Leverage Existing Product Data for Streamlined EU DPP Compliance

Many UK companies are aware of the forthcoming Ecodesign for Sustainable Products Regulation (ESPR), yet many haven’t taken the first steps toward compliance, largely because they’re unsure where to begin. One of the initial and most crucial challenges will be identifying and validating the necessary data to support compliance with the regulation’s Digital Product Passport (DPP) mandate -  a process that could prove more complex and time-consuming than initially expected.

As part of this process, companies can streamline their regulatory preparation in several ways. From engaging with stakeholders across their supply chains early to understand where data resides and their starting points for data collection, to seeking specialist DPP providers to support in this process of data collection and validation.

As business landscapes develop and product scrutiny intensifies, tangible integration options are available for industries set to be confronted by upcoming regulatory data challenges. As the ESPR’s DPP mandate becomes a looming priority for companies across the EU marketplace, many options are becoming available to lessen the regulatory load.

This includes the potential for companies to turn to DPP specialists who integrate with legacy systems, or integrate with product data management platforms in order to lower the burden of data collection and management in order to meet regulatory demands and prepare for compliance.

The EU Commission’s green movement 

The ESPR, part of the EU’s broader Circular Economy Action Plan (CEAP), is designed to drive sustainability by making eco-friendly products the standard across the EU. The regulation aims to ensure that products last longer, are more energy- and resource-efficient, easier to repair and recycle, contain fewer harmful substances, and incorporate more recycled content.

Targeting industries with significant environmental footprints—such as textiles and ICT - the ESPR will affect any company placing regulated products on the EU market, even if they are not based there. A key requirement will be the adoption of DPPs, a product’s ‘digital passport’ and secure digital record that tracks the item’s lifecycle - including data relating to sustainability metrics, history, and even compliance data.

For companies operating in or trading with the EU, preparation for data collection and validation will be critical to staying ahead of regulatory demands and turning compliance into a competitive advantage.

Product data management and DPP compliance

As DPPs are set to be mandated across specific industries, including but not limited to the textiles, electronics, and furniture landscapes, companies need to begin gathering and verifying product data now to populate DPPs in good time. From collecting data from fragmented sources to organising and standardising the format to ensure DPP compatibility, this process is likely to be long and complex.

Achieving DPP readiness requires companies to gather and harmonise comprehensive product information, like material breakdowns and repair instructions, into secure, machine-readable formats to ensure accessibility for all value chain stakeholders.

To start this process, companies will need to understand each element of their product supply chain, from raw material sourcing to manufacturing, to gain an understanding of what levels of product data are coming from where. These conversations often surface unexpected data sources and open opportunities to improve access and transparency, which are critical for aligning with the ESPR’s DPP requirements.

Building on existing data foundations

As deadlines for DPP compliance near for companies across the board, there is an opportunity to utilise DPP solutions that integrate with legacy systems or existing infrastructures. For example, there are already providers supporting their customers to leverage existing data sets and streamline this DPP data journey. This support could prove particularly beneficial to the customers of these businesses as they are able to utilise their existing product data and import from external sources to create DPPs at speed and instead prioritise consumer experience.

Moreover, by companies choosing a DPP solutions provider that can integrate with existing systems or legacy software, the ESPR’s DPP obligations can be met with less friction. By implementing DPP solutions that can import existing data streams, companies can ensure that data is captured, stored, and updated in the correct formats while also integrating seamlessly with existing systems in place.

By seeking out DPP providers that actively utilise APIs for automated data collection, or integrate with legacy systems such as Enterprise Resource Planning (ERP) software, Product Information Management (PIM) systems, or more; companies aren’t just prepared for ESPR compliance, but they are also able to benefit from smarter, more scalable solutions. 

Moreover, beyond the ESPR, such integrations could provide a holistic and future-proof system for companies needing to satisfy further regulatory requirements. As the Omnibus Regulation is designed to harmonise sustainability data sharing across policies like ESPR and the Corporate Sustainability Reporting Directive (CSRD), businesses could consider utilising the information contained within the DPP to report against or prove compliance with other sustainability-led regulations.

Streamlining data efforts for long-term success

As the ESPR and its DPP mandate reshape sustainability expectations across industries, companies must move decisively to future-proof their operations. From understanding the current data landscape to identifying gaps, validating sources, and integrating with the right partners, the steps toward compliance must be considered properly.

With the right tools and collaborations, companies can turn regulatory pressure into an opportunity for greater transparency and traceability without the need to start totally from scratch. By considering providers who can streamline the compliance journey, companies can reposition their focus to the consumer and ensure product satisfaction is the priority, rather than simply ticking regulatory boxes. 

Matthew Ekholm is a DPP and Circularity Specialist at Protokol, a specialist Web3 development and consulting partner. If you’d like to learn more about their services, register here to access Protokol and Productsup's free on-demand webinar.