Drawing on insights from the KPMG European Digital Product Passport Readiness Survey (February 2026)*, we outline some of the key reasons electronics manufacturers should begin preparing for Digital Product Passports.
* Based on responses from 70 organisations of varying sizes, industries and positions in the value chain across 13 European countries, the survey assessed organisational readiness for Digital Product Passports and the opportunities and challenges companies expect during implementation.
Firstly, what are Digital Product Passports (DPPs)?
DPPs are detailed digital records that capture information about a product throughout its lifecycle. They are an initiative introduced by the Ecodesign for Sustainable Products Regulation. DPPs can enhance supply chain management, support regulatory compliance, and help companies identify and mitigate risks related to authenticity and environmental impact.
What do they look like?
DPPs are typically accessed through a machine-readable data carrier, such as a QR code, attached to a product and linked to a dynamic dataset containing product-specific information. Product passports will be discoverable through the EU DPP Registry (launching in July 2026), while passport data will generally be hosted by manufacturers or authorised service providers.
What is the timeline for implementation?
ESPR creates a framework under which Digital Product Passports may become mandatory for many product categories through product-specific delegated acts. Early priority product groups include batteries, textiles, and iron and steel, with additional categories expected to follow through future delegated acts. Current Commission planning suggests delegated acts for energy-related products may emerge around 2027, with compliance obligations expected to follow a transition period.
Why should my company focus on them?
- DPPs for supply chain due diligence
Analysing your products on a component level requires asking your suppliers questions you may never have asked before. For example: Where was this component sourced? Who supplied the underlying material? What evidence exists to support sustainability or compliance claims? Understanding the different tiers of your supply chain arms you with a better grasp on potential vulnerabilities and risks in your supply chain. The KPMG Report found:
- 28% of companies implementing DPPs noted a more resilient supply chain as a key potential benefit.
- DPPs for innovation
An analysis of the life cycle of your product is a key R&D tool. Going through the DPP process requires you to identify materials, fuels and processes used in the creation of your products. Through this analysis, gaps, improvements and innovations may be identified. A recent report by KPMG found:
- 27% link DPP to product innovation, through better data on materials, durability, and design-for-repair.
- DPPs to reduce bureaucracy
DPPs may become a central location for information such as repair instructions, spare parts information, sustainability data and compliance documentation, depending on product specific requirements. This information can travel with the product throughout its lifecycle, supporting repair, reuse, remanufacturing and broader circular economy objectives.
- DPP as an expectation in procurement
DPPs are designed to enhance reporting capabilities and support more informed decision-making, both attractive qualities to buyers who are under increasing strain to align purchasing with larger environmental goals and targets. A recent report by KPMG found:
- 36% expect demand uplift for products with stronger sustainability performance.
- 61% cite enhanced trust in their brand and products as the top expected benefit.
Don’t get left behind!
DPP requirements are steadily moving from policy discussions to implementation. For companies operating in regulated product categories, non-compliance may ultimately restrict access to the European market. For many manufacturers, the greatest challenge is not creating the passport itself, but collecting, validating and maintaining the underlying product and supplier data at scale. See Tazaar’s article on where to start.
While DPPs offer significant strategic opportunities, many organisations face challenges around supplier engagement, data collection, product level traceability and maintaining accurate information throughout the product lifecycle. Companies that begin preparing now will be better positioned to reduce future compliance costs, improve supply chain visibility and respond efficiently as product-specific DPP requirements are introduced.
