A Race Against Time: What Companies Need DPPs Kick in
A three-part series by Subir Ghosh for Texfash.com, looks at the EU Textiles Strategy of the digital product passport (DPP) and talks to players in the business to get a pulse on the upcoming requirements.
Exerpt ::
Brands need to connect with manufacturers
Since March 2022, when it appeared that DPPs would sooner or later be here, at least in Europe, there has been much activity at the interface between fashion and tech companies. But how much of such “activities” are indeed work towards a DPP-driven future in right earnest, and how much has it been hogwash, as the textiles-fashion industry is infamous for?
Holly Berger, Marketing Director of Switzerland-based traceability platform Haelixa, has a similar understanding, but cautions about a brand-manufacturer disconnect. As far as brands are concerned, “there is a lot more activity and interest in understanding their supply chains. Most of it is driven by the DPP and other potential legislation requiring evidence of ingredient labels and product claims. From manufacturers, the feedback is that they want to start implementing traceability to comply with DPP needs, but find that the brands are reluctant to commit. Manufacturers are looking at all options within the traceability community—both digital and physical.”
Cleaning up the act
The question, nevertheless, lingers on: how effective will DPPs be in meeting the climate goals?
Mónica Rodríguez, Co-Founder and CEO of Spanish startup Recovo, throws some light on the issue, as she underlines that the implementation of DPPs has immense potential to significantly contribute to meeting the 2050 climate goals. Rodríguez says: “By providing enhanced transparency and traceability throughout the supply chain, DPPs can help identify and reduce Scope 3 emissions associated with the production, transportation, and disposal of products.
“Additionally, DPPs can also play a vital role in ensuring adherence to labour and human rights standards by enabling better visibility into the working conditions and practices within the supply chain. By fostering accountability and driving sustainable practices, DPPs can contribute to a more environmentally and socially responsible fashion industry, ultimately aiding in the achievement of climate goals and promoting ethical practices.”
Impact on trade
There is no industry so international in essence and globalised in spread as textiles & fashion. It should be a given that the aspect of trade should figure more in discussions about the digital product passports (DPPs) that are set to be ushered into the European Union (EU) over the next few years.Intra-EU trade, or inter-State trade, is one aspect. How that will play out would depend on what shape of form the laws in the respective Member States take up.
The other aspect is that of the EU as a trading bloc. In 2021, according to the last World Trade Statistical Review 2022 of the World Trade Organization (WTO), extra-EU exports of textiles were worth $25 billion and that of clothing $43 billion. The extra-EU imports of textiles were worth $37 billion, and that of clothing $97 billion.The DPP issue is bound to figure in global trade, but the “how” bit is not clear. There seems to be virtually no documentation available, and Google search results throw up a blank. Just as the set of laws and legislations pertaining to sustainability in the US, UK and EU already in play or set to roll in are bound to have an impact on manufacturers in supplying nations, DPPs would matter too. The former, however, have been debated and even documented. But the latter leave much to be desired.