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Digital product passport: Requirement or opportunity? Why companies should act now

Writer: Inga Ellen Dr. KastensInga Ellen Dr. Kastens

Digital Product Passport as an EU Directive


A new era of product transparency is beginning


What if every product had its own digital identity? A record that not only reveals its origin and materials but also shows how it can be used, repaired, or recycled? This is exactly what the Digital Product Passport (DPP) offers—a key element of the new EU regulations for sustainable products. While some companies see it as a bureaucratic hurdle, others recognize the immense opportunities. Those who act now can gain a crucial competitive advantage.



Why the Digital Product Passport is coming – and what it means for companies


The EU has established a legal framework through the Ecodesign for Sustainable Products Regulation (ESPR): Starting in 2026, certain product groups will be required to implement the DPP. The focus is on greater sustainability, traceability, and a functioning circular economy. Industries such as textiles, electronics, and furniture will be among the first to be affected. But what does this mean for businesses?


  • Transparency & Compliance: Companies must provide detailed product information—from raw materials and carbon footprint to repairability.

  • New Infrastructure: IT systems must be adapted, and interfaces to existing ERP or PIM systems must be established.

  • Communication & Customer Benefits: Consumers must not only be able to use the DPP but also recognize its added value. This opens up a new, direct form of customer communication.



Overcoming challenges – seizing opportunities


Yes, implementing the DPP requires effort. But it also offers real advantages if it is seen not just as a compliance tool but as a strategic business asset:


  1. Sustainability Becomes Measurable – and Marketable

    Consumers today are scrutinizing more than ever whether a product is truly sustainable or just a case of greenwashing. The DPP provides reliable data and helps companies prove their sustainability efforts rather than just claiming them. This strengthens brand trust and fosters a new generation of “circular customers” who consciously consume more sustainably.


  2. Efficiency Gains Through Digital Processes

    The introduction of digital product passports makes supply chains more transparent, reduces returns, and optimizes service. Companies can improve their overall product strategy based on data, as all relevant information is finally centralized in a digital system.


  3. A New Service and Communication Channel

    Instead of simply “providing data”, the DPP can become an interactive touchpoint with customers. From care instructions and exclusive services to repair and recycling options—companies have the opportunity to connect directly with their customers without intermediaries.



Digital product passport: act now instead of reacting later


The Digital Product Passport is more than a regulatory requirement—it is the future of product communication. Companies that invest early will not only benefit from a smooth implementation but also from improved customer relationships and new business models. Those who wait will fall behind. Those who seize the opportunities will thrive.


So the question is: Will your company merely comply with the DPP—or use it as an innovation driver?


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