18. Oktober 2024
The EU’s new Digital Product Passport is reshaping data transparency across the entire value chain to allow retailers, distributors and consumers to choose products that align with their environmental values. Our Head of Global PXM & Product Strategy, Raphaël Iscar Gutierrez, joined The Digital Shelf Institute’s podcast to discuss Digital Product Passports and how to build the foundation for compliance.
What is the Digital Product Passport?
The Digital Product Passport (DPP) is an initiative introduced by the European Commission aimed at increasing transparency and empowering consumers. It's a digital document that carries detailed information about a product's origin, materials, environmental impact and supply chain journey.
With the DPP, consumers can make informed decisions about the items they buy, knowing exactly where those items come from and how they're made. The initiative signals a move toward a future where knowledge about our purchases is not just accessible but expected.
What does it mean for brands?
The DPP is both a challenge and an opportunity for brands.
It demands a new level of transparency that forces them to reexamine how they operate. Brands now need to provide detailed data on everything from the origin of materials to the environmental impacts of their products. This shift requires change management, as it impacts internal processes, technology and even company culture.
What was once driven by cost-cutting will now be influenced by ethical considerations, creating a new "ethical currency" alongside economic value. While this will undoubtedly add complexity and new roles, it’s also a chance for brands to strengthen their reputation.
Embracing the DPP allows companies to demonstrate accountability and lead the way in sustainability, building deeper consumer trust and long-term loyalty.
How should brands prepare?
Brands need to start by rethinking their internal structure. By building a centralized team from purchasing, IT and marketing to align efforts, organizations can ensure that all the necessary data is managed effectively across the product lifecycle. This will help them identify gaps and streamline the data flow, making sure everything aligns with both consumer expectations and regional regulations.
Once this structure is in place, they can progress to refining processes, especially around sourcing and product development. With a clear map of their product cycle, companies can identify pain points and find the right technological solutions to support this new level of transparency.
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