The EU’s Digital Product Passport is on its way – and for businesses that design, manufacture, import or sell textile and clothing products, preparations are starting now.
It’s easy to think: “We’ll deal with that later.” But the work on data, processes and systems takes years – not months. Companies that get started early will therefore be in a significantly stronger position when the requirements come into force.
The Digital Product Passport is more than just compliance
Many companies still view the Digital Product Passport as purely a compliance project. But in practice, it is just as much an organisational and operational project.
If done properly, it involves, amongst other things:
- Governance – who owns the company’s product data, and how are decisions made?
- Data maturity – is data on materials, sourcing and sustainability structured, accurate and easily accessible?
- Integrations – can PIM, ERP and supply chain systems be connected so that data flows automatically into the Digital Product Passport?
- Clear processes – how is supplier data collected and validated in a consistent and efficient manner?
- Digital scalability – a solution that works for one product as well as for thousands.
At the same time, the EU’s ecodesign regulations mean that reparability is becoming an increasingly important requirement. Products must increasingly be designed and documented with a view to repair – rather than replacement.
Time is running out – the task is a huge one
The countdown to the Digital Product Passport (DPP) is well and truly underway.
The first requirements will come into force as early as 2027, and from 2028 the DPP will become mandatory for textiles. This applies broadly across the textile industry – regardless of whether your business manufactures or sells clothing, home textiles or other textile products.
It may sound as though there is plenty of time. But the work involved with product data, suppliers, systems and internal processes takes years – not months.
Therefore, the question is not whether your company should get started, but when. And the answer is: now.
The Digital Product Passport will form part of a company’s ESG data
The Digital Product Passport is not just about complying with new legislation. The data that companies collect on materials, traceability, product lifespan and reparability also forms an important foundation for the company’s work on ESG and sustainability.
This same data is increasingly in demand from customers, regulators and business partners alike, and forms a vital foundation for future sustainability reporting.
The sooner a company gets its product data and processes in order, the easier it will be to document compliance with legal and customer requirements, as well as the sustainability initiatives that investors, business partners and regulatory authorities increasingly expect.
Contact Grant Thornton if you’re ready to get started with the DPP
Do you have any questions about how to get started – or take the next steps – with the Digital Product Passport? Or how best to incorporate it into your ESG strategy or annual report?
If so, please feel free to get in touch with Grant Thornton’s ESG department.
