Digital Product Passport (DPP): impact on companies, obligations, and strategic opportunities

21 Nov 2025

Key challenges for companies designing, producing, and managing products in the EU starting 2026

With the upcoming implementation phase of the Digital Product Passport (DPP), introduced by the European Ecodesign for Sustainable Products Regulation (ESPR), companies operating in the EU face a dual challenge: on one hand, they must comply with new regulatory obligations; on the other, they have a unique opportunity to turn compliance into a strategic asset.

The DPP will profoundly transform how businesses design, produce, and manage their products throughout the entire lifecycle.

What are the regulatory obligations of the Digital Product Passport (DPP)?

From 2026 onward, companies will be required to:

- Provide a digital passport for each individual product, containing verified and up-to-date data on materials, composition, carbon footprint, recyclability, and other environmental aspects.

- Upload this information to interoperable digital systems, accessible to consumers, authorities, and other stakeholders via unique product identifiers (e.g., QR codes, RFID, or equivalent technologies).

- Align with delegated acts that will define specific parameters for each product group.

- Ensure traceability and data security throughout the entire value chain.

What happens if companies do not comply with the DPP?

Failure to comply with DPP requirements may result in restricted market access, financial penalties, and reputational damage for companies placing non-compliant products on the European market.

Strategic opportunities: turning compliance into competitive advantage

The DPP is not just a legal requirement, it is a strategic lever for innovation and value creation. By leveraging the data contained in the DPP, companies can:

- Increase transparency and consumer trust through verifiable sustainability information.

- Improve supply chain collaboration and resource efficiency.

- Enable new circular business models, such as reuse, repair, and recycling.

- Strengthen ESG reporting capabilities and innovation in ecodesign.

- Build a strong reputation and gain recognition as a key player in Europe’s ecological transition.

Consequences for companies: preparing for systemic change

The introduction of the DPP will have a cross-functional impact on all business areas, from R&D, procurement, and IT to legal and marketing.
Companies must begin assessing their readiness and adapting processes and systems to the new regulatory and digital landscape.

Key steps to prepare for the DPP

- Conduct a DPP readiness assessment across the entire product portfolio.

- Map information flows and identify data gaps related to sustainability and material traceability.

- Engage suppliers to ensure data integrity and completeness throughout the supply chain.

- Select the right provider or partner to support your DPP strategy by developing internal governance models and choosing the most suitable digital infrastructures for effective DPP management.

The DPP as a driver of innovation and competitiveness

The Digital Product Passport is much more than a regulatory deadline: it is a cornerstone of the European strategy toward a circular, transparent, data-driven economy.
For companies, acting early will be essential to manage obligations, mitigate risks, and seize new business opportunities in the sustainable product ecosystem.