As part of the EU Green Deal initiative, which aims to drive sustainable development and growth across Europe, some companies will need to adopt Digital Product Passports (DPPs) to trade within Europe.
With the ambitious goal of making Europe the first carbon-neutral continent by 2050, the European Commission will implement DPPs for apparel, batteries and consumer electronics businesses in 2026. Even if your organisation operates outside these sectors, all industries will eventually have to adopt product passports, except food, feed and pharmaceutical companies.
With implementation a question of when, not if, how will DPPs affect your business and what even are they?
A product’s digital passport will essentially track its journey through the supply chain, recording key details like point of origin, manufacturing processes, shipping history and so on. While some companies already provide this information to customers, most DPPs will give anyone (including consumers) instant access to the full lifecycle of your product with a single scan.
The digital product passport will provide data across seven main categories:
- General information like batch numbers, weight and manufacturer IDs.
- Source data highlighting the origin and sustainability of a product’s lifecycle.
- Carbon footprint statistics which indicate the associated CO2 emissions of goods.
- Details on the ownership of a product, including ownership duration, resale and audits.
- The repairability of items and any previous repairs.
- Digital warranties, insurance and guarantees.
- Instructions around correct product storage and use.
While adapting your supply chain so quickly might seem daunting, the introduction of DPPs will come with benefits for companies and consumers alike. Perhaps the most obvious advantages surround sustainability. Companies will also be able to directly demonstrate their green credentials, building customer confidence and positive PR.
Likewise, customers could quickly identify instances of greenwashing, where companies exaggerate how environmentally friendly products are, and adjust their purchasing habits accordingly. Given that 53% of environmental claims were deemed “vague, misleading or unfounded” in an EU survey, this development comes at an opportune moment.
These potential benefits go beyond sustainability and transparency, especially when ensuring compliance. With some products having complex and diverse supply chains, it can be difficult and time consuming to assess conformance at each stage. With a DPP, organisations can easily track, review and ensure their supply chains comply to the necessary standards.
While the advantages for companies which embrace DPPs are potentially significant, the challenges around implementation must not be overlooked. Moving forward, we will undoubtedly see supply chains learning and adapting to accommodate DPP requirements, with digitalisation through mobile scanning a great first step to improve processes.
As barcodes, QR codes or near-field communication (NFC) protocols are required to interact with a product’s digital passport, operators will need to retrieve information from one or more of these data carriers. This is why it is critical to adopt a mobile solution, such as PreBilt™, which can read multiple, complex barcode types, quickly retrieve information and automatically populate fields with relevant data.
Likewise, as technology continues to evolve, you will need to ensure your mobile solution can handle new innovations. Features linked to DPP interactions like augmented reality, voice integration and batch scanning can all help future proof your supply chain. By embracing these developments now, not only could your company receive immediate operational benefits, but you can also ensure your supply chain has the infrastructure and processes in place to integrate DPPs effectively. This way, you could gain a competitive advantage whilst helping to foster a more transparent, efficient and sustainable supply chain ecosystem.
Take a closer look at how PreBilt can help you navigate digital product passport implementation or get in contact with our SAP supply chain experts today.