This industry is also responsible for 10% of global CO2 emissions, according to the European Environment Agency. This alarming finding not only changes the regulatory landscape across Europe but also consumer habits. New expectations provide an additional incentive for fashion brands to rethink their supply chains and business models, leveraging the right technological tools. Consumers expect transparency not only on the materials used but also regarding garment repairability and the possibilities for recycling.

An essential tool for strengthening circularity and transparency

The European Digital Product Passport (DPP) aims to enhance traceability, transparency, and sustainability throughout a product’s lifecycle – ranging from material sourcing to end-of-life recycling. For each product, it aims to communicate essential information about its composition, the origin of the materials, and end-of-life handling methods. This enhanced traceability will give consumers complete product information and enable EU regulators to track compliance and progress toward a more environmentally responsible market.

More than just a compliance tool, it’s a strategic opportunity for brands

The challenge faced by many fashion brands is that they are still operating with antiquated and opaque supply chains. This makes it hard to track and validate sustainability claims. The lack of transparency not only poses a risk of non-compliance but also leads to the loss of an increasingly important segment of consumers who are more demanding and sensitive to social and environmental issues. While the DPP is primarily seen as a compliance tool, brands can also view it as a strategic opportunity to communicate with consumers, providing tailored information about product care, repair, or recycling. Improving traceability and transparency across the value chain will strengthen consumer trust and loyalty.

Digital innovation: the key to success

Technology providers play a key role in helping fashion brands with their digital transformation, allowing them to meet DPP requirements while standing out from the competition. This involves integrating Industry 4.0 technologies – AI, cloud, data, and IoT – into their offerings. Data collection and management represents a major challenge for the fashion industry, which remains characterized by fragmented supply chains. Adopting standards that ensure data integrity and interoperability will also be crucial. Along with data management, data security is also important. This necessitates modernizing supply chain management systems and implementing secure digital infrastructures to ensure the fast and secure transmission of essential data.

Lastly, selecting the technology for attaching the DPP to the product is essential. This digital innovation provides each garment with a unique, traceable identity, accessible through tools like QR codes, or RFID chips.

Transform fashion from a linear to a circular industry

By 2028, all textile products sold in the EU must comply with the DPP requirements. This means companies have a strong incentive to begin this technological shift now. By taking action now to map supply chains, define data strategies, and choose technology partners, companies will not only meet future regulatory requirements but also gain significant strategic advantages, including process optimization, enhanced transparency, and increased consumer loyalty.

Collaboration among brands, suppliers, and technology providers will be essential for successfully implementing the DPP and leveraging its benefits. It will be a question of providing brands with the tools to meet sustainability requirements.