Digital Product Passports: A Path Toward a Sustainable Circular Economy

Digital Product Passports: A Path Toward a Sustainable Circular Economy

Digital Product Passports: A Path Toward a Sustainable Circular Economy

The consumption of electronic devices – from smartphones and refrigerators to power tools – continues to rise globally, as does the consumption of clothing. In 2022, the average European purchased around 19 kilograms of textiles and discarded 16 kilograms. Additionally, each EU citizen generates about 11.2 kilograms of electrical and electronic waste per year. That year, around 14.4 million tons of electrical and electronic equipment were sold in the EU, and 5 million tons of e-waste were collected.

Consumer demand keeps growing, and an increasing number of products are entering the market. However, the share of sustainable, repairable, and recyclable products remains very low. The circularity rate fell from 9.1% in 2018 to just 7.2% in 2023.

To encourage the production, use, and recycling of more environmentally friendly products, the European Commission is introducing digital product passports (DPPs). The goal is to increase transparency around the environmental impact of products and to extend their lifespan.

From Linear to Circular Economy

Digital product passports are designed to facilitate the exchange of essential information between manufacturers, consumers, repair services, and recycling centers. Recycling companies can use this data to process products more efficiently, while consumers gain insights on how to properly maintain and repair their devices.

DPPs should not only store information from the moment of production but also document usage and maintenance throughout the product’s entire lifecycle. To be functional, a DPP must be structured, machine-readable, and searchable. You can think of it as a digital toolbox that follows a product from creation to end-of-life.

Where Are We Now?

Although implementation is still in progress, the first steps are already underway. Batteries will be the first product group for which DPPs become mandatory starting in 2027, followed by over 30 other categories including textiles, electronics, furniture, and toys.

DPPs allow for more precise management of data related to materials, lifespan, reparability, recyclability, and other key sustainability aspects. Through real-world use cases, current pilot projects are already exploring both the benefits and technical challenges of introducing DPPs in sectors like electronics, textiles, construction materials, and tires.

A New Standard of Transparency

A DPP must contain specific types of information and be accessible through electronic means such as a QR code or RFID chip, attached to the product, packaging, or accompanying documentation. While it doesn’t need to be fully implemented before the product is sold, it should already include supplier data.

Manufacturers will be required to provide information on the composition of the product, origin of materials, energy efficiency, reparability, and recyclability. However, collecting data from the earlier stages of the supply chain can be challenging due to supplier changes, diversity of materials, and lack of unified databases.

Centralized national or EU-level databases are being considered to help standardize data and improve calculation methods – for example, for carbon footprint assessments.

DPPs as a Foundation for New Business Models

The introduction of DPPs opens doors to innovation. By tracking usage and repairs, smart devices can automate service needs – for example, a washing machine could detect a malfunction and suggest contacting customer service.

DPPs could also play a crucial role in the secondary market. Information such as battery charging cycles or the number of washes helps determine the true value of used devices. This benefits both buyers and sellers, as well as refurbishment companies.

Documented repair history could even increase the resale value. For instance, replacing a washing machine motor could be clearly recorded and used as a selling point.

Conclusion

Digital product passports bring much-needed transparency to production and consumption chains. They are not just a regulatory requirement, but an opportunity for all market participants – from manufacturers and distributors to end-users – to better understand product value and support sustainability throughout the entire lifecycle.

Companies that begin preparations early and understand the DPP requirements will gain a market advantage, improve efficiency, and build trust through sustainability.

If your company is ready to begin implementing digital product passports and aligning with upcoming EU requirements, we’re here to help.

Contact us at: info@nos.hr

Related Posts