As part of the effort to make Europe the first climate-neutral continent by 2050, several regulations have been adopted to achieve this goal. On March 30, 2022, the European Commission introduced the ESPR proposal, which is now nearing approval by the EU Council and is expected to come into effect in June/July 2024.

The regulation aims to reduce environmental impacts throughout the product life cycle through effective digital solutions, fostering more sustainable and circular products.

In this context, the following initiatives will play a key role in helping the EU achieve climate neutrality:

1. 1. Promoting a circular economy
   2. Enhancing recycling
   3. Extending product life cycles

One of the significant initiatives is the introduction of the Digital Product Passport (DPP), designed to collect and share data about products and their supply chains.

The Digital Product Passport (DPP) is a digital record containing key information about a product, including details on the materials used in its production, energy efficiency, repairability, recyclability, and disposal options. This digital tool provides a comprehensive overview of the product’s lifecycle, making information accessible to various stakeholders—manufacturers, consumers, regulators, and recycling companies.

The Digital Product Passport (DPP) will become mandatory starting in 2025. Any manufacturer or supplier wishing to sell products in the European market will need to meet DPP requirements. These requirements apply to both finished and semi-finished products.

The implementation of the Digital Product Passport begins with products that consume the most resources and those with the greatest potential for circularity (repair, reuse, and recycling).

The initial product categories include batteries and textiles, with construction materials and electrical devices to follow soon.

The DPP obligation does not apply to food, dietary products, or pharmaceuticals.

The Digital Product Passport offers companies the opportunity to collect and manage detailed product information, contributing to product and supply chain sustainability. It also enables suppliers and manufacturers to make more informed sustainability decisions and create stronger sustainability claims.

By scanning the DPP, consumers gain insight into the composition and supply chain of a product. It also provides clarity on how the product can be repaired, reused, or recycled. Modern consumers demand transparency and access to information, and the DPP addresses these needs effectively.

The Digital Product Passport (DPP) offers several advantages, summarized as follows:

• Regulatory Compliance:
  Assists manufacturers in adhering to legal requirements, avoiding fines and legal complications.
• Sustainability:
  Promotes product sustainability by encouraging repair, reuse, and recycling, contributing to a circular economy.
• Consumer Information and Transparency:
  Provides consumers with valuable insights into the product’s origin, composition, and use, ensuring transparency and fulfilling their need for detailed product information.
• Efficiency:
  Centralizes all product information, simplifying its management. It also enhances product and supply chain sustainability while fostering competitiveness.

Economic operators are responsible for making the DPP available on the market. However, if they choose to outsource certain steps, DPP-as-a-Service providers, acting as third parties, can assist with:

1. Collecting, compiling, and formatting DPP information
2. Issuing the DPP
3. Hosting DPP data

All protocols and standards related to the IT architecture will be standardized and developed uniformly across all product categories and regulations.