A New Passport / Climate Truths Report

Wireframe: Passport to Future

DPPs Have a Climate Scope, But Data Credibility Will Matter

Can digital product passports or DPPs help the textiles industry meet climate goals? Some key stakeholders surmise that DPPs have a better chance of being effective if clear and cut aggressive targets are set, aligned with the 2050 climate goals.

Subir Ghosh

16 August 2023

5 minutes

Long Story, Cut Short

By fostering accountability and driving sustainable practices, DPPs can contribute to a more environmentally and socially responsible fashion industry.
DPPs will help companies address Scope 3 emissions comprehensively and promote sustainable sourcing, energy-efficient processes, and logistics optimisation.
Tools like DPP will support the 2050 climate goals by offering the data to understand if a company is changing enough to hit the target.

Though the DPP is an instrument to provide information on the product that operators place on the market, it will not dictate how the information is collected in the supply chain, if necessary.

Measuring up Though the DPP is an instrument to provide information on the product that operators place on the market, it will not dictate how the information is collected in the supply chain, if necessary. Matt Palmer / Unsplash

This is the second in the WireFrame series. The final article will appear on Friday.

It has become increasingly clear, since the idea was first introduced in March 2022, that digital product passports (DPPs) would play a vital tool in pursuing the twin objectives of circularity and sustainability. But those are very broad objectives, and there has been little discussion on how DPPs could help in meeting clear-cut climate goals.

The closest that one gets to this micro-subject is in the form of a report titled 'Digital Product Passport: The ticket to achieving a climate neutral and circular European economy?' But this report came out in July last year, and "textiles" were mentioned only in passing.

The report had pointed out that DPP systems could be significant in the context of GHG reporting duties for companies. "As such, DPPs can play a decisive role in industrial transformation towards climate neutrality, particularly in the production of energy- and material-intensive basic materials such as aluminum and cement," it said.

It underscored the need for businesses to offer climate neutral products as an alternative choice for companies and customers. The authors wrote: "DPPs could automatically generate CO2 footprint calculations for companies and the wider value chain. Value chain measurement and reporting of CO2 emissions (as per Scope 3 reporting) could be another core application of DPPs, with the ultimate goal of redesigning products and value chains.

"An additional application would be to facilitate compliance with social governance criteria, including on modern slavery and child labour. Such information could be stored in DPPs for materials and products, and then passed along supply chains throughout their production and use phases. DPPs could become the single point of truth for such data."

The report culled out insights from an intensive dialogue with members of the CLG (Corporate Leaders Groups) Europe Taskforce for climate neutral and circular materials and products and other identified business stakeholders across sectors and value chains.

The relevant ideas that emerged from the discussions were summarised thus: "DPPs could serve as digital-based supply chain compliance tools to monitor and report indicators, such as Scope 3 GHG emissions. This could result in long-term benefits for businesses, especially if other administrative burdens could be reduced. Based on standardised data, DPPs could also allow a direct comparison with other products and businesses on carbon footprints, circularity and recycling beyond recycled content. This could be facilitated by the inclusion of blockchain certificates for low carbon materials, which provide useful data to support the sustainability claims."

The ideas dwelt on the benefits of DPPs to store and share information throughout a product’s lifecycle. Those were, however, broad takes on the subject. There were some case studies, including one from the construction industry. But comparing bricks with garments is akin to comparing chalk with cheese. Or, something like that.

Cleaning up the act

The question, nevertheless, lingers on: how effective will DPPs be in meeting the climate goals?

Mónica Rodríguez, Co-Founder and CEO of Spanish startup Recovo, throws some light on the issue, as she underlines that the implementation of DPPs has immense potential to significantly contribute to meeting the 2050 climate goals. Rodríguez says: "By providing enhanced transparency and traceability throughout the supply chain, DPPs can help identify and reduce Scope 3 emissions associated with the production, transportation, and disposal of products.

"Additionally, DPPs can also play a vital role in ensuring adherence to labour and human rights standards by enabling better visibility into the working conditions and practices within the supply chain. By fostering accountability and driving sustainable practices, DPPs can contribute to a more environmentally and socially responsible fashion industry, ultimately aiding in the achievement of climate goals and promoting ethical practices."

Also elaborating on Scope 3 emissions is Holly Berger, Marketing Director of Switzerland-based traceability platform Haelixa. She says: "To understand Scope 3 emissions, there needs to be transparency in the value chain. DPPs will help companies address these emissions comprehensively and promote sustainable sourcing, energy-efficient processes, and logistics optimisation."

The data ecosystem should get cleaned up in the process. Asserts Berger, "By implementing traceability solutions, DPPs can enhance credibility, facilitate monitoring and reporting, and help identify areas for improvement. Tools like DPP will support the 2050 climate goals by offering the data to understand if a company is changing enough to hit the target. Without leveraging physical traceability as an accompaniment, there could be gaps in the chain of custody and de-validate the use of DPP."

It cannot be about numbers and facts alone; how and where they are rooted could tilt the balance, or even upset the applecart. Luca Boniolo, Senior Consultant with Ohana Public Affairs which specialises in sustainability strategies for the EU, points out: "Much will depend on the which data and information the EU will require to be disclosed. We know that the ESPR (Ecodesign for Sustainable Products Regulation) does not cover social aspects, but it could ask companies to disclose the environmental carbon footprint of their products, based most likely on a LCA analysis.

"Requiring companies to look into carbon footprint could be a first step to address Scope 3 emissions, but nothing has been decided yet. Additional requirements could also be set in the framework of the revision of the Textile Labelling Regulation, but it is difficult to predict since we are still in an early stage of the latter."

But DPPs can't be a silver bullet in itself. There is the letter of the law, and then there is the spirit of the law. The "how" of going about it would be paramount, as Berger explains: "The level of ambition and the targets set within DPPs play a crucial role. The more ambitious the goals are, the greater the potential for significant emissions reductions. If DPPs set clear and aggressive targets aligned with the 2050 climate goals, they have a better chance of being effective."

DPPs could automatically generate CO2 footprint calculations for companies and the wider value chain. Value chain measurement and reporting of CO2 emissions (as per Scope 3 reporting) could be another core application of DPPs, with the ultimate goal of redesigning products and value chains.

Value chain measurement DPPs could automatically generate CO2 footprint calculations for companies and the wider value chain. Value chain measurement and reporting of CO2 emissions (as per Scope 3 reporting) could be another core application of DPPs, with the ultimate goal of redesigning products and value chains. Gerd Altmann / Pixabay

Grabbing a byte from food

Food, feed and medicinal products have been exempted from the DPP. But then, food and feed are sectors that the textiles-apparel-fashion-footwear industry draws on. It is a potential minefield, and the industry will need to think hard on how to avoid stepping on issues that could blow up on their faces.

Tobias Herzog, Managing Director of Tailorlux GmbH - integrity solutions, notes, "We have seen that the seed-to-garment traceability has also attracted players from food and feed. It is obviously interesting which seeds have been sowed where and by whom. The food sector has in parts existing technologies like the ear tag for live feedstock. This could help the textiles industry as well when addressing deforestation or animal welfare risks in leather procurement. We have proposed systems to take this data, but many actors refused to give it a try because not all countries have ear tag-regimes for live feedstock."

As a physical traceability solution, Berger has seen more animal fibre producers (like wool, cashmere, and silk) commit to using a solution to prove its origin. She says: "This ties to animal welfare as much as it does to creating transparency in the processing of the fibres. It is important to tie the fibre production to a standard or a vertically integrated supply chain. With the DPP, hopefully, it answers questions as to the quality of the fibre and conditions of the animals."

Boniolo agrees this needs some thought: "If referring to traceability, indeed the food sector has traceability standards that could offer insights for other sectors. Though the DPP is an instrument to provide information on the product that operators place on the market, it will not dictate how the information is collected in the supply chain, if necessary."

Subir Ghosh

SUBIR GHOSH is a Kolkata-based independent journalist-writer-researcher who writes about environment, corruption, crony capitalism, conflict, wildlife, and cinema. He is the author of two books, and has co-authored two more with others. He writes, edits, reports and designs. He is also a professionally trained and qualified photographer.

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