Under the Ecodesign for Sustainable Products Regulation (ESPR), fashion brands must collect, verify, and centralise vast amounts of product data to remain competitive. Failure to comply can lead to fines, loss of market access, and reputational damage, making it crucial for brands to act now.

Failure to populate DPPs with accurate data can lead to fines, market restrictions, and reputational damage. 

Master the Data Requirements for DPPs

The Digital Product Passport is designed to provide transparency across the entire lifecycle of a product—from raw material sourcing to end-of-life recycling options. The data required includes:

·         Material composition and origin: Verifying whether materials like organic or recycled content meet sustainability standards.

·         Manufacturing processes and certifications: Tracking energy use and sustainability certifications.

·         Environmental impact metrics: Quantifying carbon emissions and water usage helps pinpoint areas for improvement.

·         Supply chain information from transport to final retail: Monitoring a product's logistics allows brands to calculate their carbon footprint and explore greener alternatives.

·         End-of-life options for recycling, reuse, or repair: Providing consumers with clear instructions on recycling or repairing products can significantly extend the lifecycle of fashion items.

Gathering and centralising this data requires collaboration from multiple supply chain actors. However, the real challenge lies in collecting the data and ensuring it is consistent, accurate, and updated in real-time across a brand’s global operations.

Design your data requirements to exceed initial DPP standards – they will become more onerous.

 Overcome Data Capture and Centralisation Challenges

1. Fragmented Global Supply Chains

Most fashion brands rely on multiple suppliers across different regions, each with its method of managing and reporting data. Data fragmentation is a significant obstacle to consistently capturing mandatory DPP information across the global supply chain.

According to McKinsey, over 60% of fashion brands struggle with fragmented supply chains, leading to inconsistent data capture and inefficient sustainability reporting. To overcome this, brands like Patagonia have partnered with suppliers to develop real-time data reporting systems, ensuring that sustainability data is collected at every stage.

For example, a product's lifecycle might involve suppliers from diverse regions adhering to different data standards and regulations. Achieving data standardisation across the supply chain is crucial to ensure that all components meet the same sustainability and compliance benchmarks.

2. Data Accuracy and Verification

As the Responsible Economic Operator (REO), brands are held accountable for the accuracy of all data submitted in the DPP. This responsibility can be demanding when suppliers are not equipped with the necessary tools for real-time reporting. Ensuring that data is accurate and trustworthy and that suppliers comply with the brand’s data-sharing requirements is essential for avoiding fines and market access issues.

Overcome the challenges of fragmented supply chains with data verification and validation to reach consistent data standards.

‍Strategies for Centralising and Capturing Primary Data

1. Strengthen Supplier Partnerships for Seamless Data Collection

Fashion brands must establish transparent and accountable relationships with suppliers. This can be done by embedding sustainability metrics and data-sharing obligations into contracts. Additionally, incentivising suppliers to provide real-time, accurate data can help brands ensure they are meeting DPP requirements.

Actionable Steps:

• Create data-sharing agreements that specify what information suppliers must provide and the deadlines for submitting updates.
• Offer training programs or access to technology that helps suppliers upload and manage data more effectively.
• Establish regular data audits or compliance checks to ensure suppliers meet contractual obligations.

2. Invest in Cloud Solutions to Streamline DPP Data Management

Cloud-based platforms are among the most effective tools for centralising and managing DPP data. These platforms allow brands to collect data from multiple suppliers and synchronise it in real-time, creating a centralised repository that is accessible and secure.

Benefits of Cloud Platforms:

• Real-time data access: Ensure all product information is up to date.
• Automated data synchronisation: Align data across multiple sources, standardising metrics and ensuring consistency.
• Data Verification and Validation: AI-based data validation searches for patterns in the data to identify the probability of data accuracy. Data verification requires human review to check that the data is correctly entered and relevant on entry and, where possible, aligns with a checked or tested product. Typically, once human verification of data is confirmed, AI tools can be used to validate data entry by supply chain partners for the same or similar products.
• Data security: Some platforms provide blockchain-based traceability to ensure data integrity across the supply chain. By enabling selective data sharing, brands can securely share specific information with partners or customers while protecting sensitive details. Note that if the quality of captured data is poor, the effort and cost of generating it in blockchain may be wasted. The same applies to the security of the data carriers connecting a product to its digital twin; if the data carrier is not secure, the cost and effort of blockchain may be wasted.
• Effective User Interface: The method of collecting primary data is as vital to data accuracy as the security, transformation, and integration of that data. If the user interface is confusing or time-consuming for supply chain partners’ users to navigate, the quality of the captured data will be reduced.

Strengths of Top Traceability Platforms:

• Textile Genesis: Blockchain-based tracking, extensive supply chain mapping, third-party sustainability verification, and risk management​
• Retraced: AI-powered data validation, real-time collaboration with suppliers, and compliance with AGEC law.
• Sourcemap: End-to-end supply chain mapping, risk management, and robust tracking of raw materials​
• TrusTrace: Compliance and sustainability insights, support for circular value chains, and risk management​
• Circularise: Focus on circular economy principles, blockchain-based transparency, and sustainability certifications​

 

3. Use AI to Automate Real-Time Data Capture and Boost Accuracy

Implementing AI-powered systems can automate data collection, validation, and reporting—ensuring that brands meet the real-time requirements for DPP compliance. AI can also enhance data accuracy by cross-verifying information from multiple sources and flagging inconsistencies early.

How AI can assist:

• Automating data collection: AI can capture real-time data from various supply chain stages, from material sourcing to product distribution.
• Predictive analytics: AI can forecast environmental impacts, helping brands optimise their processes and adjust manufacturing practices to meet sustainability goals before encountering compliance issues.
• Ensuring data accuracy: AI can help verify the data by cross-referencing multiple sources, ensuring compliance and avoiding the risk of incorrect or incomplete reporting.

Example: Portera has demonstrated the potential of AI in automating the capture and processing of DPP-related data. For instance, Portera helped Danone win a Gartner Award by integrating AI tools into their DPP systems, enabling them to streamline data verification and reporting across multiple global suppliers. Portera’s AI-powered systems have shown a 30% reduction in manual data entry errors across global supply chains. By automating data collection and verification, brands can significantly improve efficiency and data accuracy.

 

4. Ensure Data Accuracy with Robust Verification and Audits

Inconsistent or inaccurate data can lead to non-compliance, fines, and reputational damage. Brands must implement robust verification processes to ensure accurate, complete, and up-to-date data.

Actionable Steps:

• Manual sustainability verification: Third-party sustainability verification ensures that inaccurate or misleading information is not entered into your systems. While automation helps with scalability, manual checks are still crucial for ensuring data accuracy from complex or high-risk supply chains.
• Automated Data Validation: Use platforms with built-in validation tools that cross-check data across the supply chain at scale and flag discrepancies for review.
• Supplier Audits: Regular audits should be conducted to verify the accuracy of supplier-provided data, especially for new or untested suppliers.
• Enterprise Integration: A tool that enables accurate, reliable, and rapid integration of new data streams across the enterprise is critical to maintaining DPP accuracy for new products.

Example: Brands like Everlane have implemented third-party sustainability verification to ensure the integrity of their supply chain data. This has enhanced data accuracy and boosted consumer confidence, with over 70% of their customers expressing increased trust in the brand.

Define strategies to centralise accurate and consistent primary data from your supply chain.

Conclusion: Achieve DPP Success by Centralising Your Data Strategy

Capturing and centralising primary data for Digital Product Passports is a critical step for any fashion brand aiming to comply with ESPR regulations and establish itself as a leader in sustainable fashion. By leveraging cloud-based platforms, AI-driven automation, and strong supplier partnerships, brands can simplify the complexities of data collection while ensuring accuracy and compliance.

As the fashion industry moves toward greater transparency, Digital Product Passports offer a unique opportunity to lead in compliance and innovation. Brands that centralise and optimise their data capture processes will meet regulatory requirements and gain long-term competitive advantages. Contact JBSO Group today to discover how we can help your brand navigate the complexities of DPP implementation and drive sustainable growth.

Stay tuned for the next article in our series, which will explore how Digital IDs associated with DPPs can unlock new business models and enhance consumer engagement.

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JBSO Group can help

For brands looking to leverage the strategic potential of DPPs, reach out to JBSO Group for expert insights and guidance on integrating this transformative technology into your business model.

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Author Chris Jones

Chris has helped global brands, retailers, and manufacturers align people, processes, and technology for over three decades, driving transformation projects to maximise business impact.

This article is also published on the JBSO Group website:

How to Centralise and Capture Primary Data for Digital Product Passports: Best Practices for Fashion Brands (www.jbso.group)

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