Unlocking Value Through Digital Product Passports

Introduction: what are DPPs?

Digital Product Passports (DPPs) are digital records that contain data spanning the entire lifecycle of a product. They are accessible to various stakeholders to enhance transparency and inform decision-making. They encompass information about the origin of the product’s materials and the design for circularity, as well as other social and environmental dimensions, to help improve transparency. While the concept of data-driven product ledgers has existed for some time, adoption has in the past been slow. That is changing as an increasing number of companies are launching pilots around DPP. Regulatory frameworks, such as the EU’s Ecodesign for Sustainable Products Regulation, are now making transparency an imperative and compelling organisations to provide detailed insights into the environmental and social impacts of their products.
 

Slow adoption, so far

Despite this, relatively few organisations so far have set up end-to-end DPP ecosystems that integrate data from raw material extraction through to repair, reuse, and end-of-life collection. And a review of current DPP initiatives – such as those by Volvo and Dolce & Gabbana – reveals that most companies publicly share data on only a limited number of products or product components.

This slow adoption is not due to a lack of perceived value. On the contrary, DPPs offer significant opportunities for companies to engage customers through innovative services like repair and rental, enhance data analytics capabilities, optimise resource use, and mitigate supply chain risks. But it has also revealed the challenges and bottlenecks that have made comprehensive implementation difficult and resource intensive.

However, the landscape is shifting. The current period presents an opportune moment for organisations to embrace DPP technology and concepts. Early adopters can secure a first-mover advantage, benefiting from enhanced customer engagement and operational insights while learning from the pilot projects of peers who embarked early on their DPP journeys. Moreover, regulatory requirements are tightening. Common data standards will soon become mandatory. Proactive adoption provides an opportunity to stay ahead of the curve that no one is likely to regret.

DPPs in practice – three use cases

The following three use cases are examples show effective ways to engage with DPPs. We begin by exploring the creation of an ecosystem around DPPs to engage multiple stakeholders, followed by examples from the luxury goods, consumer goods, and office appliance sectors.
 

1) Enhancing the luxury brand experience

In collaboration with Aura Blockchain Consortium, a non-profit organisation offering blockchain agnostic solutions exclusively to luxury brands, Deloitte developed a DPP cross-industry innovation solution for luxury brands. Luxury companies are uniquely positioned to leverage DPPs to certify product authenticity and enhance customer trust. This is vital: 52% of consumers lose trust in a brand after purchasing counterfeit goods online, even when the brand has no control over the sales platform. Beyond authenticity, DPPs enable luxury brands to offer new, premium customer experiences.

To create this enriched experience, it was essential to capture data on the product origin alongside information about new services. Hosting this data on a secure ledger, Aura Blockchain Consortium facilitated trustworthy data exchange across the product lifecycle.

Selecting the right solutions provider is critical to developing a good DPP-driven experience. Providers often specialise in different industries or aspects of data collection, and their expertise can guide the process. Collecting data that is aligned with the company’s objectives is equally important. While regulations mandate certain data points for compliance, additional data is often required to unlock advanced analytics and innovative customer experiences. A clear data roadmap is therefore essential.

Ultimately, the technology aims to connect upstream supply chain data with downstream customer interactions seamlessly, creating a unified and engaging experience for all users.

2) Generating value and reducing risk in consumer goods

Deloitte partnered with a FTSE 100 consumer goods company to address the challenge of navigating new DPP requirements and understanding their implications across a diverse product portfolio.

A multi-stage approach was taken. First, the client’s products were scoped against the evolving European Sustainability Product Regulation (ESPR) to establish compliance requirements and identify potential areas for action. To demonstrate feasibility and gather practical insights, Deloitte supported a technology provider in developing a Proof of Concept (PoC) for one of the client’s key product ranges. This involved engaging multiple suppliers to collect robust primary data, ensuring the PoC was substantiated and evidence based.

Building on these insights, a robust business case was developed to support wider DPP implementation across the client’s remaining product categories. A clear, data-driven, scalable roadmap aligned with the strategic rationale and anticipated benefits.

The engagement identified significant business opportunities, in both value generation and risk mitigation:

Value generators:

• improved transparency for customers to certify product authenticity
• streamlined internal data processes to optimise and automate data collection, reducing manual workload
• enhanced inventory management to reduce operational inefficiencies and optimise supply chains.
   

Risk mitigators:

• improved supplier capability and maturity to respond to data requests
• formalised and standardised external data-sharing methodologies
• restriction of illicit trade and counterfeiting.
   

Deloitte’s proactive engagement across industries reveals that leading businesses are acting now to capitalise on strategic gains beyond compliance, including:

• supercharging data quality: elevating primary data quality to unlock insights, drive smarter decision-making, and foster innovation
• optimising operational efficiency: improving internal data traceability processes to streamline operations, reduce waste, and achieve key targets.

By improving data accuracy and engaging proactively with emerging trends, organisations are establishing competitive advantage and driving informed strategic decisions.

3) Developing a DPP Framework for Office Appliances

Deloitte, in collaboration with Japan Business Machine and Information System Industries Association (JBMIA), is developing a DPP framework for office appliances, such as printers, targeting the EU and UK markets. Japanese Multi-Function Devices (MFDs – electronic devices that combine multiple functions) are widely sold through local third-party dealers in these regions, which often limits manufacturers’ visibility into the post-sale lifecycle of their products. This distribution model means that maintenance, repair, refurbishment, and recycling services are typically handled by local third parties who may lack detailed product knowledge. Consequently, opportunities to advance with circular economy solutions are missed.

A DPP that would connect customers to the company manufacturing these products is key to creating an ecosystem that supports the right to repair principle. Customers could, for example, scan a QR code to instantly identify authorised repair providers or receive timely updates, while manufacturers gain valuable insights into product performance and customer issues, enabling them to offer better support.

The growing emphasis on the right to repair through the EU’s Ecodesign for Sustainable Products Regulation (ESPR) and DPP regulations presents both challenges and opportunities. MFDs are more complex than typical electrical equipment and adherence to manufacturer-certified procedures is critical to avoid safety incidents. A well-designed DPP framework can empower third-party service providers with certified maintenance, repair, refurbishment, and recycling protocols, improving service quality, promoting reuse, and reducing e-waste.

Selecting the right technology and governance model is essential. The project focuses on addressing key considerations such as data ownership, standards, sharing protocols and accountability to ensure all stakeholders are included. Protecting manufacturers’ intellectual property and trade secrets is a priority, with privacy-preserving technologies integrated in the solution to safeguard sensitive information.

The project is also leveraging a compliant data exchange platform under development through Japan’s New Energy and Industrial Technology Development Organization (NEDO) Ouranos Ecosystem to enable trusted, efficient sharing of traceability data across the supply chain.
Ultimately, this initiative aims to build a collaborative ecosystem where manufacturers, service providers, and customers benefit from enhanced transparency, improved service quality, and an enhanced circular economy.

Conclusion

Now is the ideal time to engage with the DPP concept and explore new ways to connect and collaborate within your ecosystem. Focusing on and prioritising the relevant data points can simplify the implementation process and reduce overall effort.

We recommend organisations identify the most relevant use cases for their DPP initiatives, understand the relevant data requirements, and select the right technical partners to guide them on their journey.