Circular Economy Product Passport

The Big Picture

Globally woven textiles/clothing are worth 3 trillion dollars (as sold), including “non-clothing” (home, furniture, curtains, etc.), employing 15% of the world workforce. While “no woven” that is born with chemistry is often associated with fabric.

The only clothes produced with fibres are divided between:

• Natural fibres, divided into vegetable (cotton, linen, hemp) and animal (silk, wool and cashmere).
• Fibers derived from petroleum, divided between those extruded (cut in length of 45 mm., where it then follows the process like natural fibre), and extruded but in continuous and wound filament.

In both cases we are talking about virgin yarn (therefore no recycling, even if in Italy some districts such as Biella and Prato were pioneers in this sector).

There is a global narrative on recycling that is very penalizing towards brands (for example 92 million tons of textile waste per year), which impacts consumer habits (even if they mostly continue to buy fast fashion at low prices).

The clothing production process is divided into:

1. Spinning
2. Textile fabrics: weaving (loom and knitting)
3. Finishing: fixing (bleaching, dyeing, finishing, etc.)
4. Garment making: packaging

In this sector there are few total vertical supply chains, for example in Italy Marzotto (which however no longer owns brands, it is however in participation with some of them, e.g. Hugo Boss), and Loro Piana (from the yarn to the finished garment, albeit niche), and some in India (which however do not have brands).

87.64% of the spindle capacity (spinning) is located in only 7 countries: China, India (as many as 1500), Bangladesh, Vietnam, Turkey, Indonesia and Pakistan.

N.B.: For now the traceability only goes from garment making to the store.

From Linear to Circular: Systemic Challenges

Our current economic model, largely based on a linear “take-make-dispose” approach, faces significant systemic challenges in an increasingly resource-constrained world. The transition towards a circular economy presents a fundamental shift in how we design, produce, and consume goods. This EU circular economy action plan requires a holistic rethinking of value chains and product lifecycles to address environmental degradation, resource depletion, and waste generation.

Legislative Pressure: DPPs under the EU Green Deal & ESPR

Growing environmental awareness and the urgent need to achieve sustainability goals are driving significant legislative pressure globally. The European Union’s Green Deal, a comprehensive strategy to make Europe climate-neutral by 2050, includes key initiatives like the Ecodesign for Sustainable Products Regulation (ESPR). A central component of the ESPR is the introduction of Digital Product Passports (DPPs). These digital tools are designed to provide accessible and reliable information about the environmental sustainability of products, empowering consumers and businesses to make more informed circular economy decisions.

The Role of DPPs in Decarbonization, Resource Efficiency, and Product Longevity

Digital product passport (DPP) is instrumental in fostering decarbonization and extending product longevity within a circular economy framework.

Digital product passport requirements – decarbonization: DPPs offer comprehensive insights into a product’s carbon footprint by meticulously tracking emissions throughout its entire lifecycle. This includes everything from the extraction of raw materials and the manufacturing processes to distribution and end-of-life management. By providing this detailed data, DPPs enable businesses to pinpoint high-emission stages and implement targeted strategies to reduce their greenhouse gas emissions.

For example analysing DPP data can help companies optimize their logistics for lower transportation emissions or choose suppliers who utilize renewable energy sources, directly contributing to global decarbonization efforts.

Digital product passport requirements – resource efficiency: DPP play a crucial role in efficient resource management by detailing a product’s material composition and origin. This transparency allows manufacturers to track their use of recycled or sustainable materials, thereby promoting resource conservation. Furthermore, DPPs support the adoption of circular business models.

For example when the model “product-as-a-service” is applied, or take-back schemes are adopted, materials can be effectively reclaimed and reused. This minimizes waste and reduces the reliance on virgin resources. It ultimately leads to lower production costs and mitigates supply chain risks associated with resource scarcity.

Digital product passport requirements – product longevity: DPP contribute to enhanced product durability by providing essential information on repairability, maintenance, and potential upgrades. Consumers and repair services can access detailed guidelines, spare part specifications, and software update histories through the DPP. This facilitates timely maintenance and extends the product’s useful life. This approach not only lessens environmental impact but also aligns with growing consumer demand for sustainable products, fostering brand loyalty and creating new revenue opportunities in repair and refurbishment markets.

Integrating DPP into business operations goes beyond mere regulatory compliance.
It offers a strategic advantage by actively promoting sustainability and increasing customer satisfaction.

What is a Digital Product Passport?

Digital product passport (DPP) is a digital records that offer comprehensive information about a product’s lifecycle, thereby increasing transparency and promoting sustainability within the circular economy. The fundamental data layers of a DPP encompass:

Data Layers: Origin, Composition, Repairability, Recyclability, Environmental Footprint

1. Digital product passport and origin: This layer details the history and sourcing of the product and its components, providing critical insights into:
   • Manufacturing details: Information regarding the manufacturer, production date, and location, which helps in verifying product authenticity and ensuring ethical sourcing practices.
   • Supply chain transparency: Tracking the journey of materials from their extraction to the final product assembly, ensuring adherence to ethical labour practices and environmental standards.

1. Digital product passport and composition: This layer offers a detailed breakdown of the materials and substances used in the product, including:

1. • Material identification: A complete list of all materials and their respective quantities, which is essential for evaluating environmental impact and facilitating effective recycling processes.
   • Chemical substances: Disclosure of any hazardous substances present in the product, ensuring compliance with safety regulations, and providing information for safe handling.

1. Digital product passport and repairability: This layer provides information to support the maintenance and repair of the product, such as:

1. • Repair guides: Step-by-step instructions for common repairs, extending the product’s lifespan, and reducing waste.
   • Component replaceability: Details on which parts can be replaced or upgraded, including compatibility information and sources for spare parts.

1. Digital product passport and recyclability: This layer offers guidance on how the product and its components can be responsibly recycled or disposed of:

1. • Disassembly instructions: Clear directions for safely dismantling the product to separate materials suitable for recycling.
   • Material recyclability: Information on the recyclability of each component, including appropriate recycling methods and available facilities.

1. Digital product passport and environmental footprint: This layer quantifies the environmental impact associated with the product throughout its entire lifecycle:

1. • Carbon footprint: The total greenhouse gas emissions generated during manufacturing, usage, and disposal, enabling consumers to make more environmentally conscious choices.
   • Resource consumption: Data on water and energy usage, as well as waste generation, highlighting areas where potential environmental impact reductions can be achieved.

By integrating these essential data layers, DPPs empower various stakeholders including manufacturers, consumers, and regulatory bodies. Subsequently, they can make well-informed decisions that promote sustainability and support the broader transition towards a truly circular economy.

Lifecycle Data Product Passport Standards and Interoperability: GS1 Digital Link, EPCIS, ISO, IEC

To fully realize the potential of digital product passports (DPPs) across different industries and geographical regions, interoperability is paramount. This necessitates the implementation of globally recognized, machine-readable, and standardized data formats. Several key frameworks and standards are central to this transformative process:

1. GS1 digital link: connecting physical products to digital information
   
   • What it is GS1: An open global standard developed by GS1 to transform traditional product identifiers (such as barcodes) into web-enabled links.
   • GS1 function: It converts conventional GS1 identifiers (e.g., GTIN) into actionable URLs, allowing physical products to possess a digital identity that connects to a wide array of data, including origin, composition, instructions, certifications, and repair manuals.
   • Why it matters: GS1 Digital Link is foundational for DPP because it facilitates real-time access to product-specific data at any point in the value chain, benefiting manufacturers, regulators, retailers, and consumers alike.
   • GS1 compliance: The European Commission has recommended GS1 Digital Link as a crucial enabler for interoperable Digital Product Passports.

1. Digital product passport EPCIS (Electronic Product Code Information Services): event-based traceability

1. • What it is EPCIS: A GS1 standard that captures and shares detailed information about product-related events (what, where, when, and why they occur) across the entire supply chain.
   • EPCIS version: EPCIS 2.0, released in 2022, offers enhanced capabilities, including richer event context and improved alignment with regulatory traceability requirements.
   • EPCIS use case: Within DPP, EPCIS tracks a product’s lifecycle from its initial production and shipment to its eventual recycling or reuse in an event-driven format.
   • EPCIS interoperability: It supports standardized communication between various supply chain partners and regulatory bodies.

1. ISO (International Organization for Standardization) digital product passport: global governance and sector-specific norms

1. • Key standards relevant to DPPs:
     • ISO 14040/44 – life cycle assessment (LCA): Provides comprehensive guidance for assessing environmental impact data, a fundamental component of DPPs.
     • ISO 10303 (STEP) – Industrial product data representation.
     • ISO 22005 – traceability in the food and feed chain.
     • ISO/IEC 19987 & 19988 – define EPCIS and core business vocabulary (CBV) specifications at the ISO level.
   • ISO relevance: ISO standards offer sector-specific harmonization, ensuring that DPPs can be effectively adopted across industries such as textiles, electronics, automotive, and packaging with shared terminology and data formats.

1. IEC (International Electrotechnical Commission): standards for electronics and E-waste traceability
   

1. • DPP for electronics focus: Develops global standards for electrical, electronic, and related technologies.
   • Relevance for DPPs:
     • Ensures interoperability within smart product systems, particularly in electronics and IoT-enabled devices.
     • IEC standards provide guidance on repairability, recyclability, and material composition disclosure, which are crucial for achieving circular economy targets in the electronics sector.
   • DPP for electronics example: IEC 62474 – Material declaration for electronic products, which is already utilized in sustainability and compliance reporting.

Why these standards matter for digital product passports:

• Interoperability across borders: Enables DPP data to flow seamlessly between different systems, platforms, and regulatory jurisdictions worldwide.
• Future readiness: Positions companies to comply with upcoming EU DPP regulations (2026–2030), which will mandate data portability and openness.
• DPP EU regulation for supply chain transparency: These standards form the essential technical foundation for enhanced traceability, circularity, and meaningful consumer engagement.

Who Contributes Manufacturers, Recyclers, Distributors, Consumers

Digital product passports (DPPs) are more than just a technical solution; they represent a collaborative data ecosystem. The effectiveness of a DPP hinges on continuous contributions from multiple stakeholders throughout the entire product lifecycle, fostering transparency, visibility, circularity, and regulatory compliance.

1. DPP for manufacturers: primary data providers
   • Role: As the creators of the product, manufacturers bear the responsibility for the initial data input into the DPP. This includes crucial information such as:
     • Product origin and material composition
     • Design specifications
     • Comprehensive environmental footprint data (LCA)
     • Repairability scores
     • Relevant certifications and conformity data
   • Relevance: The DPP essentially becomes a digital twin of the physical product, carrying authoritative and regulatory-relevant information that downstream stakeholders can rely on.
   • DPP impact: This enables traceability, ensures safety, and facilitates compliance right from the outset, aligning with EU ecodesign regulations and upcoming CE-marking digitization requirements.

1. DPP for distributors & retailers: traceability across the supply chain

1. • Role: Distributors contribute valuable data related to logistics, handling, and storage, which helps to:
     • Ensure adherence to cold-chain requirements (in sectors like food and pharmaceuticals)
     • Track regional distribution footprints
     • Localize essential information (languages, compliance labels)
   • Relevance: This provides crucial “middle layer” visibility, ensuring that the DPP remains accurate and up to date as the product moves through the complex value chain.
   • DPP impact: Supports geographic transparency and strengthens supply chain integrity for global trade and enhances consumer trust.

1. DPP for recyclers & refurbishes: end-of-life & circularity contributors

1. • Role: At the end-of-life or reuse stage, recyclers and refurbishes input critical data into the DPP, including details on:
     • Dismantling processes and material recovery rates
     • Handling of any hazardous materials
     • Component reuse and remanufacturing activities
     • Recycling certifications or the final disposal method employed
   • Relevance: This crucial step closes the loop in circular economy models by documenting precisely what materials were reused and under what established standards.
   • Circular economy product passport impact: DPP become a vital compliance and performance record for Extended Producer Responsibility (EPR) schemes, waste directives, and comprehensive ESG reporting.

1. DPP for consumers: active data users & optional contributors

1. • Role: While not typically obligated to contribute data, consumers play an active role by:
     • Accessing the DPP to obtain essential product information (origin, repair guides, sustainability scores)
     • Participating in valuable feedback loops (e.g., providing usage data, recycling input, engaging with loyalty programs)
     • Reporting any defects or initiating returns through user-friendly DPP interfaces
   • Relevance: This encourages greater consumer empowerment, fosters brand transparency, and promotes behavioural changes towards more sustainable consumption patterns.
   • DPP impact: Brands that actively involve consumers in their DPP ecosystems can significantly enhance engagement, gather crucial circularity data (e.g., information on take-back programs), and build stronger customer engagement and trust.

Industry Use Cases: Digital Product Passport Example

Digital Product Passport Textiles and Fashion: Garment Recyclability, Ethical Sourcing

The textile and fashion industry are undergoing a significant transformation driven by the pressing need to lessen its environmental impact, ensure social responsibility, and adhere to evolving regulations.

The industry is quite complex because it is related to several players and stakeholder.
To describe the production process, from raw material extraction to the finished product, the textile supply chain is usually represented in 4 tiers: tier 4 is the cultivation and extraction of raw materials (cotton, wool, leather, etc.) from the earth, plants or animals; tier 3 is the processing of raw materials into yarn and other intermediate products. Tier 2 is referred to processing stage, material production. The assembly and manufacturing of the final products fall into tier 1.

Although the several suppliers, DPPs for textiles are set to become a pivotal tool in this shift, facilitating traceability, transparency, and circularity throughout the entire product lifecycle.

1. Digital product data textile and garment recyclability: enabling circular design and recovery

   Currently, only a small fraction of manufactured garments is recycled into new textile products. This is largely due to a lack of readily available and standardized information regarding their material composition and construction. DPPs address these obstacles by capturing and communicating essential technical attributes that influence a garment’s recyclability:

   • Digital product data textile material composition: Precise breakdown of fibres (e.g., cotton, polyester, elastane) and their origin (e.g., recycled, organic).
   • Digital product data textile additives and treatments: Disclosure of any chemicals, coatings, or dyes applied during the finishing process, which might impede recycling or necessitate specific handling procedures.
   • Digital product data textile construction details: Information on layered materials, stitching techniques, and the presence of components like zippers, buttons, or prints, all of which affect the ease of disassembly.

1. By providing this data digitally and in a structured format, digital product passport textiles enable more efficient sorting, disassembly, and selection of appropriate recycling streams, whether mechanical, chemical, or thermal. This also aids in identifying design improvements that facilitate end-of-life management and align with the principles of product eco-design.
2. Digital product passport textiles and ethical sourcing: verifying social and environmental responsibility

   Ethical sourcing in the fashion industry entails ensuring that products are manufactured under fair labour conditions, with minimal environmental harm, and with respect for human rights across all levels of the supply chain. However, the historical lack of transparency and fragmented data within textile supply chains still has limited accountability.

   DPPs offer a structured method for aggregating and disclosing pertinent sourcing information, such as:

1. • Digital product data textile for geographical origin of raw materials: Including the specific farming regions for materials like cotton or wool, along with timestamps and lot-level tracking.
   • Digital product data textile for production methods: Details on the type of cultivation (organic, conventional), water usage, and input materials employed.
   • Digital product data textile for supply chain stages: Documenting each transformation phase from spinning to dyeing to the final garment assembly, enabling comprehensive traceability.
   • Digital product data textile for environmental and social indicators: Data on greenhouse gas emissions, chemical use, working conditions, and adherence to sustainability criteria.

1. By embedding this information within the DPP, brands can demonstrate verifiable commitments to ethical practices, mitigate the risk of greenwashing, and meet increasing regulatory demands for due diligence and transparency.

   Digital product data textile: strategic implications for the industry

   The implementation of DPPs in the textile and fashion sector serves several key strategic objectives:

1. • Supports regulatory compliance: Including forthcoming EU requirements related to product design, labelling, and sustainability disclosures.
   • Improves product lifecycle management: By aligning product data with circular economy goals such as reuse, repair, and recycling.
   • Strengthens brand integrity: Through the provision of accessible, traceable, and reliable information about each product’s origin, composition, and environmental profile.
   • Empowers consumers: By enabling informed purchasing decisions based on transparency, sustainability, and ethical sourcing.

DPP for Electronics: E-Waste Mitigation, Material Recovery

The electronics industry is responsible for one of the fastest-growing waste streams globally. According to the global E-waste monitor, over 53.6 million metric tons of e-waste were generated in 2019 alone, a figure projected to exceed 74 million metric tons by 2030. Alarmingly, less than 20% of this is formally recycled, highlighting significant inefficiencies in end-of-life (EoL) management and material recovery processes.

Digital product passports (DPPs) for electronics offer a tangible solution to this systemic challenge by creating traceable digital identities for electronic products throughout their lifecycle, thereby supporting both e-waste mitigation and the recovery of valuable materials.

1. DPP for electronics for enabling E-waste mitigation through lifecycle transparency

   A significant factor contributing to e-waste is the short lifespan and limited repairability of electronic devices. DPPs can help alleviate this issue by:

   • DPP for electronics and documenting repairability information: Including exploded diagrams, spare part identifiers, repair manuals, and step-by-step disassembly instructions, readily accessible to consumers, repair technicians, and refurbishment facilities.
   • DPP for electronics for tracking ownership and service history: Facilitating the authentication of refurbished goods, validating warranties, and extending the usable life of devices.
   • DPP for electronics for providing recycling and disposal instructions: Tailored to national or local compliance rules, thereby improving the correct separation of hazardous components (e.g., batteries, PCB boards).

1. This enhanced transparency supports compliance with regulations such as the EU Ecodesign Directive and anticipated Right to Repair policies, while simultaneously empowering circular business models like leasing, refurbishing, and product-as-a-service.
2. DPP for electronics for supporting efficient and safe material recovery

   Electronic devices contain a diverse array of critical raw materials (CRMs) and precious metals, including:

1. • Gold, silver, and palladium (found in circuit boards and processors)
   • Cobalt, lithium, and nickel (present in batteries)
   • Rare earth elements like neodymium (used in magnets)

1. However, the efficient recovery of these valuable resources is often hampered by a lack of detailed information regarding their precise location and concentration within a device.

   DPPs for electronics address this critical issue by:

1. • DPP for electronics – recording material composition at the component level: Assisting recyclers in determining the extraction value and the most effective separation methods.
   • DPP for electronics – mapping hazardous substances: Improving safety protocols and ensuring compliance with waste management standards (e.g., RoHS, WEEE).
   • DPP for electronics – standardizing component identifiers: Enabling automation in sorting processes and improving recovery planning through machine-readable data (e.g., via GS1 Digital Link or EPCIS).

1. The implementation of DPPs also aligns with extended producer responsibility (EPR) frameworks, which are increasingly requiring manufacturers to track and report on the post-consumer handling of their products.
2. Industrial and policy alignment DPP for electronics

   By embedding structured traceability into electronic devices, DPPs:

1. • Enhance producer accountability: Ensuring that manufacturers can effectively report on downstream environmental impacts and end-of-life outcomes.
   • Facilitate compliance: With upcoming requirements under the EU Circular Electronics Initiative, including mandates for providing data on product durability, recyclability, and hazardous substances.
   • Support industrial symbiosis: Enabling the reuse of components and materials across different value chains, thereby reducing dependence on the extraction of virgin resources.

1. Strategic benefits of DPPs for electronics

1. • Improved recyclability and higher recovery yields of CRMs and valuable metals.
   • Reduced contributions to landfills and the avoidance of environmental contamination.
   • Support for digital circular economy business models, such as smart returns, buy-back programs, and predictive end-of-life management.
   • Increased consumer trust and enhanced regulatory readiness through transparent and auditable product lifecycle data.

DPP for Batteries & Automotive: Battery Passport, Second-Life Tracking

China, the world’s largest and most important automotive market, is rapidly growing for electric cars, making impressive technological progress. This accelerating transition to electric vehicles (EVs) and renewable energy systems is driving a surge in global demand for high-performance lithium-ion batteries. At the same time, this shift presents significant challenges concerning sustainability, regulatory compliance, and lifecycle visibility—particularly as battery production becomes a major source of environmental impact within the automotive supply chain.

The battery digital passport, as proposed under the EU battery regulation, aims to tackle these challenges by embedding digital traceability into each individual battery unit. This enables transparent monitoring from the sourcing of raw materials through second-life applications and eventual end-of-life recovery.

1. The Role of the DPP for Batteries

   The battery passport is a digital record containing standardized, auditable, and continuously updated information about a battery’s origin, composition, and performance. Under the EU battery regulation (Regulation (EU) 2023/1542), battery passports will be mandatory for all industrial and EV batteries exceeding 2 kWh starting in February 2027.

   Key data layers include:

   • DPP for batteries and material composition and sourcing: Information on critical raw materials (cobalt, lithium, nickel, etc.), including their provenance, responsible sourcing certifications (e.g., OECD Due Diligence), and the percentage of recycled content.
   • DPP for batteries for carbon footprint declaration: Lifecycle assessment data, encompassing CO₂ emissions from mining, processing, manufacturing, and distribution stages.
   • DPP for batteries and performance and durability: Capacity, power, and cycle life data based on real-time usage and telemetry.
   • DPP for batteries for repairability and dismantling guidance: Safety instructions and technical documentation for the safe removal, repair, or reuse of battery components.

1. This centralized data platform enhances regulatory compliance, bolsters battery safety, and promotes circularity through transparent lifecycle tracking.
2. DPP for batteries: second-life tracking for battery repurposing

   After their initial use in EVs, batteries often retain a significant portion of their original capacity, typically between 70–80%, making them suitable for second-life applications such as:

1. • Stationary energy storage systems (ESS)
   • Grid balancing and load shifting
   • Integration with renewable energy sources (e.g., solar + storage)
   • Industrial backup systems

1. To facilitate these applications, DPP for batteries must track the usage history and state of health (SoH) of each battery, providing:

1. • Accurate residual value assessments: Based on factors like cycle count, depth of discharge, and thermal exposure during their use in EVs.
   • DPP for batteries for certification for safety and reuse: Ensuring that batteries meet necessary performance thresholds and safety requirements before redeployment.
   • DPP for batteries for predictive maintenance and performance modelling: Utilizing AI-driven analytics to forecast performance in second-life environments.

1. Traceability for second-life applications not only maximizes the economic value of battery assets but also reduces environmental impact by delaying the need for recycling and minimizing the demand for virgin material extraction.
2. DPP for batteries: regulatory & industry alignment

   The Battery Passport aligns with several key regulatory frameworks and industry initiatives:

1. • EU battery regulation: Mandates digital passports, carbon footprint reporting, and recycled content thresholds for batteries.
   • Green deal and circular economy action plan: Promotes the reuse, repurposing, and recycling of battery components.
   • Global battery alliance (GBA): A multi-stakeholder initiative dedicated to promoting the development of an interoperable, transparent, and secure battery passport system.

1. Interoperability is a crucial priority. Battery passports must be compatible with GS1 Digital Link, EPCIS, and ISO/IEC standards to ensure seamless integration across borders, suppliers, and digital platforms.
2. DPP for automotive: strategic implications for the automotive industry

   DPP for automotive, battery passports and second-life tracking offer several key advantages for automakers and battery producers:

1. • Compliance-readiness: Meeting upcoming legal obligations in the EU and globally.
   • Supply chain transparency: Enhancing ESG performance and bolstering stakeholder confidence.
   • Product lifecycle optimization: Enabling circular business models, including leasing, battery-as-a-service, and take-back programs.
   • Data-driven innovation: Utilizing real-time battery data to improve future product design, warranty strategies, and predictive maintenance.

DPP for Food Industry and Packaging: Biodegradability Claims, Extended Shelf-Life

The food and beverage industry faces increasing scrutiny regarding the environmental impact of its packaging and the safety, freshness, and traceability of its contents. As consumer demand for both sustainable packaging and extended shelf life grows, companies must navigate the balance between environmental responsibility and maintaining product integrity.

Digital product passports (DPPs), and traceability platforms for food and beverage industry, are emerging as vital tools for validating biodegradability claims, supporting regulatory compliance, and documenting the preservation technologies used in food packaging.
These solutions enhance supply chain transparency, mitigate the risks of greenwashing, and build consumer trust through the provision of accessible, verified product data.

1. DPP for food and beverage industry and biodegradability claims: verifiability and regulatory pressure

   The market has witnessed a surge in packaging labelled with terms like “biodegradable,” “compostable,” or “eco-friendly.” However, these claims are often vague or potentially misleading. To combat greenwashing, regulatory bodies are strengthening definitions and demanding robust scientific substantiation.

   Key Standards and Developments include:

   • EU green claims directive (2023): Requires companies to substantiate environmental marketing claims using recognized scientific methodologies.
   • EN 13432 / ASTM D6400: Standards that define the requirements for packaging to be classified as industrially compostable.
   • ISO 18606 / ISO 17088: Guidelines for the testing and labelling of biodegradable plastic packaging materials.

1. Within a DPP for food and beverage industry framework, packaging manufacturers and food brands can directly link standard-compliant biodegradability test results, relevant certifications, and end-of-life instructions to each product’s packaging. This improves communication with consumers and aligns with regulatory requirements, while also supporting broader circular economy objectives.
2. DPP for food and beverage industry: packaging innovations that extend shelf-life

   Food loss and waste represent significant sustainability and economic challenges. Packaging technologies that effectively preserve freshness and prevent spoilage can substantially reduce waste throughout the supply chain.

   DPP for food and beverage industry Examples of shelf-life-extending solutions include:

1. • Modified atmosphere packaging (MAP): Replaces oxygen with inert gases to slow down microbial growth.
   • Active packaging: Utilizes materials that absorb moisture, oxygen, or ethylene to inhibit spoilage processes.
   • Antimicrobial coatings: Integrates natural or synthetic agents into packaging films to eliminate bacteria or mold.
   • High-barrier films: Effectively block light, oxygen, and moisture, proving particularly useful for dry and perishable goods.

1. By integrating DPP for food and beverage industry with sensor data, batch-level packaging specifications, and expiry tracking, brands can provide detailed documentation of how shelf life is achieved and maintained. This supports robust quality assurance, facilitates efficient recall prevention, and substantiates environmental performance claims.
2. DPP for food and beverage industry: traceability for packaging materials

   Also the supply chains for food packaging involve multiple tiers, including material producers, converters, packagers, and recyclers. A Digital Product Passport enables a unified data layer that encompasses:

1. • Material origin and composition (e.g., the percentage of bio-based or recycled content)
   • Relevant certifications (e.g., FSC for paper, OK Compost, TÜV, etc.)
   • Guidance on disposal or recycling, specific to the country or region
   • Environmental footprint data, including CO₂ emissions associated with packaging production

1. This comprehensive data supports both regulatory requirements (e.g., the EU Packaging and Packaging Waste Regulation – PPWR) and the increasing consumer expectations for transparency.
2. DPP for food and beverage industry and digital engagement: educating the consumer

   DPPs, often accessible via scannable QR codes, enable real-time consumer engagement and education by providing information such as:

1. • Verified biodegradability claims and clear composting instructions
   • Product-specific shelf-life information (production date, expiry date, recommended storage conditions)
   • Interactive content detailing sustainability practices (e.g., the packaging journey, carbon savings achieved)
   • Local disposal guidance based on the consumer’s geolocation

1. This transforms packaging into a valuable communication asset, to collect data from the end consumers, to strengthen brand loyalty and to provide measurable returns on investment in sustainability initiatives.
2. DPP for food and beverage industry: strategic benefits for brands and retailers

1. • Green claim compliance: Mitigating both reputational and regulatory risks.
   • Shelf-life traceability: Reducing food waste and optimizing inventory turnover.
   • Packaging circularity: Aligning with Extended Producer Responsibility (EPR) schemes and ESG targets.
   • Consumer trust: Offering verifiable sustainability credentials and assurances of product safety.

Business Impact of the Circular Economy Product Passport

Digital product passports (DPPs) transcend mere regulatory adherence; they are catalysts for sustainable and product innovation. By furnishing comprehensive product-level information encompassing origin, usage patterns, sustainability attributes, and end-of-life pathways, DPPs empower businesses to fundamentally reshape how products are conceived, marketed, repurposed, and reported on throughout their entire lifecycle.

Enabling Circular Business Models: Leasing & Product-as-a-Service

Circular business paradigms, including leasing, rental services, and product-as-a-service (PaaS) models, necessitate intricate visibility into each product’s journey, from its initial application to subsequent stages like refurbishment, resale, or recycling. Circular economy product passport facilitates this transition by associating every physical asset with a dynamic digital identity.

Key Enablers through circular economy product passport:

• Unique product identity (established via serial numbers, Data matrix, QR codes, or RFID tags)
• Usage history tracking: encompassing repairs undertaken, component replacements, and maintenance logs.
• Ownership and custody chain records: detailing who utilized the product, during which periods, and under what conditions.
• End-of-life status and recoverability: specifying recyclability, potential for materials recovery, or opportunities for refurbishing.

These functionalities are indispensable in sectors such as consumer electronics, fashion, industrial machinery, and mobility solutions, where enterprises are increasingly aiming to retain product ownership while delivering value through access-oriented models.

Circular Economy Sustainability: Reducing the Risk of Greenwashing and Fraud

As sustainability evolves into a critical market differentiator, the perils of greenwashing are escalating, alongside the tightening of regulatory oversight. Claims proclaiming “100% recyclable,” “carbon neutral,” or “biodegradable” (but also “organic”) are now subject to regulatory scrutiny, particularly under frameworks such as:

• EU Green Claims Directive
• French Anti-Waste Law (AGEC)
• US FTC Green Guides

Circular economy solutions like DPPs are instrumental in mitigating greenwashing by directly linking sustainability assertions to verifiable, product-specific evidence, including:

• Certification numbers and issuing bodies (e.g., OEKO-TEX®, FSC, Cradle to Cradle)
• Lifecycle assessments (LCAs)
• Carbon footprint calculations and their validation dates
• Material composition substantiated through traceable supply chains

By digitally anchoring sustainability claims to concrete data sources and established standards, DPPs offer a structured and scalable approach to communicate sustainability credibly, thereby avoiding potential penalties or reputational damage.

Benefits of Circular Economy: Boosting Consumer Engagement Through Transparency

Contemporary consumers have a strong awareness and many sources of information: therefore, they demand more than just marketing rhetoric; they seek tangible proof of value, ethical practices, and product quality. DPPs transform passive products into interactive, information-rich entities that can directly engage with the end user, also allowing the brands to collect precious data about consumption, habits, trends and behaviour.

Circular product information consumers can access through a DPP scan:

• Details on where and how the product was manufactured (origin, labour conditions)
• List of materials utilized (organic, recycled, certified, etc.)
• Environmental impact metrics (CO₂ footprint, water consumption)
• Instructions for repair, reuse, and recycling
• Incentives for returning or properly disposing of products

Benefits of circular economy and DPP

• Cultivates stronger brand loyalty through enhanced transparency
• Drives data-informed engagement (e.g., loyalty programs, sweepstakes, consumption suggestions, satisfaction surveys)
• Encourages responsible consumer behaviour (e.g., proper disposal methods, opting for lower-impact choices)

The transparency afforded by DPPs also empowers brands to effectively communicate their storytelling, core values and commitments in a format that resonates with digitally savvy and sustainability-minded consumers (to be omnichannel consistent).

Supporting ESG Reporting & CSRD compliance (Scope 3 data, product footprint)

Under emerging regulations, such as the EU Corporate Sustainability Reporting Directive (CSRD) and its European Sustainability Reporting Standards (ESRS), companies are mandated to report on their sustainability performance, encompassing Scope 3 emissions (covering both upstream and downstream impacts).

Lifecycle data product passport: DPPs are pivotal in facilitating data collection and standardization, supporting key metrics related to:

• Product carbon footprint
• Origin of materials and percentage of recycled content
• Water and energy consumption per unit
• Repairability and recyclability scores
• Rates of product take-back and reuse

This data seamlessly integrates into automated ESG dashboards, streamlining the reporting process, reducing manual effort, and ensuring audit readiness. Furthermore, it strengthens data exchange with suppliers and customers across the entire value chain.

DPPs & scope 3 benefits:

• Capture emissions at the individual product level (covering design, production, transportation, and usage phases)
• Enable emissions disclosures at the supplier level (through interoperable data formats)
• Facilitate the identification of high-impact SKUs or suppliers for targeted reduction strategies
• Establish data continuity across all stakeholders within the value chain

Data Governance & Technology Infrastructure

As the digital traceability of products becomes fundamental to achieving sustainable and regulatory-compliant supply chains, a robust data governance framework and an integrated technology stack are indispensable. This section delves into how organizations must navigate the complexities of interoperability, integrate cutting-edge technologies, and enforce data privacy and sovereignty within multifaceted, multi-regional environments.

Interoperability Challenges Across Global Supply Chains

A primary impediment to effective product traceability lies in the prevailing lack of data standardization and interoperability across global value chains. The frequent use of disparate data systems by suppliers, manufacturers, logistics providers, and recyclers renders the seamless exchange of real-time and structured product information exceedingly challenging.

Digital product passport: key interoperability challenges

• Fragmented data ecosystems: Suppliers and partners often utilize diverse ERP, MES, or WMS systems, hindering fluid data exchange.
• Lack of harmonized standards: While frameworks like GS1 Digital Link, EPCIS, and ISO/IEC 19987 exist, their adoption remains inconsistent across various regions and industries.
• Data silos and proprietary formats: Vendor lock-in and the use of non-standard APIs impede scalable DPP implementations.
• Language and compliance variances: Legal and linguistic diversity across different jurisdictions complicates data harmonization and cross-border traceability.

Strategic digital product passport requirements:

To effectively implement Digital Product Passports and facilitate circular economy models, organizations must establish interoperable data frameworks grounded in open standards, accommodate multi-language and multi-currency datasets, and ensure compatibility with existing legacy systems.

IoT, Blockchain and AI Integration for Real-Time Traceability

Traceability systems are increasingly leveraging real-time data streams from Internet of Things (IoT) sensors, generally smart sensors and labels, blockchain-based ledgers, and AI-powered analytics. These technologies introduce transparency, automation, and predictive capabilities to supply chain monitoring.

IoT traceability integration:

• IoT Sensors provide real-time monitoring of conditions such as temperature, humidity, location, and shock (e.g., crucial for cold chain logistics or pharmaceuticals).
• RFID tags and GPS tracking enable unit-level visibility, essential for serialization, efficient recall management, and regulatory compliance.

Blockchain traceability applications:

• Blockchain traceability ensure immutable and tamper-proof records of product origin, transformation processes, and changes in custody.
• Smart contracts automate compliance checks, validation of certifications, and incentivized returns or repairs.

AI traceability & machine learning use cases:

• Anomaly detection in supply chain events (e.g., identifying delays, spoilage, or unauthorized rerouting).
• Predictive insights for risk mitigation, such as forecasting potential product fraud or non-compliance.
• Automated sustainability scoring based on lifecycle emissions and supplier practices.

Integration challenge:

Real-time systems must be architected with an event-driven approach, facilitating data ingestion from edge devices, cloud platforms, and distributed ledger technologies.
APIs and middleware must support scalability and low latency.

Digital Product Passport: Data Privacy, Sovereignty, and Access Control

As product traceability becomes increasingly digitized and decentralized, it raises significant data governance concerns, particularly regarding privacy, ownership, and adherence to jurisdictional regulations.

Traceability and data privacy considerations:

• Compliance with GDPR, China’s PIPL, and other regional data protection laws is paramount when personal or sensitive data is linked to product records.
• Pseudonymization and anonymization of consumer-level data must be rigorously enforced within DPP systems, especially when connected to loyalty programs or returns processes.

Traceability and sovereignty & localization:

• Certain regions mandate local data storage (e.g., EU, India, China), necessitating geo-redundant infrastructure or partnerships with in-country cloud providers.
• Businesses must design their systems with data residency requirements in mind, ensuring localized compliance without compromising global data visibility.

Traceability and access control & identity management:

• Role-based access controls must define precisely who can read, write, or update specific data fields within the DPP—for instance, recyclers should not be able to alter origin data.
• Digital signatures, verifiable credentials (W3C standards), and self-sovereign identity models (SSI) are increasingly employed to validate the authenticity of data without revealing complete records.

Product passport regulation and strategic imperative:

A future-proof DPP ecosystem must operate under zero-trust security principles, incorporating granular access policies, end-to-end encryption, and audit trails that comply with cross-border regulatory frameworks.

Product Passport Regulation: Implementation Roadmap

Rolling out digital product passports (DPPs) is not a straightforward, immediate solution. It necessitates a structured, collaborative approach across various functions to guarantee interoperability, adherence to regulations, and the generation of enduring value throughout the product’s lifecycle. This section delineates a practical roadmap for implementation, emphasizing strategic alignment, platform integration, stakeholder coordination, and the methods for measuring success.

Product Passport Regulation: Key Phases of Implementation

Successfully implementing DPPs demands the synchronized orchestration of data infrastructure, the roles of involved parties, and established operational procedures.
A well-defined roadmap is crucial to prevent the accumulation of technical debt, potential regulatory oversights, and any lack of alignment.

1. Phase 1 of product passport regulation: data mapping & inventory

Objective: To pinpoint all pertinent product-related data elements necessary for the DPP (including origin, composition, certifications, repairability, recyclability, and more).

DPP EU regulation – actions:

• Conduct a thorough audit of data across the entire product value chain.
• Align existing datasets with recognized international standards (e.g., GS1 Digital Link, EPCIS).
• Identify any missing data or inconsistencies in format, level of detail, or ownership.

1. Phase 2 of product passport regulation: stakeholder onboarding

Objective: To engage both internal and external stakeholders to achieve consensus on data ownership, established workflows, and mutual expectations.

DPP EU regulation – actions:

• Clearly define the roles of manufacturers, suppliers, logistics partners, recyclers, and brand owners.
• Formalize data sharing agreements and Non-Disclosure Agreements (NDAs).
• Provide comprehensive training to vendors and third-party partners on DPP protocols and compliance requirements.

1. Phase 3 of product passport regulation: platform integration & technology stack

DPP EU regulation – objective: To deploy a digital infrastructure capable of secure and scalable DPP generation and interaction.

DPP EU regulation – Actions:

• Select a suitable DPP management platform or develop one internally.
• Integrate the platform with existing ERP, PLM, MES, or WMS systems using API gateways or middleware.
• Connect relevant edge technologies (e.g., IoT sensors, smart labels, blockchain ledgers) for real-time updates and enhanced auditability.
• Implement QR code printing and verification processes for item-level serialization.

Product Passport Regulation: Organizational Alignment

Effective cross-departmental collaboration is fundamental to a successful DPP rollout.
As DPPs impact numerous business units, a unified vision is essential to prevent isolated or redundant efforts.

Digital product passport – key stakeholders:

• IT & digital: Responsible for the underlying infrastructure, cybersecurity measures, and data integrations.
• Sustainability/ESG teams: Provide critical data for lifecycle assessments, carbon footprint calculations, and regulatory compliance.
• Legal & compliance: Ensure adherence to GDPR, CSRD, EPR regulations, and specific product-related legal frameworks.
• Operations & supply chain: Implement the necessary traceability mechanisms and serialization protocols within production and logistics processes.

Best practices for alignment:

• Establish a steering committee with strong executive support.
• Utilize RACI matrices to clearly define responsibilities across different departments.
• Conduct change management workshops to foster cross-functional understanding and buy-in.
• Maintain a shared DPP governance framework that includes audit trails and version control.

Digital Product Passport KPIs and ROI Metrics: Measuring Success

To accurately assess the impact of DPP implementation, businesses must define relevant Key Performance Indicators (KPIs) that align with their strategic objectives, whether focused on compliance, cost optimization, or the facilitation of a circular economy.

DPP key performance indicators (KPIs):

• DPP data completeness rate: The percentage of products with all required DPP fields fully populated.
• DPP onboarding rate: The percentage of suppliers and partners actively contributing verified data.
• DPP activation rate: The percentage of Stock Keeping Units (SKUs) equipped with active DPPs (featuring live QR codes or NFC tags).
• DPP engagement metrics: The number of consumer scans, the average time spent viewing DPP content, and the depth of interaction.

DPP return on investment (ROI) indicators:

• Reduction in product recalls: Measured by the improvements in traceability and the effectiveness of real-time alerts.
• Operational efficiency gains: The reduction in costs associated with manual reporting or error checking.
• Market differentiation: Improvements in brand perception, increased customer trust, or the attainment of green certifications enabled by DPP transparency.
• ESG reporting accuracy: Measurable improvements in the quality of Scope 3 emissions data, recyclability rates, or the precision of product footprint calculations.

DPP Risks, Barriers & Future Outlook

Digital product passports (DPPs) are poised to fundamentally reshape how sustainable product lifecycle management is approached. However, realizing their full potential hinges on overcoming practical implementation challenges and navigating a constantly evolving global regulatory landscape. This section examines the current risks, structural barriers, and future trends that are shaping the trajectory of DPPs.

DPP EU Regulation: Regulatory Uncertainty and Lack of Standardization

A significant risk to the widespread adoption of DPPs is the current absence of universally accepted standards and the fragmented nature of regulatory frameworks across different regions and industries.

EU policy leadership with gaps: While the European Union is taking a leading role with legislative initiatives such as the Ecodesign for Sustainable Products Regulation (ESPR) and the Digital Product Passport framework (initially focusing on batteries, textiles, and electronics), the detailed technical specifications are still in the process of being developed.

DPP EU regulation and global disparities: Countries outside the EU have not yet aligned with specific DPP frameworks, creating obstacles to seamless cross-border interoperability. The lack of common technical standards (e.g., for data formats, security protocols, or semantic taxonomies), results in complexity, duplication of effort, and inconsistencies for supply chains operating on a global scale.

DPP EU regulation: consequences

• Difficulties in harmonizing ESG and traceability data across different regions.
• An increased compliance burden for multinational corporations.
• Uncertainty that may deter investment in scalable DPP solutions.

DPP EU regulation and industry need: Clearer regulatory timelines, well-defined data models, and better alignment with existing industry standards (e.g., GS1, IEC, ISO) are crucial for building market-wide confidence in DPPs.

High Entry Costs and SME Inclusion

The implementation of DPPs involves substantial initial investments in digital infrastructure, data standardization processes, serialization technologies, and cross-system integration, presenting a considerable barrier, particularly for small and medium-sized enterprises (SMEs).

Digital product passport and digital divide: Many SMEs (suppliers, trade partners, vendors, also considering the many tiers involved), lack the necessary technical capabilities or financial resources to effectively integrate with complex product traceability platforms or to meet the specific requirements of DPPs (e.g., real-time data entry, comprehensive sustainability metrics, QR code-based serialization).

Digital product passport and dependency on larger supply chain actors: SMEs often function as suppliers or subcontractors for larger brands and may face pressure to comply with DPP requirements without receiving adequate support, knowledge or resources.

Digital product passport: cost breakdown

• Expenses related to software licensing and platform access.
• Costs associated with hardware upgrades (e.g., printers, scanners, IoT devices).
• Investments in training programs and change management initiatives.
• Fees for legal advisory services to ensure compliance with evolving regulations.

Mitigation measures:

• Public-private support programs, digital literacy initiatives, and technical assistance at the EU level will be essential to promote inclusive adoption among SMEs.
• The development of modular, open-source, or highly interoperable DPP tools (including platform), could help lower the technical barriers to entry.

Digital Product Passport What’s Next: EU Rollout by Product Category and Global Convergence Trends

The future trajectory of DPPs lies in a phased regulatory implementation across different product categories and an eventual global convergence around the principles of digital traceability and sustainability disclosure.

1. DPP EU regulation rollout timeline

The European Commission has outlined a category-specific roadmap under the ESPR framework:

• 2026–2027: Mandatory DPPs for batteries (as mandated by the Battery Regulation), textiles, and electronics.
• Post-2028: Expansion to additional sectors, including construction materials, furniture, and automotive components.

Each sector will necessitate specific and tailored data sets (e.g., material composition details, recyclability scores, carbon footprint information), underscoring the growing importance of harmonizing sector-specific taxonomies.

1. Digital product passport: global convergence & interoperability

International bodies such as the UN, ISO, and OECD are actively promoting traceability frameworks that emphasize sustainability, which could pave the way for global mutual recognition of DPP-related data.

Digital product passport and emerging markets: Countries in Asia and Latin America are increasingly exploring DPP-like systems as integral components of their Extended Producer Responsibility (EPR) laws and strategies for mitigating plastic waste.

1. Digital product passport and technology as a unifier

Open standards like GS1 Digital Link and established protocols such as EPCIS 2.0 have the potential to serve as the foundational elements for harmonized and interoperable DPP systems, ultimately enabling a single, reliable source of truth across international borders and various product types.

Digital Product Passport: Case Study Section

Short Profiles of Companies Piloting or Scaling DPP Initiatives

(E.g., Philips in electronics, Zalando in fashion, Volvo in battery systems)

Philips – Electronics & Medical Devices

Digital product passport example: Philips has partnered with Circularise to explore digital product passport solutions aimed at tracking the sustainability attributes of electronic components. ​Manufacturing Digital+2Dealflow.EU+2Circularise+2

Digital product passport requirements:

• Traceability: Implementing DPPs to meticulously monitor the origin, production processes, and distribution pathways of electronic components.​Dealflow.EU
• Sustainability claims: Leveraging powered DPPs to bolster the credibility of sustainability assertions and effectively prevent greenwashing by grounding claims in primary data and independent third-party audits. ​

Objectives DPP for electronics:

• Circular economy integration: Philips aims to generate a substantial 25% of its total revenue from products, services, and comprehensive solutions that actively contribute to circularity principles by the year 2025.​
• Responsible take-back: Offering a fully responsible take-back service for all professional medical equipment, thereby ensuring the effective closure of material loops within product lifecycles. ​

Zalando – Fashion & E-Commerce

Digital product passport example: Zalando has expanded its “redeZIGN for circularity” collection, seamlessly integrating digital product passports into each individual garment. ​EON | Enterprise Digital ID Technology+2Zalando Corporate+2Zalando Corporate+2

Digital product passport requirements:

• Consumer engagement: Each garment incorporates a QR code intricately woven into its label, which, when scanned, directs customers to a dedicated product page containing detailed information about the item’s origins, the materials used in its construction, and comprehensive care instructions.​
• Circular design: Collaborating strategically with circular fashion to implement a set of Circular Design Criteria for brands, actively encouraging the thorough consideration of every stage of a product’s lifecycle during its design phase. ​

Objectives digital passport fashion industry:

• Sustainability transparency: Providing customers with comprehensive insights into the various sustainability aspects of the products they purchase, thereby fostering more informed purchasing decisions.​
• Industry standards: Standardizing circular design practices across its extensive network of 5,800 brand partners to drive significant industry-wide change towards greater sustainability.

Volvo Cars – Automotive & Battery Systems

Digital product passport example: Volvo Cars is pioneering the launch of the world’s first EV battery passport for its flagship EX90 SUV, meticulously recording the origins of raw materials, the sourcing of key components, the percentage of recycled content utilized, and the overall carbon footprint associated with the battery. ​

Digital product passport requirements:

• Supply chain transparency: The comprehensive battery passport includes detailed data on the total CO₂ footprint of the entire battery pack, and the specific percentage of recycled materials incorporated, significantly enhancing transparency within the electric vehicle supply chain.
• Regulatory compliance: Proactively implementing the battery passport ahead of the EU’s mandated implementation date of 2027, positioning Volvo Cars as a clear leader in sustainable practices within the automotive industry. ​

Objectives DPP for automotive:

• Ethical sourcing: Ensuring a highly ethical supply chain for all battery raw materials, directly addressing concerns related to mining practices and actively promoting overall sustainability within the supply chain. ​
• Consumer information: Providing customers with detailed and easily accessible information regarding the sources of materials used in their vehicles and the overall sustainability profile of those materials.

Digital Product Passport Example: Next Steps

The DPP Advantage: A Foundation for the Circular Economy

• Long-term business value creation
• Strategic market differentiation
• Significant contribution to global sustainability target
• Customer engagement to collect precious data
• Trade and supply chain monitoring

Coming soon: The ESG Imperative: Transforming Manufacturing Supply Chains for Sustainability