The concept of digital product passports (DPPs) may revolutionize how we track, use, maintain, and repair products throughout their lifecycle, including recycling and repurposing. Emerging EU regulations focused on sustainability are a key driver for DPPs adoption, but similar efforts are also underway in other parts of the world. Beyond regulations, there are other compelling business benefits organizations should consider as they navigate the rapidly evolving space.
Watch The Video – 5 Things You Should Know About DPPs
I recently spoke at the 10th Annual SCL HUB Supply Chain & Logistics Conference in London alongside my colleague, Steve Dale, where we discussed the 5 Things You Should Know About Digital Product Passports and shared insights on how to best leverage DPPs within your supply chain.
What is a digital product passport?
A digital product passport, or a DPP, is essentially a digital record linked with a physical product that contains a comprehensive set of information pertaining to that specific product. This may include things like manufacturing location, date and time, product materials and composition, labels and certifications, environmental impact, instruction and maintenance manuals, service history, and so on.
To capture the key elements included in a DPP, the CIRPASS project—a program funded by the EU to clear the way for piloting and deploying standards-based digital products passports—defined DPP as “a structured collection of product related data with pre-defined scope and agreed data management and access rights conveyed through a unique identifier and that is accessible via electronic means through a data carrier.”
Bit of a mouthful, yes, but the CIRPASS definition illustrates the EU’s ambition behind digital product passports, which is to make them dynamic enablers of new business models and stakeholder collaboration as opposed to just a static collection of product attributes on a web page.
Why do digital product passports matter?
Emerging EU regulation is the primary reason why interest around digital product passports is growing rapidly as it will force organizations selling their products in the EU to comply with new mandates. A key piece of legislation driving DPPS adoption in Europe is the Ecodesign for Sustainable Products Regulation (ESPR), which was entered into on July 18th 2024.
The ESPR mandates the deployment of digital product passports across a broad range of product categories, but the details are governed by additional regulations that focus on specific types of goods. For example, a battery regulation passed by the EU in July 2023 mandates the adoption of QR-code based digital battery passports starting from February 18th, 2027, for all electric vehicle, light mobility vehicle and industrial batteries with a capacity greater than 2kWh.
The rollout of EU mandates is happening gradually between 2026 and 2030. In addition to batteries, other types of goods prioritized by the EU include textiles, electronics, tires, and goods related to the construction value chain such as steel.
While the EU is leading on digital product passports, similar developments are happening around the world. The UK government has proposed a policy concept for product passports as part of its waste and resource strategy. The Canadian government has initiatives around battery passports for EV batteries and US discussions are occurring within the automotive industry. China has launched development for its own digital product passports, while India has identified digital product passports as an opportunity for its software industry. Other developments and discussions have also been taking place at least in Brazil, Indonesia, South Korea, Australia, Chile and Japan.
From regulatory compliance to a business opportunity
For organizations operating in today’s global marketplace, DPPs represent both a challenge and an opportunity. Manufacturers must navigate and adapt to new and emerging regulatory requirements—much of which are still unknown and being defined—but they can also unlock significant value for their business.
Implementing DPPs forces companies to invest in linking the products they manufacture with a digital repository. The ability to capture data at key points during production and logistics processes provides businesses deeper visibility into their supply chains through better product traceability. Not only does this help track goods as they move through the supply chain, but it can drive value post-sale by enabling manufacturers to minimize the scope of product recalls and capture valuable insights on product usage, maintenance, repairs and recycling. When using unique product identifiers, manufacturers can also establish mechanisms to protect their products against counterfeiting and even theft.
Beyond product traceability and authentication, another great opportunity relates to crafting new kinds of digital customer experiences. While the regulations require manufacturers to offer an easy way to access specific product information through a digital channel, how this mandated information is served and what else is made available is likely to be highly flexible. This means that manufacturers can embed the regulated information as part of an overall brand experience and even combine it with loyalty programs, customer support and tailored marketing campaigns—within the bounds of privacy regulations, of course.
Successful DPP deployment strategy enables a win-win-win situation
The benefits of digital product passports extend to multiple stakeholders across the value chain. As discussed, for manufacturers DPPs provide enhanced product traceability, brand protection and new opportunities to build digital customer experiences.
For customers buying and using the product, DPPs provide easy access to a rich set of information covering product safety, correct usage, sustainability, composition, product origins and more. Customers can also benefit from the enhanced brand experience offered by manufactures through things like easy product authentication and better warranty programs.
In addition to manufacturers and the customers buying their products, digital product passports can benefit third parties, including retailers and distributors, maintenance and repair service providers, authorities, and others.
Key benefits of a DPP strategy
The potential for this “win-win-win” situation benefiting various parties is there, but delivering on it requires a comprehensive strategy backed up by investment in the right digital capabilities. These include, for example, the following:
- Digital product link: Mechanism through which a user can access the digital product passport, such as a product traceability service offering serialized QR-codes for unique product identification.
- Digital product passport user interface: The view that a user sees when they access the digital product passport making all the required information available, such as a web content management system. Crafting the user experience may also involve leveraging a customer data management system for richer customer engagement and personalization.
- Product information management: Managing all the information displayed on the digital product passport, which may involve leveraging a mix of product information management, content management and digital asset management systems.
- Backend integrations and data acquisition: Obtaining the various types of information relating to the product such as GTIN and other identifiers, information coming from suppliers, and supply chain and transportation events. This may include integrations with international data spaces or other product data sharing platforms, industry data pools, and more. Building and maintaining these integrations requires an integration platform that can support all the required data flows across the ecosystem.
On top of the technical capabilities, organizations need a strategy and expertise for deploying these in their operations. Depending on the scope and ambitions of the overarching digital product passport solution, working closely with selected software vendors, leveraging a phased approach where possible, and leaving enough time for comprehensive solution design and project planning play a key role in ensuring success.
To find out how OpenText can help on your journey to adopting digital product passports, contact us for more information.
