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ESPR: Empowering sustainability through digital product passports!

2024-09-16 12:13
The current Ecodesign Directive (2009) serves a cornerstone of sustainability efforts, constantly delivering wins for businesses, consumers and the environment. Picture this: in 2021 alone, its measures across 31 product groups saved EU consumers a whopping EUR 120 billion in energy costs and slashed annual energy consumption by 10% for the products involved.

This current directive exclusively addresses energy-related products, prompting the European Commission to advocate for significant steps towards promoting more sustainability and circularity across products!

In March 2022, the European Commissions proposed the Ecodesign for Sustainable Products Regulation (ESPR). Continue reading to learn the ins and outs of this upcoming regulation, exploring its origins, objectives, and implications for various stakeholders.
Understanding ESPR

As previously mentioned, the Ecodesign for Sustainable Products Regulation (ESPR) is on a mission to revolutionize the EU market by making sustainability and circularity the new norm, as well as making Europe more resource efficient. This regulation draws heavily from the European Commission's Circular Economy Action Plan of March 2020, and of course the EU Green Deal.

Accompanying the ESPR is the Digital Product Passport (DPP), a revolutionary concept that has the potential to transform product transparency and traceability. By providing a comprehensive digital profile of each product, from its materials to its end-of-life, the DPP empowers consumers to make informed choices when purchasing and holds manufacturers accountable for their environmental impact!
ESPR Framework

The ESPR framework focuses on developing ecodesign requirements for specific product groups in order to significantly increase circularity, energy performance, and other environmental sustainability aspects.

For textile products, the framework includes a wide range of requirements, including:

  • Product durability, reusability, upgradability and reparability
  • Existence of substances that prevent circularity.
  • Energy and resource efficiency
  • Recycled content
  • Remanufacturing and recycling
  • Carbon and environmental footprints
  • Information requirements, including a Digital Product Passport
What are Digital Product Passports?

Digital Product Passports (DPPs) are electronic documents or databases typically implemented using QR codes, RF ID tags or NFC (Near Field Communication) technology, serving to provide products with distinct digital identities.

The technology requires brands to gather and share data from a product's entire lifecycle, which will be accessible for consumers in the form of a 'digital twin'.

Until there is a Delegated Act (in 2025) that contains all the necessary information, we cannot yet say exactly what will be in a DPP.

In a Delegated Act, non-essential elements of EU legislation are supplemented or amended, for example to establish detailed measures.

But it is already clear that the core of information is about the so-called "Bill of Materials', the materials the product is made of.
Who will be applicable?

The ESPR will apply to any economic operators along the value chain i.e. product manufacturers (BOTH EU and non-EU), EU importers, distributors, dealers (retailers, sellers), and fulfillment service providers (3rd party logistics providers).

For Digital Product Passports, the company involved in putting the product on the market is responsible. Manufacturers and EU importers of regulated products must ensure the availability of a product passport in line with the relevant deluged act. Companies bringing textiles and shoes onto the European market are among the first to introduce such a passport by 2027.

Here's a timeline for when this upcoming regulation will go into force, as well as when each industry will be required to offer digital product passports:
Benefits and challenges of ESPR

Benefits of ESPR include;

  • Circular economy: It encourages the adoption of circular business models, by promoting durability, repairability, and recyclability.
  • Innovation: It drives innovation in product design and manufacturing processes, including the implementation of digital product passports.
  • Consumer confidence: The introduction of digital product passports increases consumer trust and happiness by providing additional information about the product's sustainability.
  • Enhanced transparency: Digital products passports will increase the transparency and traceability throughout the supply chain.
  • Resource efficiency: By encouraging Europe to become resource efficient, it contributes to the conservation of natural resources and reduces the carbon footprint of products.
The challenges of the ESPR include;

  • Complexity: Like all new regulations, ESPR requirements may pose challenges for manufacturers due to the need for investment in new technologies and processes.
  • Cost: Meeting ESPR standards may increase production costs for manufacturers, potentially leading to higher product prices, which could affect consumer affordability and market competitiveness.
  • Enforcement and monitoring: This is critical for ESPR implementation as it avoids greenwashing and noncompliance, but it requires sufficient resources and coordination.

Do you want to learn more about this upcoming regulation, and specifically Digital Product Passports? We can provide you with personalized training on how to implement and comply with this future legislation. To learn more, schedule a 30-minute call with one of our team experts TODAY!
Additionally, don't forget to check out our Instagram reel highlighting key insights on the Ecodesign for Sustainable Products Regulation, providing bite-sized content for easy understanding.