DPPs (Digital Product Passports) provide comprehensive product data across the value chain. Similar to an ingredient label on a food product, the DPP will show, to regulators and consumers, the entire supply chain performance on things like environmental sustainability, compliance, traceability, et cetera.
The EU will require DPPs starting in 2027. That means, organizations have 30 months to get their supply chains ‘ready to be seen for what they are.’
North America, Asia Pacific and other regions will follow, starting with luxury and big-brands, then expanding to mass market.
Per this article, it is estimated that +62 billion DPPs will be issued in 2030, in just the apparel industry.
High-impact sectors like batteries, vehicles, textiles, electronics, furniture, plastics, construction and chemicals have been leading the adoption, but all industries know this is coming.
Given that the environment is the #1 issue on the minds of consumers, forward-thinking brands are leading the implementation of DPPs. They know regulations are coming and they need to get their supply chains (ie, either you or your competitor) in line. They do not want their brand’s poor environmental sustainability supply chain performance made public.
This ties back to our repeated posts about how important, AND PUBLICALLY-EXPOSED, an organization’s vendors (who are part of its Scope 3 obligations) have become. An organization can no longer ignore its own environmental sustainability obligations or the lack of environmental sustainability commitment from its vendors.
Will your company ignore this until you are forced to act; or do you see the opportunity to lead and take market share?
If you wish to use this to your advantage, read this on what you want in a sustainability program, watch this master class, and contact us.