The Digital Product Passport and the revolution of data sharing in sustainable fashion

In recent years, the fashion industry has undergone a significant transformation, where the concept of sustainability has evolved from being considered a niche concern to becoming a legislative requirement. The European Union, at the forefront of regulating sustainable practices, is establishing guidelines for textile companies to ensure their sustainable performance. Merely intending to be sustainable is no longer enough, legislation now demands specific data to ensure transparency towards the end consumer. Data sharing has arrived to revolutionize the fashion industry.

The Digital Product Passport, a holistic source of transparency

The Digital Product Passport is a tool originally defined in the Ecodesign for Sustainable Products Regulation by the European Commission. This mechanism has been designed to electronically record, process, and share information among supply chain companies, authorities, and consumers.

The Product Passport plays an essential role by making key information available to all stakeholders throughout the value chain, enhancing the complete traceability of the product. Its development aims to improve consumer decision-making by providing access to relevant information. Additionally, it facilitates various actors, such as repairers or recyclers, by providing access to pertinent data.

It's crucial to note that the Product Passport doesn't replace traditional information transmission methods, such as product manuals or labels, but rather complements them.

The key innovation of this system lies in the requirement to associate each product with a unique identifier. Digitized information about the item and its lifecycle should be easily accessible through scanning a data carrier, whether it be a watermark or a QR code. Ideally, this data carrier should be directly present on the product, ensuring that the information remains accessible throughout its entire lifecycle.

The specific set of indicators that the Digital Product Passport will need to compile in the fashion industry is still in the process of definition. Nevertheless, the regulation anticipates that products should meet information requirements related to several aspects, such as durability and reliability, reusability, updateability, repairability, maintenance and refurbishing possibilities, presence of concerning substances, energy use or energy efficiency, resource efficiency, recycled content, remanufacturing and recycling possibilities, material valorization possibilities, environmental impact, and projected waste generation.

The end of speculation, the beginning of verification

Although the exact release date of the Digital Product Passport is yet to be determined, the specific standards it must incorporate are expected to be finalized by late 2025. Although this timeframe may seem extensive, it actually compels fashion companies to start the immediate collection of information according to current parameters.

Meeting the communication requirements established by the Digital Product Passport will not be limited to completing a simple form. Those unfamiliar with product analysis will face the need to subject their items to life cycle assessments, involving the collection of information throughout the entire supply chain and evaluating its impact and circularity. It is neither an easy nor a quick task. At BCome, we recommend not waiting until the Digital Product Passport comes into effect and starting as soon as possible to collaborate with experts to ensure that, when the time comes, your business is fully prepared to meet these requirements.

Considering the link between the Ecodesign for Sustainable Products Regulation and the Green Claims Directive, it is crucial to seek the assistance of professionals. This ensures that the information gathered through the passport aligns with the necessary criteria, supporting credible claims regarding the sustainable performance of the item.

When making environmental claims, it is crucial to support them with specific data demonstrating the completion of impact assessments. Avoid the use of confusing terms and provide access to the methodologies used, emphasizing the involvement of a third party in the impact assessments.

Every statement should underscore the significance of environmental claims from a life cycle perspective. In the case of comparisons, provide access to the specifications of the scenario used as a reference for the comparison.

Claims related to environmental goals should include concrete figures, such as the percentage of reduction, and specific timelines for achieving that reduction.

The transformation of the fashion industry through data sharing

This tool aims to impact the fashion industry in three key dimensions. Firstly, it strives to enhance environmental sustainability by declaring aspects related to the product's impact. Secondly, it promotes circularity by considering durability, repairability, and the extension of the product's lifespan. Lastly, it facilitates legislative compliance by addressing several regulatory requirements, becoming a cornerstone in fulfilling the European Green Deal.

However, data sharing not only aims to propel companies towards a more responsible position but, as a direct consequence, transparency through data influences the way end consumers engage with products that provide this enriched information.

"The data provided by BCome helps us showcase our impact in a simple, professional, and understandable way. For us, this educational work is fundamental and directly linked to being able to inform our community about all the effort behind each garment. As a brand committed to sustainability and regeneration, we believe it is our responsibility to lead this learning process for the end consumer", explains Pepe Barguñó, Co-Founder of Thinking MU

BCome, the Platform for Global Sustainability Management in the fashion industry, is preparing for the introduction of the Digital Product Passport through anticipation and proactive adaptation to emerging requirements:

As a leader in impact analysis, the company is developing advanced methodologies, including the calculation of Circular Economy Indicators based on the renowned methodology of the Ellen MacArthur Foundation, to extract data of greater value and depth.

In an effort to go beyond traceability and environmental impact, the startup has recently launched its SLCA methodology, allowing fashion brands to comprehensively assess social risks throughout their entire supply chain.

Furthermore, the platform is also exploring technological initiatives to ensure an even more customized integration of sustainability insights for brands, both in e-commerce and on their product labels.

The Digital Product Passport, the next-generation receipt

The development of the technology required for the Digital Product Passport has inspired initiatives that not only facilitate information exchange but also enhance economic benefits associated with resale. EON, the digital ID platform, exemplifies this by empowering fashion brands to turn their products into more valuable, traceable, and interactive assets, providing access to valuable data and enabling continuous revenue streams.

“The connection between the brand and the customer doesn't end at the point of sale; rather, it marks the start of the customer's journey with the product. The brand aims to establish an ongoing relationship through customer service, gaining insights into customer needs, delivering value, and monetizing the product throughout its second and third life cycles. In this context, the Digital Product Passport essentially serves as the next-generation receipt”, says Natasha Franck, Founder and CEO of EON.

EON Product Cloud creates a unique digital ID to each item, simplifying resale, offering competitive insights, and building connections with consumers. EON works with well-known clients like Balenciaga, Coach, Chloé, Mulberry, and H&M, and collaborates with platforms such as The RealReal or Vestiaire Collective to streamline the resale process.

As part of its SS23 collection, Chloé introduced Chloé Vertical, incorporating the innovative digital ID technology provided by EON. Through it, Chloé's customers can scan their products and trace them from start to finish. This collection was the first to embrace instant resale, pioneering in the luxury industry. Customers can now scan their item and resell it instantly through Vestiaire Collective.

The Digital Product Passport acts as a powerful catalyst for a robust transformation towards a sustainable business model. So much so that the founder of EON highlights that this tool provides brands with an exceptional opportunity to substantially increase, and in some cases almost double, the profits and revenues derived from each item. The focus is on creating products that not only endure over time but also are more profitable, thereby driving an authentic and lasting change in the business model.

Undoubtedly, the future of fashion is built upon the pillars of transparency and the momentum provided by data. Brands that can undergo the necessary assessments to offer valuable information to consumers will not only be well-prepared to meet future legislative requirements swiftly but will also have the opportunity to explore new business opportunities and enhance their reputation by building greater trust among consumers, who are becoming more demanding.

The Digital Product Passport is not just an optional or competitive advantage, it is poised to become a fundamental and essential requirement in the fashion industry. Far from being a conventional tool, it promises to be an advanced and necessary component for tracing, interacting, and adding value to products in today's market.