Term

Digital product passport

An electronic record of a product, accessed through a QR code, holding data on materials, origin, repairability and recycling. The EU is introducing it step by step for batteries, textiles, electronics and other groups, and manufacturers must collect the data from suppliers.

Updated

What it means

A digital product passport is an electronic record of a specific product or model, accessed through a data carrier on the product or packaging, most often a QR code. It holds information on composition and materials, origin, carbon footprint, repairability, spare parts, safe use and how to recycle the product at the end of its life.

It is introduced by the EU Ecodesign for Sustainable Products Regulation as a tool of the circular economy. The first mandatory passports cover batteries, mainly electric vehicle and industrial batteries, and textiles, electronics, furniture, tyres or construction products are to follow gradually under implementing acts.

Different audiences see different data in the passport: consumers basic product information, repairers disassembly instructions and recyclers the material composition. The data must be accurate and verifiable, and the passport must remain available throughout the product’s life.

How it works in practice

For manufacturers and importers the passport mainly means work with data across the supply chain: composition, origin and environmental data on components must be obtained from suppliers. Companies that supply parts to larger manufacturers will face data requests before the obligation applies to them directly.

The passport connects with other obligations: CE marking, safety under the GPSR and extended producer responsibility for packaging and electrical waste. When planning we recommend tackling them together, as the data overlap and one good product register can serve them all.

From an accounting perspective there are costs for systems, data management and verification, and possibly licences for the platforms that issue passports. In larger companies passport data also feeds into sustainability reporting and ESG indicators.

What to watch out for

The biggest risk is an unprepared supply chain. If suppliers do not have the data or cannot substantiate it, the product may not meet the conditions for being placed on the market. It is sensible to start collecting data before the obligation for the category begins to apply.

The second risk is inaccurate data. Information in the passport is a public claim by the company about its product, and false sustainability data can lead to sanctions and accusations of greenwashing. Claims in the passport should be backed by evidence, not marketing estimates.

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