

The transition will start with its introduction of products such as textiles (apparel and footwear), furniture, chemicals, batteries, electronics, and construction materials, among others.

What is a Digital Product Passport

A Digital Product Passport (DPP) is a digital record that provides detailed information about a product’s origin, composition, repairability, and environmental impact. Accessible via data carriers such as QR codes or NFC chips, the DPP enables consumers, regulators, and stakeholders to make informed decisions, therefore promoting transparency and traceability.

Image source World Economic Forum

Manufacturers, distributors, retailers, and importers must have an accessible DPP available for consumers on products starting from 2026 for some products and 2030 for other goods like electric batteries and vehicles.

DPP Opportunities and Competitive Advantage

Implementing DPP in products could provide benefits and competitive advantages in the market.

Image source Sewport

Transparency for Consumers: Providing consumers with verifiable information about product sustainability can foster trust and brand loyalty and enhance consumer connection.

Compliance with Regulations: Ensures adherence to evolving EU regulations, reducing the risk of non-compliance penalties or sanctions.

Market Differentiation: Brands can claim leading positions in sustainability, appealing to environmentally conscious consumers.

Supply Chain Efficiency: Informs consumers on traceability and management of products throughout their lifecycle, optimising operations.

There have also been conversations about the form of the DPP and what format is the most accessible to the consumer (digital chips, QR codes). The Rudholm group has developed an innovative platform that integrates DPPs into garments, the Share Label. By embedding QR codes or NFC chips into labels, ShareLabel® provides each product with a unique digital identity.

Impact of Digital Product Passport in EU

As the stage for sustainability becomes increasingly more established, brands are being challenged by sharing information about their supply chain in developing countries, source of materials, and use of chemicals. The newly implemented EU regulations could expose companies for poor sustainable practices, or it could serve as a motivator to secure and ensure products are made ethically.

We can expect changes in our labels and more transparency concerning how products are created, however, this transition could be slow and uncomfortable for companies across all industries.

To stay up to date on this topic — and to discover more insights about sustainability in the world of sneakers and fashion — make sure to keep an eye on our reflawn News section.