The digital product passport: the key to the circular economy and transparency
Introduction
The Digital Product Passport (DPP) will be a strategically important tool for companies to comply with the EU Ecodesign for Sustainable Products Regulation (ESPR) in practice. The aim of this regulation is to establish the basis for a sustainable, data-driven and future-proof industry in the EU and thus promote new digital services and business models. Companies should use the digital product passport to create transparency along the entire product life cycle by storing product-specific sustainability and origin information in digital form and making it available electronically. The information to be included in the DPP will be determined by the European Commission in close consultation with all relevant interest groups and will depend on the product type in question.
Background & context
The Ecodesign Regulation introduces new requirements that cover the entire life cycle of a product and are intended to strengthen the circular economy and extend product life: Durability, reusability, upgradability and reparability, maximum levels of so-called substances of concern, resource efficiency, recycled content, reprocessing and recycling, but also information requirements, such as designation of the CO2 or environmental footprint. This information is to be made fully or partially accessible to relevant stakeholders in the product life cycle (consumers, industry and authorities) through the introduction of digital product passports tailored to the respective product group.
When will the Digital Product Passport be mandatory for companies?
- The Digital Product Passport will be introduced gradually from 2027. The first step will be the battery passport, which will become mandatory for industrial and electric vehicle batteries from this date. In the following years, the EU Commission will issue further specific regulations for other product groups (including textiles, electronics, furniture, plastics and construction products).
- The DPP applies in all 27 EU member states. The decisive factor is not the place of manufacture, but the sale or placing on the market within the EU. This means that every product offered on the European market will have to have a DPP in future - a development that will have far-reaching effects on global supply chains. All players along the value chain - from suppliers, manufacturers and retailers to consumers, repairers and recyclers - will come into contact with the DPP.
Opportunities & potential
- Digital product passport improves transparency across the entire supply chain
The digital implementation of the product passport significantly increases the availability and timeliness of product data. Information can be automatically read, processed and exchanged across system boundaries using standardized digital twins. This not only simplifies internal processes, but also improves communication with partners, customers and authorities. In addition, the digital product passport enables better traceability and assessment of environmental impact, which supports both compliance with legal requirements and strategic sustainability goals.
- Open standards and data spaces: the basis for new potential
The use of open, interoperable data formats ensures that information remains accessible, usable and machine-readable in the long term. According to the Fraunhofer Institute, the Asset Administration Shell (AAS) as an interoperable exchange format is particularly suitable for this due to its openness. Furthermore, provision via a data room offers many other advantages. Here, the permanent link with the user companies can be used to provide additional services.
Steps for implementing a digital product passport
Successful implementation requires a structured approach: from defining the relevant data and integrating it into existing systems through to the secure and interoperable provision of information.
- Identification of relevant information: The introduction of a digital product passport begins with the identification of the relevant information from the regulations that must be documented about the product - this allows the required scope to be derived as a target image.
- Creation of the digital twin: A digital twin of the product is then created. Typically, the Asset Administration Shell (AAS) is used as an interoperable standard format for this.
- Harmonization and connection of data sources: Existing data sources (e.g. ERP, PLM systems) must be harmonized and connected to the digital twin. In this way, the digital twin can be continuously supplied with up-to-date information.
- Provision of access: Access to this product information is made possible via standardized interfaces or user-friendly visualizations.
We support you with the implementation - from data architecture to communication.
Further application examples
- Textile industry - traceability of materials.
- Electronics - repairability and recycling.
- Mechanical engineering - spare parts management and second life.
Examples of the DPP concept in detail: Digital battery passport
- Product identification and traceability
The digital battery passport must be accessible via a QR code or similar code that is linked to a unique battery identifier. This identifier is unique and is used to identify batteries, which also enables a link to the battery passport. The battery identifier must comply with the current ISO standards or equivalent standards. Furthermore, basic product details such as model, serial number, manufacturing data as well as suppliers and all actors involved in the supply chain must be specified.
- Chemical composition and material composition
The battery passport must contain a comprehensive list of the materials used, including the proportion of recycled content. It must contain information on the battery chemistry and all critical raw materials if these are contained in the battery in a concentration of more than 0.1% by weight.
- CO₂ footprint and environmental indicators
Information on the product's carbon footprint over its entire life cycle must be provided. EV batteries, industrial rechargeable batteries > 2 kWh and LMT batteries must have a clearly legible and indelible label indicating the carbon footprint and the carbon footprint performance class to which the battery model corresponds per production site. Further information on energy and water consumption must also be provided.
- Disposal and recycling
Instructions on product care and reparability as well as information on proper disposal are required. Information on the role of end-users in the separate collection of waste batteries must also be included.
- Conformity and certification
A battery passport must contain the results of test reports demonstrating compliance with the requirements of the Battery Ordinance. A due diligence report must be accessible free of charge via the battery passport and also on the Internet.
The challenge: precise recording of the CO₂ footprint of products
The product carbon footprint (PCF) must be listed in the digital product passport or the battery product passport. It is therefore essential to record, summarize and calculate CO₂ emissions. This is one of the biggest challenges for many industries. Precise implementation requires the complete digitalization of all processes and machines along the entire production chain. The use of neutral and interoperable technologies is therefore essential.
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