Introduction
With the introduction of the Circular Economy Action plan in 2020, the European Commission set the goal to consider the entire life cycle of products, from production to end-of-life disposal, covering all the processes relating to materials sourcing, production, and supply chain (1). However, the lack of information on the characteristics of a product (such as its contents, production methods, or life cycle) can be an essential barrier to circular economy strategies. As part of the proposal for an Ecodesign for Sustainable Products Regulation (ESPR), the Digital Product Passport (DPP) will enhance the traceability of products, and allow consumers and manufacturers to access all the information concerning a specific product.
What is the Digital Product Passport (DPP) and why is it important?
The DPP was defined by the European Commission as a “product-specific data set,” which would structure the disclosure requirements of products. It can provide information on the origin, composition, repair, and disassembly options of a product as well as how the various components can be recycled (2). All this information brings a new level of transparency that not only improves communication between different actors in the value chain (e.g. producers and recyclers), but also boosts consumer consciousness and empowers better decision making. This important disclosure mechanism would enable upscaling of circular economy strategies and inform consumers and stakeholders of the sustainability characteristics of a product.
Digital solutions are a driving force to a more sustainable economy; data and technology can enhance the much needed transparency in the sector that citizens are seeking for. Currently, our linear economy is lacking widely available information about the distributor, the components, and their origin, as well as the recycler. DPP can enable information monitoring and proper management of a product and its life cycle. More directly, DPP will empower citizens in their daily choices as it will give them more clarity on how and where a certain product is made. DDP will ultimately increase transparency, accountability, and traceability for each actor in the value chain.
In addition, the DPP can have a wider positive application that goes beyond the circular economy. The digital product passport can, because of increased transparency and knowledge, include and provide data on GHG emissions, certificates, and other criteria important for customers, investors, or stakeholders for reporting and auditing processes. This also has the potential to advance the industry’s climate neutrality goals (2).
What are its implications in the textile industry?
The EU Strategy for Sustainable and Circular Textiles has set out an ambition for all textile products available on the EU market to be long-life and recyclable by 2030. The introduction of the DPP would help to address this goal and tackle the pressing challenges in the textile industry such as insufficient information about what our clothes contain, who made them, and where they are coming from.
In regards to the respective responsibility of the different actors in pursuing systemic change, a question remains: To what extent does it depend on individual consumer choices? In addition to creating more transparency, the Commission should create incentives for companies to invest in durability, better and recyclable fibres and promote circular business models e.g. through favourable tax on second-hand. Additionally, consumers should not only be more informed but also educated about the need to change their lifestyle and decrease consumption.
From a more technical perspective, the manner in which some of the information is determined and/or calculated (e.g: GHG emissions) needs to be carefully addressed to avoid misleading communication and unfair competition.
Finally, the DPP must not only be a tool available to major companies working with big supplies, sufficient means, and capacity; but one that is also easily handled and accessible to SMEs.
What are the challenges and opportunities of its wider application?
There are still some uncertainties around the DPP on its content and functionality or more precisely on what information it needs, should, and can include. Data storage is another challenge as questions have arisen on how the data will be managed and stored. Equally important is the transparency part and how business’s confidentiality will be respected (3). Two other questions that remain are whether there would be sensitive information available/included and how much are companies required to disclose?
On top of that, the choice of data to be included will also influence DDP’s purpose, whether it is a disclosure mechanism, or a tool for systemic change that aims to tackle issues beyond what can be quantified (e.g. environmental footprint), for example, by including information about labour conditions.
On the bright side, there is a strong agreement that DPP holds numerous benefits. Firstly, the DPP is providing reliable and comparable product information for businesses, consumers, and policymakers which could open new business models and opportunities. Secondly, enhanced transparency and cooperation in the supply chain can lead to improvements such as better practices, new circular designs, and collaborations. Last but not least, the DPP could encourage recyclability by providing more information on how a specific product can be recycled, which can be made available to consumers and manufacturers.
Conclusion
Overall, the DPP addresses key challenges such as the lack of transparency, standardization, and data reliability. Moreover, it could be a big step towards a more sustainable industry, boosting materials and energy efficiency, enabling new business models, and improving the knowledge of both consumers and manufacturers about a product’s life cycle.
However, the DPP needs to be intertwined with other actions as the textile industry has to look beyond transparency to achieve the systemic change needed to meet its net-zero targets and reduce waste. We need investment in recycling infrastructure (fueled with renewable energy), policy incentives and regulations for more sustainable business models, and consumer education that not just informs but influences choices that would ultimately lead to a decrease in consumption.
Sources:
(1): A new Circular Economy Action Plan. European Commission (2020). https://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1583933814386&uri=COM:2020:98:FIN
(2): University of Cambridge Institute for Sustainability Leadership (CISL) and the Wuppertal Institute. (2022). Digital Product Passport: the ticket to achieving a climate neutral and circular European economy? Cambridge, UK: CLG Europe. https://www.corporateleadersgroup.com/files/cisl_digital_products_passport_report_v6.pdf
(3): The Fast Forward, Digital Passports for Clothing, (n.d.)https://www.bsr.org/en/emerging-issues/digital-passports-for-clothing
