With the European Union firmly set on its circular economy goals, many transparency measures have already been introduced to allow stakeholders to see the real environmental impact of products.

One of the most impactful regulatory tools introduced to date is the Digital Product Passport.

Digital Product Passports demand improved transparency and traceability about the supply chain so that stakeholders and consumers can better understand the environmental impact of the products they’re using.

So, what exactly is a DPP, and why should manufacturers, marketers and business leaders care?

What Is a Digital Product Passport?

A Digital Product Passport is a structured digital record that contains key information about a product’s lifecycle. This includes everything from raw materials and manufacturing processes to how to dispose of a product.

The DPP is a living document that supports sustainability goals, enhances accountability, and helps consumers make more informed, environmentally conscious choices.

Is The EU Digital Product Passport Mandatory?

The Digital Product Passport is set to become a mandatory requirement under the European Union's Ecodesign for Sustainable Products Regulation (ESPR), and is considered a key component of the EU's Circular Economy Action Plan.

The implementation will be phased, starting with high-impact sectors who need to have a visible DPP by April 2025. These include:

• Textiles
• Detergents
• Paints
• Chemicals
• Iron and steel
• Aluminum
• Furniture
• Tyres
• Energy-related products already subject to Ecodesign requirements
• Information and communication technology (ICT) products and other consumer electronics

By 2030, the DPP will be mandatory for a wide range of products sold within the EU, regardless of whether they are manufactured domestically or imported.

What Should a Digital Product Passport Include?

The specifics can vary by industry with some supply chains being more complex, but the European Commission has laid out a framework for what DPPs should typically include.

• Information on used materials or chemicals, and the sourcing of these components.

• The environmental impact of the product including information on the carbon footprint and energy consumption.

• Instructions, spare parts availability and durability ratings.

• Recycling, disposal and second-life opportunities for the product.

• Any relevant CE markings, sustainability labels, ISO standards.

This data must be accessible through a digital format and linked directly to the product itself, usually through a scannable code.

Digital Product Passports Are More Than Just Compliance Tools

Beyond ticking the legal box, DPPs have real potential for businesses, particularly if you lean into the visibility that they provide.

Benefits for Product Developers and Manufacturers

Spot inefficiencies in design and materials.
With such clear full lifecycle visibility, it becomes easier for manufacturers to identify waste and improve product durability from the outset. It’s a unique opportunity to scrutinise existing design and materials to look for new ways to push the product forward.

Strengthen supplier transparency and accountability.
More clarity in supplier data opens up opportunities to make better decisions, helping you to identify and work only with suppliers who meet your ethical and environmental standards.

Lower costs through smarter sourcing.
Data-driven insights can lead to more cost-effective choices without compromising on quality or sustainability. Clarity throughout the entire supply chain helps the business to more easily compare options and seek more cost-effective solutions.

Benefits for Marketers and Sales Teams

Showcase verified sustainability claims.
Environmentally conscious businesses will have even more data to back up marketing messaging. This can build trust and help to reassure customers that the entirety of the business is committed to its long-term sustainability goals.

Tell stronger product stories.
The DPP data can help to highlight product origins, ethical sourcing, and green credentials through digital touchpoints like QR codes and e-labels. Strong storytelling and transparency can be an excellent tool for marketing teams looking to gain a competitive advantage over competitors.

Win customer trust with transparency.
Buyers want to know what they’re purchasing. A DPP gives them confidence that the values of the businesses they buy from align with their own.

Benefits for the Whole Business

Boost your ESG credentials.
Accurate data supports better environmental reporting, helping you meet stakeholders’ Environmental, Social, and Governance expectations.

Strengthen risk management.
A clear view of your supply chain, partners and environmental progress can help the business to stay ahead of changing regulations and reduce the risk of greenwashing claims or supply chain issues.

Prepare for future economic incentives.
A DPP helps you to position the business to benefit from future circular economy schemes, carbon credits, and eco-labelling programmes.

How to Implement a Digital Product Passport with GS1 Digital Links

To meet these new standards with minimal disruption, many businesses are turning to GS1 Digital Links. These are web-based links that connect a product to all relevant information via a simple URL or QR code.

Using GS1 Digital Links, you can:

• Easily comply with EU DPP requirements.
• Provide a user-friendly interface for customers and regulators.
• Update or manage information quickly and easily.
• Have complete control over your digital presence.

As regulations continue to rely on digital visibility, it will be crucial that businesses learn to turn their online spaces into experiences. The DPP gives another opportunity for businesses to showcase the best parts of their business and make steps to become more sustainable and transparent with customers who value ethical practice.

Be Ready, Stay Ahead

The Digital Product Passport represents just a small part of a new era in product transparency and accountability.

Though required for many, it offers benefits that will make it an invaluable tool for businesses who want to harness digital transparency for the good of the business, consumer and planet.

With technologies like GS1 Digital Links making implementation easier than ever, now is the time to act and perfect these digital experiences.

Whether you’re in product development, marketing, or manufacturing, understanding and leveraging DPPs will be key to thriving in the next generation of global commerce, and will help you to ensure that you’re always one step ahead of your competition.