The EU's digital product passport is coming, are you ready?

In the coming years, products sold within the EU will require a digital product passport (EU Digital Product Passport). This mandates that information related to the product's sustainability is properly in place. In the future, for instance, data concerning the calculation of products' carbon footprints must be presented transparently. It is time to prepare for the change.

The goal of the European Union and all countries that have ratified the Paris Agreement is to achieve carbon neutrality by 2050. As part of this objective, the EU has launched a project for a digital product passport, which, according to the latest estimates, will become mandatory between 2026 and 2027.

Regardless of the country of origin of the company, manufacturers must provide the data required by the product passport to consumers and other stakeholders for the duration of the product's lifecycle if the product is sold within the EU. Retailers will need to consider how the product passport can be utilised to support consumers' purchasing decisions and how it can be made available to consumers in both physical stores and online.

In the first phase, product passports will be required from manufacturers in the following sectors:

• Batteries

• Cars

• Electronics

• Chemicals

• Plastics

• Construction

• Textiles

The EU intends to require digital product passports for over 30 product groups that have the largest environmental impacts. Therefore, the regulation will apply to almost all products sold within the EU - only food, feed, and medicines are exempt from the regulation.

What information does the digital product passport contain?

The product passport is sector-specific and the required data partly depends on the sector. The definition work for the product passport is still ongoing in the EU, but it will likely include the following types of information:

• Product Information
  Basic information about the product, such as brand, model, batch number, manufacturing date, and warranty details.

• Material Information
  The origin of raw materials and components, as well as information about suppliers, manufacturers, and partners involved in the entire production chain.

• Ownership Information
  Details of the current and former owners of the product and transaction history.

• Repair Information
  Information on how the product can be repaired, and when, why, and how previous repairs were made.

• Sustainability Information
  Information about the product's carbon footprint, taking into account the entire manufacturing process, and guidelines for product disposal once its lifecycle has reached its end.

For instance, the Swedish clothing brand Asket provides detailed sustainability information about its products on its online store product pages.

Benefits of the digital product passport for consumers:

• Increasing transparency and facilitating purchasing decisions

• Supporting responsible companies

• Making recycling easier

Benefits of the digital product passport for manufacturers:

• Increased consumer trust and improved brand image

• Facilitating the sharing of product information and increasing efficiency

• Better traceability of products and increasing transparency of the supply chain

How should one prepare for the digital product passport?

Product manufacturers face a significant task of ensuring that the information required by the digital product passport is available. It is worthwhile to start planning and experimenting now on how and where this information can be generated. Additionally, it is important to ensure that the systems in use allow for the storage and distribution of product passport information to consumers and other stakeholders.

The need for change and development is substantial, but it does not need to be tackled alone, as all other product manufacturers are in the same situation. The best practices are currently being addressed by the GS1 organisation, specialising in product codes and information, alongside numerous other companies involved in product data.

Product manufacturers with a modern and flexible Product Information Management (PIM) system are better prepared for the change than those for whom product information management is still in its infancy.

 Also, see Sitra's report:

Digital Product Passports: Catalysing Europe’s sustainable growth
"Key lessons from Finnish pilots to support the development of circular economy business models"

Do you need assistance with product information management? Would you like to learn more about the impact of the EU digital product passport on your business? Get in touch!