Digital Product Passport – using product data for sustainable strategy

Digital Product Passport – using product data for a sustainable strategy

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Digital Product Passport (noun)
/ˈdɪdʒɪtl ˈprɒdʌkt ˈpæspɔːt/
1 : A structured digital record that provides detailed information about a product’s origin, materials, environmental impact, and recyclability throughout its lifecycle.

“Still collecting my thoughts.”

That was my answer to my manager when he asked for the summary about Digital Product Passport in our weekly meeting.

I joined the Solteq Advisory team about a month ago. Pretty soon, probably on my first day of work, the topic of the Digital Product Passport came up for discussion and landed on my desk. In a good way. My role in the Advisory covers product information and product experience. That is a very broad subject area, and DPP is a natural part of it.

2025 is just the right time

It just so happens that spring 2025 is the right time to start talking about the Digital Product Passport. DPP is part of the EU's 2024 Ecodesign Regulation (ESPR), which will set increasingly stringent obligations on product manufacturers. Details on the content of the passport, the timing and the register are just being finalized, so we are still living on hypotheses and probabilities.

Digital Product Passport timeline

The first sectors to be affected (current date set for 2027) by the Product Passport are clothing, textile and battery industries. Companies in these fields have already started to familiarize themselves with the topic and the pioneers have developed pilot projects. These can be used as an inspiration. For most organizations, however, the best place to start is to look at the knowledge and data that already exists in the company and list the key stakeholders and business partners around the topic. As we all know, it can feel like a lot of work when you have to question your own activities and do a quality check on what you're doing. What if you must start from scratch?

In my second week at Solteq, Sitra, Finland's politically and economically independent think tank, publishes its own summary of the DPP. The result is an easy-to-read guide called the Product Passport Playbook, which eases my pain. Experts with much more experience of the circular economy say that work on the Product Passport is still in its early stages and that the content of the legislation is constantly evolving. There are no final versions and this is not a one-time exercise. The aim of the product passport is to make it easier for consumers to compare products and make informed purchase choices. From the company's point of view, the passport improves transparency and quality control of production. Putting all these pieces together is expected to extend the life cycle of products and increase recyclability. Now, in the early stages, it is up to the company to define its own role and objectives in this product value chain.

Where is the product information?

The Digital Product Passport will cover the entire lifecycle of the product, from manufacturing to recycling, linking the suppliers of raw materials, logistics, finance, sales and after sales services. The information produced by these stakeholders is scattered in different companies, systems and formats, and to use and integrate it requires expertise and possibly new IT systems to facilitate both data management and analysis. It is therefore worthwhile for the company to discuss the obligations and opportunities that the product passport brings, and to develop a plan to meet at least the minimum requirements. Longer-term development work should also be considered at the outset to be aware of the potential investments.

Concrete business opportunities will become clearer as value chains become more familiar and information processes progress. Similarly, after the initial pilot phase, we will see what kind of generic tools and standards develop around the topic so that each industry or company does not have to reinvent the wheel.

How to get started?

For most organizations, the best place to start is to look at the knowledge that already exists in the company and list the key stakeholders and business partners around the topic. Much of the information is already available. All you need to do is find the relevant legislation and start working on a DPP strategy with clear action points and targets.

So how does this affect my future work? In a number of ways. If a company adapts its IT solutions to easily create, collect and share up-to-date information, we have already made a start. Ultimately, the Digital Product Passport is just one part of a wide range of environmental initiatives, but it will help companies to operate more sustainably and produce better quality products, while increasing consumer knowledge and understanding and developing services to enable the circular economy.

Is DPP just another bureaucratic burden or a real added value?

A new perspective on familiar products and businesses.
Understand complex production chains and improve quality control.
Generate data that helps companies to operate more sustainably.
Increase consumer knowledge and trust.
Facilitate product comparability and informed purchasing decisions.
Extend the life cycle of products.
New services and business models that enable the circular economy.

If you want to get started with Digital Product Passport, contact our Advisory Services team.