The European Digital Product Passport is about to happen, and it will change global trade forever. Learn how to prepare for it and why digital links are the solution.
Digital product passports impact multiple stakeholders across value chains and sectors, benefiting organizations, consumers, policymakers, and recyclers.
Introduction
Do you manufacture or distribute any physical goods or components of an end product that are or will be marketed in the EU? If so, the one thing you should focus on right now is understanding the European Digital Product Passport and how best to implement it in your organization’s processes.
Because the advent of the European Digital Product Passport (DPP) is THE trade event of the century, there’s no way of overestimating the magnitude of this coming planetary shift. The global impact of GDPR’s data protection requirements doesn’t even come close.
Imagine a world where basically any product available in Europe – manufactured locally or imported from elsewhere – must be accompanied by its digital twin: a “living” online version of an item always updated with relevant information and related content. Well, what you are looking at is nothing but reality a couple of years from now.
But before you rush to call an emergency board meeting, there are a few things that you need to know.
Read on to learn everything about the present and future of the European Digital Product Passport and how to prepare for mass product digitization.
What is a digital product passport?
A digital product passport (or DPP) is a collection of structured, updated, and reliable data storing information about an item’s origin, composition, manufacturing processes, characteristics, duration, maintenance and disassembly directions, recycling instructions, and virtually any relevant detail for different actors in the value chain. This wealth of information is made available to stakeholders through digital means – typically, an online resource like a web page.
From cradle to grave
The concept of a product passport accompanying goods through their lifecycle to ensure traceability, transparency, and informed purchasing decisions (“cradle-to-grave” tracking) is not entirely new. Data collection is crucial in documenting materials, sourcing, assembly, sales, repairs, and part replacements throughout a product’s lifetime, providing transparency and insights into product supply chains for sustainable business practices.
In a way, FDA mandatory nutrition facts labels in the U.S. and the compulsory information required by recent European regulations are basic, partial examples of product passports.
The big news is that the European Union has put DPPs at the heart of its European Green Deal, releasing on March 30, 2022, a proposal for an Ecodesign for Sustainable Products Regulation (ESPR). This proposal sets a roadmap for developing and implementing a European Digital Product Passport, making DPPs the norm in the EU.
What is the European Digital Product Passport (DPP) under the Sustainable Products Regulation?
The European Digital Product Passport is the version of the DPP introduced by the ESPR proposal as the key initiative to promote a circular economy and sustainability throughout Europe.
The overall goals of the European DPP are:
- enabling the transition to a circular economy, increasing the efficiency in material and energy consumption, making product life longer, and supporting sustainable production in general
- helping businesses of all types implement circular business models that create actual value based on reliable and widely accessible data – i.e., enhanced maintenance and repair services
- empowering citizens of the EU to make more conscious purchasing decisions and better evaluate the environmental and social impact of their choices and behaviors
- certify products’ compliance with regulations, standards, and all kinds of industry-specific requirements that can be easily verified by authorities, auditors, and consumers
Additionally, the DPP enables transparency in the product supply chain, laying the groundwork for a wide range of sustainable business models within the industry.
Available statistics show to what extent the impact of environmental measures can actually benefit the area’s overall health, making the European economy more resilient to different crises.
In fact, only in 2021 did eco-design initiatives covering more than 30 product categories help EU consumers save 120 billion euros in energy expenditures, reducing the annual power consumption by the related industries by 10%.
What is the CIRPASS?
CIRPASS is a cooperative initiative funded by the European Commission under the Digital Europe Programme. CIRPASS aims to improve traceability and transparency across the entire value chain by laying the groundwork for the gradual piloting and deployment of a standards-based Product Passport (DPP) aligned with the requirements of the proposal for Ecodesign for Sustainable Product Regulations (ESPR).
An alliance for the DPP
The project collaboration includes 31 partners from thousands of industrial, scientific, digital, international, standards, and other organizations in Europe and beyond. The 18-month project will address the European Commission’s need for a clear definition of the DPP, the definition of a cross-sectoral product data model and DPP system with proven advantages for the circular economy, and the development of deployment roadmaps.
In short, the CIRPASS is the lab where all the infrastructural components of the European Digital Product Passport and its operational mechanics are being defined. This is all while trying to prevent a battle for the prevailing standard.
The CIRPASS objectives include:
- give a clear, cross-sectoral definition and summary of the DPP
- create a cross-sectoral product data model with proven value for the Circular Economy
- create an open DPP data exchange protocol
- create use cases and roadmaps for deploying cross-sectoral DPPs
What information will need to be included in a Digital Product Passport?
The data requirements for Product Passports are not available yet. They will be established for each product category based on industry-wide stakeholder consultation.
However, some of the data specifications have already been defined. For instance, the general and technical specifications for producing, accessing, and exchanging Digital Product Passports are laid forth in Chapter III of the ESPR.
The general requirements for product passports include complying with the following conditions:
- a DPP must be connected through a data carrier (i.e., a QR code) to a unique product identifier
- the data carrier must be physically present on the physical product, packaging, or product documentation
- the data carrier and the unique product identifier must comply with the standard ISO/IEC 15459:2015
- all information included in the product passport must be based on open standards, developed with an interoperable format, and be machine-readable, structured, and searchable
- the information included in the product passport must refer to the product model, batch, or single item
What’s especially important to know is that further details about DPP’s data requirements and implementation deadlines will be defined directly by EU member states with the so-called “delegated acts.” We will update this article as European Countries release new directives.
Which industries will be impacted by the European Digital Product Passport?
Over time, all product categories will be impacted by the introduction of the European DPP.
Implementing Product Passports will significantly impact supply chains by utilizing technologies like RAIN RFID for item-level tracking and traceability, thereby increasing transparency. This comprehensive, granular data across the entire product lifecycle can automate supply chains, combat counterfeiting, and support circular business models.
Anyway, the new requirements will be rolled out progressively according to different sector-specific regulations, starting with a few key industries in the circular economy paradigm: batteries**, textiles, and construction products.**
Let’s see them one by one, quickly.
Digital Product Passport for batteries
The foundations of the DPP for batteries were laid down in 2017 when the European Battery Alliance was launched.
As a result, the Battery Regulation was released, requiring that from 2026 all rechargeable batteries with a capacity of more than 2kWh, both industrial and for electric vehicles, come with a battery passport accessible through a QR code.
A dedicated act will define the mandatory information in this passport within 2024. Basic data will include:
- material sourcing
- carbon footprint
- share of recycled materials in the final product
- durability
- repurposing and recycling directions
The opportunities opened by the battery passport are enormous, with a plethora of services based on battery repurposing waiting to be envisioned and developed for businesses and end-users.
Digital Product Passport for textiles
The EU Strategy for Sustainable and Circular Textiles, published the same day as the ESPR, provides the framework for a complete reform of this industry in Europe, with a specific focus on fast fashion, considering that European consumption of textiles follows only food production, housing, and transportation for its effects on climate change.
The strategy’s objective is to ensure that by 2030 all textile products on the EU market are environmentally, socially, and ethically sustainable. The critical measure to reach this goal is the introduction of a Product Passport for textiles, together with a mandatory EU extended producer responsibility scheme.
Digital Product Passport for construction products
The beginnings of the DPP for construction products can be traced back to the Construction Products Regulation 305/2011 (CPR); however, the ESPR has also set forth the need for greener and safer construction products, with the inclusion of this sector in the first wave of Digital Product Passport industry pilots.
Detailed requirements and a roadmap for implementing the Product Passport for construction products are yet to be disclosed.
UPDATE! The EU Commission has launched a public consultation to select the product categories to address first from a list of 20 products:
End-use products
- textiles and footwear
- furniture
- ceramic products
- tires
- detergents
- bed mattresses
- lubricants
- paints and varnishes
- cosmetic products
- toys
- fishing nets and gears
- absorbent hygiene products
Intermediary products:
- iron and steel
- non-ferrous metals
- aluminum
- chemicals
- plastic and polymers
- paper, pulp paper, and boards
- glass
The initial results of the consultation are available as a breakdown of the demographics of participants.
What are the potential issues of the European Digital Product Passport?
The European Digital Product Passport has countless benefits for citizens, companies, and organizations, from unprecedented business models to more conscious and sustainable consumption habits and simplified compliance audits.
Optimizing the use and reuse of valuable resources and materials within the context of the circular economy and sustainability is crucial to minimize waste and extend the longevity of resources and products through approaches such as sharing, repairing, reusing, and recycling.
However, some observers have raised concerns about data protection and intellectual property issues.
The type of data shared through a product passport and who has access to which layer of data are crucial aspects to prevent, for instance, leaking of information that reveals how a company generates a competitive advantage.
Stefan Šipka (Policy Analyst at the European Policy Centre) described that the solution is to grant different levels of access to information stored in DPPs depending on the target group.
How to prepare for complying with the European Digital Product Passport?
If you’ve read this far, you should know that European Digital Product Passport standards are still in the works. We know that a revolution is gonna happen. What we don’t know is how exactly it will happen.
Digital product passports impact multiple stakeholders across value chains and sectors, benefiting organizations, consumers, policymakers, and recyclers.
One thing is sure, though. A flexible, sustainable, and proven solution to help you overcome the DPP’s challenges is already available and ready to use. We’re talking about the GS1 digital link protocol established by the global GS1 authority. And digital link QR codes and product pages, such as the ones we provide.
Let’s break down the DPP requirements available so far to see how digital links effortlessly meet them.
Digital Product Passport vs. digital link
Digital Product Passports must be connected to a unique product identifier
The GS1 digital link protocol embeds the most widely adopted and reliable product identifiers maintained by the GS1 authority (like the GTIN) in a web address. ✅
Digital Product Passports must be connected through a data carrier like a QR code
Digital links are typically encoded in GS1 QR codes that can be printed on product packaging, labels, manuals, and any product documentation. ✅
The added value here is that digital links connect visitors to different resources. The same QR code that redirects to the Digital Product Passport can work like a traditional barcode when read by a POS scanner.
This feature of digital links will also be crucial when tackling the intellectual property issues mentioned above: different access levels can be granted to different audiences taking advantage of digital links’ smart redirecting capabilities.
But there’s more. Digital link QR codes created on our platform are also dynamic (their content can be changed and updated without reprinting the codes) and come with a product page that can be edited to include more content and resources apart from the DPP itself: videos, e-shops, social media, tutorials, promotions, nutrition facts, environmental labels; the sky’s the limit.
The unique product identifier connected to a DPP must comply with the standard ISO/IEC 15459:2015
That’s an easy one: GS1 and ISO (the International Organization for Standardization) have been long-time partners, and GS1 standards are ISO-compliant.
Here’s a list of GS1 standards recognized by ISO and other standard bodies. ✅
All information included in the product passport must be based on open standards, machine-readable, structured, and searchable.
GS1 standards are open by definition, and the information whose distribution they enable is structured, machine-readable, and searchable. It’s not by chance that SEO gurus are looking at digital links as the next big thing. ✅
Existing standards and databases maintained or monitored by GS1 ensure the European Digital Product Passport project’s overall sustainability.
For example, a recent study by Deloitte highlighted how projected costs generated by implementing the DPP adopting global, open, and decentralized standards would be between EUR 3 billion and EUR 7 billion. At the same time, they would skyrocket to something between EUR 63 billion and EUR 152 billion (!!!) if competing proprietary standards and systems were considered.
The information included in the product passport must refer to the product model, batch, or single item.
The data model established for digital links allows producers to add granular information about the product inside the digital link itself using qualifiers and attributes. This way, a digital link can represent a model, a batch, a lot, and even a single item. ✅
Future considerations and implementation challenges
The implementation of the Digital Product Passport within the EU market offers significant benefits, particularly in enhancing material and energy efficiency. Driven by the Sustainable Products Regulation, this initiative aims to increase transparency across the supply chain, ensuring that critical product information is readily available and accessible.
A crucial aspect of this regulation is to ensure that products meet sustainability standards, optimizing the use of raw materials and providing detailed data on product lifecycle and impact. The effective management of these elements not only aids in regulatory compliance but also allows companies to showcase their commitment to sustainability.
Furthermore, businesses must understand the specific requirements related to the use of materials, ensuring that all relevant details are captured in the DPP. This includes, among other aspects, the efficiency of resource use and product traceability from origin to end-of-life.
In summary, as we prepare for this transition, it is vital for companies to adapt their processes to align with these new regulations, leveraging the opportunities they present to innovate and enhance operational efficiency. This will not only ensure compliance with European standards but also contribute to creating a more transparent and sustainable market within the European Union.
Digital link QR codes are the ideal Digital Product Passport enablers
We have just shown how digital link QR codes are 100% compliant with the EU requirements for DPPs. But it doesn’t end here. Digital links themselves will become basically mandatory in a short while.
The global retail industry and GS1 have set a 2027 deadline for transitioning from the old barcodes to digital link QR codes, the so-called “Sunrise.” Digital links will be the norm, too.
So, by starting to implement digital link processes in your organization now, you would kill two birds with one stone, getting ready for both the EU Digital Product Passport and Sunrise 2027 in a single smart move.
Creating digital link QR codes for your product with our system is easy and fast. You can try it yourself with our digital link QR demo generator. Simply enter a product’s GTIN number to get a digital link, a QR code, and an automatically populated, editable product page.
Do you have any specific questions or special requests? Contact our experts at support@digital-link.com. We can create custom solutions.
