It is now a race against time for many regions to clean up the environmental damage caused by various industries. Such efforts are becoming increasingly evident in the European Union (EU), which in the past year has set of legislation to solve environmental problems in order to correct the mistakes of the past.
One industry that is at the center of these current and future regulations is the fashion industry, known for its polluting practices, ethical dilemmas and lack of accountability. In addition to laws and regulations to reduce the impact of microplastics and the deforestation The European Commission has also presented a proposal under the new Ecodesign for Sustainable Products Regulation (ESPR), which the Commission describes as a cornerstone of its approach to greener and more circular products. The draft rules will apply to all products placed on the EU market, whether manufactured inside or outside the EU. As well as a framework to strengthen compliance with ecodesign requirements, the bill also envisages the introduction of a digital passport for a range of products, including textiles.
What is a digital product pass?
Officially dubbed the Digital Product Passport (DPP), the tool will oblige brands to collect and share data across a product’s entire lifecycle, accessible in the form of a ‘digital twin’. While the concept and operational aspects of the DPP are still evolving, in its first format it will highlight a product’s sustainability, environmental and recycling characteristics, as well as its manufacturing process and sourcing. Its foundation is the blockchain, a decentralized technology designed to ensure that this data is secure and easily accessible to end users. The data can then be retrieved via a care label – QR code or barcode – which customers can scan to view the information provided.
The categories that will be included in the DPP include general product information, which includes items such as ID, weight, manufacturing facility and reference numbers, as well as source, which relates to the type of raw materials used to manufacture the product and where it came from. Additionally, Footprint is also highlighted, which provides data on the carbon footprint profile of the product, as well as Ownership, which provides details on the previous and current owners of the product. Information on repairs, guarantees and instructions – in relation to dismantling, recycling and other processes – should also be included.
“By creating this easily accessible and verifiable digital dataset, the DPP aims to improve transparency, traceability and trust throughout the supply chain, from manufacturers to consumers and recyclers, to enable more sustainable and empowering consumers to make informed choices,” Jake Hanover, director of digital products and apparel solutions at Avery Dennison, told FashionUnited about the launch of the DPP.
Why is the DPP being introduced and what are the benefits?
The data collected for the DPP benefits brands, stakeholders and consumers alike, with all intended to benefit from the various aspects of the tool’s function. “It will help consumers make more informed purchasing decisions and help them make sustainable choices,” said Jorge Delgado, senior sustainability manager at materials innovation company Recover.
“With the DPP, consumers are less likely to be misled and it will be much more difficult for brands to greenwash and make unsubstantiated sustainability claims,” adds Delgado.
“DPP could store test data that would give consumers the confidence that they are buying a durable product. A DPP provides more transparency into the products they buy and empowers them to make more informed purchasing decisions that align with their values. DPP also store a wealth of ‘how to’ content and help teach a long list of skills such as darning, sewing and makeover tips. Consumers can verify the authenticity of products, access information on sustainability efforts and gain insight into a product’s lifecycle from yarn to store,” emphasizes Hanover.
As for businesses, the choices are only slightly different, but it’s still about building consumer confidence with reliable facts and figures, while also protecting them from materials and processes that conform to outdated standards. Businesses will also benefit from new revenue streams associated with the DPP, as well as the ability to validate their own green claims to avoid being accused of greenwashing.
“The DPP will provide information to stakeholders along the value chain: consumers, economic operators and national authorities, which will significantly improve traceability and facilitate verification of product compliance by national authorities,” adds Delgado.
What challenges does the implementation of the digital product pass hold?
However, new technologies also bring new challenges. Especially if they are to be integrated on such a large scale. “The DPP must be associated via a data medium with a unique identifier that must be physically present on the product, accessible online and fully interoperable. Actors who place the product on the EU market are also legally responsible for collecting, providing and updating the necessary information. For all of these reasons, brands need to be prepared to collect, provide and update all required DPP information,” advises Delgado.
There can also be challenges when converting existing supply chain processes and systems: “The seamless integration of the DPP into existing workflows can require significant adjustments and investments in the technological infrastructure. Widespread adoption in the industry is a gradual process. It requires collaborative initiatives within the sector and the establishment of common practices among stakeholders. It is important to recognize that certain segments of the supply chain can be infrastructure constrained, which underscores the need for fundamental groundwork before the technology can be fully leveraged and integrated,” emphasizes Hanover.
However, he also notes that such a shift may mean, among other things, a “streamlined approach” to monitoring and reducing carbon emissions across the value chain. “The adoption of this initiative goes beyond just complying with regulations; it is the cornerstone for optimizing production efficiencies and strengthening supply chain management, and fits seamlessly into prudent business strategies,” says Hanover.
This technology has also caused the launch of the DPP to be significantly delayed. Originally, the specifications of the regulations were due to be published in 2024, but there are still processes and unclear elements that pose uncertainties for those who will ultimately have to implement the instrument. These delays are related to the need for more clarity on the issue of social impact and the importance of creating a unified system. Ultimately, this has led to the fact that no date has yet been set for the introduction of the DPP. Regulation is currently expected to come into effect by 2026/27, while most products are expected to be covered by 2030.
What can brands and retailers expect from the launch of the digital product passport?
While there’s still a long way to go before companies actually need to make regulated changes, it’s worth preparing now. Hanover emphasized that retailers and brands need to fully understand the DPP and its benefits by investing time in educating about the technology and its impact. This also applies to customer communication, which according to Hanover requires clear, authentic and transparent communication. He also touches on the importance of working together, which he describes as “the key to successful integration”. “Maintain relationships with all stakeholders in the supply chain to create a unified approach to DPP integration. Also, establish clear protocols for data sharing between partners to ensure the accuracy and consistency of information throughout the lifecycle of the product,” he advises.
Supply chain actors like Recover are among the companies brands absolutely need to build relationships with, and are already seeing how they can help with such transitions. “Because we work with different brands, we are able to provide the standardized information required for the DPP, as well as information about specific voluntary labels applicable to the product (Global Recycled Standard, Higg-Tools, etc.), as well as the values of the environmental impact of the product, which we received as part of our third-party verified life cycle analysis (LCA),” explains Delgado.
It must also be pointed out that despite the delay in the ESPR, the regulations can still be changed quite quickly as the Commission regularly publishes updates and adjustments to further improve and build on the final product. When asked how brands and retailers should prepare, Delgado concludes, “Brands and retailers need to ensure they stay up-to-date on these new regulations, and they also need to establish relationships between peers and other stakeholders in of the supply chain to ensure the flow of the required information. They should not see this as an obstacle, but as a potential asset to improving the textile and fashion industry and an opportunity for brands to educate consumers about the impact of their products.”
This article originally appeared on FashionUnited.uk. Translated and edited by Simone Preuss.