24 September 2024

Digital product passports: a key to sustainability and the circular economy

Introduction

As digitalisation increases and sustainability issues become more important, it has become necessary to develop new tools to promote sustainability and the circular economy. One such tool is the Digital Product Passport (DPP), which is part of the Ecodesign Sustainable Products Regulation (the ‘Ecodesign Regulation’) that recently entered into force. The Regulation covers the majority of physical products provided in the EU internal market and is part of the EU’s transformation towards a more circular economy. EU regulations often have a major impact on businesses within the Community, not least the GDPR Regulation and the recently adopted AI Regulation. It is therefore likely that the new Ecodesign Regulation will also have a major impact and companies should already start preparing for the transition that the new requirements entail.

What is a digital product passport?

A digital product passport is a digital record that contains information on the life cycle of a product, from manufacturing to recycling. It can include information on materials, chemicals, energy use, durability and recyclability. The DPP thus makes it possible to track the entire life cycle of a product and, for example, where the materials in the product originally come from. In this way, the DPP makes it easier for consumers and businesses to make sustainable decisions about products.

How does the DPP work?

The DPP will be available for all products covered by the Ecodesign Regulation. Producers will be responsible for creating and updating the DPP for their products. Consumers will access the D PP via an online platform and will in many cases consist of a QR code on the product or, where applicable, a standard barcode. By reading the code, the user will be provided with information on the origin of the material, recyclability, repair options, etc.

What are the benefits of the DPP?

The DPP has several advantages, including:

  • Increasing sustainability: the DPP can help increase sustainability by making it easier for consumers to choose more sustainable products.
  • Circular economy: The DPP can promote the circular economy by making it easier to recycle and reuse products.
  • Transparency: The DPP can increase transparency by making it easier for consumers to get information about the products they buy.
  • Traceability: DPP enables verification that all parties in a supply chain fulfil sustainability requirements.

When is it time to start working on the DPP?

The short answer is now. The regulation came into force in July 2024 and will operate as a framework complemented by so-called delegated acts for different product groups such as furniture, textiles and electronics. The rules will fully apply once these delegated acts are in place.

The focus is on sustainability-intensive products such as consumer electronics, clothing and footwear, but eventually the idea is that most products will be covered. The new system will require more administration and control of the content and origin of goods. While it remains to be seen exactly how the regulation will work in practice, this is something all companies working with products need to keep in mind going forward.

Questions? Contact us or someone in the team!