Understanding digital product passports: a step toward enabling a circular economy
When the year 2027 comes around, batteries that are manufactured or sold in the European Union will need to prove sustainability and transparency of their life cycles. That’s where digital product passports (DPPs) serve their purpose. So, what are DPPs? And what do they have to do with blockchain? A DPP provides detailed information about a product’s entire life cycle. By offering insights into recycling, reuse and repair, DPPs support the transition to a circular economy. For example, they guide disassembly for recycling and locating spare parts; simplifying sustainable practices in supply chains.
What is a digital product passport?
Think of a DPP as a comprehensive digital profile for a product. It captures and documents every detail about the product’s journey, starting from its origin. This includes the product’s raw materials and their sources, the manufacturing processes and even how the product should be disposed of or recycled at the end of its life. It will also allow customs authorities to perform automatic checks on the existence and authenticity of DPPs of imported products.
In short, the main purpose of a DPP is to ensure transparency and promote sustainability. By providing this detailed information, it helps various stakeholders, such as manufacturers, consumers and regulators, verify the authenticity and sustainability claims of products.
In the EU, DPPs are part of the broader Ecodesign for Sustainable Products Regulation, which aims to make sustainable products the norm by setting requirements for product durability, repairability and recyclability.
DPPs also include data on the environmental impact of a product, such as its carbon footprint, energy consumption and the presence of hazardous materials. This information helps consumers and businesses make more informed decisions about the products they use and purchase.
Essentially, a DPP acts as a bridge connecting all these parties with valuable insights about the product’s life cycle. Manufacturers will have to make this information accessible electronically, making it easier for consumers to interact with it using methods as simple as scanning a QR code.
Why use blockchain for digital product passports?
Integrating blockchain technology into DPPs can significantly enhance their effectiveness because of the following benefits it brings:
Immutability and security
Blockchain’s decentralized nature ensures that once data is recorded, it cannot be altered or deleted. This immutability guarantees the integrity of the information in the DPP, making it highly secure against tampering or fraud.
Transparency and traceability
Blockchain provides a transparent and traceable record of all transactions and changes made to the DPP. Every participant in the supply chain can access the same information, ensuring consistency and verifiability.
Decentralization
A blockchain-based DPP operates on a distributed network of nodes, reducing the risk of data breaches and ensuring that no single entity has control over the entire system. Decentralization enhances data security and reliability.
Enhanced trust
The combination of immutability, transparency and decentralization builds trust among all stakeholders, including manufacturers, suppliers, regulators and consumers. Everyone can be confident that the information in the DPP is accurate and reliable.
Interoperability
Blockchain facilitates interoperability between different systems and organizations, which is particularly useful in complex supply chains where multiple parties need to access and update the DPP. If done correctly, information can be exchanged between different actors in the value chain while safeguarding the sovereignty of the data, fostering a more seamless approach to working together.
Regulatory compliance
Blockchain helps ensure compliance with regulatory requirements by providing a verifiable and tamper-proof record of all relevant data. This simplifies audits and inspections, making it easier to demonstrate adherence to sustainability and safety standards.
Trust and sustainability behind the scenes
By providing transparent information, DPPs are like a backstage pass to a product’s entire journey. They give you all the details about where a product comes from, how it’s made, and what happens to it at the end of its life. This is exactly where blockchain shines, as its core purpose is to serve as a trust anchor for all the parties in the network. And it guarantees that everyone must follow a set of rules that are agreed upon prior to entering.
This not only supports the transition to a circular economy but also enhances trust and accountability in the marketplace. As sustainability becomes more important across industries, DPPs are likely to become more widespread, driving positive changes in how we make, use and dispose of products. However, DPPs are nothing but a tool. The sustainable choice remains in the hands of the consumers.
In the next blog post we will dive deeper into the technical insights of blockchain and better understand why blockchain is the preferred technology for the Eviden Digital Passport Solution.
