Latest news with #DigitalProductPassports
Yahoo
4 days ago
- Business
- Yahoo
What's the Status on Digital Product Passport Implementation?
The European Union's approach toward Ecodesign for Sustainable Products Regulation (ESPR) may be helping to keep the adoption of digital product passports (DPPs), once a widely hyped technology for supply chain transparency, afloat. Several years ago, DPPs—which help brands share information about a product's material makeup, origin, carbon footprint and instructions for end of life—consistently surfaced as a point of discussion. Companies considered their value, conducted pilots and began consolidating data to be used for the consumer-facing portion of the technology. As cost pressures amassed and priorities shifted, some companies halted their adoption or exploration of DPPs—but new movement on the ESPR could be ushering in a resurgence for the traceability tech. More from Sourcing Journal Trump Touts Trade Truce With Indonesia, Indicates India Might Not Be Far Behind Chain Reaction: Asendia's Hendrick Kummeling on Why Strategic Flexibility is the Best Defense Against the Uncontrollable Acne Studios Teams With Temera On Traceability Solution Despite the bloc's watering down of other sustainability-related regulations—take the reduced scope of the EU's Omnibus package designed for streamlining corporate due diligence, as an example—ESPR has already been adopted. Regulators have commenced a process that will soon set forth sector-specific expectations they will enforce under the law. In April, EU regulators approved the Ecodesign and Energy Labeling Working Plan 2025-2030, which indicated how they view industry prioritization and laid the groundwork for future expectations under the ESPR, including those for textiles and apparel. According to the plan, EU regulators believe implementing DPPs into the textiles and apparel sectors has 'high potential to improve product lifetime extension, material efficiency and to reduce impacts on water, waste generation, climate change and energy consumption.' Moving forward, EU regulators will propose a delegated act—which helps those impacted by the incoming regulations to better understand the exact requirements they must meet—to be adopted by 2027. The idea, then, is that companies will be in compliance with the requirements in 2027, and the mandates will be enforced in 2028. The act that will clarify the industry's requirements is likely to be proposed by the end of the year or early 2026. Megan Brewster, vice president of advanced technology at Impinj, said those acts will dictate the continued movement of DPP integration inside companies—both technology providers and those required to adopt the systems they build. 'DPP is still definitely moving forward. There's a lot of work going on in the standardization of, 'What are these digital product passports, and how are they implemented?'' Brewster said. 'We are still looking forward to those delegated acts, where we'll get a better understanding of what the implementation will really look like for these different product categories.' For all the bureaucracy that remains to be worked out, that the ESPR pervades at all is a win for transparency technology providers. The EU's legislation looms large and in charge over the heads of some fashion and apparel brands. Interview-based data from consulting firm Bain & Company and secondhand marketplace eBay research shows that roughly nine in 10 companies deem DPP integration a 'regulatory burden;' in other words, a checkbox they must tick off to keep their business compliant in a key market. Patrick Willemsen, director technical community EMEA at product lifecycle management (PLM) company Aras, said regulation and material provenance are the key reasons companies have started investing resources into DPP integration—but not all companies have started the journey of working toward DPPs. 'We do see some reluctance [toward] spending money on the DPP, especially because the collection of that data takes a lot of time and a lot of effort,' he said. 'I think the bigger [companies], they see that they have to be proactive. The smaller ones are reluctant, because it's not clear to them what is actually needed for the DPP, so they are more in the waiting position.' Data continues to be a problem for many brands working to integrate technology—mandatory or voluntary—particularly in the fashion industry. That's because fashion and apparel brands often have siloed data spread across their organizations, which can make consolidating even simple factors for a DPP on a clothing tag a daunting task without the right governance systems and supplier relationships in place. That's especially true as companies seem to face stronger-than-ever mandates from the C-suite related to creating value and churning profits. Matteo Capellini, partner at Bain & Company, said that though both EU and the U.S. regulators have backed down from respective legislation in their nations related to sustainability, companies continue to quietly advance their efforts, even if the goalposts have shifted. 'What we're seeing with this watering down of regulation in Europe is actually a change of paradigm. We summarize this change…with the expression, 'from morality to materiality.' Basically, companies are focusing much more on value creation in sustainability, but they're not slowing the effort,' he said. 'Companies, [because of] the politicization of certain issues are speaking less, but they're not slowing the efforts. This is what we're seeing with our clients on a daily basis now, and it's across geographies.' Each of the three experts noted that, while regulation might be a primary driver for implementing DPPs, brands and retailers are likely to find other value in the technology along the way. Authentication to reduce the spread of counterfeit items is but one benefit experts said DPPs could have; they could also help companies model the environmental impact their products could have before production ever begins. Part of the allure for companies could be delighting and connecting with the consumer. Bain and eBay's data shows that, at present, consumers actually reap about two-thirds of the value DPPs offer today. That's, in large part, because it helps them resell the product with greater ease—and to prove it's authentic during the process of selling the item. Capellini said brands and retailers have the opportunity to grab a greater share of that profit back if they enable branded resale programs at scale, rather than forcing consumers to rely primarily on peer-to-peer resale players like eBay, Poshmark, Depop and others. 'Today, secondhand is not a top priority for brands, although everyone, in one way or another, is looking into it or working on it,' he said. 'In the next three to five years, we [expect] to start seeing brands seeing the potential increasing year after year of secondhand, coming from this enabler of DPP, and investing in owning the [resale] channel, rather than relying on peer-to-peer platforms like it's happening today.' Brewster said sustainability, despite today's regulatory environment, remains top of mind for consumers and brands alike. She expects to see the secondhand market and other consumer-led sustainability plays continue to expand the market for DPPs. She further noted that other priorities, like traceability and product fidelity, will influence companies' prioritization of DPPs and other digital identifier technologies, like RFID. 'What we're seeing from companies is that sustainability remains a priority. It may be in a different place on that list of priorities, but it remains a priority. Other priorities that may be coming further up the list still point them toward the use of digital identifiers,' Brewster said. ''Sustainability' may not be the word for today, this year, next year, but it's for sure coming back.' Experts said they believe consumers' interest in sustainability remains. But despite that, consumers' interest in the digital fingerprints on the day to day is a little more difficult to quantify. Whether or not EU consumers are on board, DPPs on fashion and apparel items are headed their way within a few short years. But Willemsen said U.S. consumers may not see such stronghanded adoption from their favorite fashion brands—mostly because it's not fully required. Instead, he posited, companies will likely begin by implementing DPPs on their EU-based products, both to save money and to make the processes behind integration more streamlined before scaling DPPs into all their markets simultaneously. 'I have the impression that the American companies are waiting a little bit [to see] what the European companies are doing. That makes sense—the Europeans are closer to the fire,' he said. 'Global companies will have an advantage of being able to trial and error in Europe and see if [their approach] works.'
Fibre2Fashion
6 days ago
- Business
- Fibre2Fashion
Reconomy launches 5-year roadmap for textile EPR compliance
Reconomy has published a new global strategy paper titled 'Textile EPR Strategy 2030', outlining a comprehensive five-year roadmap for navigating the evolving global landscape of Extended Producer Responsibility (EPR) for textiles. The roadmap provides an overview of anticipated policy timelines and evolving requirements, while detailing how businesses can prepare for upcoming changes and leverage its strategic initiatives across Europe and worldwide. The new EPR legislation is driving a structural shift by making producers responsible for end-of-life management, including collection, reuse, recycling, and disposal—accelerating the move towards circular business models and sustainable production patterns. Rather than viewing this as a compliance burden, the strategy framed the transition as an opportunity for innovation and competitive advantage. By supporting stakeholders in aligning regulatory obligations with business goals, it aims to foster more resilient and future-ready operations that respond to growing demands from consumers, retailers, and policymakers. Reconomy's Textile EPR Strategy 2030 outlines a five-year roadmap to help businesses navigate evolving textile regulations. It highlighted upcoming policy timelines, eco-modulation, Digital Product Passports, and the shift towards circular models. The strategy focuses on operational readiness, cross-sector partnerships, and advanced data use. Key themes in the strategy included eco-modulation, Digital Product Passports, and the increasing need for reliable data and supply chain transparency. In the short term, during the 'pre-EPR' phase, the focus is on helping clients assess regulatory impact, prepare operationally, build strong partnerships across the textile ecosystem—including sorters and recyclers—and invest in technologies to manage data and material flows efficiently. Looking ahead, as EPR legislation becomes established across all EU member states and other global markets, the plan includes ongoing support for multi-jurisdictional compliance, especially in regions such as North America. It also emphasises the use of product-level data to drive design innovation and accelerate the adoption of circular business models. Fibre2Fashion News Desk (SG)
Yahoo
14-07-2025
- Business
- Yahoo
Reconomy guides firms through shifting textile EPR landscape
Reconomy's new strategy offers a detailed five-year roadmap with insights into expected policy developments and evolving requirements. It highlights critical elements like eco-modulation, the implementation of Digital Product Passports, and the necessity for comprehensive data and increased transparency within supply chains. Reconomy conducts its operations in over 150 countries and caters to a client base that exceeds 23,000, which includes some of the largest global brands. Under the Textile EPR law, producers bear the responsibility for the entire lifecycle management of textile products. This includes post-consumer stages such as collection, reuse, recycling, and disposal. The implementation of textile EPR regulations is underway with anticipated finalisation and publication slated for this year. EU member states are expected to transpose these directives into national legislation by 2025. By 2027, all EU countries must have established Textiles EPR laws. Following 2027, producers will be responsible for reporting, data collection, and financial contributions to EPR systems. Reconomy has outlined its mission and specific initiatives for the next five years. These aim to equip clients with the tools required to effectively manage the complexities of textile EPR. Reconomy textile programme and business development director Lavi Aharon said: 'Textile producers are facing an increasingly complex and fast-evolving regulatory landscape as EPR schemes roll out across the world, and especially in Europe. At the same time, they are under growing pressure to demonstrate real progress on sustainability to retailers and consumers. 'Our new global strategy not only sets out what businesses can expect over the next five years but also details Reconomy's own strategy and initiatives to support this transition.' During the "pre-EPR" phase or the short-term strategy, the company will focus on assisting clients with understanding regulatory impacts, operational preparedness, establishing strategic partnerships within the textile ecosystem, and investing in technological advancements for superior data management and material returns. The long-term strategy includes the post implementation of EPR legislation across EU member states and other global markets. Reconomy plans to offer continued support to clients with multi-jurisdictional compliance, including regions like North America. The company will also assist in harnessing product-level data to foster innovation, improve product design, and expedite the shift towards circular business models. Reconomy intends to assist businesses in developing more resilient and circular operations while fulfilling growing expectations from consumers, retailers, and policymakers. Aharon added: 'At Reconomy, we are uniquely positioned to support stakeholders worldwide through our comprehensive, end-to-end textile EPR services - from regulatory monitoring and data management to take-back, repair, and circularity solutions.' Thie strategic release coincides with Reconomy's introduction of its 'Textile EPR Impact Assessment' service, a new offering aimed at aiding businesses in preparing for the fast-changing textile regulation environment. In September last year, Reconomy launched its Environment Action Plan to advance climate and nature goals, committing to net-zero carbon targets and enhancing biodiversity through local and global initiatives. "Reconomy guides firms through shifting textile EPR landscape" was originally created and published by Just Style, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Web Release
04-07-2025
- Business
- Web Release
Digital product passports could double fashion products' lifetime value – with consumers reaping the rewards
The economics of fashion resale is set to be reshaped by upcoming EU regulation, with a potential doubling of lifetime product value, and up to 65% of the gains delivered to consumers, research from Bain & Company and eBay, reveals today. The findings point to a transformative opportunity for brands to redefine the value chain around transparency, trust, and circularity – far beyond the immediate goal of regulatory compliance. As Digital Product Passports (DPPs) become mandatory for textiles from 2026 under the EU's Ecodesign Regulation, today's report shows these are not just a regulatory tool but a commercial opportunity. For example, a fashion item sold for £500 today could generate an additional £500 in resale and services when supported by a DPP, by improving trust, traceability and ease of resale. While resale platforms, brands and verification services benefit too, consumers gain the most. Many brands – around 90% of those surveyed by Bain – currently view DPPs primarily as a regulatory burden. But today's research encourages companies to reframe DPPs as a strategic investment capable of generating ongoing revenue, driving sustainability, and strengthening consumer relationships. 'DPPs are more than just checking a compliance box. They are a foundational shift in how value is created, captured, and sustained over a product's lifetime,' said Aaron Cheris, partner in Bain & Company's Retail and Customer Strategy & Marketing practices. 'Brands that act early can build a more direct, data-rich relationship with consumers, tapping into resale trends and personalizing services in powerful new ways.' DPPs are standardized digital records, accessible via QR codes, NFC, blockchain or similar technologies, and contain detailed information about a product's materials, components, origin, environmental footprint, and lifecycle. Designed to support sustainability, circular economy initiatives, and greater transparency, DPPs enable consumers, businesses, and regulators to trace and assess products throughout their lifecycle. Regulation meets opportunity Under the EU's forthcoming Ecodesign for Sustainable Products Regulation (ESPR), nearly every physical product sold in the EU will require a DPP by 2030 – yet 90% of brands still see this as a compliance burden, rather than a growth lever. The Bain and eBay report urges brands to shift perspective, urging that, rather than being 'red tape', DPPs should be regarded as revenue tools. DPPs will unlock lifetime value beyond the original point of sale, support circularity, and open direct channels to secondhand markets, the report finds. 'Digital Product Passports are critical to powering the future of circularity,' said Alexis Hoopes, VP of Global Fashion at eBay. 'As a global marketplace at the forefront of resale, we're exploring how better product data can enable smarter buying, responsible selling, and a more trusted platform. Unlocking value for consumers is a critical part of the connected product evolution.' From transaction to lifecycle The digital records within DPPs store verified product information on materials, origin, care instructions, ownership history, and environmental impact. These records enable brands to: Launch resale, trade-in and buyback schemes with confidence Offer tailored warranties, repairs and aftercare Track usage and extend product lifespans Report on ESG goals with greater transparency Consumers drive the change The Bain/eBay report highlights that consumers will capture most of the DPP-driven value. By removing friction – no more lost receipts or clunky listings – DPPs will enable one-click resale and boost confidence. As second-hand markets expand, DPPs can act as a flywheel for growth – deepening trust, expanding participation, and making circular shopping second nature. A call to move now With the 2026 deadline for ESPR nearing, the message from the report is clear: act early. The brands investing in DPP infrastructure today – engaging consumers and testing resale models – will be tomorrow's leaders in sustainable, data-driven fashion. Those that wait risk falling behind as the resale economy scales.
Fibre2Fashion
01-07-2025
- Business
- Fibre2Fashion
DPPs to redefine fashion value chain, consumers to gain most: Report
The economics of fashion resale is set to be reshaped by upcoming European Union (EU) regulation, with a potential doubling of lifetime product value, and up to 65 per cent of the gains delivered to consumers, according to joint research from Bain & Company and eBay. The study highlighted a transformative opportunity for brands to go beyond mere compliance and reshape the value chain through enhanced transparency, trust, and circularity. With Digital Product Passports (DPPs) becoming mandatory for textiles from 2026 under the EU's Ecodesign Regulation, the report underscored their potential as more than just a regulatory requirement. For instance, a £500 (~$684.67) fashion item today could unlock an additional £500 in value through resale and associated services, facilitated by the trust and traceability offered by a DPP. While resale platforms, brands, and verification services all stand to benefit, the greatest advantage is expected to go to consumers. Fashion brands have been urged to embrace Digital Product Passports (DPPs) as a strategic tool, not just a compliance measure, according to research by Bain & Company and eBay. As EU regulations make DPPs mandatory by 2026, early adopters can unlock resale value, strengthen consumer trust, and drive circularity. With potential gains favouring consumers, DPPs promise a data-driven future. Despite this potential, nearly 90 per cent of brands surveyed still view DPPs as a compliance cost. They have urged a strategic rethink—positioning DPPs as a tool for recurring revenue, stronger consumer engagement, and enhanced sustainability. Around 90 per cent of those surveyed by Bain—currently view DPPs primarily as a regulatory burden. But research encouraged companies to reframe DPPs as a strategic investment capable of generating ongoing revenue, driving sustainability, and strengthening consumer relationships. 'DPPs are more than just checking a compliance box. They are a foundational shift in how value is created, captured, and sustained over a product's lifetime,' said Aaron Cheris, partner in Bain & Company's Retail and Customer Strategy & Marketing practices . 'Brands that act early can build a more direct, data-rich relationship with consumers, tapping into resale trends and personalising services in powerful new ways.' Under the EU's forthcoming Ecodesign for Sustainable Products Regulation (ESPR), nearly every physical product sold in the EU will require a DPP by 2030—yet 90 per cent of brands still see this as a compliance burden, rather than a growth lever. However, the report has called for a shift in mindset. It emphasises that DPPs, far from being a bureaucratic obligation, should be seen as strategic tools to drive revenue. By improving traceability and trust, DPPs can extend a product's value far beyond the original point of sale. DPPs will play a pivotal role in enabling circularity and expanding access to second-hand markets. They can help brands tap into new revenue streams, reinforce consumer trust, and align with evolving sustainability expectations--ultimately positioning them for long-term competitive advantage in a regulation-driven future. 'Digital Product Passports are critical to powering the future of circularity in fashion,' said Alexis Hoopes, vice president (VP) of global fashion at eBay . 'As a global marketplace at the forefront of resale, we're exploring how better product data can enable smarter buying, responsible selling, and a more trusted platform. Unlocking value for consumers is a critical part of the connected product evolution.' The report further highlighted that consumers would capture most of the DPP-driven value. By removing friction—no more lost receipts or clunky listings—DPPs will enable one-click resale and boost confidence. As second-hand markets expand, DPPs can act as a flywheel for growth—deepening trust, expanding participation, and making circular shopping second nature. With the 2026 ESPR deadline fast approaching, it delivered a clear message: act now. Brands that begin building DPP infrastructure, engage consumers, and experiment with resale models today will lead the future of sustainable, data-driven fashion. Those that delay may struggle to keep pace as the resale economy rapidly expands. DPPs are standardised digital records, accessible via QR codes, NFC, blockchain or similar technologies, and contain detailed information about a product's materials, components, origin, environmental footprint, and lifecycle. Fibre2Fashion News Desk (SG)
