Lars Rensing, CEO of Digital Product Passport solutions provider Protokol, discusses the EU’s Ecodesign for Sustainable Products Regulation and how this will impact tech businesses.
When we consider the modern consumer, it is no surprise that waste is becoming an increasing strain on our planet. As technology continues to advance at such a staggering rate, our desire to possess the latest gadgets is having major knock-on effects on the environment and the amount of waste we send to landfills.
To focus on technology companies and their role in this story, e-waste is the most prominent issue that must be addressed.
To put these issues concerning electronic waste into perspective: “e-waste remains one of the fastest-growing solid waste streams in the world… with less than a quarter of e-waste produced globally in 2022 being known to be formally recycled.”
Given the staggering statistics above, it’s unsurprising that the European Union has been implementing a range of initiatives to tackle such global issues.
Ultimately, with the goal of supporting greater circularity and championing more sustainable business practices. In particular, the Ecodesign for Sustainable Products Regulation (ESPR), which came into force this summer and stands as part of the EU’s greater Circular Economy Action Plan (CEAP) will aim to ‘significantly improve circularity, energy performance, and other environmentally sustainable aspects’ of products placed of the EU market by ensuring that the product groups (within specified industries) have greater sustainability and recyclability attributes.
As part of the EU’s push towards a more circular economy, the mandating of Digital Product Passports (DPPs) will remain a key driving force in their efforts and will apply to all specified product groups.
It is worth noting that the ICT industry is earmarked as one of the priority product groups for the DPP mandate and may have to comply as soon as 2027 due to its escalating contribution to e-waste. Again, unsurprising when we note that ‘85% of our e-waste is sent to landfills and incinerators’.
Regarding this and the EU’s legislative move to prevent such figures from rising, technology and electrical companies placing affected products in the EU market, regardless of whether or not they were manufactured there, will need to comply.
Although the information on the delegated acts (specific guidance pertinent to each industry and product group) is yet to be announced, technology companies should begin preparing amidst this shifting landscape and start considering their route to EU compliance to enable a smooth and successful transition.
Digital Product Passports in support of a circular economy
In simple terms, DPPs are a comprehensive and transparent digital record of a product’s lifecycle – which can provide access to data concerning many aspects of the item, from its material composition to the carbon footprint of the manufacturing process of the product, or even how to correctly dispose of the item when it comes to the end of its life. The passport and the data it contains will be accessible by simply scanning the data carrier (such as a QR code or barcode), which will be affixed to the product.
These records will prove crucial in contributing to the EU’s sustainability goals due to the transparent and accessible data they provide to all members of the value chain, from company to consumer. They will enable consumers to act more sustainably in their day-to-day considerations while supporting businesses in implementing more sustainable practices surrounding design, sourcing, and end-of-life care.
When considering the above, it is no wonder why DPPs have become the EU’s chosen tool to support a more sustainable and eco-conscious future.
DPPs also will prove particularly useful when addressing the EU’s issues with hazardous materials, their impact, and their safe disposal. To put this into context, hazardous substances (such as lead and mercury) are frequently found in electronic items and can have detrimental effects on the environment as they seep into groundwater and eventually make their way into rivers, ponds, and lakes. As of current, ‘every second about 13 tonnes of hazardous waste is generated around the world.’
The implementation of DPPs could also be set to revolutionise hazardous waste as they provide critical details on product composition and what materials we should take out of circulation. In time, DPPs could seriously mitigate the impact of hazardous substances, as all parties of the value chain are better informed on product impact.
The ESPR, tech businesses, and how they can prepare
Although the Ecodesign for Sustainable Products Regulation came into force earlier this year, information on delegated acts is still yet to be announced – though it is expected in 2025.
Only once these are in place, will tech companies truly be able to understand the implications of the ESPR for their operations and how best to position themselves ahead of the change. However, it is worth noting that there are a range of initial steps companies can take now to ensure they’re ready to thrive amidst these shifting tides.
As a first point of action, tech companies should appoint a company lead to understand the complexities of the EU’s requirements and start to take note of points on the supply chain and operations that might be impacted by the legislation.
As part of the DPP requirement, knowing where different data points are held ahead of time is likely to put firms in a good position to implement a strategy at pace once the delegated acts are announced.
Moreover, having an understanding of partners who could support DPP implementation would be useful in the preparation phase to ensure proceedings are smooth once a compliance strategy is implemented.
This phase will prove largely significant if companies want to thrive or simply survive amidst the changing landscape. By companies being proactive early on and preparing for the mandating of DPPs, a culture of collaboration, transparency, and environmental responsibility will be fostered amongst the value chain as all parties are provided with more pertinent information.
Becoming a key part of positive environmental change
The EU’s push for a circular economy through the ESPR and mandatory DPPs marks a significant step toward reducing waste and advancing a more circular, sustainable economy – it will play a significant role in a global challenge.
While technology companies selling in the EU market may initially find these requirements challenging, they present a valuable opportunity for businesses to actively support sustainability goals and make a global impact.
Furthermore, embracing this shift will offer multiple benefits, from helping build a sustainable future to enhancing sustainability credentials and improving operational efficiency.
