By Hitesh Ram | Thu Jul 4 2024 | 2 min read

Table of Contents

In 2024, the European Union (EU) is set to introduce new legislation mandating nearly all products sold within the union to feature a Digital Product Passport (DPP). This initiative aims to significantly enhance the transparency of product value chains, aligning with the growing demand for sustainable and accountable business practices. In this blog, we’ll delve into the essentials of the DPP, the EU’s new requirements, and how businesses can prepare for these changes.

What is a Digital Product Passport (DPP)?

A Digital Product Passport (DPP) is a comprehensive digital record that provides detailed information about a product throughout its entire value chain. This record includes data on the product’s origin, materials used, environmental impact, and disposal recommendations. Think of it as a unique identity card for each product, offering transparency and traceability from production to end-of-life.

Why are DPPs Important?

The primary purpose of DPPs is to bridge the gap between the transparency demanded by consumers, investors, and other stakeholders and the current lack of reliable data on product journeys. With more people demanding this information, the EU has introduced the DPP as a crucial component of the proposed Ecodesign for Sustainable Products Regulation (ESPR), set to be implemented in 2024.

The EU's Ecodesign for Sustainable Products Regulation (ESPR)

In December 2023, the EU reached a provisional agreement on the Ecodesign for Sustainable Products Regulation (ESPR). This regulation aims to make sustainable products the norm in the EU market, thereby reducing overall environmental and climate impact. The ESPR includes strict requirements for product management, such as a ban on destroying unsold clothing and footwear and rules aimed at extending product lifespans and enhancing reparability.

The New Digital Product Passport (DPP)

The Digital Product Passport (DPP), a key feature of the ESPR initiative, will be managed through a public web portal by the EU Commission. This portal will allow consumers to search for and compare sustainability information provided in the product passports. Companies with complex supply chains will need to gain a thorough understanding of each stage of their value chain to compile the necessary data for the DPP.

Is the EU Digital Product Passport Mandatory?

Currently, the DPP is not mandatory, but it will soon be required for a range of products. Beginning in 2024, the DPPs are anticipated to be adopted by the EU and mandated between 2026 and 2030. This rule will apply to all 27 EU member countries and cover a wide range of product categories, particularly those with high environmental impact and potential for improvement, including:

  • Textiles (notably garments and footwear)
  • Furniture
  • Chemicals
  • Batteries
  • Consumer electronics
  • Electronic devices
  • Construction products

What Should the EU Digital Product Passport Cover?

To comply with the EU’s DPP data requirements, a DPP should include:

  • Unique Product Identifier (UID)
  • Global Trade Identification Number (as provided in standard ISO/IEC or equivalent)
  • TARIC Code and Other Relevant Commodity Codes
  • Compliance Documentation (including declaration of conformity, technical documentation, and conformity certificates)
  • Requirements Related to Substances of Concern
  • User Manuals, Instructions, Warnings, or Safety Information
  • Relevant Information Related to the Manufacturer, Operators, and Importer
  • Relevant Information Related to Unique Facility Identifiers
  • Information for Consumers and End-users on installation, use, maintenance, repair, and end-of-life disposal
  • Information for Treatment Facilities on disassembly, recycling, or disposal at end-of-life
  • Other Relevant Information that may influence product handling by parties other than the manufacturer
  • The specific details required will depend on the product type and the delegated acts of the ESPR.

Benefits of Implementing Digital Product Passports

  1. Enhanced Transparency: DPPs provide detailed information about a product’s origin, materials, and environmental impact, enhancing visibility for both companies and consumers.
  2. Improved Supply Chain Management: With a comprehensive digital record, companies can optimize processes to reduce environmental impact and ensure a more sustainable and efficient supply chain.
  3. Regulatory Compliance: DPPs help companies adhere to environmental standards and regulations, fostering a commitment to responsible business practices.
  4. Risk Identification: DPPs allow for real-time monitoring and collaborative data sharing, helping companies identify and mitigate risks related to authenticity, compliance, and environmental impact.
  5. Building Trust: By providing transparent and verifiable information, DPPs help build trust among customers, investors, and other stakeholders.

Preparing for the Digital Product Passport

Mapping Their Supply Chains: Gain a detailed understanding of each stage of the value chain to gather the necessary data. Upgrading IT Systems: Ensure that IT infrastructure can handle the data collection, storage, and sharing requirements of the DPP. Training Staff: Educate employees about the importance of DPPs and the new data requirements. Collaborating with Suppliers: Work closely with suppliers to ensure they can provide the required information. Staying Informed: Keep up to date with the latest regulations and guidelines from the EU.

The EU Digital Product Passport will require verified supply chain data at a level of depth most manufacturers have not yet achieved. Book a Regilient demo to see how Regilient's agentic sustainability platform helps you map, collect, and manage the product data your DPP compliance will depend on.

Topics

European Union RegulationsExtended Producer ResponsibilityBulletin

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The EU's New Digital Product Passport (DPP)

What is the EU Digital Product Passport and what does it contain?
The EU Digital Product Passport (DPP) is a comprehensive digital record that tracks a product throughout its entire value chain, from production to end of life. It must include a unique product identifier, TARIC and commodity codes, compliance documentation, information on substances of concern, manufacturer and importer details, user and repair instructions, and end-of-life disposal guidance for treatment facilities. It functions as a verifiable identity record for each product, accessible via a public EU Commission web portal.
What regulation makes the EU Digital Product Passport mandatory?
The Digital Product Passport is a core requirement of the Ecodesign for Sustainable Products Regulation (ESPR), which reached provisional agreement in December 2023. The ESPR replaces the original Ecodesign Directive and broadens its scope significantly, making sustainable product design and full supply chain transparency the regulatory norm across the EU market. DPP mandates are being rolled out through product-specific delegated acts, with key categories including batteries, textiles, electronics, furniture, and construction products.
Which product categories will require a Digital Product Passport first?
The DPP is expected to be mandated between 2026 and 2030 across product categories with the highest environmental impact and greatest improvement potential. Priority categories include textiles, notably garments and footwear; furniture; chemicals; batteries; consumer electronics; electronic devices; and construction products. The specific data requirements for each category will be defined through ESPR delegated acts, which set the precise rules for each product group separately.
What supply chain data do manufacturers need to compile for DPP compliance?
Manufacturers need detailed data from every stage of their value chain. This includes materials and substances used in each component, origin and sourcing information, environmental impact data, compliance certificates and declarations of conformity, installation and maintenance instructions, and disassembly and recycling information for end-of-life treatment facilities. Companies with complex multi-tier supply chains will need structured supplier engagement programmes to collect and verify this data at the component level, as the DPP cannot be compiled from partial or unverified supplier declarations.
How does the EU Digital Product Passport support circular economy goals?
The DPP is designed to make verified product information available to consumers, repairers, recyclers, and regulators throughout a product's life. By requiring disclosure of material composition, repairability ratings, and end-of-life handling instructions, it enables more efficient sorting, disassembly, and material recovery at end of life. It also supports the ESPR's restrictions on destroying unsold goods by creating a traceable record of product inventory and composition that regulators can audit.
How should manufacturers start preparing for the EU Digital Product Passport?
Preparation requires four parallel workstreams. First, map the full supply chain to understand where each material and component originates. Second, audit IT infrastructure to assess whether existing systems can collect, store, and share the volume of product data the DPP requires. Third, engage suppliers early to establish the data formats and disclosure standards they must meet. Fourth, monitor ESPR delegated act publications for your product categories, as these define the exact data fields and timelines that apply. Manufacturers who begin data collection now will be significantly better positioned than those who wait for final delegated act publication.