'Digital Twins': The Digital Product Passport is coming, here is what you need to know

DPP: The who, what, where and when, and how to prepare

The Digital Product Passport (DPP) is coming. All products on the European market will have to be provided with a product passport, also known as a “digital twin”, in the (near) future: a digital file that provides comprehensive information about the environmental impact of a product throughout its entire life cycle. This is expected for textile products by the beginning of 2026.

The European Commission will set up a special web portal where DPPs will be registered. This central database will act as a register containing all specifications and will be accessible not only to companies, but also to consumers.

The exact form of the “digital twin” data carrier, such as a QR code, barcode, RFID label or an NFC chip linked to blockchain, has not yet been determined and will be determined later by the European Commission.

The DPP of products will have to contain information about the sustainability of the product and the entire life cycle, such as the materials used, recycled materials, energy consumption, CO2 footprint and the degree of circularity of a product (think about ease of repair and reusability), as well as how to dispose of them.

Implications for the clothing industry

The introduction of the DPP will have significant consequences for the fashion sector, as this information is currently not provided or not (always) completely available due to a lack of transparency in the value chain (which is complex and extensive, with many links, ed.).

The upcoming DPP will therefore have a major impact on clothing companies. How will they collect data for each part of the supply chain, and later manage and present it? Moreover, the majority of fashion companies are not so keen on sharing (business-sensitive) information for strategic and financial reasons, such as possible competitive advantage. So it will also be a challenge for them to find a balance between transparency and protecting business interests.

How can you as a fashion company prepare (now) already?

Think ahead about how you can obtain the data needed for the DPP. Analyse the entire value chain: work with suppliers and other parties in the chain to collect information about, among other things, product composition (used raw materials), production processes and transport methods. Above all, ensure that you increase transparency in the supply chain.

Further reduce the environmental impact of your company. Analyse and improve the sustainability of products. For example, increase the quality of garments (so they last longer) or prioritise the use of recycled materials and more sustainable fibres over polluting raw materials such as polyester. Focus especially on circularity and circular strategies of the ‘R-ladder’: reduce raw material consumption (perhaps the key question is: will you as a company reconsider your business model and reduce the number of garments produced?) and invest in repair, reuse, upcycling and/or recycling. It therefore starts with other decisions at the drawing board in the design and design phase.

Also think ahead about technology for data collection, management and presentation. Be aware of the administration that the introduction of the DPP will entail. Are there companies that offer platforms with standardised protocols? What software or information management systems exist?

Look at companies that are ahead of the legislation, including those from other sectors. For example, bottle brand Dopper recently launched a DPP. It is useful to see how they do it and what lessons you can learn from it.

What are the next steps? How to proceed with DPP?

Before the DPP comes fully into effect, it still needs to be definitively approved by both the European Parliament and the Council of the EU. After approval, the legislation will be further implemented and enforced. The regulation will therefore be crystallised in the coming period and it is possible that some things will be changed.

Who will control the implementation of the DPP will depend on the EU's chosen approach. In broad terms, a number of things have already been laid down in the regulation, says Bussé. “Customs will check whether products entering the EU have a DPP. Specific bodies in each EU country will also ensure that products on the market comply with these rules. Member states will have to ensure that these checks are well organised and monitored so that everything runs according to the new legislation.”

This DPP article will be updated regularly by FashionUnited. Current information about the DPP can be found on the website of the European Commission and the official policy documents.

Sources:
- Input Judith Bussé, founder of law firm Pivot Law, 29 July 2024.
- European Commission, The Regulation for the introduction of the Digital Product Passport, 13 July 2024.
- European Commission, Ecodesign for Sustainable Products Regulation (ESPR), in force since 18 July 2024.
- European Commission, Communication from the commission to the european parliament, the council, the european economic and social committee and the committee of the regions ‘On making sustainable products the norm’, 30 April 2022.
- Dopper.com ‘Recipe for transparency: Trace your impact with our Digital Product Passport’, 7 April 2024.
- CIRPASS 'A study on DPP costs and benefits for SMEs, February 2024.
- Carbonfact article [Textile industry] DPP: Understanding the EU’s Digital Product Passport and How It Impacts Fashion Brands, by Lidia Lüttin, 9 February 2024.
- Articles from the FashionUnited archive by journalists Rachel Douglass and Simone Preuss.
- Parts of this article text were generated with an artificial intelligence (AI) tool and then edited. This article originally appeared on FashionUnited.NL. Translation by AI, edit by Rachel Douglass.