By Lars Rensing, CEO of Protokol
Consumers are increasingly becoming more conscious of the environmental implications of the businesses they buy from. The textile and fashion industry is under particular scrutiny for the role it plays in generating waste. With the upcoming COP28, businesses face increasing pressure to improve their sustainability practices. To reach global net zero emissions by 2050 and limit global temperature rise to 1.5C, businesses must start acting now.
The textile and fashion industry is one of the most environmentally damaging industries in the world. It releases 1.2 billion tonnes of carbon dioxide per year, accounts for approximately 10% of global carbon emissions and is the third largest industrial polluter in the world. On top of that, it is estimated that 92 million tonnes of textile waste is generated annually on a global scale. At the current pace, that number is expected to grow to 134 million tonnes by 2030. 50% of the world’s largest fashion brands disclose little or no information about their supply chain, leaving consumers in the dark about the textiles used to create their clothing.
With more consumers turning a watchful eye on fast-fashion businesses, some fashion companies have started changing their unsustainable practices. Legislation is also catching up – by 2030, across Europe there will be a mandatory solution to the lack of transparency surrounding product lifecycles: Digital Product Passports (DPPs).
What is a DPP?
A DPP is a tool that will enable businesses to collect and share information regarding a product and its lifecycle. It is a digital record of a product’s history, which can contain information such as the raw materials used in its creation, its journey through the supply chain, to its various ownerships, service, repair, warranty records and more. The information is added to the product’s DPP throughout its lifecycle, and can be accessed by relevant stakeholders.
DPPs are a vital part of the European Commission’s Circular Economy Action Plan, with further details on requirements set out in its forthcoming Ecodesign for Sustainable Products Regulation. These will facilitate a process and tool for recording information on how garments are sourced, manufactured, sold and recycled within Europe going forward. The use of DPPs will be mandatory within the EU market for the industrial and EV battery sector as soon as 2027, followed by textiles and other industries in 2030.
The introduction of DPPs in the fashion industry could bring positive change, as garment supply chains are often associated with a lack of transparency. DPPs can change this, as they can highlight the sustainability, environmental and recyclability attributes of a product, as well as its manufacturing process and sourcing. Stakeholders can then make informed decisions about whether a garment is produced sustainably or not.
How do you use a DPP?
DPPs can be cloud- or blockchain-based. However, even a cloud-based DPP is worth mirroring on blockchain, which by nature is decentralized, secure, immutable and easily accessed by the end-user. This means that businesses or relevant stakeholders cannot tamper with the data retroactively without it being clear that an edit has been made, ensuring the highest standards of data validity are maintained throughout a product’s lifecycle.
It’s not just internal stakeholders that could have access to the information stored in a DPP. In some DPP solutions the end customer can scan a QR code attached to the product to access information stored in the DPP. Information such as general information, manufacturing facility, types of materials used and their origins, as well as the product’s carbon footprint and its various past owners. It could also include information on past repairs, repairability and recycling processes, to facilitate a more circular economy past the point of purchase.
Fashion Brands and their use of DPPs
Despite the 2030 DPP deadline for the textiles industry, some well-known fashion brands are already beginning to embrace them. Established names including Loro Piana, Nobody’s Child, Burberry and Stella McCartney have begun announcing DPP trial programs for their goods. Even universally known fast-fashion brands such as H&M are beginning to explore the use of DPPs under their sub-brand Arket.
This is great news, as implementing DPPs requires a good level of preparation. Businesses will need time for strategic and well-executed implementation, from planning and testing internally to ensuring interoperability with suppliers ecosystems at rollout.
However, the preparation and implementation of DPPs does not come without challenges. Businesses will need to prepare with plenty of time before the regulation is enforced, so they can ensure compliance and become comfortable with the technology before it is mandatory. But with sufficient preparation, the task of collecting, presenting and updating all the required DPP information will become a regular part of operation. By starting now, businesses can take a measured approach to transforming existing supply chain processes and systems to ensure information for the DPP is collected appropriately, before the 2030 deadline.
Working in partnerships with DPP solutions providers can also provide reassurance that considerations around compliance and interoperability are well thought through, to protect businesses and bring the maximum benefit to consumers.
For consumers, DPPs will help with making informed decisions and give them peace of mind when shopping with a sustainable conscience. For businesses, DPPs can help maintain loyal customers and instill trust. They can also benefit from new revenue streams and business practices facilitated by DPPs, such as data on customer behavior, opportunities to participate in the resale market, as well as gaining the ability to validate their own green claims.
Tackling climate change and reducing waste is one of the most important challenges we face. Businesses should and must embrace DPPs with open arms, even if the regulation isn’t finalised yet. Despite the hurdles, one thing is certain: DPPs represent a new way to manage supply chain transparency, provide information on product lifecycles and sustainability claims, and give more opportunity to the consumer to make conscious buying choices.
