Digital Product Passport: From Regulation to Transformation
Europe’s fashion industry is in the middle of a major shift. With the EU pushing ahead on its Green Deal and Circular Economy Action Plan, new rules like the Ecodesign for Sustainable Products Regulation (ESPR regulation compliance) are challenging fashion brands to rethink their entire approach.
At the heart of this change is the Digital Product Passport (DPP). Far from being just another requirement, DPPs are quickly becoming powerful tools that offer real business value: helping brands build trust and track sustainability.
In this article, we explore how DPPs are moving from a legal obligation to a meaningful opportunity for the fashion industry.
The Vision Behind the DPP EU Regulation
What is the Ecodesign for Sustainable Products Regulation (ESPR)?
The ESPR is the EU’s big step toward making sustainable products the standard across Europe. Building on older regulations that focused mainly on electronics, the new ESPR Digital Product Passport has a much broader goal: to make products more durable, repairable, reusable, and recyclable.
Overview of ESPR’s Objectives: Durability, Reparability, Reusability, and Recyclability
At its core, the ESPR regulation compliance sets out clear expectations. Products should last longer, be easier to fix or reuse, and have a second (or third) life through recycling. The idea is to reduce waste and make it easier for everyone, companies and consumers alike. to make more responsible choices.
Scope: Expanding to Textiles, Footwear, and Fashion Accessories
One of the biggest changes is the expansion of ESPR beyond electronics. Now, textiles, shoes, and accessories are all included. It’s a big shift, and fashion is front and centre.
DPP Timeline: Key Milestones from 2024 to 2030
- April 2024: ESPR officially adopted by the EU
- 2025: Key sectors like fashion start seeing specific rules
- 2026: Technical work and pilot projects for DPPs begin
- 2027: First categories (including textiles) expected to require DPPs
- 2030: More product groups brought into the framework
Connection with Broader EU Frameworks
The ESPR regulation compliance doesn’t stand alone. It ties in closely with other EU efforts to boost sustainability and corporate accountability, such as:
- The Green Claims Directive, aimed at eliminating misleading sustainability claims
- The CSRD requires companies to be more transparent about their environmental and social impact
- The CSDDD, which holds businesses accountable for human rights and environmental risks in their supply chains
The Strategic Value of DPPs for Fashion Stakeholders
DPPs as Data Hubs: Moving from Static Labels to Dynamic Product Intelligence
Imagine every product having its own digital profile and identity, which is updated in real time and easy to access. That’s what DPPs bring to the table. They act like digital passports, carrying data from design and sourcing all the way to recycling.
Benefits of DPP for Textile Brands and Retailers
- Comprehensive Traceability
DPPs let brands track a product’s entire journey. This level of transparency helps manage risks, ensure responsible sourcing, and meet tough EU DPP regulation. - ESG and Scope 3 Reporting
As sustainability reporting becomes mandatory, brands need solid data. DPPs give them the verified information they need to accurately report indirect emissions and environmental impact. - Verified Sustainability Claims
With greenwashing under scrutiny, DPPs offer a reliable way to back up sustainability claims with traceable, third party-verified data.
Benefits of DPP For Suppliers and Manufacturers
- Data Standardization
DPPs encourage suppliers to streamline how they collect and share data, helping them stay in step with industry-wide sustainability standards. - Market Access
Suppliers that can show transparency and compliance will have a better shot at working with major brands and entering high-value markets, and also a better rating when applying for funds, investments, loans. - Digital ID for Garments
Small and medium-sized manufacturers can use DPPs to build trusted digital profiles, showing off their certifications and environmental credentials in a way that attracts new business and customers.
Benefits of DPP For Consumers
- Transparent Product Information
With a quick scan of a QR code or tap of an NFC tag, shoppers can learn exactly where an item came from, what it’s made of, and how to dispose of it responsibly. - Ethical fashion traceability and Ethical Decision-Making
DPPs help consumers make better choices, supporting the brands and products that align with their values. - Brand Trust
Being open and transparent builds loyalty. DPPs let brands communicate clearly and honestly, which resonates especially well with younger, value-driven consumers.
Real-World Implementation Across Europe
Leading Use Cases and Pilot Programs
France – Textile Labelling Reform and Repair Scores
France is already paving the way with forward-thinking laws like the Anti-Waste for a Circular Economy Law (AGEC). It introduced repairability scores and is building out Extended Producer Responsibility (EPR) schemes for textiles. French fashion brands are piloting QR coded DPP for textile traceability with info on material makeup, repair options, and durability, creating templates for wider adoption.
Germany – Circular Economy Examples – CircularID™ and Open-Source Traceability Platforms
Germany is taking a tech-forward approach. Programs like CircularID™, developed with the Circular Fashion Partnership, are exploring Blockchain in fashion traceability and GS1 standards to create tamper-proof, shareable product records. This ensures secure traceability and supports the growing need for open, interoperable systems.
Nordics – Circular Economy Fashion Business Models and DPP-Powered Resale Ecosystems
Nordic countries are pushing DPPs through circular consumer models. From digital wardrobes to second-hand platforms, brands are testing how DPPs can make resale and recycling easier. These innovations show how DPPs can support not just regulations, but entirely new business models.
Lombardy Region in Italy
In May 2025 Lombardy Region in Italy has been signed an agreement to promote the development of the fashion sector according to criteria of transparency and fairness, with the objective of improving working conditions and combating exploitation or tax and social security evasion. A supply chain platform will be created by manufacturing companies, capable of collecting detailed data on the business structures of economic operators, on the workforce employed and on the production departments. On the other, brands will be able to consult a “green list” which will collect the company names and tax codes of manufacturing companies adhering to the Platform that guarantee a “healthy” supply chain.
Luca Sburlati, the president of Confindustria Moda, hopes to bring this regional agreement on a national basis. He observed that, “even though it is an agreement defined on a territorial basis, the national scope of this experiment is also evident: this is due to the national representativeness of many of the signatories and to the specific characteristics of the fashion production chains, which do not know territorial, local, regional and very often not even national borders”.
Strategic Challenges and Emerging Opportunities
DPP Compliance Fashion: Key Implementation Barriers
- Data Complexity
Global supply chains are messy. Getting accurate, consistent data across so many players isn’t easy, especially when systems don’t speak the same language. - SME Readiness
Small suppliers may lack the tools or capacity to implement DPPs in their Textile supply chain, which could leave them behind unless support is provided. - Verification Gaps
To truly work, DPPs for textile need strong, affordable ways to verify the data. Many sectors still lack reliable third-party frameworks. - Technology Fragmentation
With so many different systems and platforms out there, alignment is a big challenge. Industry-wide collaboration will be key to avoid silos and inefficiencies.
DPP for Textile: Opportunities for Leadership and Differentiation
- First-Mover Advantage
Early adopters of DPPs can get ahead on ESG compliance, streamline their reporting, and strengthen their reputation with investors and customers. - Circular Business Innovation
DPPs make it easier to offer repair services, rental options, second hand market place sale and product-as-a-service models—unlocking value from products long after the first sale. - Technology Integration
By connecting DPPs with AI and IoT tools, brands can track product wear, predict resale value, and even recommend repairs, bringing intelligence into the product lifecycle.
Building the Infrastructure for Scalable DPP Integration
The Digital Backbone for Traceability
- ERP, PLM, LCA, SCM, ESG Systems
For DPPs to work smoothly, they need to plug into existing systems across the business, handling everything from design and sourcing to compliance and reporting. - Enabling Traceability Technologies
APIs and digital tags (QR, NFC, RFID), supported by Blockchain when necessary, help tie physical products to digital records. Semantic data models ensure machines (and humans) can understand the data. - International Alignment
Sticking to global standards like GS1, UNECE, and OECD guidance ensures that DPPs can function across borders and industries without creating extra headaches.
Traceability and Tracking: Data Governance and Interoperability Standards
- Open, Machine-Readable Formats
To scale successfully, DPPs must use open formats that allow easy exchange and automation, avoiding vendor lock-in or closed ecosystems. - Harmonization with Leading Initiatives
Platforms like CIRPASS and GS1 are helping shape shared standards. Collaborating with them can accelerate onboarding and improve data quality. - Risks of Fragmentation
If every country or brand does DPPs their own way, it could lead to higher costs, duplication, and confusion. Alignment is essential for success.
Looking Ahead: The Future of DPPs in Fashion Industry and Beyond
DPPs as Enablers of Circularity and ESG Integration
- Digital Twin for Material Traceability and Carbon Passports
By pairing DPPs with digital twins, brands can track the real-time condition of products. Linking them to carbon data turns DPPs into dynamic sustainability dashboards. - EPR Integration
As countries expand their EPR programs, DPPs will help track what happens to products after sale, essential for managing returns, recycling, and reuse. - Value Chain Transformation
Embedding traceability directly into products opens doors for more flexible, localized production, modular design, and smart logistics.
The Road to 2030: Where DPPs Are Headed
- Smart DPPs
AI-enhanced DPPs will soon offer things like automated repair suggestions, resale value estimates, and tailored sustainability tips for consumers. - Digital Product Passport Textiles – Retail Integration
From digital wardrobes to metaverse-ready fashion, DPPs will play a central role in blending real and virtual retail experiences. - Cross-Industry Expansion
What starts in fashion won’t stay there. Expect DPPs to expand into electronics, food packaging, and more, creating a unified approach to product traceability.
DPP implementation in Textile Industry: Next Steps
Digital Product Passports are the foundation for a smarter, more sustainable way of doing business. For fashion leaders, now is the time to invest, experiment, and collaborate. The future is digital, circular, and transparent, and DPPs are helping to build it.
Coming soon: Traceability & Consumer Engagement: How Transparency Drives Brand Loyalty
