With the right strategy and groundwork in place, businesses can ensure they not only comply with the ESPR but thrive, says Lars Rensing, CEO of DPP Solution Provider, Protokol.
Over the last decade, waste has become a growing concern for societies on a global scale. As the urgency to act on these issues heightens, the European Council has entered into force the Ecodesign for Sustainable Products Regulation (ESPR), which commenced on 18 July 2024.
While certain elements come into effect immediately, other requirements, such as the implementation of Digital Product Passports (DPPs) will follow in the next few years. But, to ensure a successful transition, those impacted must start preparing now.
As part of the EU’s Circular Economy Action Plan (CEAP), the ESPR remains an underpinning legislation and is the cornerstone of ‘the commission’s approach to more environmentally sustainable and circular products.’
This legislative move proves essential when we consider that ‘more than two billion tonnes of municipal solid waste are generated worldwide every year… a figure expected to increase by 70 percent by 2050.’
Through this, the EU will encourage more opportunities to increase the sustainability of products throughout a product’s lifecycle, from its design to manufacturing and end-of-life (EOL) attributes.
As part of the ESPR, DPPs will be mandated among a range of industries with some priority groups, such as batteries, needing to comply as soon as 2027, while other selected groups will be expected to be ready by 2030. It’s important to highlight that any business within these groups placing products in the EU market will also need to comply.
As a result, the EU hopes to support a more circular economy and ensure those industries outlined in the ESPR are playing a more sustainably conscious role. It’s worth noting that some of the industries prioritised to comply will include electronics, textiles, and furniture businesses.
DPPs and their pivotal role in a circular economy
One action the EU is taking to support its mission for greater economic circularity is the mandating of DPPs, a tool used to access data concerning the entire lifecycle of a product. At present, these tools might not be widely known, however, they will become pivotal to a company’s ability to satisfy the upcoming mandate.
In short, a DPP acts as a product’s digital record, enabling businesses to access data concerning a product’s ‘sustainability, environmental and recyclability attributes’.
This is why the EU has chosen to incorporate DPPs into its environmental action plan, as it enhances transparency for businesses and consumers alike to make more sustainable choices. DPPs can be accessed via a data carrier such as a QR code or barcode which is placed somewhere on the product and can then be scanned with a device such as a smartphone.
Moreover, the transparency that DPPs enable remains one of their most valuable assets. By providing all parties involved in a product with insight into its lifecycle, individuals are empowered to make informed purchasing decisions and consider the sustainability of an item.
DPPs also provide data concerning a product’s end-of-life disposal and the components that are suitable for recycling. In turn, this encourages businesses and individuals to play their part in supporting a circular economy and limiting waste.
Positioning your business for the change
Although the ESPR has officially entered into force, we are still waiting for more specific information relating to DPPs to be outlined. These additional guidelines will take the form of delegated acts and are expected to outline the exact requirements for product groups impacted, including what information will need to be available via the mandated DPPs.
In relation to this, businesses should start preparing now to ensure compliance and to ensure that they have the necessary data and technology in place to comply. To do this, businesses should prioritize education as an initial step in their journey toward compliance.
By assigning one person or a group of people with the responsibility of researching and understanding the intricacies of the policy and its requirements, businesses can understand the wider picture and remain informed enough to best support their business in the transition.
From here, businesses will have a better knowledge of what aspects of the current set-up are likely to be impacted. Some of these will be fairly clear or possible to answer now even without the delegated acts.
For example, there will be a need to consider the logistics of implementing DPPs, understanding as much as they can about DPPs or who could support implementation, and mapping out the supply chain to see where data may potentially need to be gathered from.
As more information on delegated acts becomes available in the coming months, businesses will be in a better position to craft a strategy knowing exactly where they need to source information within their supply chain. Moreover, those who seek our specialist DPP consultants from the offset can ensure they are taking the best stance for their businesses’ individual needs.
The EU’s ESPR will naturally seem daunting to all those due to be affected. However, with the right strategy in place and coherent preparation, businesses can ensure they will not only comply with the ESPR but thrive alongside it.
