Digital Product Passport

By:Edmond Research and Development | 07/07/2023

Digital product passports (DPP) aim to gather data on a product and its supply chain and share it across
entire value chains so all actors, including consumers, have a better understanding of the materials and
products they use and their embodied environmental impact.

The objective of the EU regulation is to enable sharing of key product related information that are essential for products’ sustainability and circularity across all the relevant economic actors. Consequently, to accelerate the transition to circular economy, boosting material and energy efficiency, extending products lifetimes and optimizing products design, manufacturing, use and end of life handling.

DPP is part of the proposed Ecodesign for Sustainable Products Regulation and one of the key actions under the Circular Economy Action Plan (CEAP). The goal of this initiative is to lay the groundwork for a gradual introduction of a digital product passport in at least three key markets by 2024. These include textiles, construction, industrial and electric vehicle batteries, as main.

The aim is to make consumer products “more durable, reusable, repairable, recyclable and energy-
efficient” as part of the EU Circular Economy Action Plan.
The DDP for Textile will require mandatory information about circularity and environmental aspects.

The general requirements for digital product passports include, among others, complying with the followingmconditions:

  • It shall be connected through a data carrier to a unique product identifier;
  • The data carrier shall be physically present on the product, its packaging or on documentation
    accompanying the product;
  • All information included in the product passport shall be based on open standards, developed with
    an interoperable format and shall be machine-readable, structured, and searchable;
  • The information included in the product passport shall refer to the product model, batch, or item
    This regulation, as per the EU Authorities, will provide new business opportunities to economic actors through circular value retention and optimization (for example product-as-a-service activities, improved repair, servicing, remanufacturing, and recycling) based on improved access to data. it will also help consumers in making sustainable choices, allowing authorities to verify compliance with legal obligations.

Some example of information that should be included in the DDP are:
Raw material producer: Deforestation, Emissions, Water/ground contamination.
Brand/Designer: Origin of raw materials, Recycled vs. virgin, Resource consumption
Manufacturer: Water usage, Emissions, Waste, Water/ground contamination
Distributor: Transport emissions, Packaging, (Eco-) labels, Waste generation
(Re-)User/Repairer: Product impact, User manual, Repair instructions, Disposal instructions
Collector/Recycler/ Refurbisher/ Remanufacturer: Disassembly instructions, Recycling instructions, Repair history

DPP could be a key tool to improve circularity

  • Empowers informed, more environmentally conscious decision-making across the value chain (VC);
  • Facilitates effective management of waste flows and EoL1 treatment, thereby increasing recycling
    rates and access to recycled materials and products;
  • Enables traceability of environmental impact and thus more accurate measurement (e.g., scope 3
  • Provides common foundation and clear requirements for becoming circular;
  • Enables setting and digitally tracking regulatory circular economy targets and verifying compliance
    with them.

DPP could also drive economic value

  • Creates corporate value through collaboration (e.g., operational efficiency improvements and innovation of new materials/products, business models, and markets);
  • Leads to higher value retention from waste, longer material lifetime, job creation, and lower raw material dependency, thus mitigating impacts of supply shocks and price volatilities;
  • Enables more efficient energy and resource consumption and thereby reduces associated costs for economy, society and environment;
  • Ensures an equal level playing field, enhances visibility and credibility of sustainable products, and decreases VC deficiencies;
  • Spurs digital capability development of authorities, thereby increasing the efficiency of regulator processes and reducing resource spending.

Despite the deadline for compliance could appear far in timing, being an early adopter, even moving
ahead of regulation creates corporate value.
Despite uncertainties and given the ongoing regulatory process, a range of actions are non regret
moves, e.g.,

  • Engage in shaping the regulation through direct engagement with the EU Community or collaboration across the VC;
  • Assess data availability and fill in the gaps;
  • Enable own organization to take the right decisions and optimize processes in light of the upcoming
    requirements, e.g., ensuring synergies, engaging suppliers;
  • Plan for changes in technology ensuring interoperability of IT systems

Edmond Climate Network’s solutions will enable your company to comply with all these upcoming
requirements, allowing you to position as market leader in fashion industry!

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