Digital Product Passport: The future of product compliance
In today’s world, consumers and businesses alike are increasingly aware of the environmental impact of the products they use and sell. Regulatory bodies across the globe, especially in the European Union, are taking steps to ensure that products are not only safe but also sustainable and transparent. One of the most significant developments in this area is the introduction of the Digital Product Passport (DPP). This digital identifier is set to revolutionize the way products are traced, ensuring their compliance with sustainability and safety standards.
The DPP plays a pivotal role in the EU’s broader strategy for creating a circular economy. In this article, we’ll explore how DPPs will affect manufacturers, what benefits they bring, and how businesses can prepare for this upcoming change.
What is a DPP?
A DPP is a digital identifier that provides key information about a product throughout its lifecycle. It helps trace a product’s materials, manufacturing processes, and environmental impact. More importantly, it plays a vital role in enabling circularity by making product data accessible to consumers, manufacturers, and regulators alike.
The DPP is part of the broader Eco Design for Sustainable Products Regulation (ESPR), which is a cornerstone of the EU Green D.eal. Its primary goal is to empower European consumers to make informed, sustainable choices. The Digital Product Passport applies to a wide range of products, from textiles to electronics, excluding only food, feed, and medicine.
“The digital product passport is essentially a digital identifier that enables us to scan products and access relevant information about the products. It is an essential building block to enable circularity in products.”
– Laura Linnala
Benefits of DPPs
1. Improved traceability
With the DPP, every product will have a clear digital trail. From the sourcing of raw materials to the product’s journey through the supply chain, this traceability helps ensure that products are sustainable, safe, and meet all regulatory standards.
2. Enhanced compliance
For manufacturers, the DPP ensures that all necessary compliance information is collected and stored in one accessible location. This is especially useful when products need to comply with both EU and national-level regulations.
3. Sustainability
One of the primary goals of the DPP is to foster circularity. By providing detailed information about the materials used in a product and how they can be recycled or reused, the DPP encourages the recycling, remanufacturing, and repurposing of products.
4. Transparency and consumer trust
Consumers will be able to access information about where and how a product was made, how much energy was used, and its overall environmental impact. This level of transparency builds consumer trust and fosters more sustainable purchasing decisions.
5. Supply chain optimization
Businesses can use the DPP to streamline their supply chains by having better control over the materials used and ensuring compliance at every stage of the product lifecycle.
“Do you want to have safe toys for your kids made by kids, or do you want safe toys made by adults? It’s silly that we need legislation to answer these questions, but apparently we do.”
– Caspar ter Horst
How DPPs impact manufacturers
Manufacturers and economic operators, who are responsible for placing products on the EU market, will need to ensure that a DPP accompanies every product. This applies not only to the finished products but also to intermediary materials. Manufacturers, importers, and even authorised representatives may find themselves responsible for the data included in the DPP.
This system will require a shift from the traditional static compliance documentation to a dynamic, data-driven approach. As Caspar from ProductIP noted in the podcast linked below, businesses will need to adapt to collecting batch-based compliance evidence rather than relying on original testing.
Why DPPs are essential for future business
With the rising demand for sustainable and transparent products, the DPP is essential for future-proofing businesses. As regulations like the ESPR push the boundaries of compliance, businesses that fail to adapt may find themselves left behind. Moreover, as the DPP becomes a standard across multiple industries, it will become a key differentiator for businesses aiming to stay competitive in the European market.
The DPP also has the potential to reduce compliance risks by providing a clear, structured way to share information between suppliers, manufacturers, and regulators. Over time, this will lead to improved product quality, fewer compliance issues, and more efficient operations.
“The goal is to make it easier for European consumers to make sustainable choices and to make Europe the world’s first circular region.”
– Laura Linnala
Challenges of implementing DPPs
Despite its benefits, implementing a DPP system comes with its challenges. Businesses will need to manage a vast amount of data related to product sourcing, manufacturing, and environmental impact. Furthermore, collecting this information from non-European suppliers can be particularly difficult.
Additionally, manufacturers will need to coordinate across different departments such as procurement, IT, legal, and compliance to ensure that all relevant data is captured and integrated into the DPP system.
Steps to implement a DPP system
1. Assess regulatory requirements
Understand the specific requirements for your product category under the ESPR and other relevant EU regulations.
2. Select a DPP platform
Identify the right platform to collect and manage the necessary data. Platforms like ProductIP are already preparing for this shift by integrating compliance data and technical files into a digital framework.
3. Engage with suppliers
Start collecting data from your suppliers, particularly those involved in high-volume or high-impact materials. This might require building a tiered supplier system.
4. Collaborate with standardization bodies
Getting involved in standardization processes at an early stage allows businesses to help shape the way DPPs are implemented.
“Start by making a big tree structure of your suppliers—first-tier, second-tier, and third-tier. Look at which products contribute to waste and design them for sustainability.”
– Caspar ter Horst
The Future of DPPs
By 2027, the DPP will be live for the first product categories, with other categories following soon after. As part of the EU’s ambitious plan to become the world’s first circular economy, the DPP will likely inspire similar regulations outside of Europe. The adoption of QR codes for product identification is expected to spread globally, making product information more accessible to consumers.
List of DPP companies
Below is a list of leading DPP companies (including their features), to help you choose a partner for your transition to the future of product lifecycle management.
Podcast episode about the DPP
Curious to learn more about the DPP? We recently recorded a podcast episode about it with guests Caspar ter Horst and Laura Linnala:
Conclusion
The DDP represents a monumental shift in how products are tracked, regulated, and understood. For businesses, this means not only staying compliant but also embracing a more sustainable and transparent way of doing business. The time to prepare is now. Start by engaging with your supply chain, standardization bodies, and regulatory frameworks to ensure your business is ready for the future of product compliance and sustainability. If you have any questions or would like further information, please don’t hesitate to contact us: