Todd Merton, Business Development Executive, Ethical Supply Chain Initiative
Halfway through 2024, the European Commission introduced legislation setting new transparency requirements for consumer products. The framework legislation, called Ecodesign for Sustainable Products Regulation (ESPR), requires significant improvements in the circularity, performance and composition of products on the EU market.
In addition to requiring more sustainable certificates, ESPR also introduced Digital Product Passport (DPP) requirements. DPP is a virtual identity card for products, components and materials. The card will store relevant information to support product sustainability, promote circularity and enhance legal compliance.
The DPP will serve as a digital record containing comprehensive information about a product and its entire value chain. This includes everything from a product’s origin and materials used to its environmental impact and recommended disposal methods.
Impact on your business
Companies intending to sell products on the EU market must integrate circularity and sustainability into their product development cycles. This means ensuring visibility across the entire product journey, from the source of materials to labor standards in the production plants.
getting Started
Developing and implementing a new transparency system can seem daunting, especially when your product range is broad and your supply chain implications are far-reaching. However, this is not the case. The Ethical Supply Chain Program (ESCP) recommends a three-fold approach.
First, companies should evaluate existing data to understand what is missing and identify areas that may require further analysis or sources of information.
Next, work with your suppliers. Talk to them to find out what information they already have and what information they can share about their extended supply chain. Make it clear to your suppliers what information and actions you need from them to deliver the DPP. You need to make sure they can provide the information you need. If not, you should consider sourcing from suppliers with a verifiable record of transparency and a willingness to proactively work with customers to meet compliance requirements.
Finally, build your own data systems or partner with a third-party organization that already has them. DPP is not as simple as generating a QR code, and the guidelines are clear. The information contained should be true, reliable and verified. Getting this right from the start will help comply with regulations and help you deliver a trustworthy sustainability message, providing a great opportunity to engage directly with consumers.
Ensure compliance
The DPP was implemented last year and is expected to be further implemented in 2026. DPPs provide a great opportunity for a future of supply chain transparency and direct consumer involvement. It is recommended that businesses work with professional third-party organizations to ensure they are prepared for the world of DPP and can easily remain compliant in the future.
Available resources
Information about ESPR and DPP is becoming more widely available. Working with expert organizations is crucial to understanding the impact of this new legislation on your business. ESCP is a non-profit organization that works with thousands of international buyers, suppliers and businesses in the shared interest of transparency. ESCP is committed to bringing its community together, with a series of events, working groups and regular information sharing planned for 2025 to ensure its members are prepared for the future.
In addition to ESCP’s member network and events, consider using the supplier sourcing tool: Connect. Connect is ESCP’s database of ethically certified suppliers across multiple product categories from around the world.
Contact us today to learn more about our community and the solutions that can help your business navigate future legislative changes. For more information please email: [email protected]
A version of this feature was originally published in The Toy Book’s 2025 International Innovation Issue. Click here to read the full article! Want to receive a printed copy of The Toy Book? Click here to view subscription options!
