Blog
Digital transformation has reached almost every aspect and sector of our lives, and the world of products and services is no exception. In this context, the Digital Product Passport (DPP) concept is emerging as a revolutionary tool to foster sustainability and the circular economy. Accompanied by initiatives such as CIRPASS (Circular Product Information System for Sustainability), the DPP promises to change the way we interact with products throughout their life cycle. In this article, we will explore what DPP is, its origins, applications, risks and how it can affect our daily lives and the protection of our personal data.
What is the Digital Product Passport (DPP)? Origin and importance
The Digital Product Passport is a digital collection of key information about a product, from manufacturing to recycling. This passport allows products to be tracked and managed more efficiently, improving transparency and facilitating sustainable practices. The information contained in a DPP may include details on the materials used, the manufacturing process, the supply chain, instructions for use and how to recycle the product at the end of its life.
The DPP has been developed in response to the growing need to promote the circular economy and reduce the environmental impact of products. The European Union (EU) has been a pioneer in promoting policies and regulations that support sustainability. Initiatives such as the EU's Circular Economy Action Plan have been instrumental in driving the DPP forward. The objectives of this plan are as follows:
- Greater Transparency: Consumers no longer have to guess about the origin of their products and how to dispose of them correctly. With a machine-readable DPP (e.g. QR code or NFC tag) attached to end products, consumers can make informed purchasing decisions and brands can eliminate greenwashing with confidence.
- Simplified Compliance: By creating an audit of events and transactions in a product's value chain, the DPP provides the brand and its suppliers with the necessary data to address compliance demands efficiently.
- Sustainable Production: By tracking and reporting the social and environmental impacts of a product from source to disposal, brands can make data-driven decisions to optimise sustainability in product development.
- Circular Economy: The DPP facilitates a circular economy by promoting eco-design and the responsible production of durable products that can be reused, remanufactured and disposed of correctly.
The following image summarises the main advantages of the digital passport at each stage of the digital product manufacturing process:
CIRPASS as a facilitator of DPP implementation
CIRPASS is a platform that supports the implementation of the DPP. This European initiative aims to standardise the collection and exchange of data on products, facilitating their traceability and management throughout their life cycle. CIRPASS plays a crucial role in creating an interoperable digital framework that connects manufacturers, consumers and recyclers.
DPP applications in various sectors
On 5 March 2024, CIRPASS, in collaboration with the European Commission, organised an event on the future development of the Digital Product Passport. The event brought together various stakeholders from different industries and organisations, who, with an eminently practical approach presented and discussed various aspects of the upcoming regulation and its requirements, possible solutions, examples of use cases, and the obstacles and opportunities for the affected industries and businesses.
The following are the applications of DPP in various sectors as explained at the event:
- Textile industry: It allows consumers to know the origin of the garments, the materials used and the working conditions in the factories.
- Electronics: Facilitates recycling and reuse of components, reducing electronic waste.
- Automotive: It assists in tracking parts and materials, promoting the repair and recycling of vehicles.
- Power supply: It provides information on food traceability, ensuring safety and sustainability in the supply chain.
The impact of the DPP on citizens' lives
But what impact will the use of this kind of novel paradigm have on our daily lives? And how does this impact on us as end users of multiple products and services such as those mentioned above? We will focus on four base cases: informed consumers in any field, ease of product repair, trust and transparency, and efficient recycling.
The DPP provides consumers with access to detailed information about the products they buy, such as their origin, materials and production practices. This allows consumers to make more informed choices and opt for products that are sustainable and ethical. For example, a consumer can choose a garment made from organic materials and produced under fair labour conditions, thus promoting responsible and conscious consumption.
Similarly, one of the great benefits of the DPP is the inclusion of repair guides within the digital passport. This means that consumers can easily access detailed instructions on how to repair a product instead of discarding it when it breaks down. For example, if an appliance stops working, the DPP can provide a step-by-step repair manual, allowing the user to fix it himself or take it to a technician with the necessary information. This not only extends the lifetime of products, but also reduces e-waste and promotes sustainability.
Also, access to detailed and transparent product information through the DPP can increase consumers' trust in brands. Companies that provide a complete and accurate DPP demonstrate their commitment to transparency and accountability, which can enhance their reputation and build customer loyalty. In addition, consumers who have access to this information are better able to make responsible purchasing decisions, thus encouraging more ethical and sustainable consumption habits.
Finally, the DPP facilitates effective recycling by providing clear information on how to break down and reuse the materials in a product. For example, a citizen who wishes to recycle an electronic device can consult the DPP to find out which parts can be recycled and how to separate them properly. This improves the efficiency of the recycling process and ensures that more materials are recovered and reused instead of ending up in landfill, contributing to a circular economy.
Risks and challenges of the DPP
Similarly, as a novel technology and as part of the digital transformation that is taking place in the product sectors, the DPP also presents certain challenges, risks and challenges such as:
- Data Protection: The collection and storage of large amounts of data can put consumers' privacy at risk if not properly managed.
- Security: Digital data is vulnerable to cyber-attacks, which requires robust security measures.
- Interoperability: Standardisation of data across different industries and countries can be complex, making it difficult to implement the DPP on a large scale.
- Costs: Creating and maintaining digital passports can be costly, especially for small and medium-sized enterprises.
Data protection implications
The implementation of the DPP and systems such as CIRPASS implies careful management of personal data. It is essential that companies and digital platforms comply with data protection regulations, such as the EU's General Data Protection Regulation (GDPR). Organisations must ensure that the data collected is used in a transparent manner and with the explicit consent of consumers. In addition, advanced security measures must be implemented to protect the integrity and confidentiality of the data.
Relationship with European Data Spaces
The European Data Spaces are an EU initiative to create a single market for data, promoting innovation and the digital economy. The DPP and CIRPASS are aligned with this vision, as they encourage the exchange of information between different actors in the economy. Data interoperability is essential for the success of the European Data Spaces, and the DPP can contribute significantly to this goal by providing structured and accessible product data.
Conclusion
In conclusion, the Digital Product Passport and the CIRPASS initiative represent a significant step towards a more circular and sustainable economy. Through the collection and exchange of detailed product data, these systems can improve transparency, encourage responsible consumption practices and reduce environmental impact. However, their implementation requires overcoming challenges related to data protection, security and interoperability. As we move towards a more digitised future, the DPP and CIRPASS have the potential to transform the way we interact with products and contribute to a more sustainable world.
Content prepared by Dr. Fernando Gualo, Professor at UCLM and Data Governance and Quality Consultant The content and the point of view reflected in this publication are the sole responsibility of its author.
Blog
Just a few months ago, in November 2019, Ursula von der Leyen, still as a candidate for the new European Commission 2019-2024, presented the development of a European Green Deal as the first of the six guidelines that would shape the ambitions of her mandate.
The global situation has changed radically in the little more than six months since then due to the impact of the COVID-19 pandemic and as a result, many strategic plans of companies in practically all sectors and many roadmaps and roadmaps have been blown up. public policies of governments. Despite the great uncertainty in which we find ourselves, what is clear is that a thorough review will have to be undertaken to adapt these policies and plans to the new reality that is still taking shape.
However, it seems certain that the need and convenience of the European Green Deal has been reinforced in the current context. The Green Deal was conceived as an engine for the transformation of the European economy in the coming decades, but circumstances have made it a fundamental pillar for the reconstruction of the European economy in the short term after the shock induced by the confinements of the population.
In this sense, the European Union has an important advantage over other global players and that is to a large extent that its priorities are already aligned with the main challenges that we will face as the health crisis subsides. In any case, an EU growth strategy that aims to turn Europe into a continent without polluting emissions by 2050 may not seem ambitious enough to us now and we may even deem it pertinent to accelerate this transition.
The plan for the roll-out of the European Green Deal was published with a very ambitious tentative timetable that foresees the development between 2020 and 2021 of actions corresponding to the main key areas: climate ambition, clean, safe and affordable energy, industrial strategy for the economy circular and clean, sustainable and intelligent mobility, common agricultural policy beneficial to the environment and zero pollution and toxic-free environment.
If we analyze the main areas of action of the Green Deal, we clearly see that innovations based on data and artificial intelligence, together with other specific technologies, will be key to solving a good part of the challenges it aims to address. And of course all the documents already published recognize this, integrating data, open data, artificial intelligence and other technologies in the different planned actions. Those that are already available clearly indicate the path that the lines of work that will be approved in the coming years will follow.
EU strategy on biodiversity by 2030
The European biodiversity strategy to reintegrate nature into our lives, published on May 20, 2020, recognizes that “investment in research, innovation and knowledge sharing will be key to obtaining the best data and developing the best nature-based solutions”. As an example, he cites the European Forest Health Assessment, where the European Commission commits to "work with other data providers to further develop the Forest Information System for Europe." These commitments represent a good opportunity for the Spanish forestry sector on its way to transition towards a precision forestry industry approach.
Furthermore, the strategy expressly cites "the need to eliminate bycatch of endangered species or reduce them to a level that allows full recovery." To this end, it is proposed to intensify the collection of data on bycatch of all sensitive species. In this sense, the awarded project in the Aporta 2019 challenge is oriented, Optimatics System, which is designed to help fishermen make decisions in real time and thus rationalize fishing in the fishing grounds.
Ultimately, the European Biodiversity Strategy aims for research and innovation to help the Commission support and finance investments in nature-based solutions by providing objective criteria to prioritize 'green' solutions over 'gray' solutions.
Farm-to-table strategy
The “farm to table” strategy for a fair, healthy and environmentally friendly food system, also published on May 20, 2020, aims to ensure that Europeans have affordable and sustainable food, combat climate change, protect the environment and biodiversity and increase organic farming. This ambitious line of action also integrates the use of data and artificial intelligence in numerous places.
For example, it recognizes that the Common European Data Space on Agriculture, defined in the European Data Strategy, “will enhance the competitive sustainability of Union agriculture through the processing and analysis of data on production, land use, environment and of other types”, to then clarify that these data will allow “the precise and adapted application of the production approaches at the farm level and the monitoring of the results of the sector, in addition to supporting the initiative on carbon sequestration in soils agricultural”. That is, a clear orientation towards precision agriculture.
The key tool to achieve these objectives and for the transition to be fair and beneficial for all is the Common Agricultural Policy, which must be fully aligned with the Green Pact. The new CAP, proposed by the Commission in June 2018, aims to help farmers improve their performance as measured by environmental and climatic criteria. To do this, it proposes, for example, better use of data and analytics and a greater emphasis on investment in green and digital technologies and practices.
The European Union programs Copernicus and the European Sea Observation and Information Network (EMODnet), major open data sources, are cited for their contribution to reducing investment risks and as facilitators of sustainable practices in the fishing and aquaculture sector.
The improvement of data collection systems such as the 2009 Regulation on pesticide statistics or the Agricultural Accounting Information Network are also under attention and improvements are planned that will contribute both to fill the current gaps in the available data, how to promote evidence-based policy making.
New Action Plan for the circular economy
The New Action Plan for the circular economy for a cleaner and more competitive Europe, published on March 11, 2020, also recognizes a decisive role for research, innovation and digitization and therefore data during the transition. In this line, it is intended, for example, to promote the dissemination of environmental data by companies, which will force them to improve their systems for data capture and monitoring of objectives.
In the same way, innovation models based on massive customization or a closer relationship with customers are mentioned, which can accelerate the circularity and dematerialization of our economy. These models will only be possible using intensively data and artificial intelligence combined with other technologies such as blockchain or internet of things.
In addition, the European Commission will define a European data space for smart circular applications, with data on value chains and product information that will provide the architecture and governance system necessary to promote applications and services such as product passports, mapping of resources and information to consumers.
As part of the plan, the indicators, and therefore the data collection systems, on the use of resources will continue to be developed, in particular with regard to consumption and material footprints, which will be associated with the monitoring and evaluation process. of the advances obtained.
Open data
Finally, it is worth highlighting how open data is being used at the European level to promote the development of new solutions. The open data competition organized annually by the European Union, the EUDatathon, dedicated the first of its four challenges to the European Green Deal in 2020. The European Union Publications Office, organizer of the competition, has received 30 proposals (25% of the total) addressed to this challenge, which is a remarkable success considering the novelty of a concept forged only in recent months.
This interest from the open data community has also been reflected in the Spanish participation, which, with 4 proposals, has been the second country most committed to the Green challenge. Among the 3 shortlisted proposals for the final phase, there is a Spanish one, Dataseeds, which aims to help SMEs in the agriculture sector to contribute to the ecological restructuring of the EU industry.
Undoubtedly, the new growth strategy of the European Union represents a new source of opportunities for all economic sectors, but in all of them data will represent a key factor for their development, increasing the potential of other technologies such as intelligence. artificial knowledge and specific knowledge of each domain. And in Spain we have enormous potential both in the form of natural resources and in the form of capacities that can take advantage of this source of opportunities and generate competitive advantages in many sectors during this transition that has just begun.
Content prepared by Jose Luis Marín, Senior Consultant in Data, Strategy, Innovation & Digitalization.
The contents and points of view reflected in this publication are the sole responsibility of its author.