Questions & Answers about digital product passports

2025.06.23

Digital product passports are not just a tool for sustainability data, they can become a driving force for new business models.

Digital product passports are not just a tool for sustainability data, they can become a driving force for new business models.

What is a Digital Product Passport?
A Digital Product Passport (DPP) is a form of digital identity linked to each individual product. A DPP is intended to include information about the product’s sustainability, recyclability, origin, chemical composition, and more.

What’s the purpose of a DPP?
A Digital Product Passport (DPP) is a tool for sustainability data. It provides structured, traceable, and reliable information about products throughout their life cycle. The DPP is a key enabler of a circular economy.

What Kind of Data Is Included in a DPP?
A DPP provides information on a product’s origin, manufacturing process, carbon footprint, and content. It may also include user-related data, such as details on repair options, spare parts, recycling, and resale.

What’s all this data good for?
Access to reliable data can drive new business models. As EU legislation tightens, DPPs are becoming not only a necessity but also an opportunity. Companies can leverage DPPs to create business value through increased transparency, new revenue streams, and more efficient circular flows based on digital solutions.

 

Some Examples of How DPPs Can Support the Transition from a Linear (Make-and-Discard) to a Circular (Reuse/Recycle) Economy:

1. Extended Product Lifespan Through Repair and Reuse
Repair and reuse are made easier through DPPs, which provide information about a product’s components, materials, and repair instructions. This, in turn, helps extend the lifespan of products.

The information enables repair technicians, users, and resellers to easily understand how the product can be maintained or reused.

DPPs also facilitate a second-hand market with verified product data (such as condition and previous repairs).

2. Efficient Recycling and Resource Recovery
DPPs include information on material content and the presence of hazardous substances, helping recycling companies correctly sort materials, avoid contamination, and maximize recycling rates.

3. Circular Design and Supply Chain Transparency
DPPs provide design teams and manufacturers with feedback data on product performance and recyclability.

They function as tools for designing products that are easier to disassemble, reuse, or upgrade.

They also facilitate supplier accountability by showing where materials come from and under what conditions they were produced.

4. Support for Circular Economy Business Models
DPPs enable product-as-a-service, leasing, and rental models by:

  • Keeping records of ownership, usage, and condition
  • Facilitating take-back systems and product tracking
  • Contributing to risk reduction and building trust among actors in circular flows

They also create new revenue streams, such as allowing brands to earn a share from the resale of their products in the secondhand market (known as “resale royalty”), making circular models more financially appealing.

What Legislation Governs DPPs?
The law is not yet fully implemented (as of 2025), but it is currently under development within the framework of the EU’s sustainable product policy legislation. The main legal act that will regulate DPPs is the Ecodesign for Sustainable Products Regulation (ESPR).

Why Does This Legislation Exist?
The goal is to introduce sustainability design requirements for nearly all products placed on the EU market.

Which Products Will Have DPPs?
DPPs will be required for a wide range of products, including textiles, electronics, and construction materials. The exact requirements for each product group will be defined in so-called delegated acts and implementing acts adopted by the European Commission once the regulation comes into force.

Textile products are expected to be among the first categories to face DPP requirements. Electronics and batteries already have similar requirements under other regulations, such as the Batteries Regulation (EU) 2023/1542.

How Is the Data in a DPP Made Accessible?
The data is created, updated, and made available digitally through technologies such as QR codes, RFID, or other technical solutions.

Do the Unique Identifiers Apply to Product Categories or Individual Items?
It depends on the product category. Products that require handling throughout their life cycle will, in many cases, need to be identified at the individual item level. For consumable goods, identification at the product or batch level will usually be sufficient.

Are There Any Projects in Sweden Developing DPPs for the Textile Industry?
Yes, several projects are currently underway:

  • The Fiber Traceability Initiative is developing an initial solution for a digital, traceable wool value chain based on neutral, global standards.
  • Trace4Value is a larger Swedish initiative led by RISE in collaboration with businesses and the public sector. It aims to develop digital identities for products in textiles, electronics, and construction.
  • The TrusTrace project (a subproject within Trace4Value) includes textile products.
  • CIRPASS, an EU-funded project, is developing DPP prototypes in three categories, including textiles.
  • Swedish Textiles Initiative for Climate Action (STICA) is working to reduce the climate impact of the textile sector, including traceability solutions and data-sharing frameworks relevant to DPPs. STICA collaborates with both Swedish and Nordic stakeholders.
  • ReValue is a current example of how DPPs can be used to develop new circular business models in practice. The goal is to test how DPP data can improve and streamline resale in fashion—producing measurable effects on product lifespan, climate impact, and profitability for both brands and marketplaces.
The Fiber Traceability Initiative has developed a proof of concept for a digitally traceable merino wool value chain.

The Fiber Traceability Initiative has developed a proof of concept for a digitally traceable merino wool value chain.

Is There a Central Platform for DPPs in Sweden?
Yes, SwePass is a national platform designed to strengthen traceability in value chains and help Swedish industry meet growing sustainability requirements. SwePass brings together partners from multiple industries to support the transition to sustainable systems and achieve climate-neutral, circular production through resource-efficient and resilient value chains.

Are There DPP-Related Projects in Different Industries?
Yes, several initiatives are underway across various sectors:

  • Some Swedish cities have participated in EU-funded smart city projects where digital traceability in building materials and energy systems is being tested — laying the foundation for future DPPs.
  • Swedish battery manufacturers are working on implementing the Battery Passport, a type of DPP. This work is linked to the EU’s Battery Regulation (EU 2023/1542).
  • Pilot projects are being carried out in collaboration with RISE and EU-funded initiatives, where Swedish companies have tested linking chemical information to DPPs.

Which Products Are Not Covered by DPP Requirements?
As of 2025, there is no complete or definitive list of products excluded from DPP requirements, since the rules are still being developed under the proposed Ecodesign for Sustainable Products Regulation (ESPR) by the EU.

However, some product groups are currently not subject to DPP mandates, including:

  • Food products
  • Pharmaceuticals and medical devices
  • Animal feed and by-products
  • Military equipment

These categories are excluded either because they already have comprehensive traceability and labeling requirements or are regulated under separate EU legislation.

Axfoundation’s Role

Axfoundation is committed to enabling sustainable transformation in practice. By initiating and leading pilot projects such as ReValue and The Fiber Traceability Initiative, we demonstrate how Digital Product Passports can generate tangible value — for businesses, consumers, and sustainable development as a whole. 

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