Technology stands at the heart of modern society and plays a large role in every aspect of 21st-century living. From daily life to the working landscape, technology plays a pivotal role in making activities more efficient and accessible. Therefore, it is no surprise that the use of technological devices is growing year by year. If you consider that ‘worldwide, there are approximately 7.21 billion smartphones in circulation’, a figure that, if put into perspective equates to ‘around 90% of the 8 billion global population’, questions concerning the amount of e-waste produced begin to raise alarm bells.
On this, ‘a record 62 million tonnes (Mt) of e-waste was produced in 2022’, a figure on ‘track to rise another 32%, to 82 million tonnes, in 2030’ if something is not done imminently. Such alarming statistics have rightly promoted efforts globally to protect against such a future from arising while protecting against the detrimental effects e-waste is having on the planet.
In particular, these concerns have prompted the European Union (EU) to bring forward regulations to increase the circularity of products and support efforts towards increased sustainability. The Ecodesign for Sustainable Products Regulation (ESPR) – part of the Circular Economy Action Plan (CEAP) – is a published framework that will set the design requirements of products to ensure their sustainability and circularity. A key part of the ESPR framework is the mandate for many businesses to implement Digital Product Passports (DPPs).
The EU’s DPP mandate to enhance a circular economy
As part of the ESPR, a legislative move to strengthen economic circularity and the practices that contribute to sustainability, the EU is mandating the use of Digital Products Passports across a range of industries. This remains one driving factor in supporting the EU’s goal to make “sustainable products the new norm in the EU.”
In particular, through the ESPR, the EU will focus on making items last longer, be more energy efficient, easier to recycle, and contain fewer environmentally unsustainable substances- overall enhancing the chance of items being reused and most importantly having the most circular lifecycle possible.
Regarding DPPs – they are a tool used to collect, document, and share product data throughout its lifecycle and will play a key role in supporting the EU’s circularity ambitions. In simple terms, a range of data about a product – usually from the point of manufacture through to the time the item is placed on the market – can be accessed via a DPP. For example, DPPs can provide data concerning the materials used in production, the carbon footprint of the manufacturing process, and even data concerning the correct disposal instructions for end-of-life items. This information can be accessed by a data carrier (such as a QR code or barcode) which can be scanned via a device such as a smartphone.
By providing such in-depth, transparent insight into a range of valuable data concerning a product’s lifecycle, DPPs can help channel partners ensure the materials used in a supply chain are sourced sustainably and ethically while supporting their decision-making into who they want to partner with depending on their sustainability processes.
The Power of DPPs for the Technology Industry
The DPP mandate will impact many industries and product categories and will apply to products sold on the EU market (regardless of where they were manufactured). This will include but is not limited to the ICT, textiles, and furniture industries.
However, due to the impact of e-waste, the technology sector marks one of the priority industries to which the mandate will apply – with 2027 being a potentially earmarked year for compliance.
In addition to the volume of e-waste produced, there are concerns about the nature of the waste and the risks it can pose to consumers. Some materials used to produce electronics can be hazardous and harmful if not disposed of responsibly (such as lead, mercury, or other substances).
Regarding this, DPPs can help tackle issues concerning toxic waste due to the insight they provide into the sourcing and impact of certain materials used in the manufacturing process. Through this, vendors and resellers alike will be able to understand the precise composition of a product and assess the hazardous nature of the materials used and the correct handling procedure.
This access to such information marks a milestone moment in e-waste management as it removes uncertainty and lack of knowledge regarding the composition and lifecycle of an item. In turn, this access to essential information will put the power in the hands of all those who are involved in the lifecycle, from the manufacturer to the reseller and the consumer, as they can make informed decisions on items in circulation while enhancing the effective management of products at end-of-life.
Proactivity to Ensure a Smooth Transition
To ensure a smooth transition amidst this changing landscape, companies should start preparing now by gaining a better understanding of the intricacies of the legislation.
First and foremost, by selecting a DPP lead within the business who will keep abreast of regulatory updates, companies can ensure they remain up to date on the evolving requirements and ensure they are best informed to consider a coherent compliance strategy. As part of this process, they should also bring together the relevant stakeholders – both internal stakeholders and external partners they work with – to assess the current set-up of the business and the supply chain to determine what compliance should look like.
Moreover, although delegated acts are yet to be announced (information pertaining to the specific requirements per product group) companies can take proactive steps to consider the areas that are likely to be impacted by the mandate. Such as the logistics of implementing DPPs, while 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.
Only after this, and when the delegated acts are announced, can companies start to cultivate a coherent implementation strategy that outlines the clear actions that must be taken and how.
As the EU’s DPP mandate approaches, many resellers and vendors affected are likely to be unnerved by the changing landscape. However, by proactively considering the mandate ahead of time, doing a deep dive into the legislation’s intricacies and strategically beginning internal conversations concerning company processes that are likely to be affected, technology businesses should regard their compliance as a positive contribution to globally enhancing sustainability. Or, in other words, playing their pivotal part in a global mission to support greater circularity.
Lars Rensing
Lars Rensing is CEO and Co-Founder of web3 solutions provider Protokol. He has over eight years' experience in the web3 industry.
