With product transparency in high demand, regulatory frameworks are driving efforts to improve consumer trust, ensure product compliance, and support a more circular economy.
To address this, the European Commission has introduced Digital Product Passports (DPPs), requiring businesses to provide detailed records of a product’s lifecycle. These passports empower consumers to make informed purchases while helping businesses demonstrate regulatory compliance and promote traceability and authenticity across industries.
In this article, we’ll explore how DPPs work, when they’re required, and how connected packaging solutions can simplify their implementation.
Note: The brands and examples discussed below were found during our online research for this article.
What is a digital product passport?
A Digital Product Passport is a comprehensive digital record of a product. By accessing a DPP, consumers can see where the product originates, what its materials are, and how to reuse or recycle it.
DPPs may also include ownership history, remanufacturing details, and reusability guidelines, helping customers understand the broader impact of their purchase. Although the program will roll out gradually, with concrete standards expected by 2025, businesses already have a foundational framework to begin implementation.
Currently, DPPs are mandatory under the Ecodesign for Sustainable Products Regulation (ESPR) for items like textiles, construction materials, and industrial or electric vehicle batteries. Regardless of the products you offer, adopting DPPs fosters trust across everyone involved in the product life cycle.
As the European Union pushes toward carbon neutrality by 2050 under the EU Green Deal, consumers increasingly seek real-time information about how their purchasing decisions affect the environment. Additionally, smart labels offer businesses valuable insight into their supply chains, helping to reduce inefficiencies, improve product safety, and advance sustainability efforts.
While no strict rules dictate how DPPs should be made more accessible, most businesses are likely to use technologies like QR Codes, NFC, or RFID tags. These tools bridge the physical and digital worlds, enabling quick scans that reveal key product details and help users make more informed choices.
How do digital product passports work?
The digital product passport framework outlines not only what product information to include but also how to organize it and ensure accessibility.
Core components
The specific details in a digital passport ultimately depend on the product’s material composition, but a DPP generally includes information on raw material sources, manufacturing processes, and recycling instructions.
Additional details, such as ownership history, repair records, and vendor partnerships, can provide a more complete picture of the product’s value. Sharing more information, even if optional, can help stakeholders better understand the product’s objective value.
Ideally, both consumers and regulatory officials should have a clear view of how the product was made and how it contributes to the larger circular economy action plan. For instance, an electric vehicle battery passport must include details such as the battery’s carbon footprint, percentage of recycled materials, durability, reuse and recycling guidelines, and material sourcing.
Access methods
Every DDP must be digitally accessible through a data carrier, such as a GS1 barcode. GS1 Digital Link extends the capabilities of traditional barcodes by embedding web links, letting consumers and stakeholders access detailed product data with a scan.
Whether you opt for a barcode, NFC tag, or QR Code, the passport should be placed directly on the product, its packaging, or accompanying documentation, such as an assembly manual.
When comparing NFC vs. QR Codes, both technologies allow consumers to easily access product information. However, NFC tags require NFC-enabled devices, which not all customers have. On the other hand, QR Codes are compatible with nearly any mobile device and can be scanned from several feet away, making them a more universally accessible option.
Data flow
Product data must be easy to read and understand. Storing this information in a centralized or blockchain-based system ensures a reliable and (ideally) unchangeable record that supports critical supply chain details. For optimal usability, the data must also be searchable and compatible with major digital systems.
Keep in mind that you do not have to make all data accessible to every stakeholder. DPPs can be customized based on the audience, allowing businesses to share only the most relevant details. For example, customers might access basic manufacturing information, while suppliers receive more in-depth technical specifications.
Key benefits of digital product passports
With global consumer trust stagnating at 48.5%, digital product passports offer tangible benefits for both businesses and consumers.
For businesses:
- Regulatory compliance: Regardless of the regulations your business must follow, compliance measures emphasize transparency. By documenting a product’s journey, you enable officials to quickly ascertain how it was made and ensure it meets industry standards.
- Enhanced transparency: Consumers often struggle to find key product details. DPPs address this issue by answering frequently asked questions covering everything from environmental impact to functionality, fostering greater trust.
- Streamlined supply chains: Improved traceability minimizes disruptions, even in complex supply chains. If a product depends on multiple vendors, DPPs enable businesses to track every update.
- Stronger environmental programs: Whether through buy-back initiatives or designated recycling events, businesses can use DPP data to keep better tabs on their products for better product sustainability efforts.
For consumers:
- Informed purchasing: Digital passports provide customers with critical insights into what they’re purchasing and its environmental impact, empowering them to make more sustainable choices.
- Smarter repairs: With a comprehensive repair history available, technicians can accurately diagnose issues and avoid unnecessary mistakes.
- Authenticity: From prescription drugs to designer handbags, counterfeiters sell around $2 trillion in illicit goods annually. DPPs help consumers confirm a product’s authenticity, including past ownership, batch numbers, and manufacturing dates.
- Recycling guidance: Confusing or outdated recycling instructions often deter responsible disposal. DPPs make it simple for consumers to access up-to-date instructions on how to reuse, recycle, or safely discard products.
Real-world applications of digital product passports
Digital product passports have the potential to transform nearly every industry. Here are some real-world examples of how businesses can implement these versatile tools:
- Electronics: Digital passports provide a roadmap of rare earth materials and include recycling instructions for devices. They also assist repair professionals by documenting previous fixes and guiding them in addressing new issues.
- Apparel: In an industry rife with social and environmental concerns, particularly in fast fashion, DPPs enable customers to support ethical retailers and discover ways to recycle textiles at the end of their lives.
- Luxury retailers: Passports can authenticate high-value items, building consumer confidence in a sea of knock-offs. Whether it’s a watch or a wallet, consumers can scan a QR Code or NFC tag to reveal the product’s true origins and verify its Certificate of Authenticity.
- Automotive: From gas emissions to EV battery fire safety, DPPs provide detailed lifecycle insights for vehicle components. They also offer crucial information for sustainable disposal or responsible resale.
- Food and beverage: Ethical and environmental concerns dominate this sector. Whether addressing mercury levels, sustainability efforts, or fair-trade practices, DPPs empower consumers to make informed choices aligned with their values.
- Pharmaceuticals: A DPP can confirm a drug’s authenticity and provide insights into its creation, storage, and transportation. When even slight temperature changes can affect a drug’s efficacy, DPPs can give patients a more reliable way to manage their health.
- Household goods: Shoppers are increasingly conscious of what goes into products like shampoo, deodorant, and cleaning supplies. DPPs help consumers identify allergens or harmful chemicals, offering greater peace of mind.
How to integrate digital product passports into your operations
Implementing digital product passports requires time and planning, but the right approach can simplify the process. Here are some steps to help you get started.
Start with data collection
Begin by gathering comprehensive product information, including its GTIN, details about suppliers, materials/ingredients, and manufacturing processes. You may need to collaborate with vendors to ensure their sourcing guidelines align with your data needs.
Organize the collected information into easily searchable and readable formats. Structuring data by stakeholder type allows you to prioritize key details for each audience, making your connected packaging more intuitive and effective.
Use QR Codes or NFC tags
QR Codes and NFC tags are essential tools for linking physical products to their digital passports. Bitly’s QR Code generator, for instance, enables you to create Dynamic QR Codes for each DPP.
Dynamic QR Codes offer flexibility—you can edit the destination URL or digital file if there is an error or an update without reprinting packaging or manuals. This is particularly useful for correcting typos or updating documentation such as recycling guidelines. While NFC tags also allow updates, they require NFC-compatible devices to access, making QR Codes a more universally accessible option.
Leverage blockchain for traceability
The blockchain offers secure and immutable tracking throughout the supply chain. By leveraging blockchain, you can verify team activities and track updates from vendors or suppliers with confidence.
This technology enables real-time capture of product details, allowing you to address issues promptly before they escalate. Plus, enhanced traceability helps officials and customers clearly understand how a product evolves from raw materials to its final form.
Educate stakeholders
To maximize the value of digital product passports, ensure all stakeholders—including partners, third parties, and employees—understand how to use and contribute to the system. This is especially important when tailoring multiple DPPs for different audiences.
For example, vendors providing sustainability data for investors must know which DPPs to update and the specific information to include. Similarly, if regulatory frameworks change, you’ll need a clear process to inform stakeholders about updates, ensuring they understand their new responsibilities and expectations.
Monitor and improve
Consistently monitoring product passport data ensures that the information remains accurate and up to date. Regular reviews also allow you to reflect changes in materials or manufacturing processes, maintaining the integrity and relevance of your DPPs.
Unlock transparency with digital product passports
Digital product passports are a powerful tool for enhancing transparency, sustainability, and traceability throughout the product lifecycle. They also play a crucial role in supporting a circular economy, ensuring compliance, and building consumer trust. QR Codes are an ideal solution for businesses looking to implement DPPs seamlessly.
At Bitly, we’ve witnessed how QR Codes can revolutionize accessibility for consumers, offering all the information they need with a simple scan of their mobile device.
One of the key GS1 Connect 2024 takeaways highlighted the ubiquity of barcodes across industries, especially as brands can embed up to 3 KB of data in a single QR Code. This makes QR Codes a natural fit for DPPs, particularly when data needs to be segmented for different stakeholders.
Ready to generate QR Codes for your digital product passports? Get started with Bitly today!
