9 October 2024
Breaking down CSRD requirements
- Greenwashing
The textile industry is one of the largest contributors to global environmental pollution and social injustice. In recent years, there has been a growing demand for transparency and accountability in the fashion supply chain. To address these concerns, the concept of the Digital Product Passport (DPP) has emerged as a powerful tool for promoting sustainability and traceability in the textile industry.
The Digital Product Passport is a digital document, more an identifier, that provides comprehensive information about a textile product throughout its lifecycle. It includes accurate and reliable information about the product’s raw materials, manufacturing processes, environmental impact, and social responsibility. By digitally storing and sharing this information, the DPP enables consumers, retailers, and regulators to make informed choices and hold businesses accountable for their practices.
The relationship between Digital Product Passports (DPPs) and Ecodesign for Sustainable Products Regulation (ESPR) is a powerful synergy aimed at promoting sustainability and transparency in product lifecycles. Ecodesign regulations set the framework for creating products with minimal environmental impact, focusing on resource efficiency, energy efficiency, and circular economy principles. This regulation sets the groundwork for the importance and implementation of the DPP, including data requirements and system architecture. It provides a level playing field with standardised methods for measuring and communicating sustainability efforts and impact.
Digital Product Passports complement these regulations by providing a digital record of detailed product information, including material composition, manufacturing processes, and lifecycle data. This transparency helps manufacturers comply with Ecodesign standards by making it easier to demonstrate adherence to sustainability criteria.
DPPs enhance more sustainable design by offering insights that help designers make informed choices about materials and processes. They also support a circular economy by enabling effective tracking of materials for recycling and promoting product repairability. For consumers, DPPs provide the transparency needed to make informed, more sustainable purchasing decisions, building trust in products that meet Ecodesign standards.
Niki de Schryver, CEO & founder of COSH!, already acting as a significant pioneer in the fashion industry as from 2011 when she introduced the first 100% fully transparent supply chain for Bruno Pieters brand “Honest”. Niki’s efforts contributed to a broader cultural shift towards transparency and sustainability in fashion, laying the groundwork for regulations like the ESPR. Her work highlighted the importance of providing consumers with detailed information about product lifecycles, promoting informed and sustainable consumption choices. COSH! is there to guide you gather the right data to fulfil the requirements of a Digital Product Passport, to generate impact by manufacturing products with minimal environmental footprint, and to cultivate & promote a circular economy.
Together, Digital Product Passports and Ecodesign regulations drive innovation, improve product sustainability, and support the transition towards a circular economy, ultimately reducing environmental impact and promoting long-term sustainability.
Evolution of the Law on Digital Product Passport
The Digital Product Passport for textiles has evolved over the years in response to the need for greater transparency and accountability in the fashion industry. Let’s see how it began!
Brief History of the DPP for Textile Industry
The journey towards the implementation of the Digital Product Passport in the textile industry began with the recognition of the need for transparency and traceability. Various stakeholders, including governments, NGOs, and industry experts, came together to develop frameworks and guidelines to address these concerns. The European Union, in particular, has been at the forefront of promoting the use of Digital Product Passports in the textile sector.
The DPP and the ESPR are integral components of the EU’s Green Deal, which sets ambitious targets for reducing greenhouse gas emissions and promoting economic growth decoupled from resource use. The Green Deal includes the Circular Economy Action Plan, which aims to make more sustainable products the norm, empower consumers, and reduce waste.
Current Status and Relevance of Digital Product Passport in Textiles
As the ESPR has been adopted by the European Parliament in April 2024 and got into force July 2024, it aims to establish a set of requirements for more sustainable product design and introduce the Digital Product Passport (DPP). The detailed requirements and guidelines for DPPs, known as Delegated Acts, are expected to be finalised by the end of 2025, with enforcement starting from 2027. This regulation is part of broader efforts to reduce the environmental impact of textile products by enhancing their durability, reusability, and recyclability. The Digital Product Passport has already gained significant traction in recent years and organisations recognise its importance in promoting sustainability in the textile industry. The introduction and demand from the ESPR to implement a DPP for textiles, making it a legal requirement for businesses operating in the EU market. This move has further emphasised the relevance and significance of Digital Product Passports in the textile industry.
Scope and Requirements of the DPP
To fully understand the implications of the Digital Product Passport for textile businesses, it is essential to know who is affected and what compliance standards need to be met.
Who will be Affected by the Digital Product Passport?
The Digital Product Passport requirement will apply to all businesses involved in the production, distribution, and sale of textiles within the jurisdiction that has implemented the legislation. This includes manufacturers, suppliers, retailers, and online platforms. Any entity that contributes to the textile supply chain is expected to comply with it. Compliance with the DPP requirement will be mandatory for affected product categories, making it a significant legal obligation for brands operating in the EU market.
Key Requirements and Compliance Standards for Textile Businesses
To meet the requirements of the Digital Product Passport, textile businesses need to ensure that they have accurate and up-to-date information about their products. This includes static and dynamic data points about the product, such as the brand, production methods, materials, care instructions, and end-of-life disposal.
Additionally, businesses need to implement systems and processes that enable the creation, storage, and sharing of this information digitally. Compliance with these requirements is crucial for businesses to demonstrate their commitment to sustainability and responsible practices. From 2027 onwards, all relevant products placed on the European market must comply with the ESPR, including having a DPP that provides detailed information about the product’s lifecycle, sustainability, and circularity.
Roadblocks to the Rollout of Digital Product Passports
The Delegated Act is still being developed and expected to be finalised by the end of 2025. It will provide specific instructions on the data points that need to be captured, the format of the data, and the systems required for compliance. There is a need for robust IT systems and infrastructure to support the collection, storage, and sharing of DPP data. Many brands and suppliers need to upgrade or integrate their existing systems to handle these requirements. Standards for interoperability are still being defined and implemented. Ensuring the accuracy and consistency of the data across different suppliers and systems is a complex task that requires standard protocols and verification mechanisms. Aligning the DPP requirements with other regulatory initiatives and ensuring coherence across different sectors and regions is for sure an ongoing process. The European Committee for Standardization (CEN) and the European Committee for Electrotechnical Standardization (CENELEC) are working on developing the necessary standards, which are expected to be completed by December 2025.
Exploring Opportunities and Benefits
While the implementation of the Digital Product Passport may seem like a daunting task for textile businesses, it also presents several opportunities and benefits.
Potential Opportunities for Textile Businesses with Digital Product Passport
By embracing the Digital Product Passport, textile businesses can position themselves as leaders in sustainability and transparency. The DPP allows businesses to differentiate themselves from competitors by providing consumers with the information they need to make more conscious purchasing decisions. This can lead to increased customer loyalty, brand reputation, and market share.
Advantages of Implementing the Digital Product Passport
The Digital Product Passport offers numerous advantages for textile businesses. Some of the key benefits include:
Enhanced Transparency: The DPP enables businesses to provide detailed information about their products, fostering transparency and trust with consumers.
Improved Sustainability: By tracking and documenting the environmental impact of their products, businesses can identify areas for improvement and implement more sustainable practices.
Strengthened Supply Chain: The DPP promotes traceability and accountability throughout the textile supply chain, reducing the risk of unethical practices and supporting responsible sourcing.
Regulatory Compliance: Implementing the Digital Product Passport ensures compliance with relevant legislation, reducing the risk of penalties and legal issues.
Being well prepared for the Upcoming Digital Product Passport
Preparing for the implementation of Digital Product Passports (DPP) involves several key steps that you should undertake to ensure compliance with the upcoming regulations and to leverage the benefits of increased transparency and traceability.
Understand the Requirements: Brands should familiarise themselves with the detailed requirements of the Digital Product Passport as outlined in the Ecodesign for Sustainable Products Regulation (ESPR). This includes understanding the specific data points that need to be captured, such as product origin, materials used, production processes, and end-of-life disposal options.
Conduct a Data Audit: A thorough audit of existing data related to products is essential. Brands need to identify:
- What data is already being collected.
- What additional data needs to be gathered.
- The sources of this data (internal systems, suppliers, etc.).
- Any gaps in data that need to be addressed.
Integrate Digital Systems: Implementing or upgrading digital systems to handle the collection, storage, and sharing of the necessary data is critical.
Engage with Suppliers: Suppliers play a crucial role in providing accurate and timely data. Brands should:
- Establish clear communication channels with suppliers.
- Set expectations and requirements for data sharing.
- Offer training and support to help suppliers comply with the new data requirements.
Implement Data Carriers: Decide on the most appropriate data carriers with an unique product identifier compliant with ISO/IEC 154459:2015. Options include, among others:
- QR Codes: Easily accessible by consumers and cost-effective.
- RFID Tags: Useful for bulk scanning and efficient in recycling operations.
- NFC Tags: Convenient for interactive consumer engagement.
Train Internal Teams: Ensure that all relevant departments within the brand are informed and trained on the new requirements and processes. This includes:
- Sustainability teams.
- Product development and design teams.
- Supply chain and logistics teams.
- Marketing and consumer engagement teams.
Are you already working with a global trade item number and GS1 Digital Links?
A GS1 Digital Link significantly facilitates the implementation of Digital Product Passports by providing a standardised, interoperable, and scalable solution for linking physical products to their digital counterparts and can provide a range of information:
- The brand and manufacturer details.
- Information about the materials used and their sources.
- Environmental impact data and sustainability certifications.
- Care instructions and repair guides.
- End-of-life disposal and recycling instructions.
How COSH! Supports Compliance
At COSH!, we understand the challenges faced by textile businesses when it comes to implementing the Digital Product Passport. That’s why we already dive deep into this topic and requirements to investigate our comprehensive support and resources which can help businesses to fulfil the legal requirements and reap the benefits of the DPP.
On the one hand COSH! can provide training and support to guide suppliers understand and meet DPP requirements, ensuring smooth and efficient data collaboration.
Book a meeting and learn more about the DPP for your company.
On the other hand COSH! as a trusted partner is engaged to serve as a centralised data hub where brands can collect, manage, and store the necessary information for DPPs. This includes detailed data on product materials, manufacturing processes, and supply chain specifics.
Our team assists brands as well in running pilot programs to test DPP implementation, offering guidance and support throughout the process. By sharing successful case studies and best practices from other brands, the platform provides valuable insights and encourages broader adoption of DPPs.
Starting with a pilot program can help identify potential issues and solutions before full-scale implementation:
- Selecting a range of products to pilot the DPP.
- Testing different data carriers and digital systems.
- Collecting feedback and making necessary adjustments.
Besides any kind of practical tools and resources COSH! also keeps you abreast of any changes or updates to the DPP and ESPR requirements. We participate in relevant industry forums and conferences and engage with industry bodies and regulatory agencies to provide educational resources and training programs.
Conclusion
The Digital Product Passport is a powerful tool that can revolutionise the textile industry by promoting transparency, sustainability, and responsible practices. By embracing the DPP, textile businesses can not only meet legal requirements but also gain a competitive edge in the market. At COSH!, we are committed to supporting businesses in their journey towards more sustainability and compliance. Together, let’s build a future where fashion is not only beautiful but also more sustainable and with a certain share of responsibility.
Sources:
- Cirpass project
- Trustrace
- European Union Commission on Digital Product Passport
- Sustainable Fashion Research Reports
