Digital Product Passport (DPP): A Key Tool for Achieving the EU Green Deal Goals
The Digital Product Passport (DPP) is becoming a central tool in the European strategy for transitioning to a sustainable and circular economy. At its core, the DPP is a digital record that tracks key information about a product throughout its entire life cycle – from raw materials and manufacturing, through use, to end-of-life disposal.
As an IT company specializing in digital transformation and the implementation of DPP systems, NOS d.o.o. supports companies in understanding and applying the new requirements set by the EU Ecodesign for Sustainable Products Regulation (ESPR).
The ESPR came into force on July 18, 2024, and is part of the broader EU Green Deal, which aims to achieve climate neutrality by 2050. One of its concrete measures is the mandatory introduction of DPPs for physical products.
The EU's Green Strategy: How DPP Fits In
The Digital Product Passport is not an isolated initiative – it is part of a much broader and structured EU strategy aimed at achieving climate neutrality by 2050. At the top level, the European Green Deal sets the overarching climate goals. Supporting it is the Circular Economy Action Plan (CEAP), which seeks to make sustainable products the norm across the EU.
Within that framework, the Sustainable Products Initiative (SPI) outlines the key measures needed to transform product design, production, and consumption. The legal foundation for implementing those measures is the Ecodesign for Sustainable Products Regulation (ESPR), which establishes clear rules and obligations for businesses. At the heart of all these efforts is the Digital Product Passport (DPP), a digital tool that brings transparency, traceability, and accountability to products throughout their lifecycle.
What Does DPP Mean for Businesses?
Introducing the DPP gives companies greater control and transparency over their products. It’s not just a data repository – it’s a bridge to customers, institutions, and partners, offering verified information about product origin, sustainability, and safety.
The DPP includes data on the materials used and their origin, carbon footprint, energy consumption, reparability, recyclability, and certified proof of responsible production. Unlike traditional labels, the DPP is dynamic, digital, and accessible in real time.
For businesses, this means a new obligation but also an opportunity for market differentiation. Companies that implement DPP early will be better prepared for public procurement, partnerships, and building trust with end users.
Impact on Manufacturers and Supply Chains
The introduction of ESPR and DPP brings significant changes to how supply chains operate. It’s no longer enough to know your own part of the process – data must be collected and shared from the very beginning of the value chain, even if your product is not explicitly listed as obligated.
This means even the smallest suppliers must be ready to share information digitally, securely, and in a standardized format. At NOS d.o.o., we support this through software solutions that integrate DPP into your existing ERP systems, Excel databases, PIM systems, and other business infrastructure.
Ban on the Destruction of Unsold Products and New Rules
One of the important elements of ESPR is the ban on the destruction of unsold products, especially in the textile and footwear industries. This regulation directly addresses the issue of overproduction and waste accumulation in the EU.
In addition to the ban, companies are required to publicly report the quantities of destroyed products, which increases pressure to consider alternatives such as recycling, donation, resale, or production optimization.
Digital Product Passports play a key role in tracking such data and supporting responsible business planning.
How to Start Ensuring Compliance
For companies that will be among the first to fall under the ESPR regulation, it is essential to start preparing now. This includes reviewing current data and identifying gaps, adapting internal processes, and implementing systems for managing digital product information.
Employee training, supplier inclusion, and strong IT infrastructure will be essential for success. NOS d.o.o. offers support throughout the entire process – from consulting and system design to implementation.
Conclusion: Challenge or Opportunity?
For many companies, ESPR may seem like yet another bureaucratic hurdle. However, with the right approach, it becomes a chance to strengthen your market position. Transparency, compliance, and proven sustainability are emerging as competitive advantages.
The Digital Product Passport is not just a document – it’s a tool for building trust, collaboration, and the future of your business.
Need Help Implementing a DPP System?
Reach out to us at info@nos.hr to schedule a consultation with our team.