What is a Digital Product Passport ? : A complete guide

Digital Product Passports (DPPs) are set to revolutionize how the European supply chain operates over the coming years.

As part of the new EU legislation to improve sustainability and traceability, they will contain comprehensive information about the lifecycle of all products sold within the EU.

In this guide, we’ll take a deep dive into how DPPs work, why they’re being introduced, and the value they will add to the supply chain.

Digital Product Passport Meaning

Here’s a Digital Product Passport definition to get you up to speed. A Digital Product Passport (DPP) is a type of digital record that provides in-depth information about the entire life cycle of a product. This will include everything from data on the extraction of Critical Raw Materials used in the product to end-of-life disposal and recycling instructions.

The digital passport will also include data on the composition, manufacturing processes, maintenance and repair options for the product. This allows for more transparency and traceability, as well as reduced environmental impact in the supply chain.

This information will be accessible to all parties in the supply chain. This includes materials suppliers, manufacturers, retailers, and end-users. By centralising this information in a standardised digital format DPPs will support the shift towards a circular economy where products are repaired, reused, and recycled more often and more efficiently.

The legislation behind Digital Product Passports

DPPs are mandated by the European Union’s Circular Economy Action Plan, first introduced in March of 2020. The plan provides a timeline for the phased rollout of DPPs and details the specific products covered under the regulations.

The plan is designed to reduce waste, improve resource efficiency, and make sustainable products the default in the EU. If you’re wondering where you need DPPs, regulations will affect all products sold within the EU, even if they were manufactured elsewhere.

While the Circular Economy Action Plan is the main piece of legislation related to DPPs, it is not the only one. Here’s an overview of the legislation involved:

The Ecodesign for Sustainable Products Regulation (ESPR): This sustainable products initiative highlights digital product passports as a means to ensure products meet sustainability criteria. The legislation is aimed at improving both recyclability and repairability.
The Waste Framework Directive: This directive puts measures in place to ensure waste prevention and promote recycling. DPPs come into this by allowing stakeholders in the supply chain to track and manage waste streams more effectively.
The European Green Deal: This policy sets out the targets and milestones that will lead to climate neutrality by 2050. DPPs will play a key role in this by reducing the carbon footprint of all products sold within the EU.
Corporate Sustainability Reporting Directive (CSRD): This directive will make it mandatory for large companies to report on ESG issues and sustainability efforts.

This list is not exhaustive and there are numerous smaller pieces of industry-specific legislation that will cover the implementation of DPPs. Collectively, these regulations are designed to create a more transparent and sustainable product lifecycle. Eventually, this will reduce the waste and environmental impact across nearly all sectors.

What’s included in a Digital Product Passport: Overview

Here’s an overview of product passport information to help you meet requirements:

Material composition: DPPs will contain in-depth information on all of the materials used in a product. This will include the type, source, and percentage of recycled materials used.
Production data: This data will include details on the manufacturing processes used to make the product, along with information on energy consumption, emissions produced, and even labour practices.
Supply chain details: Information on the full supply chain will be held. This will include all stages, from initial Critical Raw Materials extraction to final assembly. It will also share the environmental impact of distribution.
Maintenance and repair information: Guidance will be included around the repair and maintenance of products. This might include parts availability, repair instructions, and the location of authorised service providers.
End-of-life instructions: Information will be available to end users on the proper disposal and recycling of products. This will include features like disassembly instructions and the location of authorised recycling facilities.
Environmental impact: Data will be held on the combined carbon footprint of the product. This will include things like water usage during the processing of raw materials.
Compliance and certifications: Records of compliance with the relevant regulations will be held, along with any certifications like energy-efficient ratings.
Ownership and transfer: Information will be held on the product's ownership history and when transfers of ownership have been made. This will be crucial for second-hand markets and promoting the reuse of products.

By consolidating this information into a standardised digital format, DPPs will provide a comprehensive overview of a product’s lifecycle, making it easier for manufacturers, consumers, and regulators to make more informed decisions.

Mainly used in the manufacturing and automotive industries, Digital Twins also hold data and are another new technology that may interact with DPPs. However, their use case and purpose are very different.

Digital Twins use complex, real-time data to offer insights into the current status of products, whereas DPPs are designed to gather and monitor complex information about sustainability in an easy-to-understand way.

Digital Product Passport Timelines

The implementation of DPPs is set to be rolled out via a phased approach, with different timelines for different categories of products/industries.

These timelines have been laid out to allow industries time to put systems and processes in place for the new requirements. This will ensure a smooth transition and effective integration of DPPs into existing workflows.

The timeline for implementation is detailed in the Ecodesign for Sustainable Products Regulation (ESPR). This timeline is not set in stone and may change as the requirements for DPPs in specific areas are revised.

Some areas that may be subject to change by the EU include:

Data attributes
Data carrier
Applicable products

The EU Commission is expected to finalise the information DPPs must hold by 2025.

Key dates in the current Digital Product Passport timeline include:

11 December 2019: The European Green Deal is adopted, with the aim of achieving carbon neutrality by 2050.
November 2020: The European Union releases the Circular Economy Action Plan.
30 March 2022: The Ecodesign for Sustainable Products Regulation details the implementation of Digital Product Passports and what they will require.
5 Dec 2023: The interim agreement date between the European Parliament and the European Council on DPPs and Ecodesign for Sustainable Products Legislation.
2024: The first DPPs are introduced in certain categories of products. Areas of high impact like batteries and electronics are the first to be affected.
2026: DPPs for all batteries will become mandatory.
2028: Mandatory DPPs will expand to cover other high-impact sectors like textiles, packaging, and construction.
2030: DPPs will be fully implemented across all the relevant sectors.

By 2030, the Digital Product Passport will be mandatory for a wide selection of product categories. Priority product groups outlined in the ESPR proposal include:

Iron, steel and alluminum
Critical Raw Materials like rare earth elements
Chemicals and Substances of Concern
Energy-related products like solar panels
Tyres and inner tubes
Paints and surface treatments
Textiles and fabrics
Detergents and other cleaning products
Electronics and other tech products
Lubricants and oils

These will be fully defined in future delegated acts and may be refined further.

Where will the DPP be required?

Here we look at which countries Digital Product Passports are required in.

In the EU

When they are rolled out, Digital Product Passports will be required in all 27 countries in the EU.

DPPs will also apply to any manufacturing company that exports goods to the EU market, irrespective of their location. For example, a company in China that makes products for another in France would have to follow regulations.

Outside of the EU

Companies that are working entirely outside of the EU won’t need to use Digital Product Passports. However, they will need to comply with other, similar laws which you can learn about here.

Which sectors will be impacted by Digital Product Passports?

DPPs will eventually cover a huge array of sectors, but priority sectors that will be impacted the soonest are outlined in this section.

Electronics

DPPs will enhance the transparency of the electronics industry by providing in-depth information on the manufacturing, composition, and repairability of devices. This will lead to better recycling and significantly reduce e-waste.

Construction

DPPs will track the full lifecycle of building materials within the construction industry, from their sourcing down to the demolition practices that must be adhered to years in the future. This will improve resource efficiency and allow for better reuse and recycling of materials.

Automotives

Automotive OEMs will need to provide comprehensive data on the components that make up their vehicles. EV and EV battery manufacturers will be particularly impacted as DPPs will provide better traceability on the Critical Raw Materials used in battery manufacture (such as cobalt).

Plastics

DPPs will play a key role in plastics and will track the full lifecycle of plastic products. This will reduce plastic waste and promote better recycling practices to meet the EU targets around reducing plastic pollution.

Furniture

Across the furniture industry, DPPs will support sustainable design in the furniture sector by mandating the transparent sharing of information on material sourcing, manufacturing processes, and recyclability.

Cosmetics

In the cosmetics industry, DPPs will improve the transparency of the cosmetics industry by providing detailed information on ingredient sourcing, production methods, and environmental impact. This will allow consumers to make more informed decisions to promote sustainability in the sector.

Toys

DPPs will ensure that toys are manufactured using safe and sustainable materials. They will also improve the safety standards of these products and support consumers to foster better recycling habits throughout the toy industry.

Substances of Concern

Substances of Concern are a major focus for the EU and DPPs will provide comprehensive information on the sourcing, composition, and environmental impact of these chemical products. This will promote safer chemical use and support efforts to minimise pollution.

Critical raw materials

DPPs will ensure that the critical raw materials used across various industries are traceable and transparent. This will promote ethical sourcing and visibility over the intensity of processing these raw materials, such as water use during cobalt processing.

Food

The food industry contributes a huge amount of waste and greenhouse gas emissions. Digital product passports will improve transparency over this, encouraging more sustainable manufacturing as well as giving consumers easy access to nutritional information.

Industry 4.0

Across Industry 4.0, DPP platforms will integrate with current technology like The Internet of Things (IoT) and Big Data to allow manufacturers to optimise production efficiency and minimise waste.

Across all these industries, numerous stakeholders in the supply chain will have varying levels of access to DPPs. These include, but are not limited to:

Materials suppliers
Original manufacturers
Distributors and retailers
Consumers/customers
Repairers/Recyclers
Market watchdogs
Customs authorities
Trade unions
EU regulatory bodies

Benefits of Digital Product Passports

As well as the core functions of improving sustainability and traceability, DPPs will add value at multiple levels of the supply chain.

Benefits of DPP for consumers

DPPs provide consumers with detailed information about the products they choose to purchase. Being aware of the materials, processes, and environmental impact will help to build trust between brands and consumers, protect consumers from potential issues during manufacturing, and help brands avoid greenwashing.

They also drive improved consumer engagement by including consumers in the sustainability journey of products. Consumers will feel more able to make informed, sustainable choices by being able to easily access data on responsible consumption and proper disposal practices.

Benefits of DPP for businesses

Digital product passports allow for better management throughout the supply chain by offering more comprehensive data on product life cycles. Manufacturers will be able to track the materials and processes utilised in production and work to improve resource efficiency.

Encouraging a more circular way of operating, DPPs encourage businesses to think about reducing their carbon footprint and working in new ways. For example, they might open up a new repair function and boost customer loyalty in the process.

Overall, DPPs will make it easier for businesses to guarantee compliance with sustainability standards and regulations. This will reduce the risk of non-compliance penalties and improve the market access of products suitable for the EU.

How to implement Digital Product Passports

Here are some key ways that businesses can prepare for Digital Product Passports becoming mandatory in their sector.

Data collection and management

Here companies establish reliable processes and systems for collecting and managing data around product life cycles. This will include materials composition, manufacturing processes, and end-of-life instructions. You can learn everything you need to know here.

Collaboration with stakeholders

Businesses will need to work closely with suppliers, manufacturers, and other stakeholders to ensure that data can be recorded accurately and consistently across the full supply chain.
Compliance and standards:
Manufacturers and distributors will need to make sure that the DPPs of their products are secure. It will also have to meet all the relevant regulatory requirements and privacy regulations.

Consumer engagement

Organisations should invest in or develop user-friendly platforms that allow consumers to easily access and understand the information held in DPPs. This will foster more transparency, increased trust, and more informed purchasing decisions.

Continuous improvement

DPPs should be regularly updated with new data and insights. Companies should leverage advances in technology to continuously improve their sustainability practices and stay up to date with changing regulations.

Digital Product Passport software & technology

Digital Product Passport software is any platform or system that’s designed to create, manage, and share data about product life cycles. Ensuring data interoperability, this software will integrate with various systems to provide a complete and standardised overview of a product's history.

Some of the technologies and methods leveraged by DPP software solutions are outlined in this section.

Blockchain

Blockchain technology is often used in DPPs to ensure the security and integrity of the data they hold, but what is a blockchain digital product passport? By holding data in a decentralised and tamper-proof ledger, blockchain allows for DPP software to guarantee the trustworthiness of the information held within it.

Data security

The security of data held within DPPs is crucial to their effectiveness. Sensitive information needs to be protected from unauthorised access and be compliant with data privacy regulations like GDPR. This is especially important considering features like ownership data that could hold private data on end-users.

DPPs will generally involve two types of authentication. These are:

Reading a DPP: This kind of authentication will allow consumers to access the information stored within the DPP. This can be through multiple methods, such as QR codes that link to a dedicated smartphone-compatible platform or webpage. For example, a consumer might scan a product directly in a store to find out its origin and carbon impact to make a more informed purchase.
Claiming ownership: This type of authentication will allow consumers to claim ownership of a product. This will provide them with information stored in the DPP such as repairability and maintenance procedures. This kind of authentication will be critical to second-hand markets and the resale and reuse of the product.

Data carrier

A ‘data carrier’ is the mechanism that will allow users to access the DPP associated with their unique product. Current guidelines state that companies will be able to choose the data carrier system that works best for their business type.

The primary concern is ensuring that DPPs are easily accessible to consumers via devices like smartphones. Popular methods include:

QR Codes: Their popularity makes them a prime candidate for DPP data carrying purposes as nearly all modern smartphones are able to read them and customers already understand them.
NFCs: NFCs are the mechanism used in contactless payments, and are comparable with QR codes in that they are compatible with most modern smartphones. NFCs involve a physical chip that is scanned meaning that they can be hidden inside products so as not to disrupt their aesthetic value.
RFID: RFID tags use radio waves to transmit data wirelessly to a reader device. This allows for quick and efficient data transfer.

Digital Product Passport case studies

Authentify It is streamlining operations across merchandising, collectables, sports equipment, and event experience. In this section, we take a look at how Digital Product Passport technology can work in practice with examples from our own partnerships. You can also take a look at our full case studies to learn more.

Al Qadsiah

We partnered with Al Qadsiah FC to create digital memorabilia that can live in their fan’s pockets. After scanning a unique object identifier, they can access exclusive content to foster a deeper relationship with the football club.

Gilbert

We created a solid DPP solution for Gilbert, the leading manufacturer of rugby balls. Where once they sold their products in sports stores and had little connection with their customers, they can now communicate all key details directly and sell more products by building their brand.

Getting ready for Digital Product Passports

As Digital Product Passports become implemented across more and more industries, their importance only becomes clearer. These tools are a great way to improve transparency for a more sustainable future.

All that’s left to consider is how you can best implement them for your business… If you want to see what AuthentifyIt could do for your brand, click here to book a call with our experts.

A complete guide: What is a Digital Product Passport ?

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