Sustainability used to be a mere footnote in annual reports, but today, it's an integral part of what businesses offer their customers, with 60% of buyers rating it as an important purchase criterion. While it has been largely optional and driven by consumer demand, with the digital product passport (DPP) requirement passed under the European Green Deal (EGD) — a comprehensive plan to achieve climate neutrality by 2050 — transparency about product sustainability will soon be mandatory within the EU.
The goal is to provide clear insights into a product's environmental impact and lifecycle while offering guidance on reusability, repair, and maintenance. Therefore, the digital product passport is a major step towards a circular economy – with comprehensive product data as a powerful vehicle to reach sustainability targets. With 38% of customers expressing the need for clearer information regarding the sustainability of products and services, now it’s the time for businesses to prioritize transparency and actively engage in providing the necessary data and guidance.
In this blog post, we delve into the benefits of preparing for the new regulation, the importance of data for the digital product passport, and how Product Information Management (PIM) systems can help create profitable solutions that encompass the entire value chain.
A digital product passport (DPP) is a product-specific data set aimed at enhancing the sustainability and circularity of products in the EU. It provides consumers, companies, and policymakers answers to questions such as: where does the product come from, how it is made, how it can be reused, and which sustainability labels it has. By emphasizing circular economy principles, these passports can help consumers make sustainable choices and enable businesses to develop greener products. Essentially, a DPP is an electronic record that contains all the essential information about a particular product, consolidating data from its inception to the end of its life cycle. The DPP could be accessed by scanning a QR code, NFC tag or RFID tag or by clicking a link on the product page of a brand's ecommerce website.
The adoption of DPPs aligns with global efforts to promote responsible consumption and production. Digital Product Passports are designed to be easily accessible throughout a product's lifecycle, enabling transparency, accountability, and traceability. It’s a promising step towards a more sustainable future, where products are valued not only for their functionality but also for their environmental impact and potential for reuse and recycling. While the European Commission is at the forefront of this initiative, the concept may inspire similar efforts globally as organizations and governments seek to address sustainability concerns.
Digital product passports are catalysts for positive change in our consumption patterns and business practices. Their goals encompass empowering consumers to make informed decisions and fostering sustainable commerce.
Implementing DPPs aims to achieve the following: