Companies must collaborate with upstream and downstream partners to realise quality, efficiency and cost objectives.
Increasingly regulators require products to demonstrably sustainable - with reliable and trusted information shared across product lifecycles.
Digital product passports are designed to enhance transparency and sustainability in manufacture, consumption , and disposal.
These are essential in enforcing compliance and in the context of circular economy, where the goal is to reduce waste, encourage reuse, and promote resource efficiency.
Digital product passports are applied to materials, commodities, finished goods or assemblies
The European Commission Ecodesign for Sustainable Production Regulation (ESPR) in 2024 with the goal of tranisiotining to more sustainable and circular business models. This applies the same level of product transparency through digital product passports to textiles, steel, aluminium, electronics, and others, with an implanmentation from mid 2025.
In the U.S. similar provisions are being made through tax provisions in the Inflation Reduction Act and import restrictions to prevent goods being made with forced labor.
Other economies such as Japan, South Korea, Australia, are enacting similar requirements as the EU and U.S, especially pertaining specifically to batteries and critical minerals.
The Battery passport includes information traced through the lifecycle for embedded carbon footprint, origin and flow of rare earth metals, incorporated recycled content, upstream due diligence and overall battery management information.
This electronic record of the raw materials, battery components, and recycled content is transparent through to consumers and are being rolled out to other plug-in hybrid and’ battery electric vehicles.
The digital product passport platform of UK company Circulor is used to track the flow of materials from source to manufacturer, connecting each supply chain participant and evidencing ESG certification at each step in the value chain.
Circulor’s platform connects each participant customers across a common blockchain network. Each participant may provide data in a way which is verifiable and may be trusted across the supply chain. Reasonable
Ensuring an ethical supply chain for our battery raw materials is a major focus area for us,” Vanessa Butani, head of global sustainability at Volvo Cars. “By providing our electrified Volvo cars with an individual battery passport, we boost transparency around the origin of the materials used in our batteries and how we manage their entire life cycle.
This unprecedented level of traceability means we can promote sustainable and ethical practices in its supply chain, and provide better transparency for consumers.
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