Our world needs more products that can be reused, repaired and recycled—and it’s important that consumers have all the data they need to make the best choices. The EU has set its sights on encouraging environmentally sustainable and circular products with Digital Product Passports, which provide consumers with more information on the carbon footprint, materials and durability.
In this article, we answer commonly asked questions about the Digital Product Passport:
What is the Digital Product Passport (DPP)?
How does the Digital Product Passport impact your business?
How can your company prepare your data processes today to comply with these new regulations?
What is the Digital Product Passport (DPP)?
We can’t talk about the Digital Product Passport without mentioning the Ecodesign for Sustainable Products Regulation first. This initiative by the European Commission aims to enhance the sustainability and transparency of products placed on the EU market. Note that these rules will apply to all products on the EU market, no matter where they were originally produced.
Sustainability
The Ecodesign for Sustainable Products Regulation envisions a circular economy where sustainable products are the norm. This means that products should be reused and recycled whenever possible, rather than making waste piles bigger. Whereas previous ecodesign efforts in the EU were mainly focused on energy-related products in the past, the Ecodesign for Sustainable Products Regulation encompasses a broader range of sectors. In that way, there is more potential for this regulation to bring about positive change.
Transparency
Information about a product’s sustainability should be easily accessible to consumers. This is where the Digital Product Passport (DPP) comes in. Each product will have its own passport, a summary of useful data about its materials, repairability, reusability and carbon footprint. This way consumers can make better choices and find out whether their purchases are environmentally-friendly. Just like how you take your passport when you travel, this passport follows your products wherever they go.
In practice, the Digital Product Passport will be a physical tag on the product, packaging or product documentation. However, that small tag has a lot of information behind it. By scanning a QR code or other data carrier, consumers find out more about the product’s sustainability and the different ways in which the product contributes to a greener world.
The Digital Product Passport initiative will be prioritized for a selection of product categories. Textiles (garment and footwear) and batteries (electric vehicles, electric light transport, and industrial) are the first categories to adopt the passport requirement. Making these products more sustainable has a high impact, as they often cause high carbon emissions or pollution. Over time it is likely that the Digital Product Passport will be expanded to more product categories.
What is the impact of the Digital Product Passport on your business?
The Digital Product Passport has a direct impact on all parties involved in a product’s lifecycle, from manufacturers to consumers. This initiative brings many benefits for businesses: increased customer trust, a concrete validation for green claims and new business opportunities that are focused on a circular economy.
At the same time, it’s important that you are aware of the obligations your business has within the framework of this new regulation. Whether you’re a manufacturer, distributor or retailer, you need to ensure that your processes comply with the rules. You need to have a solid understanding of the regulation, meticulously keep track of important product data and update this information regularly.
How can your company prepare your data processes today to comply with these new regulations?
The Ecodesign for Sustainable Products Regulation has a phased rollout, with the Digital Product Passports likely coming into effect in 2026 for selected product categories. These Digital Product Passports will contain a lot of data—data your business will have to collect and store.
The first step is to conduct a comprehensive product audit, to determine which of your products fall under this new regulation. As a side note, this audit might be a good opportunity to look into the durability and sustainability of your products. Can some of your products be made with recycled materials, for instance, or can you make it easier to repair them? Perhaps you can bring about changes to the production and manufacturing processes?
Next, it’s time to ensure that your business has the tools and knowledge to deal with large amounts of data. A product information management (PIM) system is an efficient way to collect and store product data. A PIM system brings a single point of storage, which leads to more consistency and accuracy. Another advantage of PIM is that product data can easily be updated or refined. In the (likely) case that more data is added to the Digital Product Passport at a later stage, it is easy to enrich your current data in a PIM system.
How Vaimo can help
The consequences of not providing the necessary product data will be considerable for companies. If a product doesn’t have an associated Digital Product Passport, your company faces penalties and could even be prohibited from selling this product on the EU market. Let’s make sure your company is prepared for Digital Product Passports and ready for a more sustainable world.
Vaimo’s vision is to make data management second nature in your business’ daily processes. You see, data management doesn’t have to be a time-consuming, cumbersome endeavor. Together, we can set up data processes that work for your business and comply with new regulations, such as the Digital Product Passport. Interested in knowing more? Have a look at our PIM page.
