Textile supply chains have become the new focus of the fight against climate change. The European Commission plans to use new regulations to promote circulation and sustainability in this industry, which has the fourth largest environmental impact. Digital Product Passports (DPPs) will be key to increasing traceability and transparency, helping a more sustainable industry.
Consisting of scannable QR codes, RFID tags and blockchain, DPP will provide a unique digital ID for each product, enabling consumers to make informed and sustainable purchases. Although there are challenges in implementation, the system is trying to expand the circular model of production, which will also affect brands outside the EU.
The implementation of DPP will bring challenges, such as the need to invest in IT systems and training. In some EU countries, businesses have already started this process based on the Care in the Supply Chain Act.
Businesses will need to streamline data collection and organization by using cloud platforms that enable data integration and management across systems. The latest data analysis tools will provide opportunities for environmental reporting and regulatory compliance.
Players in the fashion industry can benefit from technological solutions that meet the needs of micro-sectors. Integrated systems covering the entire supply chain will facilitate data sharing. Although DPPs present challenges, they also bring opportunities to increase consumer trust and improve brand reputation, along with the possibility of creating business models based on circularity. Successful minimization of environmental impact combined with operational efficiency can yield significant commercial benefits. (Co2AI)