Digital Product Passports: need to know

Digital Product Passports (DPP) – digital records containing key information about a product – are coming to the EU. Eventually, most products sold in the region will need to have one as the authorities step up their efforts to drive transparency and sustainability.

The DPP requirements were confirmed last year as part of the Ecodesign for Sustainable Products Regulations. And while many of the details around specific criteria and the plans for implementation are still to be worked out, the EU says a product’s DPP will provide comprehensive information about its origin, materials, environmental impact, and disposal recommendations.¹

The new passport is expected to promote sustainability in some key ways. One of which is the greater ability consumers will have to make conscious choices about what they buy. As well as potentially increasing market demand for more sustainable products, it could also influence businesses in the decisions they make in areas such as product design and sourcing partners.

In addition, the DPP will help to ensure that products sold in the EU meet compliance standards, as well as giving companies greater supply chain insights to help them mitigate environmental risks.

They could also help SMBs to improve their competitiveness, providing new opportunities to showcase their strengths directly to consumers as a core – and much more visible – part of their value proposition.

A detailed timeline for adoption, along with specific requirements for businesses, is still to be determined, with the EU having adopted its first Ecodesign for Sustainable Products working plan in April 2025.² In this, certain sectors including iron and steel, aluminium, textiles, and furniture have been prioritised, while the EU is also due to establish a digital registry for DPP data by July 2026.³

Beyond that, DPPs for products in priority sectors are expected to be required from 2027, although the timeline is subject to change.⁴ Others will follow, with full implementation of the DPP expected by 2030.⁵

The EU says the DPPs will need to contain a unique product identifier, compliance documentation and details on substances of concern, along with user manuals, safety instructions, and guidance on disposal.⁶

It also says the information itself should be easily accessible via a QR code or watermark, which should be on the product itself where possible. Whether the DPP requirements will be imposed at product, batch or item level will depend on aspects such as the complexity of the value chain and the nature of the product.

So, while there are still specifics to be formally outlined, enough is already known for SMBs to start taking action. It’s clear, for instance, that a strong knowledge of the product lifecycle will be essential – how it’s made, how it’s used, and how to properly care for it at the end of its life – so understanding these elements, and formulating initial plans to manage data collection and communicate key information, could stand you in good stead for the future.

The DPP could bring a series of opportunities. The first of these is the ability for businesses to better promote sustainability areas where they may have a competitive strength.

“The benefit to businesses is that, if used correctly, it could be a new way to tell a story around a product they sell,” says Stijn Meeus, Managing Director – E-Commerce at FedEx. “They would be able to compete on things that people don’t usually see – such as sustainable sourcing and environmental footprint – because they will be front and centre for consumers.”

The DPPs could also be beneficial to businesses that thrive on the provenance of the goods they offer or the prestige of where their products are made. Certain luxury goods, for example Swiss watches or Italian leather, are prime examples.

“With Digital Product Passports, it’s a way to really play on that – when you say made in Italy, you’ve got the passport to show where the leather came from, where the stitching was done, and so on,” says Meeus. “This could be really interesting for those businesses that value a premium luxury stance.”

Other businesses could benefit too. By their very nature, DPPs – with the transparency they offer consumers, combined with a clear framework for providing relevant information – should help those with good credentials to build consumer trust.

But there are some potential challenges to consider. There may, for example, be a cost burden for businesses to bear, and there could be additional administrative or technology requirements to cater for. For now, though, the possible extent of these is unknown and they may be at least partially offset by business benefits. There’s also potential for DPP-as-a-service businesses to emerge that would help to simplify compliance.7

So for SMBs, now could be a good time to think about their own individual stories, as well as what might resonate well with consumers from a sustainability or provenance perspective – even if those areas don’t currently form part of the marketing mix. Finding a unique angle and communicating it well could help businesses to stand out in a crowded marketplace.

Although the precise requirements for DPPs are still to be unveiled, it’s worth thinking about how to get your business ready for what’s coming down the line. For a lot of SMBs, that means supply chain visibility, sourcing locations, and the products themselves could all come under consideration.

“Know this is coming and know you will need a much clearer view of your supply chain,” says Meeus. “If you’re doing new product design, you probably want to think about that and build it in. Looking for nearshoring opportunities could be interesting too as that could help you to have better oversight on production.”

As well as the importance of gaining supply chain clarity – including where key product and production data is held – strengthening relationships with suppliers now may also help you to uncover issues that could potentially cause compliance risks later on. And one other big takeaway is that the choices made today could either be a benefit or a cost when they later need to be made public as part of a DPP.

“So, you do need to think about the way you source end-to-end, because at a certain point it’s going to be part of the core information,” says Meeus. “There won’t be a place to hide if you’re not sourcing sustainably.”

DPPs are due to become an essential part of doing business in the EU, so getting to grips with the potential requirements early is a smart move. Supply chain visibility is key to doing this, and it could be worth taking steps to ensure you (and your suppliers) have as much clarity as possible to help you to provide the necessary details when required. If you’re thinking about making changes to your sourcing operations, check out our article on the things you need to consider before changing suppliers. And don’t forget to keep an eye on our regulatory updates to keep track of developments to international trade regulations that could impact your business.

Disclaimer: The information provided on this page does not constitute legal, tax, finance, accounting, or trade advice, but is designed to provide general information relating to business and commerce. The FedEx Small Business Hub content, information, and services are not a substitute for obtaining the advice of a competent professional, for example (but not limited to) a licensed attorney, law firm, accountant, or financial adviser.