A Practical Guide to the Digital Product Passport

Introduction

A quote often attributed to Marshall McLuhan, regarded as the father of communications and media studies, and prophet of the information age, stated, “We shape our tools and thereafter they shape us.” ¹

European organizations are currently shaping and defining the nascent role of the digital product passport (DPP) within their industry. DPP can be considered a technology and a regulation that’s used to collect and share information to support transition to a circular economy.

Passport technology enables consumers, businesses, and governments to enforce environmental policy for regulatory compliance as well as make responsible purchasing decisions about a product’s origin, materials, components, carbon footprint, supply chain, and environmental impact.

As the broader passport concept continually evolves in terms of its utility, DPP has currently positioned itself at the forefront of sustainability, recyclability, and environmental initiatives—all integral components of the circular economy framework.

While the passport is focused on tracking products for circularity, other valuable information can be added to help companies reduce their carbon footprint such as asset-centric service to enable preventative maintenance and improve operational efficiency.

A quote often attributed to Marshall McLuhan, regarded as the father of communications and media studies, and prophet of the information age, stated, “We shape our tools and thereafter they shape us.” ¹

European organizations are currently shaping and defining the nascent role of the digital product passport (DPP) within their industry. DPP can be considered a technology and a regulation that’s used to collect and share information to support transition to a circular economy.

Passport technology enables consumers, businesses, and governments to enforce environmental policy for regulatory compliance as well as make responsible purchasing decisions about a product’s origin, materials, components, carbon footprint, supply chain, and environmental impact.

As the broader passport concept continually evolves in terms of its utility, DPP has currently positioned itself at the forefront of sustainability, recyclability, and environmental initiatives—all integral components of the circular economy framework.

While the passport is focused on tracking products for circularity, other valuable information can be added to help companies reduce their carbon footprint such as asset-centric service to enable preventative maintenance and improve operational efficiency.

With Market Research Future’s (MRF) recent analysis, the digital product passport market size was estimated at 1.35 USD billion in 2022. The digital product passport market is expected to grow from 1.68 USD billion in 2023 to 12.0 USD billion by 2032. The DPP market CAGR (growth rate) is expected to be around 24.43% during the forecast period (2024 – 2032). ²

Despite DPP being driven by the European Union (EU) under numerous legislation, it’s not just European-based companies that will have to utilize passports. Any product that enters the EU market must comply with the related legislation; products will have to carry an associated DPP even if the company is registered in non-EU territories. With that in mind, it’s possible a U.S. equivalent to a digital passport could be in the works to help satisfy consumer demand for supply chain transparency and circular products.

Let’s take a closer look at what DPP is all about.