The industrial application of the Digital Product Passport enables tracking the entire product lifecycle, promoting sustainability, transparency, and more efficient resource management.
Compliance with regulations allows companies to minimize risks associated with non-compliance and improve their image through transparency. The Digital Product Passport not only helps reduce waste and increase recycling but also facilitates collaboration among stakeholders in the supply chain.
As regulations continue to evolve, companies will need to invest in technologies and processes that support the implementation of digital passports. This is not only an opportunity for innovation but also for establishing more sustainable business practices that meet the needs of today’s consumers and market demands.
It is currently in the proposal stage as of March 2022, and the ESPR represents a key element of the Circular Economy Action Plan (CEAP). Its goal is to improve the overall circularity, energy efficiency, and environmental performance of products. The framework sets guidelines and criteria for various aspects, such as product durability, reusability, resource efficiency, and carbon footprint. The proposed regulation emphasizes the use of the digital product passport as the primary mechanism for collecting and sharing data, allowing stakeholders to have a detailed overview of the product's environmental characteristics.
Since March 2022, in the implementation phase, this strategy is another key element of the CEAP. It focuses on improving the circularity of textiles in clothing, buildings, vehicles, and other sectors. The primary goal is to enhance the longevity and durability of textiles, facilitating repair and recycling. The legislation also includes a significant component aimed at consumers/end-users, enabling them to verify the 'green claims' of companies from which they purchase textile products. Digital product passports will play a key role in enabling this mechanism and achieving the goals of the strategy.
Currently in the implementation phase since March 2022, the CPR is another integral part of the CEAP. The regulation focuses on ensuring that construction products across Europe meet safety and environmental criteria. The developing framework supports the use of digital product passports.
Since December 2020, in the proposal phase, this regulation is an important aspect of the CEAP. It focuses on ensuring the sustainability and safety of batteries within the EU, with an emphasis on high recyclability. Implementation is planned for the coming years, with 2026/2027 proposed as the timeline for coming into force in the electric vehicle battery industry and market.
Launched in January 2024, the CSRD mandates that listed companies (excluding micro-companies) and large companies (meeting at least 2 out of 3 defined criteria: more than 250 employees, revenue over €40 million, and total assets exceeding €20 million) report on sustainability and environmental-social governance (ESG) issues. This detailed reporting supports the transition towards a 'greener' and more sustainable economy.
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