Prepare your company for the EU's Digital Product Passport (DPP)

The EU has made it clear that promoting the circular economy and reducing the environmental impact of production and consumption are key priorities. The Digital Product Passport (DPP) is at the heart of this initiative. A circular economy involves reusing raw materials that are still viable instead of discarding them. The DPP is designed as a tool to provide detailed information about a product’s lifecycle, from production and use to recycling and disposal. 

When a QR code is scanned, details such as material composition, carbon footprint, repair and recycling instructions, and production methods are displayed. This empowers businesses and consumers to make sustainable choices, enhancing the company's market position. 

The Digital Product Passport (DPP) also supports ESG reporting by providing detailed data on the environmental and social impact of products. This facilitates precise reporting and helps businesses document their sustainability efforts. 

Product Information Management (PIM) is an indispensable component of a successful transition to the Digital Product Passport (DPP). PIM systems enable businesses to gather, organize, and distribute product data in a structured and efficient manner. This is especially vital as the DPP requires detailed information about product lifecycles and sustainability. Additionally, it saves time and resources by eliminating the need to manage and update data across multiple systems manually. 

With PIM, your business can

• Centralize product information and ensure data consistency through streamlined data management. 

• Share updated and accurate information with relevant stakeholders, including suppliers and customers. 

• Adapt quickly to regulatory changes and market shifts while strengthening your position in a sustainable economy. 

• Better address customer needs by leveraging well-structured information. 

To comply with the requirements of the Digital Product Passport (DPP), your business should analyze products and data flows to identify those covered by the DPP. This involves reviewing production processes, product specifications, and customer data. 

Training employees in data management, analysis, and compliance processes ensures that your business not only meets regulatory requirements but also leverages the benefits of the DPP to enhance operations and build customer trust. For instance, battery products requiring a digital battery passport must have integrated QR codes by 2027. 

Moreover, analyzing the entire production cycle – from raw material procurement to after-sales service – enables businesses to optimize operations, improve customer satisfaction, and create greater transparency in collaboration with suppliers and logistics providers.