We have known for a while now that we need to think more sustainably about production processes. The European Union is taking significant action to ensure a more sustainable future, and the EU Digital Product Passport (DPP) is evidence of this effort. It’s a groundbreaking initiative in overarching regulations regarding ecodesign. What does this mean for manufacturers and e-commerce companies? And what role does Product Information Management (PIM) play in this? We would like to explain it in this blog.
PIM AND SUSTAINABLE PRODUCT REQUIREMENTS
STANDARDIZED DIGITAL FILE PER PRODUCT
The DPP is an initiative of the Ecodesign for Sustainable Products Regulation (ESPR), which is part of the European Circular Economy Action Plan (CEAP). Ecodesign, as the name suggests, entails sustainable design. It involves making choices throughout the entire lifecycle of a product to minimize its negative impact on the environment. By lifecycle, we mean from production, through use, to disposal as waste. The goal is to minimize the ecological footprint of the entire product.
To encourage manufacturers to make efforts in this regard, the DPP was introduced. By providing an extensive, standardized digital file for each product, it becomes easier for manufacturers and providers to make informed choices. Manufacturers are encouraged to produce more energy-efficient and sustainable products, as well as to reconsider their choice of packaging materials. Providers have the opportunity to include all product information in their PIM system. This makes it easier for consumers to weigh more sustainable product options. Policymakers can also use the DPP to take measures to encourage manufacturers to make their processes more sustainable.
THE IMPACT OF DPP ON THE OPTIMIZATION OF PRODUCTION PROCESSES
The DPP could represent a turning point for the European circular economy, impacting various areas:
- For products: With the DPP, it becomes immediately clear how products can be repaired and recycled. This is particularly useful during the recycling process. For example, if a product contains hazardous components, this information is quickly evident during waste processing, enabling them to remove these components correctly.
- For production methods: Manufacturers gain clarity on the environmental impact of certain choices in the production process. This can prompt them to optimize production processes in terms of sustainability, energy efficiency, and the reuse of components.
- For consumers: Thanks to the DPP, consumers can make more informed choices. It becomes clearer to them what the (total) ecological footprint of each product is, allowing them to compare products more easily before making purchasing decisions.
- For competitiveness: We are at a tipping point where there is increasing attention on more sustainable products. When ecological choices are made in this process, businesses can highlight them to distinguish themselves from competitors.
THE BENEFITS OF DPP IN PIM
The DPP provides significant added value in terms of data enrichment in PIM for sustainable products. You can easily integrate comprehensive product data into your PIM system. How? By leveraging the various functionalities in PIM, such as labels and additional text fields. Here’s an overview:
- Built-in standard classification and labels: In PIM, you have the ability to add standard classifications and labels, such as eco-labels, to highlight the sustainability of products.
- Additional fields: In PIM, you can use additional fields and attributes to add extra sustainability information to products. You can provide additional fields to include, for example, emission levels from production and logistics. Or you can add the expected lifespan of your product. Material choices or the recyclability of products also deserve a place in PIM.
- Text fields: In PIM, you can also utilize extra text fields to delve deeper into the sustainability characteristics of products. For example, you can add detailed reports or certifications.
- Images and other documents: Enrich your product information with, for example, energy efficiency certificates, product test reports, or recycling instructions.
- Search and filter functionality: Enable additional search and filtering options to filter based on sustainability. When users can easily select products based on sustainability criteria, this can lead to higher sales figures.