Digital Product Passports: Revolutionizing Fashion with RFID

The European Union's Digital Product Passport (DPP) regulations are set to reshape the fashion industry, bringing unprecedented levels of transparency and traceability through its Ecodesign for Sustainable Product Regulations (ESPR).

At its core, the DPP aims to promote a circular economy by providing detailed product data throughout its lifecycle, enabling informed purchasing decisions by consumers and resellers. Fashion brands will soon be required to share information on the sourcing, manufacturing, and environmental footprint of each item they sell.

The primary goal of DPPs is to provide consumers with clear, reliable information about a product’s circularity. “With the DPP, they will know how a garment was produced, by whom, and how they can responsibly handle it when it’s no longer needed, so they can pass it on to someone who can reuse the resource”, explains Alison Jose, CEO of the DPP platform Global Circular Network.

But the bigger picture reveals that data-savvy DPP systems also provide valuable insights for brands and third parties involved in the circular economy for textile-based products. Why? Because the data collected for smart tech backed DPPs not only verifies the product’s footprint and impact hotspots, but also its financial value as it moves through the circular economy.

DPP in Practice: QR Codes and RFID Tags

Currently, QR codes are the primary technology for sharing product information, but they require locating the label, hoping it isn’t damaged, and can only be scanned one at a time—a slow process that doesn’t work well beyond the point of sale. Jose predicts that RFID (Radio-Frequency Identification) threads will become the industry standard as DPP requirements evolve, because they withstand wear and washing and offer a dual solution: they include a QR code for consumers while also carrying extensive business-to-business (B2B) data that supports the circular economy for fashion.

RFID threads are small antennas embedded directly into products—new or used—that can be scanned with commercial readers at various stages, from production and warehouses to repair centers. They provide real-time data throughout the circular economy, capturing details such as manufacturing processes, chemical composition, certifications, transport history, repairs, and the moment it enters the recycling center – where the product’s lifecycle ends.

As the product progresses through its lifecycle, DPP data is continuously updated, starting in the brand’s internal supply chain systems and extending through retail, and beyond. After disconnecting from internal systems, the data remains accessible through an open-source format, laying the foundation for an equitable business environment for products that stay within the circular economy. From production to resale, repair, and recycling, transactions are logged seamlessly without the need for physical handling of the item.

The Big DPP Picture

Jose explains the benefits of double DPP as a sequence of verified value additions: “With open-source RFID, every step gets instantly authenticated.” This system allows for tracing the economics of a product as it changes hands, ensuring that brands and circular service providers can continue to profit within a circular fashion system. For example, if a designer wants to reuse a secondhand pair of jeans with a trademarked logo, they can scan the original jeans, enter this information into the system, and pay a small fee for the logo’s use. In return, the brand covers the shipping costs for sending leftover fabric for recycling, closing the loop. This ensures that expensive marketing efforts pay off until the very end.

The integration of AI into DPP systems is another game-changer. For consumers, it could mean scanning a code on a pair of jeans and discovering the best local resale or repair options, thanks to AI-driven geographic insights. This not only demonstrates the brand’s genuine commitment to sustainability but also helps keep products in circulation and mitigate landfill, emissions and pollution.

Brands can leverage their DPPs even further by integrating lifecycle assessment (LCA) software. “With digital bridges, you add an RFID thread, and systems like Green Story can collect all the compliance data for brands, making reporting seamless from production to end-of-life,” adds Jose. This enables brands to gain valuable insights, remain compliant, and optimize their circular strategies.

In the long run, RFID might even help brands optimize their tax obligations. By proving the durability and longevity of their products through RFID, brands could qualify for lower taxes under future ESPR regulations. “If a brand shows that their product lasts many years through circular design strategies from the get-go and that they actively work to extend the product’s life through repair and reselling, they should pay less tax,” Jose explains. “Smart brands can continue to make money, and even more, as their product circulates in the economy longer.”

As the fashion industry braces for the implementation of sustainability passports, RFID is emerging as the technology that enables the transparency and traceability demanded by the EU. The DPP of the near future is poised to revolutionize fashion, ensuring that everyone can participate in, and even profit from, the circular economy.