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Digital Product Passport: challenges and opportunities between law and reality

The introduction of the European Digital Product Passport (DPP), facilitated by new technologies, ensures transparency and sustainability. But…
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  • Digital Transformation

A new chapter, a small yet significant revolution. The fashion industry is on the verge of a groundbreaking transformation with the introduction of the Digital Product Passport by the European Union. The DPP not only aims to improve traceability and transparency throughout the supply chain but also sets new standards for sustainability and social responsibility. How? Every piece of clothing will have a documented and verifiable history, traceable by consumers, retailers, and regulators. The ultimate goal is to ensure that products are authentic, safe, and environmentally friendly. Let’s dive deeper.

Digital Product Passport and Digital Product Identity

The topic of the Digital Product Passport is of great interest and relevance to us. In fact, it’s a fundamental part of what we’ve been calling Digital Product Identity (IDP) since 2015.

If we define IDP as the best and most complete digital representation of a physical product, including all the information and assets generated throughout the product’s lifecycle, it becomes clear that all the information and assets required by the DPP are, in fact, integral parts of the broader IDP concept. In this sense, the DPP confirms the validity of a systemic approach to content management, linked to IDP, which certainly makes the adoption of the new European standard easier and faster.
Adopting a centralized system like Chalco BrandLife for managing the IDP allows for faster and more efficient classification of the necessary information. Thanks to the system’s rich set of native APIs, it enables quick, differentiated retrieval and distribution of content, including the DPP, across various verification and usage channels.

The European regulatory framework

In an increasingly digital world, the Digital Product Passport represents a tangible response to modern challenges. Through this new document, the European Union aims to adopt decisive measures to promote sustainability and transparency in the fashion industry, with the goal of balancing circularity and digitalization.
The implementation of the DPP is part of the Sustainable Product Initiative, adopted by the European Parliament in 2022, which aims to reduce the environmental impact of products and encourage responsible consumption practices. This strategy seeks to ensure that by 2030, all textiles sold within the EU will be sustainable, durable, and easy to recycle.
The full implementation of the regulation, with the adoption of the DPP at the European level, is not expected before 2025, but it’s more likely to be fully realized by 2026.

What is the Digital Product Passport?

So, what exactly is the Digital Product Passport? In simple terms, the DPP is a unique identifier, like a barcode or QR code, physically applied to the product, its packaging, or associated documentation.
Once scanned, this code grants access to a wide range of detailed and verifiable information via blockchain technology. These data include the product’s durability and repairability, recycled content, availability of spare parts, as well as sustainability and transparency data regarding the product’s lifecycle. It is, therefore, a comprehensive digital document that accompanies the product throughout its entire lifecycle.

What information is contained in the DPP?

The European Union is still defining specific requirements, including standardizing definitions and data collection practices. However, we can already identify some examples of information likely to be included in the Digital Product Passport. Specifically:

  • Basic product information (name, brand, model, batch number, manufacturing date, and warranty details).
  • Material data: origin of raw materials and components, as well as the suppliers involved in their provision.
  • Ownership data: information about current and previous owners (particularly relevant for long-lasting products that can be bought and sold multiple times).
  • Repair data: details about the product’s repairability, including repairs performed and their causes.
  • Sustainability data: the carbon footprint of production, distribution, and usage phases of the product.

Companies that wish to place products on the EU market must ensure that the digital passports for their products meet the data and compliance requirements set by the legislation.

How does the Digital Product Passport work?

Now that we understand what the Digital Product Passport is and what data it contains, how does it actually work?
Imagine it as a scannable tag (such as a QR code or RFID chip). It links the physical product to its digital version, enabling the complete and continuous transfer of verified product data throughout its lifecycle. By scanning this code, a wide range of detailed product information can be accessed.

Challenges for Brands and issues to resolve

Alongside the clear benefits, the advent of the Digital Product Passport presents several challenges for companies. One example is the detailed control of the supply chain. Monitoring the entire supply chain is complex: it requires a comprehensive view of every stage of the product’s lifecycle, from raw materials to production processes, distribution, and recycling. This necessitates the adoption of advanced traceability systems and periodic audits to verify supplier compliance with the required standards. Transparency is essential, but obtaining accurate information can be difficult due to the complexity of global supply chains and the reluctance of suppliers to share sensitive data.
One of the main issues to resolve concerns data privacy. The amount of information collected through the DPP raises concerns about the protection and ethical use of data. Companies must ensure that data is collected, managed, and shared in compliance with privacy regulations, implementing security measures to prevent abuse and violations. In this context, the challenge is to find a balance between the transparency required by the DPP and the privacy protection of the individuals involved.

Preparing for the Future

Preparing now for the implementation of the DPP and, more broadly, for a centralized management of the Digital Product Identity means not only adopting an advanced system for traceability and data management but also positioning the organization to promptly respond to future market needs and evolving sustainability regulations, ultimately ensuring the organization’s competitiveness.
The solution never lies solely in the tool adopted but, especially in a constantly evolving regulatory and market context like the current one, in adopting an evolutionary systemic model that guarantees the organization’s resilience and adaptability.

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