How Digital Product Passports Will Change Retail & Manufacturing

Analogous to time capsules, digital product passports (DPPs) are documents detailing product life cycles affixed to products such as QR codes, NFC chips, and RFID tags.

Just as you may bury a time capsule with current information for future revelation and discovery, a DPP also aims to act as a gateway to access a product’s data.

The data details may include product origin, manufacturer and warranty data, previous ownership, product repair information, and sustainability data.

In this article, we answer the question, ‘What is a digital product passport (DPP)?’, assess its components and uses, and highlight example use applications, DPP software, and other FAQs.

What is a digital product passport (DPP), and why now?

Like its connotation, a digital product passport (DPP) is a unique feature that identifies various products to consumers and other value chain stakeholders.

Such items include textiles, batteries, and consumer electronics. This feature fosters sustainable business practices, accountability, and transparency across product value chains.

Besides, introducing the DPP feature aims to curtail gaps between consumers and the obscurity of authentic product data.

Related: 7 Sustainability Strategy Examples (Plus FAQS)

Why introduce DPPs now?

As part of the European Union’s 2020 circular economy plan, the EU digital product passport aims to spearhead and accelerate the transition to sustainable growth, and circular economies.

The circular economy plan is a set of guidelines that the EU Commission set in March 2020 to uphold sustainability, increase the circularity of material use twice by 2030, and attain carbon neutrality by 2050.

Studies show that product design typically determines 80% of its life process environmental effects.

ESPR Framework

The introduction of the Ecodesign for Sustainable Products Directive seeks to bolster sustainable practices such as tracking product life cycles and details using DPPs.

The directive also addresses diverse product classes, offering product-specific laws and priorities based on environmental impacts.

For instance, mandatory DPP guidelines on sustainable and circular textiles.

Construction and electronics are other sectors eligible for new and updated product-specific guidelines.

Digital product passports requirements: Who needs to comply?

DPP requirements apply to EU manufacturers, product retailers, and exporters to the EU.

Those eligible for product passport compliance will need to avail of DPPs by affixing them onto products.

They may present the product passport data as a physical ‘data bearer’ tag. Information on each DPP will depend on the product class or other specific mandatory requirements.

Related: How Retailers Can Use AI Retail Solutions to Understand Customers Better

Product passport information examples

A DPP may contain various accessible product data information for different stakeholders along the supply chain of a product’s life cycle.

The stakeholders may also have different access rights to DPP data.

DPP requirements may also vary based on exporters’, manufacturers’, and retailers’ products and product classifications.

Some of the DPP data requirements may include:

Essential product info

The DPP may typically contain essential product info such as the name, production date, warranty validity, and specs such as the model and batch number.

Source info

A DPP may include information on a product’s source, raw materials or composition, and the people involved in the sourcing supply chain process.

Ownership details

Suppose a product has a lengthy life cycle. It may also include information on pre-owners.

This information is useful for consumers and may help them make informed decisions about the product’s appraisal value.

Refurbishment details

If an item manufacturer recalls it for refurbishment or other reasons, they may need to update the DPP data.

This data may also include ways to refurbish the product, reasons for it, or necessary makeovers during the life cycle for peak performance.

Sustainability metrics

A product’s DPP may contain specific details on manufacturer sustainability strategy examples or efforts, such as the carbon footprint of the product’s production, distribution, or eco-friendliness.

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Digital product passport blockchain

DPP ‘data bearers’ will act as gateways connecting physical products with their digital twins through a digital product passport blockchain.

Digital twins are virtual replicas of physical items available on decentralized digital ledgers(blockchains) to safeguard them from retroactive alteration throughout their life cycles.

The product passport digital twin will present accessible details on a product’s data along the supply chain and life cycle.

Product manufacturers, retailers, and exporters may also utilize digital product passport software to present information on physical product data bearers.

Product passport physical data bearers

DPP physical data bearers may include:

QR codes

Quick response(QR) codes are scannable dual-dimensional codes that contain item-specific information for tracing, identifying, and tracking purposes.

QR codes on DPPs can be useful in tracking products along supply chains since most smartphones boast built-in QR code readers.

With augmented reality(AR), you can also use QR codes to determine an item’s position.

For example, a mobile phone camera can scan a quick response code affixed to apparel, such as a sportswear label, and instantly redirect you to the item’s digital twin product passport.

There, you can access the item’s info such as material sourcing, and buyback or recycle information.

NFC chips

Near-field communication (NFC) or smart tags are unique digital identifiers capable of dual-directional data transfer and storage to NFC-enabled devices within proximity or touch.

NFCs may work together with QR codes for optimum DPP functionality and use.

NFC tags draw power from readers through magnetic induction. Users typically use them for information sharing and automation, such as contactless payments and identity authentication.

RAIN RFID tags

These automatic tag identifiers boast distinct manufacturer-allocated serial numbers and memory banks to store a product’s unique tracking identifier or electronic product code.

RAIN RFIDs rely on tag reader radio waves to power the microchips. They may be read several meters away without a direct line of sight.

RAIN RFIDS are super quick and may identify as many as 1000 items per second. They’re often embedded or affixed on products.

How to use a digital product passport to check product information

Here are steps to use a DPP for product information check:

1. Locate the DPP on the item

Locate the manufacturer’s embedded DPP on an item. They may affix the tag to the care label if it is on apparel. Trace the tag, for example, a quick response code.

2. Scan the code on the label.

You can scan the physical item tag using a smartphone’s camera or QR code scanner. Most smartphones and browsers have QR scanners.

3. Click the link

After scanning, a notification or link appears on the screen. Tap the link prompt to access the QR information. The link directs you to a website or app that houses the DPP’s digital twin.

4. Access and read the product information

You can now access the physical item’s digital twin DPP details. You may read information such as the product’s journey from manufacturing to the retail store or material origin.

Digital product passports software

On October 31 2023, Avery Dennison Corporation rolled out DPP-as-a-Service (DPPaaS) to help manufacturers prepare for the looming EU legislation transition deadline on digital product passports.

Avery Dennison’s DPPaaS links physical products to its digital product twins via its product cloud platform, atma.io.

The cloud platform presently tracks 30 billion items for numerous brands along supply chains.

It garners details such as raw materials origin, carbon footprint info, and recycling or reusing data.

Digital product passports example: retail use

Burton Snowboards became Avery Dennison’s first retailer to adopt and pilot the DPPaas service before the forthcoming DPP deadline.

DPPaaS will help Burton Snowboards strengthen its circularity and sustainability efforts.

In addition, Avery Dennison is part of the CIRPASS consortium, which is counseling the EU on the rollout of the digital product passports system.

The advisory role gives the corporation a unique edge on the new DPP directive requirements advisory for supply chain stakeholders.

Digital product passports for textiles: What are the requirements?

The DPP for textiles and footwear significantly encompasses product-specific requirements.

Besides being subject to specific product laws, there are no specific guidelines on circularity, such as recycling, refurbishing, and durability.

Therefore, additional textile guidelines, such as using DPP and specific information requirements, foster product circularity and minimize textile waste.

The textile guidelines also regard aspects such as promoting consumer affordability.

DPP for textiles example

Nobody’s Child, a women’s fashion retail brand, is piloting DPP use before the directive takes action.

It uses QR codes affixed to care labels of its items to guide consumers through product information, from manufacturing to raw material sourcing.

Digital product passports timeline overview: What is it, and why does it matter?

The DPP system rollout outlines milestone dates for implementation and compliance, but they may be subject to change.

Here’s an overview of the DPPs system enforcement timeline rollout for diverse product classes:

May 2024: The EU Council voted on the final consent approval for the Ecodesign for Sustainable Products (ESPR) directive.

December 2025: The EU Commission’s time frame to outline EU DPP system enforcement standards.

January 2026: The EU will publicize and outline the delegated act for textiles guidelines. Stakeholders may begin to comply after a specific timeframe. For instance 18-months.

April 2026: Afterward, the EU will provide a framework for the delegated act for iron and steel products and set a compliance time frame.

February 2027: The battery passport directive rolls out, applicable to all transport, industrial, and EV batteries sold on the EU market.

Mid-2027: Iron, steel, and textile guidelines will take effect, outlining mandatory DPP for the product categories.

Dec 2030: The DPP system fully affects products and product categories.

July 2030: The EU will assess digital product passports’ effectiveness and begin 6-year assessments from then.

Digital product passports users and beneficiaries.

The new DPP can positively affect various key players along a product’s life cycle. They are:

Raw material suppliers

Digital product passports will bolster ethical and transparent sourcing by spotlighting manufacturers for previously anonymous or access-restricted supply chains.

Refurbishment artisans

Unlike currently, where you may buy a pre-owned product and realize that refurbishment costs exceed the cost of a new one, a DPP can help you make wise buying decisions.

A product’s prior refurbishment and any reasons for repairs can help you determine and address new issues from a vantage point.

Refurbishment artisans can also use the product’s repair history to guide routine maintenance or repairs.

Waste and product recyclers

Digital product passports can ease the recycling process by offering firsthand information on product structures and disposal data and help classify the products for recycling processes.

Governments and civil authorities

Contrary to occasional or time-consuming crackdowns and audits, governments may use DPPs to check product compliance specifications or assess guidelines.

Retail sellers

Retailers may promote eco-friendly products and programs to spearhead sustainability strategies and foster loyalty and brand goodwill.

For example, they may introduce product buyback programs for electronics or packaging materials.

Consumers may earn loyalty points, discount coupons, or other incentives as rewards.

Product consumers

Sustainability-conscious buyers may make better purchasing decisions and align with supporting brands that commit to eco-friendly measures.

By using digital product passports for background sustainability checks, they can also avoid greenwashing marketing techniques.

Tech companies

Tech companies and SaaS providers may promote blockchain-as-a-service to house DPP digital twins as retailers, exporters, and manufacturers rush to become compliance-ready.

The Takeaway

As momentum builds on DPP implementation, more companies are piloting DPP use as they prepare for compliance.

Digital product passports will overhaul global value chains and foster accountability by exposing previously anonymous practices such as raw material sourcing and product disposal.

The forthcoming stringent measures may curtail waste disposal carelessness and maximize circularity.