1. New Business Models: The shift to a circular economy and the focus on extending product lifespan open up new, smart ways of doing business. One example is the product-as-a-service model, where you don’t just sell the product but also offer services like repairs. This can generate higher revenue and support business growth. Digital passports also become a way to market and sell products, offering new services and enhancing the overall customer experience.
2. Increased Consumer Trust: Keeping detailed records of the entire product lifecycle, from production to recycling, gives consumers a clear and honest view of the product’s history and condition. Given that more than half of consumers agree that companies often only pretend to be sustainable, this transparency builds trust, increasing the likelihood of customer loyalty.
3. Verification of Environmental Claims: To tackle the issue of companies making false claims about environmental friendliness (greenwashing), digital passports use blockchain to secure and verify sustainability features and statements. This is crucial, as more than half of consumers find it difficult to assess the truthfulness of environmental claims. Not only does this protect the company’s reputation, but it also enables them to improve circular strategies, establishing them as leaders in sustainability to meet growing customer demands.
4. Consumer Protection: Ensuring that raw materials and manufacturing processes meet established standards protects customers from fraudulent, dangerous, or low-quality products. This also helps brands avoid negative publicity, such as product recalls or addressing issues caused by defects.
5. Ensuring Compliance: Given the complexity of supply chains, companies may struggle to track regulatory compliance and ensure sustainability. Digital product passports serve as a single, transparent source of information, simplifying data monitoring. This allows companies to securely proceed with real-time initiatives, ensuring that suppliers meet standards and providing clarity on the quality and origin of delivered products.
