The Digital Product Passport (DPP) is a new European Union requirement that gives every product a digital identity. Starting in 2024, most products sold in the EU will need a DPP as part of the Ecodesign for Sustainable Products Regulation (ESPR). The goal is more transparency, better product traceability, and a move toward circular manufacturing and a circular economy.
A DPP is a digital record that stores key information about a product's materials, origin, repairs, and recycling options. It helps customers, recyclers, and manufacturers easily access the product's history, transforming the way we design and reuse products across industries.
What is a Digital Product Passport (DPP)?
A Digital Product Passport (DPP) is a digital file that stores key information about a product throughout its entire lifecycle. As the European Commission explains, the DPP includes information such as:
- What materials the product is made of;
- Where it was produced;
- How it performs;
- Its repair history;
- How it can be recycled.
Unlike a physical label, the DPP is accessed electronically, often via a QR code, making it easier for all parties to retrieve important information.
The DPP is meant to be updated over time—allowing manufacturers to track repairs or part replacements. When products reach end-of-life, recyclers can access the data for responsible disposal.
The EU’s Eco-Design Regulations Driving DPP
The Digital Product Passport (DPP) is a key element of the EU’s plan to reduce waste and improve product transparency. Under the Ecodesign for Sustainable Products Regulation (ESPR), approved in 2024 as part of the EU Green Deal, DPPs will be mandatory for nearly all products by 2030.
Sectors like electronics, batteries, and textiles will be the first to adopt DPPs, with implementation starting in 2026. As noted by Trustnet, companies exporting to Europe must comply or face penalties. Early adoption will help businesses stay ahead of regulations and demonstrate leadership in sustainability.
Impact on Key Industries
While eventually most sectors will be affected, the Digital Product Passport will have especially notable impacts on certain industries.
Electronics & Electrical Equipment
The electronics industry is among the first to adopt the DPP. As noted by the Ellen Macarthur Foundation, electronics like smartphones and laptops will soon require DPPs. These products often contain complex materials and face challenges like e-waste. DPPs will help improve product traceability by storing key data such as energy efficiency, hazardous substances, and repair history.
Industrial Machinery & Equipment
While industrial machinery may not be in the first wave of DPP mandates, they are still part of the broader Ecodesign framework. As highlighted by White & Case, key materials like steel and aluminum are already prioritized. DPPs will help track data like energy usage, maintenance history, and compliance, supporting circular manufacturing practices.
Consumer Goods (Apparel, Furniture, Appliances)
For consumer goods, including clothing and home appliances, DPPs will play a key role in enhancing supply chain transparency. The DPP will enable manufacturers to include data on fabric types, recycled content, and repairability. As McKinsey highlights, 40% of European consumers consider sustainability important, making DPPs a valuable tool for building trust and customer loyalty.
How Manufacturers Can Prepare for Digital Product Passports
1. Review your product data
Begin by reviewing the information you already have. While many companies track basic specs, DPPs require more detailed data on materials, sourcing, and repairs.
2. Strengthen traceability with suppliers
As noted by the European Commission, DPP formats will be standardized. Begin collaborating with suppliers to ensure they can provide digital data.
3. Check your digital systems
If your ERP or PLM systems cannot manage circular economy data, an upgrade may be necessary. As discussed in this article, investing in platforms that support DPPs will aid in managing compliance and product traceability.
4. Run a pilot project
Start with one product line to test a digital product passport. This helps identify data gaps, refine workflows, and ensure a smooth full implementation.
5. Stay updated
Stay informed on the latest DPP regulations. The EU will release rules by product category, as noted by the WBCSD. Participate in industry discussions to ensure preparedness and compliance.
Prepare for the DPP now, which will ease future compliance and help you improve internal processes. It's an opportunity to demonstrate your commitment to sustainable manufacturing and transparency.
The Benefits of Digital Product Passport
Far from being merely a legal requirement, the Digital Product Passport opens up significant opportunities:
- Enhanced Transparency and Brand Trust: DPPs build trust by providing verified product data, helping brands stand out and strengthen customer loyalty.
- Support for Circular Business Models: DPPs enable business models like leasing, reselling, and reverse logistics, helping to unlock new revenue streams.
- Improved Compliance and Risk Management: By providing all compliance data in one place, DPPs make audits and regulatory checks easier and faster.
- Operational Efficiency and Cost Savings: Centralized product data from DPPs can reduce costs, optimize material procurement, and increase efficiency.
- Building Customer Trust and Loyalty: DPPs allow brands to build deeper relationships with consumers by providing transparent, sustainable product data. According to PicoNext, many consumers prefer products with clear sustainability information, increasing brand trust.
Embracing the Future with Digital Product Passports
The Digital Product Passport (DPP) is transforming how products are designed, managed, and recycled. By offering better product traceability and transparency, DPPs help companies comply with new regulations and build trust with consumers. As the move towards a circular economy gains momentum, adopting DPPs can offer businesses a competitive advantage.
To dive deeper into the Digital Product Passports, read the article “Digital Product Passport as Enabler for the Circular Economy.“
