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What to Know About the EU's new Digital Product Passport Policy

Updated: Jun 15, 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 the Circular Product Data Protocol?

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. The Advisory Council will also identify opportunities to share the protocol, explain its adoption and value, and help with the policy development process as much as possible.

5. Why should we invest in Digital ID and leverage the CPDP now?

Digital IDs and the CPDP are already available for brands to adopt today, and there is no better way to prepare for this upcoming legislation than to get started. 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 and leverage the CPDP. Products with Digital IDs aligned with the CPDP 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.


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