Explainer: Digital Product Passport
By Juliette Tafreschi, July 3rd, 2024
The European Union (EU) is pioneering a transformative initiative called the Digital Product Passport (DPP). This initiative is designed to mandate transparency in product lifecycles, fostering sustainability and circular economy practices by 2026. Our explainer highlights the key facts about the DPP for the textile and garment sector.
What is a Digital Product Passport?
A Digital Product Passport (DPP) is essentially a digital twin—a unique identifier that encapsulates a product’s entire journey from conception to disposal. By 2026, the EU mandates that every textile product sold within its borders must possess such a passport. These passports will be accessible via a scannable QR code, NFC chip, or tag. The DPP is a cornerstone of the EU’s Ecodesign for Sustainable Products Regulation (ESPR) and is part of the broader European Green Deal, underscoring the EU’s dedication to a sustainable future.
What are the purposes and benefits of the DPP for the textiles and garment sector?
- Transparency: Offers detailed insights into a product’s composition, manufacturing process, supply chain, and sustainability credentials.
- Sustainability: Supports the EU’s Strategy for Sustainable and Circular Textiles, aiming to reduce the environmental impact of consumer goods and foster a more accountable corporate world.
- Consumer Empowerment: Enables consumers to make environmentally conscious choices by providing information about the product’s lifecycle.
- Business Optimization: Encourages businesses to optimize the use of sustainable resources by providing detailed records of materials and manufacturing processes.
How does the implementation of a Digital Product Passport (DPP) contribute to addressing ecological, economic, and social challenges in the fashion industry while also enhancing transparency and traceability?
Ecological Challenge
The fashion industry is highly polluting, using non-renewable resources and contributing to waste. Fast fashion has doubled clothing production since 2000, leading to low-quality, unrecyclable apparel that strains natural resources. A DPP provides detailed environmental impact information for each product, promoting sustainable practices and responsible consumption.
Economic Challenge
Rising costs for raw materials, energy, and labor, exacerbated by COVID-19 disruptions, have caused economic instability in the fashion industry. A DPP enhances economic resilience by optimizing supply chain management and reducing costs, encouraging a sustainable economic model.
Social Challenge
Issues like poor working conditions and unethical labor practices highlight the need for better social accountability in the fashion industry. A DPP improves transparency about labor practices and human rights, pressuring brands to adopt ethical practices.
Need for Transparency
Consumer demand for transparency and sustainability is growing, with trends such as increased online shopping and the popularity of second-hand clothing. While some brands are increasing transparency, detailed product-level traceability is still lacking. A DPP fills this gap by providing comprehensive information about each product's lifecycle, enabling informed consumer choices and promoting sustainable practices.
Complexity of the Textile Supply Chain
The textile supply chain involves multiple actors, from raw material production to retail, making traceability challenging. A DPP consolidates information from all supply chain stages, ensuring every step is documented and traceable. This bridges the gap between brand and product transparency, fostering sustainability and responsible consumption.
What is the impact on businesses?
- Data Management: Companies will need to integrate DPPs into their products, which will require a comprehensive overhaul of data management systems. This includes collecting, storing, and sharing product data throughout its lifecycle.
- Transparency and Accountability: Businesses will need to disclose detailed information about raw material sourcing, manufacturing processes, and end-of-life disposal.
- Supply Chain Enhancement: DPPs will compel businesses to enhance supply chain transparency and foster responsible production practices.
- Competitive Advantage: Companies that proactively embrace these changes can gain a competitive edge by showcasing their commitment to sustainability and building trust with environmentally conscious consumers.
What possible future benefits could the Digital Product Passports bring?
- Enhanced Customer Experience: Brands could leverage DPPs to offer personalized services, exclusive content, or rewards for sustainable practices.
- Innovative Product Design: Insights from DPPs can drive innovation in product design, leading to more sustainable manufacturing decisions.
- Secondary Market Growth: DPPs could facilitate the growth of a secondary market where the provenance and authenticity of pre-owned goods are indisputable.
- Ecosystem Development: As technology matures, DPPs may enable a seamless exchange of information across industries, enhancing circular economy practices.
For more information on the Digital Product Passport in the textile sector read here.