Lars Rensing, CEO of Protokol looks at the Digital Product Passports and what they will mean for partners selling ICT and electronics products in the EU market.
Sustainability on the agenda
Awareness of the Ecodesign for Sustainable Products Regulation (ESPR) has been growing steadily among EU businesses in recent months. As a cornerstone of the EU’s Circular Economy Action Plan (CEAP), the ESPR aims to revolutionise product sustainability by setting new standards for durability, energy efficiency, repairability, recyclability, and the use of recycled materials while minimising harmful substances -its overarching goal being, to establish sustainable products as Europe's new norm.
The regulation targets industries with substantial environmental footprints, including ICT and electronics, and applies to all businesses placing these products in the EU market, regardless of their geographical location. A pivotal component of the ESPR is the introduction of Digital Product Passports (DPPs), a digital tool designed to track a product's lifecycle. These passports will consist of critical information on a product’s history, and sustainability metrics, such as water usage and carbon emissions. Such information will be accessible via a data carrier (such as a QR code or barcode) which is affixed to the product and can then be scanned with a device such as a smartphone.
Although detailed requirements for the DPPs will be outlined in the upcoming delegated acts (guidelines that will specifically outline the information required in DPPs for various industries and product groups) businesses can begin their journey toward compliance now.
In particular, businesses can start gathering and verifying data on their products’ environmental performance and life cycle.
This preparatory phase can be complex due to the fragmented nature of data across various systems within a company’s value chain. To address this, businesses should focus on mapping and organising their data, laying a strong foundation for compliance ahead of the DPP mandate coming into force. By taking proactive steps today, vendors across the supply chain can significantly ease the transition to DPP compliance tomorrow.
Below I outline a systematic and straightforward approach to evaluating, collecting, and incorporating critical product data throughout the value chain in order to prepare for DPP compliance.
Connecting with key stakeholders to evaluate your current position
To kick the process off, businesses should actively collaborate with stakeholders throughout the supply chain, including suppliers, manufacturers, and logistics partners. This approach helps build a comprehensive view of available product data. Additionally, engaging in these discussions can reveal previously unknown information and open conversations about improving data transparency and access across the chain.
Prioritising data collection and validation
After identifying existing data, it's recommended to conduct a data gap analysis, focusing on the elements likely to be required in a DPP, even before specific guidelines are released. This might include data on product lifespan, product durability, waste generated during production of each product or the carbon footprint of manufacturing. This will help pinpoint gaps in product data within your business, allowing you to determine how best to address them. It may also involve implementing measurement tools or partnering with new stakeholders to support data collection and accuracy.
Another way to effectively support data collection and validation is to conduct a life cycle assessment (LCA). An LCA evaluates the environmental impact of a product throughout its life cycle, starting from raw material extraction, and will offer a comprehensive understanding of its sustainability footprint and potential impact.
It is worth noting, that throughout your data compliance journey, you should validate data sources to build an accurate, verifiable picture of each product. This means assessing the credibility of third-party data suppliers, and ensuring processes are underpinned by the relevant standards.
Considering tailored DPP solutions for a seamless transition
After collecting and analysing the required data, selecting the right DPP solution is crucial to prepare for compliance. However, as developing an in-house DPP system may not be practical for many businesses due to the complexities involved, partnering with experts specialising in DPP solutions who can address specific business needs could prove a most effective strategy.
To ensure compliance, it is vital to evaluate how data will be formatted, entered and managed within the system. This includes confirming that the DPP solution can seamlessly integrate with existing business infrastructure and provide real-time updates throughout a product's lifecycle. By choosing a tailored DPP solution, businesses can simplify data management processes, ensuring efficient capture, storage, and accessibility across the entire life cycle of their products.
The importance of piloting processes
The next critical phase is piloting the DPP solution, allowing businesses to stress-test processes and refine their approach for full-scale deployment. Pilots help evaluate interoperability with existing IT systems and supply chain platforms while assessing user experience and information accessibility.
The first steps toward ESPR compliance
Despite more granular guidelines on data requirements not yet available until the delegated acts are published, companies can take a proactive approach to DPP compliance by focusing on practical, step-by-step actions. By building a solid compliance strategy rooted in accurate data and reliable validation processes, businesses can not only prepare for ESPR requirements but also enhance sustainability and bolster their operational resilience.
