In a time when transparency, circularity, and sustainability are becoming non-negotiable, the EU is introducing new tools to reshape how products are designed, managed, and communicated. The Digital Product Passport (DPP) will soon require companies to provide detailed, standardised information about, for example, their products’ materials, origin, environmental impact, and recyclability. While this may seem complex and resource-intensive, the framework also opens the door to efficiency gains, stronger collaboration across supply chains, and entirely new business opportunities. In this article, we explore what the DPP means for businesses, which products will be affected first, and how companies can start preparing today.
The Digital Product Passport (DPP) is rapidly becoming one of the most important elements of the EU’s Green Deal and its push for greater transparency in global value chains. It is a digital record attached to each product, containing standardised information on its composition, origin, environmental footprint, and end-of-life handling. By making this data accessible through, for example, QR codes or NFC tags, the DPP is designed to improve traceability, enable repair and recycling, and provide both customers and regulators with clearer insight into a product’s sustainability. For businesses, this is not only about compliance. Adapting to the framework offers efficiency gains through streamlined data management, reduced duplication of reporting, and improved collaboration across supply chains.
As part of the Eco-design for Sustainable Products Regulation (ESPR), the DPP will be rolled out gradually across industries, starting from 2027. The working plan released in mid 2025, plans for the first groups in scope include textiles (particularly clothing and footwear), furniture (including mattresses), iron and steel, aluminium, tyres, and ICT products. Several energy-related products already under the Eco-design framework are also carried forward, including dishwashers, washing machines, refrigerators, displays, EV chargers, and even mobile phones and tablets. Batteries are regulated separately under the EU Batteries Regulation, with a battery passport becoming mandatory from February 2027.
What type of information will the DPP include?
The European Commission is now preparing delegated acts that will define the details of reporting obligations, data formats, and technical requirements. Expected information will cover product eco-design performance metrics such as durability, repairability, environmental footprint, recycled content, and recyclability. The passport will also include data on material composition and substances of concern, along with guidance on safe install, use, maintenance, recycling, and disposal. This is expected to facilitate end-to-end lifecycle management and help accelerate the transition to a more circular economy. So even if the detailed requirements are not set yet, there are clear implications on the type of data to collect and the need of starting to collaborate with the supply chain, if not done yet.
From compliance burden to business opportunity
For many businesses, the DPP may initially feel like just another layer of compliance. However, its implications are far broader. According to a Fashion Network article, companies exporting to the EU face substantial financial losses if they are not prepared for the new regulations. At the same time, early adopters are discovering that the DPP is much more than a regulatory burden: it is an opportunity to strengthen consumer trust, differentiate through sustainability, and unlock new possibilities for green financing.
A report from the EU project CIRPASS highlights that DPP-as-a-Service providers see opportunities not only in supporting compliance, but also in enabling new business models such as services around circularity, data brokering, and improved consumer engagement (CIRPASS, 2024). Early adopters can gain a real competitive advantage. Moreover, with the Ecodesign for Sustainable Products Regulation (ESPR) introducing performance requirements alongside compliance obligations, collecting the data for the passport is not only a step towards meeting regulatory needs but also a foundation for monitoring progress and substantiating performance.
How to prepare
Preparing for the DPP means starting early. The first step is to identify which parts of your product portfolio will be affected and to map out the sustainability data you already collect. For many organisations, gaps quickly emerge - particularly in areas such as material origins, supplier transparency, and product lifecycle information.
From there, attention must shift to the technical infrastructure: existing ERP and PLM systems were not designed with the DPP in mind, and many companies are now evaluating how to integrate QR codes, NFC tags, and interoperable databases that allow product information to flow seamlessly across supply chains.
Perhaps the most critical challenge is collaboration. Much of the required data sits with suppliers, subcontractors, and logistics partners. Companies that begin building partnerships and expectations now will be far better positioned when mandatory disclosure begins.
Several industry leaders are already piloting Digital Product Passports on selected product lines to test both the data collection process and consumer-facing interfaces, gaining valuable insights before scaling up. Examples include Kappahl and Marimekko in fashion, Volvo Cars in automotive, and the Global Battery Alliance (GBA) representing a large share of the battery industry.
The road ahead
The path to full implementation will stretch into the next decade, with 2025 and 2026 expected to be pivotal years as EU institutions finalise the rules and as more businesses launch their first pilots. But time is short: with the first legal deadline just two years away, companies that act now can turn compliance into a competitive advantage. Those that wait risk being left behind as sustainability and transparency become not just regulatory expectations, but decisive factors for customers, investors, and markets.
If you would like to explore what the DPP could mean for your business and how to turn it into a driver of value rather than a compliance headache, our team is here to support.
How Knowit can support
Knowit combines expertise in data management and sustainability with business insight, to support our clients in building sustainable organizations and achieving science-based transitions. We have extensive experience helping clients on their journey to a more digitalized way of working – from understanding the organization’s real needs to implementing and integrating systems and tools.
If you want to dive deeper into DPPs, and what this means for your company, our consultants are here to help you. We suggest to start with a gap assessment to evaluate your product data readiness level and set an effective DPP roadmap for your organisation.
