Active transparency
New European law mandates digital product passport for transparency and sustainability

What is the Digital Product Passport (DPP) law?
The Digital Product Passport (DPP) law refers to Regulation (EU) 2024/1781, also known as the Ecodesign for Sustainable Products Regulation (ESPR), which comes into effect on July 18, 2024. This regulation makes the DPP mandatory for a range of products in the European Union, aiming to increase transparency and sustainability in the production and circulation of goods.
What is the Digital Product Passport (DPP)?
The DPP is a digital record containing detailed information about a product, including its value chain, materials used, environmental impact, recyclability, and reparability. The DPP acts like a “digital fingerprint” of the product, accessible via QR code or other digital methods, providing consumers, businesses, and authorities with relevant information to make more informed and sustainable decisions.
When and how does it apply?
The DPP will be mandatory for various products, including textiles, furniture, consumer electronics, electronic devices, construction products, and others. Its implementation is gradual, with the EU setting specific requirements for each product category through delegated acts. Requirements for the first product categories are expected to be defined in 2025, with companies given an 18-month adaptation period from that date. The DPP’s mandatory application for different product categories is scheduled between 2026 and 2030.
What does it mean for companies?
Companies selling in the European Union will be required to provide detailed information about their products via the DPP. This involves collecting, organizing, and digitizing data on the production chain, materials used, environmental impact, and other relevant information. Compliance with ESPR and the DPP will be monitored by European authorities, and companies failing to meet requirements may face penalties.
Benefits of the DPP:
– Transparency:
The DPP enhances transparency in product value chains, allowing consumers and authorities to trace production, materials, and environmental impact information.
– Sustainability:
The DPP promotes sustainability by encouraging the choice of more eco-efficient and circular products, as well as facilitating reuse, repair, and recycling.
– Fair competition:
The DPP can create a level playing field among companies by establishing performance and information standards that all market participants must follow.
– Innovation:
The DPP can drive industry innovation by encouraging the development of more sustainable and efficient products.
In summary, the Digital Product Passport law is an EU initiative designed to promote transparency, sustainability, and circularity in industry. The DPP will be an essential tool for companies selling in the EU, enabling them to provide detailed product information and promote the choice of more sustainable products.