by Lars Rensing, CEO of DPP Solution Provider, Protokol
It isn’t surprising that waste is becoming a growing concern for businesses today, particularly when we note that 50 million tonnes of e-waste are generated globally every year. To put it frankly, the e-waste produced by end-of-life products and their overall carbon footprint throughout the value chain are having detrimental effects on the planet and must be acted on promptly. Now more than ever, businesses need to start implementing processes to tackle these issues. The EU has already started implementing initiatives to encourage businesses to act in support of a circular economy. The cornerstone of the EU’s efforts is the Ecodesign for Sustainable Products Regulation (ESPR) which came into force on the 18th of July 2024.
The ESPR is a framework for the setting of ecodesign requirements for sustainable products. It will apply to select product groups across multiple industries including – but not limited to – textiles, furniture, electronics, and chemicals industries, and it will also apply to businesses that place products within these groups on the EU market, regardless of whether they were produced there.
As part of the ESPR, businesses will need to work towards the implementation of “Digital Product Passports” on their items, which will be mandatory for products that fall within the identified product categories.
What is a Digital Product Passport (DPP)?
In essence, DPPs act as a digital record of a physical product, securely keeping track of information across its lifecycle. This can include anything from the material used in its production, the environmental impact of its production, a record of its authenticity, and instructions for end-of-life handling. In most circumstances, this data will be accessible via a data carrier like a QR code or barcode affixed to a product and accessible by scanning with a device such as a smartphone.
DPPs will largely support the ESPR’s circularity goals by providing transparency into the lifecycle of a product, and by implementing DPPs, the ESPR aims to encourage all those in contact with a product to be more mindful of its sustainability and inspire circular thinking.
Consumers are empowered with the information needed to support more sustainable purchasing and to contribute to more eco-friendly forms of disposal when a product reaches the end of its life, while businesses have the potential to use this newfound transparency to make their processes or sourcing of materials more sustainable.
Looking at the impact holistically, DPPs provide an educational function, one that encourages all parties in the value chain to make informed decisions on the type of products they are using.
Beyond regulatory compliance
Alongside the EU’s implementation of DPPs from a sustainability perspective, DPPs also prove beneficial to businesses directly when concerning notions of brand engagement and customer loyalty. For example – if we stay on the topic of sustainability – DPPs help businesses to prove the sustainability credentials of their products to the end consumer and can help to avoid “greenwashing” claims. By verifying authenticity and keeping a history of any repairs made to a product, businesses could even utilise the information in DPPs to facilitate take back or resale schemes, encouraging users to recycle their products, turning them back into usable products to be resold – another effort towards the circular economy and proving that sustainability is important to a customer base.
Furthermore, for products that can be added to or form part of a collection, complementary products could be recommended to customers within the DPP and compatibility checked; helping maintain contact and create return customers. DPPs could even be integrated with existing loyalty platforms or used to provide rewards in the future so that customers are compelled to engage with the brand more.
The initial task for businesses
While the product groups that the regulation will impact have been outlined, the delegated acts – which will provide more information and outline requirements in more detail – are expected to be announced in the coming months so businesses can prepare for the deadlines for compliance ( 2027 for batteries, with other product groups expected to follow shortly afterwards).
This process can seem particularly daunting for businesses at the start of their journey to compliance. However, in this instance, the first step should be to assign a person within the business to be at the helm of the upcoming effort and for them to simply learn all they can about the regulation and put in a process to keep abreast of updates. As part of this, businesses can reach out to a DPP advisor to gain a better understanding of industry-specific impact so they are better prepared to put together a coherent strategy ahead of the mandate.
On top of this, taking a further step to begin mapping where relevant data might be held within the business, or by those in the supply chain, and starting to evaluate the partners for DPP implementation will put the business in an even better position ahead of the ESPR.
The upcoming DPP mandate will prove challenging for businesses but vastly significant in achieving the EU’s environmental goals for a more circular economy. How businesses decide to approach the upcoming legislation will dictate whether they simply comply or comply and thrive.
