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The Digital Product Passport: From European Regulation to Global Standard

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The Digital Product Passport: From European Regulation to Global Standard

Executive Summary

The Digital Product Passport (DPP) is transforming from a European regulatory requirement into a potential global standard for product transparency and circular economy practices. Beginning with batteries in February 2027, the EU's implementation timeline will progressively cover textiles, electronics, and other product categories through 2030. However, the implications extend far beyond Europe's borders—parallel initiatives in China, exploratory discussions in the United States, and adoption considerations across Asia-Pacific and developing nations signal a fundamental shift in how products are documented, tracked, and managed throughout their lifecycle. For multinational companies, export-dependent manufacturers, and investors with international portfolios, understanding the DPP's global trajectory is no longer optional—it's a strategic imperative that will reshape supply chains, competitive positioning, and market access worldwide.


What the Digital Product Passport Means for Global Business

The Digital Product Passport represents far more than a compliance checkbox. It's a comprehensive digital record documenting a product's entire journey—from raw material extraction through manufacturing, use, and end-of-life recycling or disposal. Technically, the DPP connects to physical products via data carriers such as QR codes, RFID tags, or NFC chips, enabling access to structured, machine-readable information verified by multiple stakeholders along the value chain.

The EU definition describes the DPP as "a structured collection of product-related data with a predefined scope and agreed data management and access rights, mediated through a unique identifier and made electronically accessible through a data carrier." This emphasises three core components: verified product data, a secure platform for data storage, and straightforward access mechanisms for authorised actors.

For companies operating internationally, this matters because the DPP creates a new baseline for product information transparency. Even organisations without direct EU operations will face DPP requirements if they participate in supply chains serving European markets. The ripple effects are already visible: Chinese manufacturers preparing for EU battery passport requirements, American semiconductor firms discussing similar frameworks, and textile exporters in Pakistan investing in traceability systems to maintain market access.


The EU Framework: Catalyst for Global Change

The Ecodesign for Sustainable Products Regulation (ESPR), which entered into force on 18 July 2024, establishes the legal framework for DPP implementation in the EU. The regulation adopts a phased approach, with different product categories mandated at different timepoints.

Batteries lead the timeline, with industrial batteries over 2 kWh, electric vehicle batteries, and light transport vehicle batteries requiring digital passports from February 2027. This makes the battery sector the vanguard for DPP implementation, with the Global Battery Alliance developing technical frameworks, data models, and governance structures that will serve as blueprints for other product categories.

Textiles and apparel follow with expected introduction from mid-2027, though specific requirements will likely be published in early 2026. The textile industry faces the challenge of making complex global supply chains transparent—documenting material composition, production processes, and environmental impacts across dozens of manufacturing steps spanning multiple countries.

Electronics, furniture, tyres, steel, and aluminium will follow between 2027 and 2030, progressively expanding the DPP's scope across industrial sectors.

The required product information is extensive: unique product identifiers, manufacturer information, material composition, information on substances of concern, carbon footprint, recycled content percentage, repairability indicators, usage instructions, and end-of-life options. Information is structured into different access levels: publicly accessible data via QR codes, restricted data for authorities and authorised actors, and dynamic data updated throughout the product lifecycle.

For lifecycle assessment specialists, the DPP represents both opportunity and challenge—standardising data requirements whilst simultaneously demanding unprecedented granularity across supply chains.


China: State-Led DPP Development and Global Ambitions

China's approach to the DPP deserves particular attention given the country's manufacturing dominance and strategic policy coordination. The China Academy of Information and Communications Technology (CAICT), reporting to China's Ministry of Industry and Information Technology, is developing a state-administered DPP system. The design for this system was unveiled in May 2025, revealing several strategic objectives that extend far beyond domestic compliance.

A central element is preparation for an international Carbon Passport for products, intended to operate under the umbrella of UN institutions to establish a globally unified product registration system. This initiative aims to reduce trade barriers for Chinese exports to the EU, ensure cross-border data security, and minimise compliance costs for Chinese manufacturers.

The Chinese strategy is closely linked to the country's "Dual Carbon" strategy sustainability goals, particularly accelerating lifecycle transparency implementation in electric mobility and electronics sectors. China is also leveraging its own ESG reporting frameworks and Green Supply Chain Assessments, which mirror many ESPR requirements whilst maintaining Chinese regulatory sovereignty.

This parallel development presents both opportunities and challenges for international businesses. Companies manufacturing in China for global markets may benefit from streamlined data collection as Chinese suppliers adopt DPP-compatible systems. However, divergent standards between Chinese and EU systems could create friction, particularly around data governance, access controls, and verification mechanisms.

For companies managing complex Asian supply chains, understanding China's DPP trajectory is essential—it will fundamentally shape data availability, supplier capabilities, and compliance pathways for products manufactured in the world's largest manufacturing hub.


United States: Market-Driven Adoption Without Federal Mandate

Unlike the EU and China, the United States lacks comprehensive federal legislation mandating DPPs. However, the conversation is gaining momentum, driven by several converging factors.

Supply chain visibility gaps have exposed American companies to reputational and legal risks. The semiconductor industry, for example, faced scrutiny when it emerged that components were unwittingly sourced from Chinese actors implicated in documented human rights violations. This highlighted the strategic vulnerability created by opaque supply chains.

Sector-specific traceability requirements already exist—the Food Safety Modernization Act (FSMA) Section 204 demonstrates that America has regulatory precedent for comprehensive product tracking. Commentators argue that similar frameworks could be extended to other industries, not only satisfying growing consumer demand for transparency and sustainability but also helping companies navigate volatile regulatory environments and global disruptions.

The automotive industry is engaging most actively with DPP concepts. For US manufacturers exporting to the EU market, compliance with EU DPP requirements is mandatory regardless of domestic regulations. This creates a natural pathway towards broader adoption—companies investing in DPP infrastructure for European markets can leverage the same systems for domestic operations, potentially gaining competitive advantages by positioning themselves as industry leaders in a transparency-driven economy.

Several industry voices advocate for proactive American DPP adoption rather than reactive compliance. Early movers can shape standards development, build proprietary expertise, and differentiate themselves in markets increasingly influenced by ESG considerations.


Asia-Pacific: Diverse Approaches and Regional Fragmentation

Beyond China, several Asia-Pacific nations are exploring DPP-adjacent frameworks, each shaped by domestic priorities and industrial structures.

South Korea has implemented a digital eco-labelling system for electronic products and automotive components, focusing on recyclability and carbon tracking. The system integrates with Korea's broader circular economy initiatives and targets export competitiveness in sustainability-conscious markets.

Japan is incorporating lifecycle data into its Circular Economy Roadmap, particularly in electronics and battery sectors. Japanese manufacturers, already experienced with detailed product documentation for quality control, are adapting existing systems to meet DPP-style requirements.

India has identified DPPs as an opportunity for its software services industry, with several Indian technology firms developing DPP solutions for international clients. This positions India not only as a potential DPP adopter but as a technology provider in the emerging global DPP ecosystem.

Indonesia, Australia, Brazil, and Chile are in exploratory phases, assessing how DPP-like systems might improve product traceability and environmental performance within their specific industrial contexts.

This regional fragmentation presents challenges for interoperability. Conflicting DPP requirements between countries and regions could significantly complicate cross-border trade, burdening rather than optimising global supply chains. The EU's European Blockchain Services Infrastructure (EBSI) initiative attempts to address this fragmentation through standardised, interoperable solutions—though success requires international coordination beyond Europe's regulatory reach.


Developing Countries: Between Opportunity and Existential Threat

For developing nations heavily dependent on exports to the EU, the DPP represents both challenge and opportunity. A recent study on Pakistan's textile and garment exporters illustrates the intensity of preparation underway for impending EU regulations. By 2027, these companies must implement DPP solutions meeting EU import controls—or face market exclusion.

The barriers for SMEs in developing countries are substantial: high compliance costs, resource constraints, and technological infrastructure gaps. Many of these enterprises already struggle financially, and additional investments in new software, supply chain modifications, and ongoing training could prove existentially threatening. The ultimate risk of non-compliance is market exclusion—for many firms in developing nations, an existential threat.

Several factors compound these challenges:

  • Limited supplier sophistication: Developing country manufacturers often source from small-scale suppliers lacking digital systems or technical capacity to provide required data
  • Infrastructure deficits: Reliable internet connectivity, digital payment systems, and cloud computing infrastructure cannot be assumed in many manufacturing regions
  • Skills gaps: Staff training in data management, digital tools, and sustainability reporting requires investment many SMEs cannot afford
  • Financial constraints: Access to capital for digitisation investments is more limited in developing markets, with higher costs of capital

However, the DPP also creates opportunities for forward-thinking companies and supportive policymakers. Enterprises that implement robust traceability systems can position themselves as sustainable and trustworthy suppliers, potentially commanding price premiums. First-mover advantages exist for manufacturers that proactively invest in DPP capabilities before competitors.

Governments and international donors are called upon to provide support: financial assistance for digitisation, capacity building for data management, facilitation of pilot projects, and collaboration with EU institutions to harmonise standards. The EUDR implementation challenges offer precedent—where early investment in traceability infrastructure created competitive advantages for compliant suppliers.


Technological Implementation: Building the DPP Infrastructure

The technological backbone of DPP systems combines several emerging technologies, each addressing specific requirements for security, scalability, and interoperability.

Blockchain for Trust and Immutability

Blockchain technology plays a central role in secure, tamper-proof data storage. The decentralised nature of blockchains ensures data integrity and builds trust along entire supply chains, whilst zero-knowledge proofs can simultaneously protect sensitive business information. This addresses one of the DPP's fundamental tensions—maximising transparency whilst protecting competitive intelligence.

However, blockchain implementation isn't without challenges. Energy consumption concerns persist, particularly for proof-of-work systems. The EU's regulatory emphasis on sustainability requires that DPP infrastructure itself be energy-efficient—creating pressure for adoption of less energy-intensive consensus mechanisms or alternative distributed ledger technologies.

Product Information Management (PIM) Systems

PIM systems form the operational core of DPP data management. These platforms centralise product data, ensure consistency, and enable seamless integration with existing ERP, PLM, and CMS solutions. MACH-based PIM systems (Microservices, API-first, Cloud-native, Headless) offer particular flexibility for the dynamic requirements of DPP compliance.

For companies with existing data management infrastructure, PIM integration represents an extension of current capabilities rather than complete system replacement. However, smaller manufacturers often lack sophisticated data systems, requiring more fundamental digital transformation.

Standardisation and Interoperability

Interoperability between different DPP systems is critical for success. The European Commission has mandated standardisation organisations including CEN, CENELEC, and ETSI to develop harmonised standards. These standards, expected by early 2026, will cover data carriers, data storage, APIs, system interoperability, and IT security.

Global businesses particularly require standards that transcend regional boundaries. A battery passport issued in China must be readable and verifiable by German customs officials. A textile DPP created in Bangladesh must integrate seamlessly with Italian fashion brand systems. Without this interoperability, the DPP risks becoming a trade barrier rather than a transparency enabler.


Strategic Opportunities: The DPP as Competitive Advantage

Forward-thinking companies are reframing the DPP from compliance burden to strategic opportunity. Several value drivers emerge for early adopters:

Enhanced supply chain visibility enables more sophisticated risk management. Companies can identify emissions hotspots, better manage supplier risks, and optimise logistics. The Deutsche Bahn already uses DPP-like systems to document the sustainability of its e-mobility investments and reduce manual reporting processes.

Circular economy enablement through complete material and component traceability facilitates more efficient recycling processes and identifies reuse opportunities. For the battery sector specifically, this means better recovery of critical raw materials like lithium and cobalt—both economically valuable and strategically important given supply chain vulnerabilities.

Consumer trust and brand differentiation increasingly depend on credible sustainability communication. An Authentique study reveals consumers are surprisingly open to DPPs and desire use cases extending far beyond regulatory requirements. This creates opportunities for brands to build trust through authentic sustainability communication and strengthen customer loyalty.

Access to sustainable capital as ESG integration in investment decisions accelerates. Institutional investors increasingly require portfolio companies to demonstrate sustainability performance through verifiable data. DPP infrastructure provides this evidence base, potentially reducing cost of capital and improving access to sustainability-linked financing.

Operational efficiency gains through automated compliance processes. Once DPP infrastructure is established, marginal costs for reporting to multiple jurisdictions decline significantly. Companies report 15-32% efficiency improvements through automated data generation compared to manual processes.


Implementation Challenges: Navigating Complexity

Despite opportunities, DPP implementation presents formidable challenges, particularly for resource-constrained organisations.

Financial Investment Requirements

Cost estimates vary significantly by company size and product complexity. Small brands and startups might expect costs under €10,000 annually, whilst mid-sized companies should budget €15,000-50,000. Large corporations with complex global supply chains may require investments from €100,000 to over €500,000. These figures include software licences, implementation costs, and ongoing operational expenses.

For companies operating across multiple markets, the question becomes whether to implement multiple regional systems or invest in a global DPP infrastructure anticipating future requirements beyond the EU.

Data Availability and Quality

Many companies lack complete information about upstream and downstream supply chains, particularly for complex products with hundreds of suppliers. Lifecycle assessment practitioners understand this challenge intimately—primary data collection across multi-tier supply chains remains expensive and time-consuming.

The DPP exacerbates this issue by requiring verified, granular data rather than estimations or industry averages. Standardisation of data formats and automation of data capture through IoT sensors can address these problems medium-term, but represent additional investment requirements.

Balancing Transparency and Confidentiality

The DPP requires information about material composition and supply chains whilst sensitive data including supplier networks and production methods must be protected from competitors. Granular access control mechanisms and implementation of decentralised identity systems can help, but require sophisticated IT governance.

Companies must determine which data is publicly accessible (typically basic product information and sustainability claims), which is restricted to authorities (potentially including full supply chain maps), and which remains proprietary (production methods, supplier pricing).

Skills and Capacity Gaps

DPP implementation requires expertise spanning sustainability science, data management, IT systems, and regulatory compliance. Few organisations possess all required capabilities internally, creating dependence on external sustainability consulting or technology service providers.

Training existing staff involves significant time investment. New hires with relevant expertise are expensive and difficult to recruit in competitive labour markets. This skills challenge is particularly acute for SMEs and manufacturers in developing countries.


Sector-Specific Insights: Batteries and Textiles as Pathfinders

Batteries: The Implementation Pioneer

The battery sector's early timeline makes it the testing ground for DPP concepts. The EU Battery Regulation 2023/1542 requires digital battery passports from February 2027 for specific categories. The passport must include over 100 data attributes covering material sourcing of critical raw materials including cobalt and lithium, carbon footprint across entire lifecycle, recycled content percentage, performance data and state-of-health information, and recycling and end-of-life options.

Major automotive manufacturers including Audi, Tesla, and Kia are already conducting pilot projects to track materials and establish data capture processes along their supply chains. Insights gained from these battery passport implementations are directly informing planning for textiles, electronics, and other sectors.

The battery sector's experience reveals several implementation lessons transferable to other industries. First, supplier engagement is critical—manufacturers cannot create comprehensive passports without data from material suppliers, component manufacturers, and recycling partners. Second, standardised data formats dramatically reduce implementation complexity—the Global Battery Alliance's work here provides templates other sectors can adapt. Third, dynamic data updating throughout product lifecycle requires robust IT infrastructure and clear protocols for who can update information and how verification occurs.

Textiles: Untangling Complex Supply Chains

The textile and fashion industry faces the challenge of making extraordinarily fragmented and global supply chains transparent. A typical garment undergoes dozens of production steps across different countries—from cotton production through spinning, weaving, dyeing, to final sewing. The DPP must document this entire chain.

The European Parliamentary Research Service proposes a three-phased approach for DPP introduction in the textile industry: Phase 1 (2027) with minimal and simplified DPP providing basic mandatory information; Phase 2 with expanded supply chain transparency and controlled access rights; and Phase 3 with complete integration across entire product lifecycle.

Leading fashion companies recognise DPP significance for EU market competitiveness. Through digital technologies like Digital Link QR-Codes, brands can ensure compliance with sustainability regulations whilst unlocking new business opportunities through stronger customer connections. For companies familiar with EUDR compliance, textile DPPs present similar supply chain mapping challenges with arguably greater complexity given the number of processing steps.


Strategic Recommendations for Global Companies

Based on 15+ years consulting experience across 300+ projects, several strategic priorities emerge for companies preparing for DPP requirements:

1. Conduct Geographic Market Analysis

Assess which markets require DPP compliance and when. EU exporters face mandatory requirements, but companies should also monitor developments in China, potential US sector-specific regulations, and requirements emerging in other key markets. This analysis informs whether to pursue market-specific solutions or global DPP infrastructure.

2. Engage Suppliers Proactively

Supplier capabilities will determine DPP success or failure. Begin conversations early, particularly with strategic suppliers representing significant volume or unique capabilities. Clarify data expectations, establish standardised formats, and potentially provide training or financial support for digitisation investments.

For suppliers in developing countries, consider collaborative approaches including shared technology platforms, capacity building programmes, or longer-term contracts justified by DPP investments.

3. Choose Technology Strategically

The build-versus-buy decision depends on resources, expertise, and product complexity. Large corporations with sophisticated IT capabilities may justify custom development. Most SMEs will find DPP-as-a-Service solutions more cost-effective.

Evaluate potential technology partners on interoperability capabilities, scalability for growth, data security and governance features, and track record with similar companies.

4. Implement Pilot Projects

Begin with limited product lines or specific markets to learn and adapt before full-scale rollout. Pilots reveal data gaps, supplier capability constraints, and IT integration challenges whilst risks and costs remain manageable.

Battery and textile manufacturers have the most urgent timeline pressure, but companies in other sectors benefit from observing these early implementers and incorporating lessons learned.

5. Establish Robust Data Governance

Clear protocols for data access, updating, and protection are essential, particularly when sensitive business information is involved. Define role-based access controls, establish verification procedures for data updates, implement audit trails for accountability, and ensure GDPR and other data privacy compliance.

6. Consider LCA and PCF Integration

Companies already conducting lifecycle assessments or calculating product carbon footprints possess foundational data for DPPs. Integrate these existing processes rather than creating parallel systems. For organisations without current LCA capabilities, DPP requirements may justify the investment given multiple compliance benefits.

7. Monitor Regulatory Developments Actively

DPP requirements will evolve as implementation proceeds and lessons emerge. Companies need systematic processes to track regulatory updates, particularly the detailed product-specific regulations expected from the European Commission through 2026-2027.


Economic Perspective: Market Growth and ROI Considerations

The global market for Digital Product Passports is projected to grow rapidly. Estimates suggest market value between $1.2-1.4 billion by 2030, with annual growth rates exceeding 22%. Fortune Business Insights projects growth to $4.5 billion by 2034.

This growth is driven by tightening sustainability regulations, increased consumer awareness, and the need for robust supply chain transparency. North America and Europe currently lead adoption, whilst the Asia-Pacific region is rapidly catching up due to fast industrialisation in China and India and evolving regulatory frameworks.

On the cost side, both burdens and saving potentials emerge. An Oxera study estimates annual compliance costs in the European electronics sector at approximately €797 million, with digital labelling potentially reducing these costs by around 15%. Efficiency gains through automated data generation are estimated at 15-32%.

Return on investment derives from multiple factors: reduced compliance costs through process automation, improved resource efficiency through optimised circular economy processes, risk minimisation through better supply chain oversight, access to sustainability-oriented capital, and market differentiation through credible sustainability communication.

For investors and boards evaluating DPP investments, the question isn't whether to invest, but how quickly and comprehensively. Early movers will shape standards, build expertise, and capture competitive advantages in ESG-conscious markets.


Looking Forward: The DPP as Emerging Global Standard

The Digital Product Passport is evolving from a European regulatory requirement into a potential global standard for product transparency. Parallel developments in China, the United States, and the Asia-Pacific region indicate that underlying principles—traceability, transparency, circular economy—have universal relevance.

The coming years will be decisive for harmonising different regional approaches. International organisations including UNECE and ISO are already working on global alignment initiatives. The DPP's success ultimately depends on creating standardised, interoperable systems that facilitate rather than hinder cross-border trade.

For companies, this means early investment in DPP infrastructure secures not only EU compliance but also competitive advantages in an increasingly transparency-driven global market. The transformation is challenging, but the direction is clear: the future belongs to products whose entire history is digitally traceable—from first raw material to final recycling process.


Frequently Asked Questions

What is the Digital Product Passport timeline?

The DPP implementation follows a phased timeline driven by the EU's Ecodesign for Sustainable Products Regulation (ESPR), which entered into force in July 2024:

  • February 2027: Batteries (industrial batteries >2 kWh, electric vehicle batteries, light transport vehicle batteries) must have digital passports—making this the first mandatory category
  • Mid-2027: Textiles and apparel expected to require DPPs, with detailed requirements likely published in early 2026
  • 2027-2030: Progressive rollout for electronics, furniture, tyres, steel, and aluminium, with specific dates to be confirmed through delegated acts

The European Commission is developing product-specific regulations throughout 2025-2026, with detailed data requirements and technical specifications for each category. Companies should monitor regulatory updates closely, as timelines may shift based on industry feedback and technical feasibility assessments.

Outside the EU, China's state-administered DPP system is under development with a 2027 target aligned to EU battery requirements. The United States has no federal mandate but sector-specific initiatives may emerge. Other Asia-Pacific nations are in exploratory phases, suggesting global DPP requirements will expand beyond Europe through the early 2030s.

Can you provide a Digital Product Passport example?

A practical example illustrates how DPPs work: Consider an electric vehicle battery manufactured in 2027. The battery carries a QR code that, when scanned, provides access to its digital passport containing:

Publicly accessible information (via consumer-facing QR code):

  • Manufacturer name and contact details
  • Battery model and unique serial number
  • Production date and location
  • Total carbon footprint: 89 kg CO₂e per kWh
  • Recycled content: 22% cobalt, 18% lithium, 35% nickel
  • Expected lifespan: 2,000-3,000 charge cycles
  • Recycling instructions and take-back programme information

Restricted information (accessible to authorities and authorised actors):

  • Complete supply chain mapping showing cobalt sourced from specific mines in Australia and DRC
  • Detailed component supplier information
  • Due diligence documentation for conflict minerals
  • Performance data including degradation rates and temperature exposure history
  • Maintenance and repair records updated throughout vehicle ownership

Dynamic data (continuously updated):

  • Current state-of-health: 87% capacity remaining after 150,000 km
  • Number of charging cycles completed
  • Temperature exposure events
  • Repair and refurbishment history

This data is stored on a blockchain-based platform ensuring tamper-proof records whilst granular access controls protect commercially sensitive information. When the battery reaches end-of-life, recyclers access the passport to optimise material recovery—knowing exact material composition enables more efficient processing and higher recovery rates of critical materials.

For textiles, a similar structure applies but covers different data: a cotton shirt's DPP might include cotton origin (specific farms in India), water consumption during cultivation and processing, chemical treatments applied, carbon footprint across the supply chain, worker welfare certifications, washing and care instructions for longevity, and textile-to-textile recycling options. The wearer scans a Digital Link QR code on the garment label to access this information, building transparency and trust.

What are Digital Product Passport requirements for textiles?

The textile and fashion industry faces unique DPP challenges given extraordinarily complex, multi-tier global supply chains. A typical garment undergoes 15-30 production steps across 5-10 countries, making comprehensive traceability particularly challenging.

Expected mandatory data requirements (based on European Parliamentary Research Service proposals and industry consultations):

Product identification:

  • Unique product identifier (GTIN or similar)
  • Brand name and manufacturer details
  • Country of final assembly

Material composition:

  • Fibre content breakdown (e.g., 95% organic cotton, 5% elastane)
  • Origin of raw materials (cotton from specific regions, synthetic fibres from particular manufacturers)
  • Presence of hazardous substances and chemicals used in processing
  • Recycled or renewable content percentage

Environmental performance:

  • Carbon footprint across production, transport, and expected use
  • Water consumption during cultivation, dyeing, and finishing
  • Energy consumption in manufacturing
  • Microplastic shedding potential for synthetic textiles

Social compliance:

  • Worker welfare certifications
  • Fair wage documentation
  • Factory audit results for key suppliers

Circularity information:

  • Care instructions optimised for longevity
  • Repairability score and availability of spare parts
  • Recyclability and recommended end-of-life pathways
  • Take-back or resale programme information

Implementation approach: The European Parliamentary Research Service recommends a three-phased rollout for textiles. Phase 1 (2027) focuses on basic mandatory information accessible via simple QR codes—primarily product identification, material composition, and basic care instructions. Phase 2 expands to fuller supply chain transparency with controlled access rights, allowing brands to protect sensitive supplier relationships whilst meeting regulatory requirements. Phase 3 achieves complete integration across the product lifecycle, including consumer usage data and end-of-life tracking.

Practical challenges for textile manufacturers:

  • Fragmentary supplier data, particularly from tier 2-3 suppliers in developing countries
  • Lack of standardised data formats across the global textile industry
  • Cost implications for SMEs, particularly those in export-dependent developing nations
  • Balancing transparency with protection of proprietary production methods

Fashion brands preparing for textile DPPs should begin supplier engagement immediately, focusing on strategic suppliers representing significant volume or unique capabilities. Many are piloting DPP systems on limited product lines—typically higher-value items where consumers most value transparency and sustainability credentials. The lessons learned inform broader implementation strategies before the 2027 deadline.

What Digital Product Passport software is available?

The DPP software market is rapidly evolving, with solutions ranging from enterprise-grade platforms to SME-focused SaaS offerings. Companies face build-versus-buy decisions based on product complexity, technical capabilities, and budget constraints.

Categories of DPP software solutions:

1. DPP-as-a-Service platforms (recommended for most SMEs and mid-sized companies): These cloud-based solutions offer pre-built infrastructure for creating, managing, and sharing digital product passports without significant IT development. Typical features include QR code generation and management, blockchain-based data storage, pre-configured templates for different product categories, API connections to existing ERP/PLM systems, access control management, and compliance monitoring against evolving regulations.

Representative providers include Circularise (specialising in supply chain transparency and confidential data sharing), Spherity (focusing on decentralised identities and pharmaceutical/automotive sectors), and various emerging platforms specifically targeting textiles, electronics, or batteries.

2. Product Information Management (PIM) systems with DPP modules: Companies with existing PIM infrastructure can extend these systems with DPP-specific functionality. MACH-based PIM systems (Microservices, API-first, Cloud-native, Headless) offer particular flexibility for DPP requirements. Major PIM vendors including inRiver, Akeneo, and Pimcore are developing DPP-specific modules that integrate with existing product data management workflows.

3. Industry-specific platforms: The battery sector has purpose-built solutions aligned to the Battery Passport requirements, often developed in collaboration with the Global Battery Alliance. Textile platforms focus on fashion supply chain mapping and fabric traceability. These specialised tools offer deeper industry-specific functionality but may lack flexibility for companies with diverse product portfolios.

4. Blockchain infrastructure providers: For large enterprises building custom DPP systems, blockchain infrastructure providers offer the underlying technology stack. These solutions require significant technical expertise and internal development resources but provide maximum customisation and control.

Selection criteria for choosing DPP software:

  • Interoperability: Can the system exchange data with other DPP platforms and read passports created by suppliers? Given emerging global standards, systems must support data import/export in standardised formats
  • Scalability: Will the solution accommodate growth in product lines, data volume, and user numbers without performance degradation?
  • Data security and governance: What access controls, encryption standards, and audit capabilities exist? Particularly important when handling sensitive supply chain information
  • Compliance support: Does the vendor actively track regulatory developments and update the system to reflect new requirements? Regular updates are essential given evolving DPP regulations
  • Integration capabilities: How easily does the software connect to existing ERP, PLM, CMS, and other business systems? API quality and documentation matter significantly
  • User experience: Is the interface intuitive for both internal users (who create and manage passports) and external users (consumers, recyclers, authorities who access information)?
  • Cost structure: Total cost of ownership including licensing, implementation, training, and ongoing support. SMEs should expect €5,000-20,000 annually for SaaS solutions; large enterprises may invest €50,000-200,000+ for comprehensive platforms

Implementation recommendations:

Most companies benefit from starting with established DPP-as-a-Service platforms rather than building proprietary systems. This approach minimises time-to-compliance, leverages vendor expertise in evolving regulations, and allows internal teams to focus on data quality and supplier engagement rather than software development.

Companies should conduct pilots with 2-3 vendors on limited product lines before committing to enterprise-wide implementation. This reveals integration challenges, usability issues, and vendor responsiveness whilst costs and risks remain manageable. The battery and textile sectors, facing earliest deadlines, have most urgency—but companies in other categories benefit from monitoring these early implementations and learning from their experiences.

For organisations already conducting lifecycle assessments or product carbon footprint calculations, evaluate whether existing LCA software vendors offer DPP modules. This integration reduces duplicative data entry and leverages existing environmental data for passport creation.


Conclusion: Strategic Positioning for a Transparent Future

The Digital Product Passport represents more than regulatory compliance—it's a fundamental shift in how products are conceived, manufactured, traded, and recycled. For international businesses, the question isn't whether this transparency revolution will happen, but how quickly to adapt and how strategically to position for the opportunities it creates.

Companies viewing the DPP purely through a compliance lens risk missing its transformative potential. Those recognising it as infrastructure for circular economy business models, enhanced supply chain resilience, and credible ESG communication will find themselves better positioned for the decade ahead.

The regulatory momentum is irreversible. The technological capability exists. Consumer demand for transparency is growing. The competitive advantage belongs to organisations that move proactively rather than reactively.

For businesses with global operations, export dependencies, or complex supply chains, the time to engage with DPP planning is now—whilst standards remain shapeable and first-mover advantages remain available. The Digital Product Passport will reshape international trade; the only variable is whether your organisation helps write the rules or scrambles to follow them.

Johannes Fiegenbaum

Johannes Fiegenbaum

ESG & sustainability consultant specializing in CSRD, VSME, and climate risk analysis. 300+ projects for companies like Commerzbank, UBS, and Allianz.

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