ESG Institute » Artykuł Cyfrowe paszporty-2-en

In today’s world, where environmental and social awareness among consumers is steadily increasing and legal regulations are becoming more stringent, the traditional approach to product sales is no longer sufficient. Customers expect transparency and detailed information about the products they purchase. The answer to these challenges is Digital Product Passports – an innovative tool that is becoming a necessity for any company striving to remain competitive and responsible.

What is a Digital Product Passport?

A Digital Product Passport (DPP) is an electronic document assigned to each individual item that is produced, sold, or managed in the supply chain. It contains the complete “DNA” of the product – all key information from raw material sourcing, through production processes, to its “digital life” after sale, including use, repairs, and even disposal.

The information included in a digital product passport typically covers: Product Identification: Unique Product Identifier (UPI) (e.g., QR code, barcode, RFID), product name and model, serial number.

Manufacturer Details: Full company name, address and contact details, place of manufacture (country and plant).
Composition and Materials: A detailed list of materials used in production, their origin, information on hazardous substances, percentage of recycled content.
Environmental and Sustainability Aspects: Product carbon footprint (GHG emissions across the life cycle), durability and repairability indicators, availability of spare parts, repair instructions, recycling and disposal options, energy/water consumption data.
Supply Chain Information: Key suppliers, countries of origin of components, certificates and audits (environmental, social, quality).
User Instructions and Technical Data: User manual, key technical parameters, maintenance recommendations. Recycling and Disposal Information: Dismantling guidelines, list of recyclable parts, information about product collection points.
Legal and Regulatory Information: Product compliance with applicable standards and regulations, manufacturing date and expiry date.

Why Are Digital Product Passports Key to Your Business? Implementing digital product passports is not only a response to rising market expectations, but also a strategic competitive advantage.

Increased Trust and Customer Loyalty: Consumers are increasingly informed and demanding. They want to know where a product comes from, what it’s made of, whether it was produced ethically and sustainably, and how to dispose of it properly. Digital product passports provide all of this information at their fingertips, resulting in greater trust in the brand and genuine customer loyalty.
Transparency and Sustainability: DPPs enable companies to operate with much greater transparency and in a more sustainable way, reinforcing the image of a responsible and modern business.
Regulatory Compliance: The European Union is working intensively to introduce broad regulations that will require the use of digital product passports across many sectors. The proposed Ecodesign for Sustainable Products Regulation (ESPR) includes a requirement for DPPs for certain product groups. Companies that implement these solutions early will gain a significant competitive edge. Non-compliance could lead to substantial financial penalties.
Promotion of the Circular Economy: Digital product passports are intended to facilitate recycling, reuse, and repair of products, minimizing waste and raw material consumption. Applying Life Cycle Assessment (LCA) and Life Cycle Management (LCM) methodologies allows for a comprehensive assessment of a product’s environmental impact and holistic life cycle management.
Optimization of Internal Processes: DPPs simplify the management of returns, servicing, and recycling, resulting in tangible cost savings.
Marketing Tool: They allow you to tell the full story of a product in a way that was previously impossible, creating a deeper connection with the consumer and standing out from the competition.

How Do Digital Product Passports Work?

A DPP is a dynamic system that allows for precise tracking of a product throughout its entire life cycle.

Data is collected and stored digitally, and access is usually provided via a simple QR code placed directly on the product or its packaging. Other unique identifiers may include RFID chips or barcodes. To ensure the credibility and immutability of the data, technologies like blockchain are increasingly being used, guaranteeing data security and preventing tampering.

Example from the fashion industry: A customer scans the QR code on a piece of clothing and immediately gains access to its full digital passport. They can find out where the cotton was sourced, under what ethical and social conditions the garment was produced, view certificates confirming sustainable production methods, and access care instructions and proper disposal guidelines. One example is H&M, which is testing product tracking solutions using NFC and QR codes.

Implementing Digital Product Passports in Your Company

Rolling out DPPs requires a strategic approach:

Needs and Goals Analysis: Clearly define what information the company wants to share with customers and what goals it aims to achieve (e.g., increased transparency, customer trust, internal process optimization, regulatory compliance).
Choosing the Right Technology and Integration with Existing Systems: The market offers a wide range of solutions – from simple QR-code-based systems to advanced platforms using blockchain. The chosen technology should be scalable and easily integrable with existing IT systems, such as supply chain management (SCM), ERP, or manufacturing execution systems (MES). Integration is crucial to avoid data silos and ensure smooth data flow.
Data Collection: Product-related data is often dispersed across various systems within a company. The challenge lies in consolidating it into one coherent digital passport.
Employee Training: Employee engagement, knowledge, and understanding of the project's goals are essential to successful implementation. Workshops and accessible training materials should be provided.

While implementing digital product passports involves upfront costs and ensuring data security, the benefits – such as increased transparency, regulatory compliance, customer trust, and competitive advantage – are far greater.

Digital Product Passports are not just a passing trend, but the future that is already here. Companies that adopt these solutions will become more sustainable, environmentally responsible, and competitive, meeting the growing expectations of conscious consumers. Failure to act may lead to serious consequences, including financial penalties, loss of customer trust, and reduced competitiveness.

Now is the time to act – and together with our partner, Circulens, we’re ready to support you on this journey.

Autor: Agnieszka Orłowska (Managing Director at ESG Institute)

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