Introduction of the Digital Product Passport: Opportunities and challenges

Twin Transition: The digital and ecological transformation

The idea of the DPP is to combine digital and ecological transformation, known as the ‘twin transition’. It is set to make all relevant product data along the entire value chain digitally available, enabling sustainable purchasing decisions. The DPP will be introduced in stages: From 2026, a ‘minimalist and simplified DPP’ will be introduced for the first product groups, including textiles, clothing and shoes, and by 2030, successively for other product groups and information along the product cycle.

Challenges and solutions for the textile industry

For the textile industry, this means considerable effort: companies must ensure transparency along the entire value chain and work closely with all stakeholders. They have to rethink their supply chains and decide which suppliers they want to work with in the future. The DPP requirements also affect materials used and product design as theyincrease a product´s service life due to repairs and keep materials in the circular economy - because raw materials and production already account for up to 70% of the carbon footprint. For textiles in particular, the use of recycled materials needs to be increased and the reduction of unrecycled materials to be drastically reduced. To this end, a ban on the destruction of new goods was only adopted in May 2024.

Technical challenges and solutions

The implementation of the DPP poses technical challenges. Required information must be digitally documented and made available along the entire value chain. This requires new IT systems and revised data models. Small and medium-sized enterprises (SMEs) in particular face challenges, as they often lack the technical and human resources and the expertise needed to implement the process efficiently.

Efficient data integration and automation processes

Efficient data integration systems and automation processes are crucial to avoid errors and legal consequences. Modular IT systems and cloud solutions offer scalable infrastructures to efficiently process and store large volumes of data. A centralised data platform and clear data governance guidelines are necessary to ensure high data quality.

External expertise for an efficient implementation

Companies should rely on external expertise when implementing IT systems. Specialised digital companies can help with the selection and implementation of suitable systems as well as training for employees. Consultants offer objective assessments and optimizing processes in order to maximizing potential.

Early implementation as a competitive advantage

As the DPP will become mandatory in a few years, companies in the textile industry should tackle the introduction at an early stage. Many partners and customers are already showing great interest in sustainability information. Manufacturers and retailers who provide this information voluntarily can set themselves apart from the competition and build customer loyalty timely. An early introduction also provides the necessary time to establish new processes in a sustainable way and to seamlessly adopt the changes that are being introduced in stages.

Conclusion

With the introduction of the Digital Product Passport (DPP) by 2030, the EU is demanding transparency and sustainability along the entire value chain of textile products. This requires considerable adjustments to IT systems, data management and supply chains. However, it offers opportunities for customer loyalty and differentiation in the market. Although SMEs in particular face major challenges, they can benefit from the involvement of external expertise and early implementation. Efficient data integration and automation are key to successfully implementing the DPP and fulfilling sustainability requirements.