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January 24, 2025 •Paolina Guri
The fashion industry is facing a revolution aimed at radically transforming how products are designed, made, used, and disposed of. At the forefront of this transformation is the Digital Product Passport (DPP), a tool proposed by the European Commission to promote sustainability and transparency. The DPP is part of the broader "EU Strategy for Sustainable and Circular Textiles" which seeks to create a greener, more competitive, and resilient sector.
From mandatory EcoDesign requirements to the fight against Green Claims, and including extended producer responsibility with eco-modulated taxation, the Digital Product Passport is undoubtedly one of the main tools in the European strategy for circular and sustainable fashion. This wide-ranging and complex regulatory framework is causing confusion and concerns among major brands in the industry.
The European Commission envisions 2030 with durable and recyclable products made largely from recycled fibers, free from hazardous substances, and produced with respect for social rights and the environment. The EU's goal is to make fast fashion obsolete by promoting high-quality, affordable clothing. Central to this vision are reuse and repair services that extend product lifespans and reduce waste. A circular fashion ecosystem, supported by innovative fiber-to-fiber recycling, would thrive, while incineration and landfill disposal are minimized.
The Digital Product Passport is a key component of this strategy, as part of the Ecodesign for Sustainable Products Regulation (ESPR) approved on March 30, 2022. It is a digital document that will accompany the product throughout its entire life cycle, providing detailed information on various aspects.
The regulations have not yet clarified what and how much information will be required for the Digital Product Passport, but they have provided some initial indications of the fundamental data needed, including:
This information will not only allow consumers to make more informed purchasing decisions but will also encourage companies to operate with greater transparency and responsibility throughout the entire supply chain. 2027 appears to be the target year for the implementation of all the above, considering that the specific content of the DPP, as well as technical standards and information, are yet to be defined.
Regulatory obligations aside, the Digital Product Passport offers a range of opportunities that can transform how companies manage and enhance their products. The DPP acts as a comprehensive information hub, organizing certified data related to materials, origin, and production processes. This integrated management not only facilitates greater transparency and traceability throughout the supply chain but also allows companies to leverage this data for marketing activities, tell the product's story, and create perceived added value. Additionally, the benefits in terms of supply chain optimization, waste reduction, and encouragement of sustainable practices are undoubtedly tangible.
While awaiting the implementation of regulatory obligations, companies are expected to prepare for the adoption of the Digital Product Passport. This requires not just new tools but also a different mindset, as institutions demand fashion brands to continue their market operations.
At Avvale, we firmly believe in technology as an enabler for creating value, building trust and transparency, and unlocking the potential of circularity. Therefore, we partner with our clients to understand how to turn regulatory requirements into genuine opportunities, allowing them to streamline internal processes and enhance the quality of their Made In products.
In collaboration with MADE, the Competence Center of Politecnico di Milano, as well as other technology partners, we have launched a series of initiatives to raise awareness and inform companies about the DPP. We have also undertaken traceability projects with some of them, which are a fundamental basis for the Digital Product Passport. With specific ESG knowledge, Blockchain technology expertise, and more, Avvale aims to support its clients in the informed adoption of the necessary technological tools to ensure compliance with evolving regulations.