EU Digital Product Passport: What it means for the textile industry

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The European Union's Ecodesign for Sustainable Products Regulation (ESPR) came into force on July 18, 2024, as a key part of the European Green Deal . This regulation aims to reduce the environmental impact of products, including textiles, by setting sustainability standards across their entire lifecycle, including durability, repairability, and recyclability.

Replacing the Ecodesign Directive 2009/125/EC , the ESPR supports the EU's 2020 Circular Economy Action Plan , helping to meet environmental goals, double material circularity rates, and improve energy efficiency by 2030.

A key feature of ESPR is the Digital Product Passport (DPP), which will track product data to enhance sustainability, promote circularity, and strengthen legal compliance. Textiles have been earmarked as a key industry under the EU's Circular Economy Action Plan — with Digital Product Passports being mandated as a core technology for the initiative.

Main design features of the EU Digital Product Passport

During the EU’s online session on May 22, updates on the design features of the upcoming EU Digital Product Passport (DPP) were shared.

The DPP needs to include information on one or more of the following areas:

• Technical performance
• Environmental sustainability performance
• Circularity aspects (durability, repairability, etc)
• Legal compliance
• Product-related information (e.g., manuals, other labels)

Additional DPP Requirements:

• DPP is based on a decentralized approach for data storage
• The DPP shall be uniquely linked to a product
• Access to data will take place through a (persistent) product unique identifier, embedded in a data carrier and relying on a look-up mechanism
• Access to DPP-data based on a need-to-know basis (there will be public and restricted data)
• 3 possible levels of granularity: (i) model, (ii) batch, (iii) item
• 4 unique identifiers will always be required: Product identifier, Facility identifier, Economic operator identifier, and Registration identifier (not public)
• Economic operators shall make a back-up copy of the DPP available through a [certified] independent third-party DPP service provider

The DPP will allow consumers, manufacturers, and authorities to access product data electronically, enabling more informed decisions on sustainability and compliance. Custom authorities will also be able to do automated checks to verify product authenticity of the DPP’s of imported products.

?? For a full breakdown of the DPP requirements, check out our blog post: The EU’s New Digital Product Passport (DPP): everything you need to know.

Key aspects of the EU ESPR and DPP for the textile industry

To fully align with the EU Ecodesign for Sustainable Products Regulation (ESPR) and the Digital Product Passport (DPP), companies will need to make several key changes:

Design requirements:

• Durability and quality: Products must last longer, using stronger seams, robust fabrics, and treatments that prevent wear and tear.
• Reparability: Textiles should be easier to repair, with replaceable components like buttons and zippers, encouraging repair over replacement.
• Recyclability: Mixed fibers will be limited to improve recycling, prioritizing materials that can be fully reused.
• Material choice: Sustainable materials, such as organic or recycled fibers, will be preferred, and harmful chemicals will face stricter regulations.

Transparency and information:

• DPP Labeling requirements: Digital Product Passports will include details on product composition, environmental impact, and recycling instructions. Easy-to-understand labels will help consumers make sustainable choices, including information on carbon footprint, material origins, and manufacturing practices.

Circularity and waste reduction:

• Collection and recycling: Companies will need to participate in textile collection programs to ensure proper recycling of end-of-life products.
• Extended Producer Responsibility (EPR): Businesses may become responsible for the entire product lifecycle, including the post-consumer waste management, with the aim to encourage the design of items that are easier to recycle.

Environmental footprint:

• Reduction of water and energy use: New standards will aim to cut water and energy consumption, promoting sustainable technologies like waterless dyeing and renewable energy.
• Emissions and chemical use: Regulations will restrict emissions and chemical use, focusing on reducing pollution and promoting safe working conditions.

What changes will the textile industry undergo because of EU ESPR and DPP?

The EU Ecodesign for Sustainable Products Regulation (ESPR) and Digital Product Passport (DPP) are set to significantly transform the textile industry, moving it away from fast fashion toward more sustainable products. Here are the key ways the textile industry will be impacted:

Innovation and R&D investment:

• New materials and production techniques: Companies will need to invest in research to develop sustainable fabrics like recycled ocean plastics and biodegradable materials. This could involve collaboration with tech companies and academic institutions.
• Logistics and supply chain management: Logistics systems will need to evolve to ensure full traceability and compliance with new regulations.

Financial impact:

• Initial investments: The initial investment in sustainable materials, new technologies, and compliance measures will most likely be high. Companies may face increased costs for certification and audits, though long-term savings from energy efficiency and waste reduction may balance this.
• Fines or restrictions:?Non-compliance could result in fines or restricted market access, negatively impacting profitability and market position.

Market opportunities:

• Brand loyalty and reputation: Companies leading in sustainability will likely see increased customer loyalty and positive public perception, boosting market share.
• Brand protection:?Fighting against greenwashing, compliance, and trust issues brands can keep their name safe and make sure that the things people buy are real. This helps both the brand and the consumers.
• Consumer trust: Transparency from the DPP will provide consumers with confidence in a product’s sustainability, increasing trust in the brand.
• Export potential: Meeting the EU’s strict standards could unlock new export markets with similar sustainability requirements.

Supply chain adjustments:

• Supplier compliance: Textile companies must ensure their suppliers adhere to sustainability standards, which will involve data collection, audits, and possibly sourcing new compliant suppliers.
• Supply chain transparency: Digital tools will be necessary to track and report sustainability metrics throughout the supply chain, ensuring compliance and transparency.

Risk management:

• Regulatory compliance risks: Failure to comply with the ESPR could result in fines, product recalls, and harm to brand reputation. Businesses will need strong compliance management systems to avoid these issues.
• Operational risks: Shifting to new materials and processes could introduce risks like production delays or quality issues, requiring thorough testing and planning to mitigate disruptions.

The EU ESPR and DPP timeline: key dates to know?

Legislative adoption:

• June 2024: Final adoption of Ecodesign for Sustainable Products Regulation (ESPR) by the European Parliament and the Council.
• July 18, 2024: The regulation officially entered into force.

Implementation plan:

• 2024-2025: Preparatory phase
• 2025-2026: Adoption of sector-specific measures
• 2026 onwards: Full implementation

The ESPR will be periodically reviewed and updated based on market and technological advancements to make sure that it stays relevant.

Nil?rn and Worldfavor have partnered to offer supply chain transparency and traceability for the textile industry

One-stop-shop for consumer-facing traceability

Worldfavor and Nil?rn have partnered to offer companies a solution supporting supply chain transparency and help the textile and apparel industry meet the requirements of the digital product passport.

Get started today!

1. Add & invite your tier 1 suppliers setting your foundation for your data collection process.
2. Create products (or directly integrate order data from?Nil?rn:CONNECT ).
3. Build out your product and value chain by requesting the data from your tier 1 suppliers.Gain clarity on suppliers you are connected with further down the value chain, tier 2 – tier n.
4. Manually or automatically choose suppliers to connect with and what data to gather. Understand supply chain performance and gain access to data such as; Certificates held by suppliers tier 1 – tier n Certificates specifically related to the product & raw material transactions Manufacturing processes relation, such as which supplier performs weaving, spinning, coloring, as well as origin Raw material fabric, supplier details, and origin Raw material yarn, supplier details, and origin

Performing these steps, you will gain an understanding of suppliers further down the tiers, where they come from, and how they are connected to you, your products, and your other suppliers. Gather data on product and supplier level to ensure you gather the data required for the EU Digital Product Passports as well as other regulations. Our integration with Nil?rn lets the data be visualized with a QR-code in Nil?rn:CONNECT.

???Experience our combined offering:?Learn more & book a demo

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More resources to explore:

→ The EU’s new Digital Product Passport (DPP): everything you need to know

→ What is sustainable sourcing and how can it benefit your business in 2024?

→ Download a step-by-step guide to sustainable supply chain management