What You Need to Know About the EU's Digital Product Passport Policy
June 1st, 2022
1. What are Digital Product Passports?
Digital Product Passports (DPP), also known as Digital IDs, digitally record product information to improve traceability and transparency, and to support after-sale services such as repair, resale, and recycling. In order to be effective, the information must be standardized so it can be shared and exchanged across the retail ecosystem – from manufacturers to retailers, resellers, recyclers and more. Consumers also benefit: digital product passports are linked to a scannable label on the physical product such as a QR code or NFC tag that enables customers to access product information to inform their purchase decisions and help prolong the lifespan of their garments.
2. Will Digital Product Passports become mandatory?
The EU Strategy for Sustainable and Circular Textiles, released in March 2022, calls for Digital Product Passports (Digital IDs) to be mandatory on textiles sold in Europe by 2030. This strategy calls for the Ecodesign Sustainable Product Regulation to define details regarding how the Digital Product Passport will operate. Find more information on our blog.
3. When will Digital Product Passports be mandated?
The strategy was presented to the European Parliament in Spring 2022. It is expected to be approved by 2024, when details such as data requirements and scannable on-product labels such as QR codes and NFC tags will be written.
4. How will this affect EON or the Circular Product Data Protocol?
The requirements for Digital Product Passports have yet to be defined, but once they are EON will work to ensure all requirements will be met through our technology and data protocol. Until then, EON offers a network of partners and features that will likely be aligned with future requirements of the DPP. Also, EON is and will continue to take all opportunities to share the protocol, explain its adoption and value, and help with the policy development process as much as possible.
The Circular Product Data Protocol is governed by an Advisory Council who is responsible for ensuring that the protocol remains up to date and in line with policy. This council will continue to review legislative progress to understand what data requirements are expected and ensure that they are captured in the protocol.
5. What is EON doing to prepare?
First and foremost, EON will remain informed of the process and any decisions that impact the technology and data requirements. A consortium may be developed in the coming months to write a recommendation for DPP requirements. If that is the case, EON is already committed to participating on the Advisory Board of this consortium. In the case that the consortium is not convened, the other avenues will be developed for stakeholders to participate, in which EON will take part to contribute expertise and encourage requirements we have found necessary with our network partners (brands, recyclers, resellers, etc.). Once requirements have been defined, EON will work to ensure all requirements will be met by our partners through use of our technology. We will be sure to keep our partners informed every step of the way.
6. What do I need to do to prepare?
Digital IDs are already available for brands to adopt today and there’s no better way to prepare than to get started. EON is digitizing billions of products for global brands, and can offer a product demo to explain how it works. Another good place to start is by collecting the necessary product data to facilitate a circular lifecycle for your products. You can download the Circular Product Data Protocol for free and learn more about the type of data that will be needed.
For brands that have already adopted Digital IDs, extending digitization to your entire portfolio can save you time in the long-run and offer valuable insights and commercial benefit. EON clients are leading the industry and proving the value of Digital IDs for those that will need to eventually comply with the legislation.
Lastly, we are committed to keeping our clients and community informed on this topic. Subscribe to our newsletter for key information and learnings regarding Digital Product Passport policy.
7. Why should we invest in Digital ID now?
Eventually, all brands selling in Europe will need to have Digital IDs implemented and there will be a deadline to do so. If brands are not prepared, they could run into any challenges and miss out on sales. Those that get ahead of this policy will be industry leaders.
Regardless of policy, there are many impactful commercial reasons to invest today in Digital IDs. Products with Digital IDs can be shared instantly with value chain stakeholders throughout their life cycles, engage customers and deliver insights, unlock new after-sale services and business models such as resale, rental and recycling, and increase operational efficiency.