Amsterdam
Barbara Strozzilaan 1011083 HN Amsterdam
Netherlands+31 10 307 7131info@kruso.nl
As part of the EU regulations under the European Green Deal, many companies will be required to implement the Digital Product Passport (DPP) within the next few years in order to promote sustainability and transparency. This initiative is closely tied to other sustainability efforts, such as CSRD reporting (Corporate Sustainability Reporting Directive), which is also part of the European Green Deal. CSRD obliges companies to report ESG data (environmental, social, and governance factors) in their annual reports. Initially, CSRD targets large companies, but within a few years, small and medium-sized enterprises will also be required to report their sustainability data.
But what is the difference between DPP and ESG reporting, and how can your company use the data collected through DPP as a strategic tool? Let's take a look at how DPP data can provide value beyond mere compliance.
While both DPP and ESG focus on sustainability, they operate under different goals and frameworks. The Digital Product Passport focuses on product data transparency — this includes information such as the product's origin, environmental impact, and recyclability. On the other hand, ESG is an umbrella term that encompasses a company’s overall environmental, social, and governance responsibilities. ESG reporting is a central part of CSRD, which mandates companies to collect and report data on their sustainability efforts. Although they have different starting points, DPP and ESG ultimately work toward the same goal: fostering responsible and sustainable business practices.
The data you collect in order to make the Digital Product Passport can be a goldmine for improving your ESG reporting. Data on resource consumption, material selection, and energy use can help document your company’s environmental impact. Additionally, information on working conditions and supply chains can demonstrate your social responsibility. Finally, certification and compliance data from DPP can show that your company meets relevant regulatory standards—an essential component of CSRD.
Here’s the key takeaway: Your DPP data can be used for far more than simply complying with regulations like CSRD. For example, data on the product's lifecycle can provide insights into optimizing your production, reducing waste, and improving your company’s sales strategy. These insights can also be included in your marketing efforts, highlighting your product’s sustainability and creating greater transparency for your customers. This kind of transparency can enhance your company’s reputation and build trust with both customers and business partners. For B2B companies, sharing ESG data with your buyers can position you as a more desirable supplier. Organizing data on where your products come from isn’t just relevant for large companies currently subject to CSRD reporting requirements—smaller businesses can also benefit from having this data in order, as it impacts the entire value chain.
To fully unlock the potential of your DPP data—and ensure it’s properly organized for both ESG reporting and future CSRD requirements—it’s essential to have a solid data management strategy in place. This is where a PIM system integration (Product Information Management) comes into play. A PIM system allows you to centralize and structure all product information in one place, making it easy to access the data you need for both ESG reporting and other business purposes. By integrating a PIM system, you ensure that your data is accessible and ready for use in both ESG reporting and CSRD compliance.