The Digital Product Passport (DPP) is increasingly seen not only as a regulatory requirement, but as the foundation of a new business paradigm in which product data becomes a strategic asset.
While the Ecodesign for Sustainable Products Regulation (ESPR) introduces the DPP obligation to promote transparency and circularity, companies are beginning to recognise the broader business value of these data – especially when it comes to developing new, sustainable business models.
The digital product passport itself is not a business model, but rather a tool that enables new approaches – such as offering products as a service, structured maintenance, and reuse. It is precisely the availability of DPP data that makes such models feasible and sustainable in the long term.
A DPP enables the collection, exchange, and analysis of information about each product throughout its entire lifecycle – from design and production to use, maintenance, and recycling. This accessibility and interoperability of data create opportunities for innovation that go far beyond the traditional concept of selling products.
The product-as-a-service (PaaS) concept represents one of the most significant trends driven by digital transformation and circular economy regulation.
Instead of selling a physical product, companies retain ownership of it, while customers pay for its use, functionality, or performance. This approach encourages manufacturers to design longer-lasting, repairable, and sustainable products – since they remain responsible for their performance and maintenance.
DPP data are essential for this model. They enable:
Monitoring product performance in real time;
Planning and managing maintenance;
Optimising costs and resource efficiency;
Ensuring transparency for customers and partners.
For example, a manufacturer of household appliances can use a DPP system to track the condition of each device in use, proactively schedule servicing, and offer replacement parts – all within the same digital ecosystem. This reduces waste while creating a continuous relationship with the customer.
One of the key objectives of the European Green Deal is to extend product lifespan. DPP data are becoming an essential tool for both service providers and manufacturers because they provide access to precise technical information – such as composition, materials, part versions, and maintenance history.
This level of transparency:
Simplifies repairs and part replacements;
Enables compatibility checks across different product versions;
Reduces servicing costs;
Supports the creation of markets for refurbished and recycled products.
When product information is available through a DPP, manufacturers and authorised service providers can efficiently plan maintenance and repairs, extending the lifecycle of products and creating additional economic value.
The digital product passport makes it possible to build circular value chains in which all stakeholders – manufacturers, distributors, service providers, recyclers, and end-users – are connected through the same set of data.
Instead of the linear model “make–use–dispose,” the DPP creates a cyclical flow of information and resources, enabling:
Better planning for product returns and reuse of materials;
Building markets for used and remanufactured products;
Reducing procurement and logistics costs;
Creating new revenue streams from data and digital services.
Companies that adapt early and develop their business models based on DPP data will be able to compete not only on price but also on innovation and sustainability.
Despite the opportunities, transitioning to business models based on DPP data requires changes in processes and investments in technology.
The main challenges include:
Integrating DPP systems with existing ERP and CRM solutions;
Ensuring data quality and accuracy;
Protecting sensitive information and intellectual property;
Adapting organisational culture to a “data-as-a-service” mindset.
Success will depend on how well companies align technical capabilities with business strategies – and on whether they view the DPP not merely as a compliance requirement, but as a tool for innovation and growth.
At NOS, we don’t just follow regulatory and technological developments – we help companies turn them into practice.
Our approach combines consulting expertise and technological implementation, enabling organisations to move from regulatory awareness to real-world DPP readiness.
Consulting – Circular Economy Service
We prepare companies for DPP by ensuring data quality, process readiness, and compliance.
This includes mapping material flows, standardising product data, defining internal responsibilities, and training teams.
DPP Software Solution
Once the processes and data are ready, we deliver the technology that brings DPP to life – from system implementation and ERP integration to scalable and interoperable solutions.
Through this combined approach, NOS provides a true end-to-end pathway to DPP readiness and implementation.
Now is the time to act – and we are ready to help businesses turn regulatory requirements into long-term value.
The Digital Product Passport is not merely a compliance mechanism under European regulations such as the ESPR, the Corporate Sustainability Reporting Directive (CSRD), and the Corporate Sustainability Due Diligence Directive (CSDDD).
It is becoming a catalyst for new business models that redefine how companies design, sell, and manage products.
In a world where sustainability has become an economic criterion, the DPP is a tool that enables transparency, trust, and long-term competitiveness.
Companies that start preparing their DPP strategies today will have a clear advantage tomorrow – because they will own the data that create value.
For consultation and more information on preparing and implementing Digital Product Passports, feel free to contact us at info@nos.hr.
