The digital product passport (DPP) effectively acts as a digital twin for physical products. All relevant information will be stored in a central database. Authorised users can access this information via QR code or RFID chip. Examples include raw material origin, carbon footprint, and repair and maintenance details. The goal is to provide complete documentation from start to finish. This allows companies full visibility into their supply chain for the first time.
Desire for transparency without technological specifications
The digital product passport introduces new requirements for product data. The EU requires structured, standardised and interoperable data, but does not specify on which technology to use. Companies must centrally and consistently provide product data and design goods to be durable, repairable, and recyclable, though technical details are yet to be determined. For example, ERP systems could be expanded, platforms used or proprietary solutions developed to provide a reliable ‘single source of truth’ for each product.
The schedule for the digital product passport is tight: from February 2027, industrial and vehicle batteries must already have a digital battery passport. Electrical and electronic products, textiles and furniture will follow in the next few years. By 2030, the digital product passport is to be mandatory for many EU products. The EU emphasises that businesses should begin assessing their data and creating strategies as soon as possible, rather than waiting for the final regulations to be announced.
Competitive advantage through digital competence
If goods are are sold in the EU, affected importers, producers and all other companies along the supply chain must comply with the digital product passport (DPP). The DPP is closely linked to other EU supply chain transparency regulations. For example, the CBAM Regulation also requires importers to fully report on CO₂ emissions of their goods. Overall, producers are taking on increasing responsibility for ensuring that product data is accurate and complete. Failure to meet expectations may result in heavy fines.
For SMEs, the digital product passport is fundamentally changing processes and data management. Despite the initial costs, there are advantages such as better customer loyalty through transparent supply chains, more efficient production, less resource consumption, new data-based services and smoother cooperation with partners. Experts clearly see transparent product data as a new competitive factor. For SMEs, the early development of digital skills and the systematic collection of relevant data could be crucial for their future viability in the EU internal market – those who fail to act risk losing touch with the European market.
Digital product passport: Do you have questions about current developments or legal requirements?
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