Fashion and Digital Product Passports (DPP) – transformation of the supply chain

Blog Post •
What if every piece of clothing had a digital ID, revealing its full journey, from raw materials to your wardrobe? Digital Product Passports (DPPs) are set to revolutionize the fashion industry, bringing transparency, sustainability, and efficiency to supply chains. With the EU mandating DPPs by 2027, brands must prepare for this new era of traceability. The future of fashion is digital. Are you ready to scan in?

The clothes we wear tell a story, one that often remains hidden. From the fields where cotton is cultivated to the factories where the garments are stitched together, every product has a journey. But until now, tracing that journey has been nearly impossible for consumers. Digital Product Passports (DPP) are emerging as a game-changing innovation. European Union introduces them to reshape how products are tracked and traced. It will support the EU in achieving its environmental and climate objectives, doubling its circular material use rate, and meeting its energy efficiency targets by 2030. DPPs will transform supply chains in various industries, with the fashion sector at the forefront.

What is a Digital Product Passport (DPP)?

A Digital Product Passport is like a digital ID for products. Mandated by the EU’s Ecodesign for Sustainable Products Regulation (ESPR), starting coming into force as early as 2025 (in the first half of 2025, the Commission will adopt the first ESPR working plan, setting out which products will be prioritised over the coming years). It stores essential data about a garment’s origin, materials, production process, environmental impact, and recyclability. Powered by blockchain, QR codes, or NFC chips, DPPs allow brands, retailers, and consumers to access reliable product information with a simple scan. Think of them as similar to plant passports or egg codes, but for textiles and manufactured goods.

Beyond purchase benefits, the DPP offers a comprehensive digital biography, tracking the product’s journey from cradle to grave, including ownership, maintenance, and repair history. This facilitates circular economy practices and ensures standardized information for textiles sold in Europe.

Fashion and Digital Product Passports

The fashion industry is one of the largest polluters on the planet, responsible for 10% of global carbon emissions and producing 92 million tons of textile waste annually. Fast fashion moves quickly, but transparency has lagged behind. Consumers today demand sustainable choices, and governments are stepping in with stricter regulations.

  • In 2022, the EU introduced the Ecodesign for Sustainable Products Regulation, setting the stage for mandatory DPPs.
  • By 2026, leading fashion brands like H&M and Zara aim to integrate DPPs across their collections.
  • The global blockchain supply chain market will grow from $253 million in 2020 to $3.2 billion by 2026, a clear sign that digital transparency is the future.
  • According to ABI Research, more than 62.5 billion DPPs will be in use across the fashion sector alone by 2030.

DPPs and fulfillment services

As DPPs become a standard in the fashion industry, fulfillment services must evolve. Warehouses and fulfillment providers will integrate DPP data into inventory management. This will ensure every item is accurately tracked from production to delivery. With real-time access to product origins, materials, and sustainability credentials, fulfillment centers can optimize sorting, packaging, and shipping. They will be able to make decisions based on eco-friendly criteria. As a result, brands can reduce returns and waste. Consumers will have detailed product insights before purchasing, leading to more informed decisions.

As circular fashion grows, fulfillment networks will play a key role in resale, rental, and recycling logistics. These services ensure products have a second life instead of ending up in landfills. By embracing DPP-driven automation and data sharing, fulfillment services will become faster, smarter, and more sustainable. This will give fashion brands a competitive edge in a rapidly evolving market.

A hybrid picking stations. An employee receives totes and pallet cartons and can process several customer orders at once in a put station.

Main benefits of DPPs

Digital Product Passports (DPPs) will streamline operations and reduce inefficiencies:

  1. Better tracking & authenticity
    • Recording of every stage of production, from raw material sourcing to final delivery.
    • Reducing counterfeit fashion, a $500 billion problem, with verifiable product history.
    • A Certilogo study revealed that consumers prioritize authentication (56%), followed by care and maintenance instructions (45%) and product composition (44%).
  2. Faster and greener fulfillment
    • Warehouses and distribution centers can optimize sorting and shipping based on sustainability data.
    • Brands can reduce returns (which account for 25% of all clothing online purchases) by providing more detailed information about the product.
    • Consumers gain easier access to repair services and recycling options, promoting product longevity.
  3. Recycling & Circular Fashion
    • Less than 1% of clothing is recycled into new garments today.
    • DPPs enable second-hand markets, rental services, and recycling companies to verify materials, ensuring that clothes get a second life.
    • The EU is working on standardizing DPP data, ensuring consistency across the industry.

A real-world example: Patagonia

Patagonia, from its humble beginnings as a small climbing gear supplier, grew into a global icon of sustainability and activism. It’s commitment to the environment has shaped the brand identity, with a focus on using sustainable materials, reducing its environmental footprint, and supporting conservation efforts. Today, Patagonia is a leading voice in the sustainability movement. It’s dedication to sustainability has influenced other brands, encouraging a broader shift toward greener practices within the fashion industry.

Patagonia’s solutions and implementation:

  1. Sustainable materials: The company is a pioneer in using organic cotton and recycled polyester, helping to reduce the environmental impact of its products. For Spring 2025, 98% of Patagonia’s products are made with some form of preferred material input, including recycled materials.
  2. Land restoration: Patagonia invests in land restoration, including reforestation and soil conservation efforts, to support healthy ecosystems where they operate. Patagonia’s efforts are crucial for preserving biodiversity and halting land degradation.
  3. Conservation partnerships: Through partnerships with environmental organizations, Patagonia works to protect vital ecosystems. Campaigns like “Protect Wild Places” and “Save Wild Rivers” highlight their commitment to biodiversity conservation.
  4. Supply chain transparency: Patagonia is open about the environmental challenges it faces in its supply chain. The company sets high standards for its raw material suppliers and works with them to implement sustainable practices.
  5. Consumer education: Through campaigns and product labeling, the company educates consumers about the importance of sustainable choices, encouraging them to make environmentally responsible decisions.
  6. Traceability: 100% of the virgin down the company sources is traceable from the parent farm to the final fiber processing facility, ensuring transparency and responsible sourcing.
  7. Repair and reuse: In 2023, Patagonia repaired 63,000 garments through its Reno, Nevada, repair center, promoting the longevity of its products and encouraging customers to repair rather than replace their gear.
  8. Fair trade: Over 90% of the products in Patagonia’s line are made in Fair Trade Certified factories. This ensures fair wages and better working conditions for workers in their supply chain.

Digital Product Passports: the future of fashion transparency

With regulations rolling out and tech advancements accelerating, the fashion industry must adapt. Brands that embrace DPP will not only comply with regulations but also build stronger relationships with eco-conscious consumers. Smaller brands and designers will also need to integrate DPPs to sell their products in the EU.

Although the specific requirements for fashion DPPs are still in development, it is crucial for brands to stay updated on these changes. Technologies like QR codes, NFC tags, and blockchain are essential for making DPPs accessible and secure. Moreover, DPPs offer the flexibility to be updated throughout a product’s lifecycle. This will allow brands to share valuable information about repairs, recycling options, and resale opportunities.

Challenges and the road ahead

DPP implementation comes with challenges, particularly in collecting and verifying detailed data across global supply chains. Ensuring accurate labor practices, carbon emissions, and material sourcing data is difficult but necessary. However, long-term benefits outweigh the hurdles, as DPPs promote sustainable production, resource efficiency, and informed consumer choices while preserving business-sensitive information.

DPPs empower businesses by streamlining compliance, optimizing supply chains, and unlocking new circular business models. Consumers, in turn, benefit from enhanced transparency, better purchasing decisions, and increased access to sustainable products.

The fashion revolution is here, and Digital Product Passports are leading the way. Are you ready to scan into the future?