As time goes by, the urgency to reverse the environmental damage caused by multiple industries intensifies. The European Union (EU) has taken notable steps in recent years to combat ecological problems by outlining a set of rules to rectify the damage caused by past transgressions. This demonstrates the EU's commitment to mitigating the consequences of past environmental negligence. One of the most prominent measures is the creation and incorporation of the digital product passportThis concept is intended to revolutionize traceability and sustainability in different industrial sectors.
In this article we are going to tell you what the digital product passport is, its characteristics, the sectors it affects and its importance for brands, consumers and regulators.
Environmental impacts in the industry
One of the sectors most affected by the new rules and regulations is the fashion industry. This sector has historically been one of the most polluting due to its practices harmful to the environment, ethical dilemmas and poor accountability measures. Fashion is not the only one; the electronics industry is also a key area of action given the exponential growth of technological waste.
To mitigate these impacts, the European Commission has presented a proposal framed within the Sustainable Product Ecodesign Regulation (ESPR). Designed to cover all products sold in the EU, this regulation sets new standards of sustainability and responsibility for companies, regardless of their geographical location.
One of the main instruments of this regulation is the digital product passport, a tool intended to Increase transparency and traceability, key pillars to reduce environmental impact.
What is the digital product passport?
El Product Digital Passport (DPP) is a digital document containing complete information about the life cycle of a product. This cycle includes everything from the design and materials used to the production and distribution process, as well as the end use and the possibility of recycling the product. It is a response to the growing demand for greater transparency in the supply chain and the environmental impact of products.
The DPP, in addition to being an informative tool, aims to improve the traceability of products. Its implementation will allow consumers to obtain Accurate information about the ecological characteristics of the product they are purchasing, allowing them to make more informed and sustainable choices. This will foster a responsible consumption, and in turn, brands will be able to validate their sustainability claims, avoiding accusations of greenwashing.
The Digital Product Passport is also useful for regulatory authorities, as it facilitates access to updated information on products, which improves the ability to perform audits and quality controls. The information stored in the passport is secured by tecnología blockchain, ensuring that the data cannot be altered. This information will be available via QR codes or barcodes on product labels.
Data and categories of the Digital Product Passport
The Digital Product Passport will collect a wide variety of data about each product. This information is organized into several categories:
- Product identification: includes the name, reference code, weight and place of manufacture.
- Makings: It will detail the materials used in manufacturing and their origin, as well as including information on the carbon footprint associated with the product.
- Ownership and use: Details regarding ownership history, previous repairs, availability of spare parts, and guidelines for recycling or disassembling the product will be included.
This information will not only benefit consumers, but also businesses. Brands will be able to use the DPP to increase traceability, improve supply chain management, and demonstrate compliance with European regulations. For consumers, it will enable them to choose products that align with their values and make more responsible purchasing decisions.
Benefits of the Digital Passport for Companies
The adoption of the DPP not only responds to the need to comply with current laws and regulations; it also offers competitive advantages for companies willing to implement it. Key benefits for companies include:
- Better supply chain management: By providing full visibility into the product lifecycle, companies will be able to detect inefficiencies and optimize their production and distribution processes.
- Increased consumer confidence: Consumers increasingly value sustainability and transparency. Companies that adopt the DPP will be able to validate their green claims in a verifiable and quantifiable way.
- Regulatory risk reduction: Complying with EU regulations will reduce the risk of fines and allow companies to continue operating in the European market without legal complications.
Challenges in the implementation of the DPP
Despite its benefits, implementing the DPP is not without its challenges. Businesses, especially small and medium-sized enterprises (SMEs), can face significant technological barriers. For example, many lack the infrastructure needed to integrate technologies such as blockchain or IoT, which can require considerable upfront investments. It will also be crucial to have skilled staff who can manage the complex data systems involved in the digital passport.
Another important challenge is the development of universal standardsFor the DPP system to function efficiently, it is essential that businesses, regulators and manufacturers adopt common standards regarding data formats and information exchange protocols. Interoperability is key to ensuring that digital passport information is valid and useful throughout the value chain.
Finally, the Data privacy concerns are a critical aspect. The detailed information included in digital passports may contain sensitive data, both about the product and the owners, which means that implementing robust data protection guarantees will be essential.
Key dates for implementation
According to the European Commission, the Product Digital Passport will be in force in 2027. However, regulatory specifications are expected to be published at the end of 2024. By 2030, most products marketed in the European Union will have to comply with these regulations. It is important that companies start preparing now to avoid future delays and ensure compliance on time.
Ultimately, the Digital Product Passport represents one of the most important steps towards greater transparency and sustainability in the EU. It is a tool that benefits both companies, which can optimise their supply chains, and consumers, who will have access to crucial information to make informed and responsible decisions.