Digital Product Passport: Burden or Growth Opportunity?

The Digital Product Passport (DPP) is a new European initiative that creates a digital record containing structured data about a product, including its components, materials, chemical substances, origin, repairability, and end-of-life options. Over the next few years, manufacturers and product distributors in the European Union will need to comply with the DPP, an essential part of the Union's Ecodesign for Sustainable Products Regulation (ESPR).

Don't fear the regulation.

Across Europe, conversations about the DPP often begin with resistance. Industry associations warn of administrative overload, small and medium enterprises (SMEs) fear another layer of reporting that would affect their limited resources, and many companies argue they cannot prepare without finalized delegated acts. Yet this understandable reflex ignores a simple truth: most of the information required for a DPP already exists inside today's regulatory landscape. But it is scattered across different processes, formats, spreadsheets, supplier emails, and paper documents. What preparing for the DPP really means is consolidating what companies must already do, while adding layers of automation and reliable verification.

Seen from this angle, the DPP is not an "ESPR burden," but a huge step forward for supply-chain compliance. And it comes at the right time. Many manufacturers across sectors still process supplier data manually. For example, more than 60 percent of German companies still exchange supplier data on paper, which can lead to inconsistent formats and error-prone workflows. In this environment, it becomes nearly impossible to ensure the accuracy required by new legislation, especially when manufacturers remain legally responsible for information originating from suppliers over whom they have limited control.

The result is structural tension: companies face liability for data they cannot fully validate, while regulators and consumers expect reliable insights into origin, materials, and environmental impact. If the DPP were implemented purely as another form of reporting, this tension would escalate. But the ESPR implicitly acknowledges the need for trustworthy, automation-ready structures. Article 11(g), for example, calls for authenticity, reliability, and integrity in DPP data – requirements that can hardly be achieved with today's fragmented workflows.

The DPP as a tool

This is precisely where a digital-first approach changes the narrative. Instead of treating the DPP as compliance documentation only, companies can treat it as a supply-chain compliance tool: a single source of verifiable information that replaces e-mail attachments, eliminates format conversions, and makes responsibilities traceable. Qualified electronic seals (qSeals) play a central role in this shift. When suppliers seal their data using eIDAS-compliant trust services, manufacturers gain legally robust assurance that information has not been manipulated. Accountability becomes explicit, and the burden of proof can be transferred back to those responsible.

Once data becomes verified at the source and interoperable across partners, companies can streamline processes and reduce the administrative load of recurring audits. The DPP can become a connector between systems, effectively replacing today's siloed compliance efforts with a coherent digital backbone. Early movers already recognize this potential: some manufacturers began pilots in 2023 to ensure a smooth transition before the central EU registry launches in July 2026.

If implemented correctly, everyone can benefit.

From the legislator's point of view, the introduction of the DPP is primarily about greater transparency for consumers and the promotion of a more sustainable economy. However, this does not have to conflict with companies' goals. They should now take the opportunity to better organize their product and supplier information. This will not only ensure compliance with regulations but also enable organizations to realize efficiency gains.

Learn more about the DPP and the EU ESPR regulation in our latest whitepaper, and delve deeper into creating frictionless, secure processes for product information management and DPP compliance.

Do you have any questions? Contact us!

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Digital Product Passport: Burden or Growth Opportunity?

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