Countdown to Compliance: Building a More Sustainable Fashion & Luxury Industries Through Digital Product Passports
With the introduction of ultra-fast fashion players increasing the affordability and availability of fashion products in recent years, alongside further volume growth of the apparel market forecasted over the coming 4 years, these accelerated rates of apparel consumption have further fueled demands for a more sustainable fashion industry.
“Sustainability is no longer a brand value, it’s a compliance mandate. And yet, so many brands still treat it like a bonus feature, not the business backbone.” — Leanne Elliot Young, CEO & Co-Founder, IoDF
As a result, over the next few years, a number of regulations aimed at improving the sustainability of the fashion industry will be coming into effect (we discuss that in more detail in this blog). One of these regulations, the EU’s Eco-Design for Sustainable Products Regulation (ESPR), came into effect in 2024 with the goal of ensuring products in the market are more sustainable by improving their circularity, energy performance, recyclability and durability. While there are many provisions within the framework to achieve these goals, the requirement for Digital Product Passports (DPPs) is becoming crucial. DPPs are set to revolutionize the sustainability and transparency of the fashion industry.
Becoming mandatory for all products traded in the EU by 2030, DPPs are a digital record of all information related to a product’s components, materials, origin, aftercare guidance and environmental impact. Their objective is to improve the transparency and traceability of products in-market, enabling consumers and broader stakeholders to make more informed decisions as well as extending lifecycles when it comes to product end of life.
With vast supply chain networks and the complexities of the fashion industry, implementing DPPs with full traceability from product conception is no small feat. Exact requirements for DPPs vary by product industry, and for the apparel industry, these requirements are expected to be outlined by late 2026/early 2027. While these timelines may seem far away, with the complexities of navigating large supply chain networks and collating data from a multitude of sources in one place, many savvy fashion brands are getting ahead of the curve by ensuring they have the strong data foundation in place and experimenting with DPPs early in order to avoid potential penalties and delays further down the line.
“Digital Product Passports are more than a compliance mandate — they’re the key to transparency, circularity and innovation in fashion. Beyond meeting regulations, DPPs unlock immense commercial value, enabling brands to monetize data across supply chains, enhance ESG reporting accuracy, reduce operational inefficiencies and deliver richer consumer experiences that drive loyalty and growth in an increasingly sustainability-driven market” — Tal Amiel, Principal, Data Analytics Consulting, EPAM
Although achieving DPP compliance may require some heavy lifting, there is an abundance of additional ESG benefits that can be unlocked as a result of doing so. Through collating the data required for DPPs, this information can also be used for reporting, supporting compliance with additional regulations such as the EU Corporate Sustainability Reporting Directive (CSRD) as well as improving the accuracy and transparency of ESG information shared with investors and broader stakeholders. In addition, having full end-to-end visibility of data can provide brands with more control and an enhanced ability to spot potential risks and compliance issues within their supply chains, as well as the ability to identify opportunities to improve operational efficiencies and lower environmental footprints, creating a truly more sustainable industry.
A key directive of DPPs is to improve the circularity and product lifecycle of fashion products. So, beyond measurement and visibility of supply chain operations, they can also provide utility post-purchase. As fashion brands are facing increased responsibility for produced goods post-purchase, DPPs can be leveraged to provide aftercare information to customers that can extend product lifecycles, from maintenance and care guidance to repair information and end-of-life instructions, supporting the circular economy.
“Designing sustainably isn’t about doing less, it’s about doing differently. With every product, we can build a cultural record, not just a consumer item.” — Cattytay, Creative Director & Co-Founder, IoDF
While DPPs will inevitably become mandatory for the fashion industry, when implemented strategically, they can become much more than a singular compliance tool. With the ability to unlock new opportunities for growth and foster direct-to-consumer engagement, beginning the journey of implementing DPPs can generate an abundance of benefits beyond compliance, driving value and creating a more transparent and sustainable fashion industry.
EPAM is here to support your brand on this journey. We are collaborating with IoDF to offer DPP services for the fashion and luxury sectors. By combining IoDF's digital fashion expertise with EPAM's digital transformation capabilities, this collaboration aims to support clients on their journey to address EU regulations on product transparency and sustainability. Using technologies like RFID, NFC, blockchain and AI, the initiative enhances consumer experiences and unlocks new revenue streams. Contact [email protected] for more information.
