Ever heard of a passport for products? Well, the European Union has come up with the Digital Product Passport (DPP) and it’s like a green stamp for sustainability! The DPP is a mandatory electronic record to be fully required by 2030, designed under the EU Green Deal legislation, specifically the EU Strategy for Sustainable Textiles and Ecodesign, a part of the European Commission’s Ecodesign for Sustainable Products Regulation. A central objective of the EU Green Deal is to set out the trajectory for the EU to be climate-neutral by 2050.
It’s expected that it will be in the form of a scannable QR code or another type of tag. This DPP, once accessed, will provide details about the product’s origins, material composition, supply chain, sustainability, recyclability and possibly much more – all gathered in one place from various interconnected sources.
Fashion brands, retailers and manufacturers understand the intricacies of their supply chains, making it challenging to disclose every material used in their products. Therefore, they need to prepare for compliance with DPP requirements or risk losing business with EU-based entities. This involves improving traceability by uncovering, gathering and disseminating fabric information.
However, awareness of DPP in the Indian apparel industry is still in its nascent stage due to various factors. To begin with, experts pointed out that the industry lacks a comprehensive understanding of DPPs and their advantages, highlighting the need for educational initiatives.
“We are still working to create products that are fully traceable to ensure the highest level of quality and transparency in every garment,” said Mahendran R, Chief GM, Fabric Sourcing, Texport Industries Pvt. Ltd., one of India’s leading manufacturers and exporters of woven and knitted apparel and knitted fabric. It produces 1.8 million garments a month from its 20 directly owned factories spread across Bengaluru, Hindupur, Tirupur and Trivandrum.
Who does the legislation apply to?Every company that plans to make or introduce products in the EU market for the first time must create and maintain DPP. This responsibility will start from a specific date that is expected to be announced this year. Importers and online marketplaces may also fall under this definition. Importantly, this includes products exported to the EU. Therefore, stakeholders in the apparel and textile industries across North America, Latin America and Asia should see themselves as part of this regulation, not just European retailers and brand owners. Finished textile goods are covered, but raw materials, substances of concern and components of the finished products also need to be identified and disclosed in detail, which are yet to be determined. All entities (economic operators) placing products on the EU market will be subject to this regulation–including non-EU companies. Textile and apparel brands, retailers, manufacturers, marketplaces and more should prepare by starting their product and location identification processes now. A European Commission-funded group called, CIRPASS, is tasked to prepare the ground for gradual piloting and deployment of DPPs. The project consortium comprises 31 partners representing thousands of industrial, research, digital and international standards and regulatory organisations and NGOs across Europe and beyond. The group will respond to the European Commission’s call on creating a clear concept for DPP, defining a cross-sectoral product data model and DPP system with demonstrated benefits for the circular economy as well as developing roadmaps for its deployment. |
Manufacturers believe that the responsibility to lead this initiative rests with brands. “It’s up to the brands to determine how to convey content to the customer, which could include information about the brand itself and details about the product, Secondly, regarding the conversion of product information into QR codes, I don’t believe manufacturers currently face any capability issues. It’s a straightforward process that is becoming increasingly common. While it’s true that not many brands have implemented it yet, there is a growing trend towards adoption, including within our own company,” stated Ravi Shekhar Sharma, Vice President-Sourcing, Madura Fashion Lifestyle, a division of Aditya Birla Nuvo Ltd., with several brands under its portfolio such as Louis Philippe, Van Heusen, Allen Solly and Peter England.
Technical complexities form a barrier, especially for smaller manufacturers and brands lacking the requisite expertise. Perceived costs associated with technology, training and compliance may also deter adoption. The lack of standardised protocols is also a big issue.
“Some brands may be resistant to change or may not see the immediate value in adopting DPPs, particularly if they have established supply chain processes in place. The lack of standardised protocols can create confusion and inhibit adoption. Establishing common standards and frameworks can help address this challenge,” said Sandeep Jain, Executive Director, Monte Carlo Fashions Ltd., the flagship company of Nahar Group which had a turnover of approximately Rs. 1,100 crore in FY ’23. The Indian government had not made any specific announcements or policies regarding the implementation of Digital Product Passports (DPPs). However, the government has shown increasing interest in promoting digitalisation and sustainability in various sectors, including manufacturing and supply chains.
“The government’s focus on initiatives such as ‘Make in India’ and ‘Digital India’ suggests a broader commitment to leveraging technology for economic growth and development. DPPs align with these objectives by providing a digital solution to enhance transparency, traceability and sustainability in product supply chains,” said Sandeep.
“While there may not be explicit policies or mandates related to DPPs at the moment, continued advocacy from industry stakeholders and growing global trends towards sustainability could influence the government’s stance in the future,” believes Rahul Bhalla, Co-founder and CEO, Latin Quarters, a women’s westernwear brand with a presence in more than 300 stores spanning across 100 cities in India.
Ravineet Singh, Founder and CEO of Indyverse, an Indian ethnic fashion marketplace with a Metaverse experience, suggested, “Certification agencies could play a crucial role in ensuring compliance with DPP standards. Certification agencies could also help educate industry stakeholders about the benefits of DPP adoption, potentially fostering trust and sustainability in the apparel sector.”
What information will be included in the DPP?There are several distinct data categories that can be gathered and then shared across entire ecosystems and value chains: General: This involves overall product information used to identify product origin, including product IDs and batch numbers, reference numbers, weight/volume, manufacturing facility location and dates and manufacturer operator ID. It will help consumers to verify the authenticity of the products. Source: It relates to the type and origin of raw materials and components used in product manufacturing. It includes information on chemicals, plastics, ingredients and substances, as well as details about materials previously recycled and recovered. Sustainability of the manufacturing process and adherence to ethical practices can also be recorded. For instance, consumers can validate a company’s green claims. Footprint: Data related to the carbon footprint, expected waste generation and environmental impact of the product throughout its lifecycle. It interprets data from the above categories, providing details on energy use, emissions and recyclable materials. Ownership: Details about past and current owners of a product, including ownership duration. This information can be configured based on unique use-cases, such as clothing and luxury goods resale, where ownership can be transferred through the digital passport application. Maintenance: Details about the repairability attributes of a product and actual repair events throughout its life. This includes information about the repair location/outlet, the repair itself and associated costs. For example, a luxury watch owner initiating a repair after accidental damage, with all details recorded on the digital passport. Documentation: Digital versions of warranty, service, insurance and guarantee documentation stored within a digital passport, accessible to all relevant parties. Instructions: The DPP will store instructions and protocols for various operations, such as disassembly and recycling, end-of-life and disposal, along with procedures for repair, refurbishment, upgrade or reuse. |
When speaking with Apparel Resources regarding DPP, a spokesperson from SGS, world’s leading testing, inspection and certification company with around 100,000 employees operating a network of 2,600 offices and laboratories, stated, “To advance the promotion of DPP, SGS offers a comprehensive Digital Traceability Solution featuring the innovative SGS SMART Source platform. This solution efficiently manages intricate supply chains, spanning from raw materials, yarns and fabrics to finished goods. SGS SMART Source assists in order information collection and documentation review, facilitating and enabling end-to-end traceability, thus boosting industry and consumer confidence in product claims.”
Other solutions for the industry include the SGS Preferred Material Digital Traceability solution, which enables brands and recyclers to establish customised traceability programs. Additionally, SGS offers the FibreTrace® – Tracer and Blockchain Platform Solution, which enhances supply chain traceability by integrating FibreTrace® Tracers with SGS Traceability Solutions. This integration allows brands to showcase compliance and traceability of preferred materials within the FibreTrace® digital platform. It’s becoming increasingly crucial for the apparel industry to wholeheartedly embrace DPP to succeed in an era where transparency and sustainability are of utmost importance.
