In the near future, consumers across Europe may begin scanning QR codes on everyday items—from sneakers to consumer electronics—to access detailed digital records of where products were made, what they are composed of, and how they can be repaired, reused, or recycled.
This is not a marketing gimmick but part of a broader regulatory movement embedding transparency and sustainability into the fabric of retail. Enter the Digital Product Passport (DPP).
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What is a digital product passport?
A Digital Product Passport is a dynamic digital ID that carries item-level information about a product throughout its lifecycle. The European Union’s forthcoming DPP legislation will require brands and manufacturers to provide accessible, verified data for selected product categories—starting with textiles and electronics, with others to follow.
At first glance, these digital IDs may seem like a compliance burden, adding operational complexity for retailers. However, DPPs also create powerful opportunities to merge digital innovation, sustainability, and customer engagement—laying a foundation for transparency, trust, and long-term competitive advantage.
Connecting physical products with digital data
DPPs connect physical products with digital data through a unique identifier linked to information on their origin, materials, production processes, and end-of-life options.
By offering detailed, verifiable product-level data, DPPs help companies manage supply chains, comply with regulations, and assess environmental and authenticity risks. They also create a transparent chain of information accessible to consumers, regulators, and brands alike.
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By GlobalDataFor shoppers, this transparency builds confidence in the authenticity and sustainability of the products they buy. For businesses, DPPs enable data-driven insights that support smarter sourcing, inventory optimization, supply chain efficiency, and circular initiatives such as resale, repair, and recycling.
SML Group (SML) has been closely involved in exploring how digital identification technologies can scale transparency for global retailers.
“Digital Product Passports are transforming how retailers connect data with the physical world,” says Nanna Ingemann Dalsgaard, Vice President of Sustainability, Digital IDs, and Marketing at SML. “They give every product a traceable story—from its origin and how it was made to what happens when it changes hands—enabling resale, reuse, recycling, or disposal. This unlocks new opportunities for trust, accountability, and circularity across the retail value chain.”
Consumer demand for credible sustainability claims
For consumers, DPP-enabled transparency helps validate sustainability claims. A 2024 survey by Blue Yonder found that while only 20% of consumers fully trust brand messaging on sustainability, 55% assess such claims on a case-by-case basis—highlighting growing demand for credible, product-level data.
For brands, DPPs offer insights that go far beyond traditional sales and pricing metrics. They provide visibility into production methods and post-purchase product handling, including disposal guidance and safety information. This empowers smarter supply chain decisions, supports regulatory compliance, and enables circular business models that recover value from used goods—all while strengthening direct connections with consumers.
It’s a future SML is actively investing in, helping brands unlock the full potential of transparency and traceability.
Navigating uncertainties in DPP implementation
Despite the promise, many aspects of DPP implementation remain in flux. Requirements around data points, reporting, technical standards, passport lifespan, and consumer access are still evolving—and the scope of covered product categories is likely to expand.
This uncertainty means brands must take a thoughtful, strategic approach to implementation.
Consider the fashion and textile industry, where millions of tonnes of clothing are discarded each year—much of it still reusable or recyclable. One of the biggest barriers to circularity is the lack of accessible product information. Recyclers often cannot identify fibre composition or production methods. DPPs embed this information directly into products, unlocking new reuse and recycling pathways.
The same principle applies to electronics and home goods, where repairability and resale depend on accurate, accessible data.
Implementing DPPs at scale will require industry-wide collaboration. Brands, regulators, manufacturers, and technology partners must align on standards, ensure seamless connectivity, and build secure systems to manage lifecycle data. Smaller producers may need support to integrate these systems, while large retailers must align DPP data with existing enterprise platforms.
The potential of DPPs: act now to build trust, enable circularity, and unlock value
Despite the challenges, the potential rewards are substantial.
“Just as barcodes and RFID once transformed inventory management, DPPs could redefine how brands and consumers interact with products,” says Dalsgaard. “Items shift from static inventory to living assets with traceable histories—enabling circularity, engagement, and operational insight.”
The evolving regulatory landscape adds urgency. Initiatives such as the European Union’s Green Deal and Circular Economy Action Plan require brands to substantiate environmental claims. DPPs will soon provide the verifiable evidence needed to demonstrate compliance and to show that sustainability is built into operations—not just marketing.
Ultimately, DPPs represent a convergence of technology, responsibility, and opportunity. Brands that embrace this shift can strengthen customer trust, optimize operations, and unlock value through circular practices. Those who act early may help define the next era of sustainable, connected commerce.
About the Author: Nanna Ingemann Dalsgaard is Vice President of Sustainability, Digital IDs, and Marketing at SML Group, a company specialising in digital ID and labelling solutions.
