Next Stop: 2025 – Is Your Digital Product Passport Ready?

This article was originally published in January 2025 on the Toy Book's website, access here.

‍

Halfway through 2024, the European Commission introduced legislation that set new transparency requirements for consumer goods. The framework legislation, titled “Ecodesign for Sustainable Products Regulation” (ESPR), required significant improvements to the circularity, performance, and makeup of products placed on the EU market.

In addition to demanding more sustainable credentials, the ESPR also introduced a Digital Product Passport (DPP) requirement. A DPP is a virtual identity card for products, components, and materials. The card will store relevant information to support products’ sustainability, promote circularity, and strengthen legal compliance.

The DPP will serve as a digital record containing comprehensive information about a product and its entire value chain. This includes everything from the product’s origin and the materials used to its environmental impact and recommended disposal methods.

GETTING STARTED

Developing and implementing a new system for transparency may seem daunting, especially when your product range is vast and the supply chain is far-reaching. However, it does not need to be. The Ethical Supply Chain Program (ESCP) suggests a three-fold approach.

Firstly, companies should assess the available data, understand what is missing, and identify areas that may require further analysis or information sourcing.

Next, engage your suppliers. Speak with them and find out what information they already have and what they can share about their extended supply chain. Be clear in letting your suppliers know what information and measures you will need from them to deliver on the DPP. You will need to confirm they can supply the information you require. If any cannot, you should consider sourcing from suppliers with a verifiable record of transparency and willingness to work with their customers on compliance requirements proactively.

Finally, build your own data systems or work with third-party organizations that already have these systems in place. The DPP is not as simple as generating a QR code, and the guidelines are clear. The information contained should be authentic, reliable, and verified. Getting this right from the start will enable regulatory compliance and help you deliver trusted sustainability messaging, providing an excellent opportunity to engage directly with your consumers.

ENSURING COMPLIANCE

DPPs were implemented last year, and further enforcement is expected in 2026. They require companies to review their practices and future-proof any product development. DPPs present a great opportunity for the future of supply chain transparency and direct consumer engagement. It is recommended that businesses work with expert third-party organizations to ensure they are ready for the world of DPP and can easily maintain compliance in the future.

AVAILABLE RESOURCES

Information about the ESPR and DPP is becoming more widely available. Working with expert organizations is essential in understanding the impact of this new legislation on your business. ESCP is a non-profit organization working with thousands of international buyers, suppliers, and businesses with the common interest of transparency. ESCP is committed to bringing its community together, with a number of events, working groups, and regular information sharing planned for 2025, ensuring its members are prepared for the future.

In addition to ESCP’s member network and events, consider using the supplier sourcing tool: Connect. Connect is ESCP’s database of ethically certified suppliers located globally and in many product categories.

Contact us today to learn more about our community and the solutions available to prepare your business for future legislative changes. For more info, email: membership@ethicalsupplychain.org.

‍

This article was originally published in January 2025 on the Toy Book's website, access here.

‍

‍