Daily Newsletter

06 September 2023

Daily Newsletter

06 September 2023

TrusTrace, Trace4Value announce Digital Product Passport pilot

Supply chain traceability provider TrusTrace is participating in the Trace4Value project to pilot Digital Product Passports (DPPs).

Isatou Ndure September 06 2023

The TrusTrace DPPs pilot aims to promote sustainability through transparency in the textile industry and aligns with the European Union's Strategy for Sustainable and Circular Textiles, which mandates the adoption of DPPs on textiles sold within Europe by 2030.

The primary objective of DPPs is to encourage sustainable production, facilitate the transition to a circular economy, and help consumers to make more sustainable choices.

TrusTrace Co-Founder and CEO, Shameek Ghosh, expressed the company's mission: “Working together with dozens of industry leaders, the Trace4Value project will allow us to investigate the opportunities and challenges that the DPP will entail for textile and fashion companies, ultimately helping the entire industry comply with this new directive before 2030."

The Trace4Value project, partially funded by Vinnova and coordinated by the RISE Research Institute of Sweden, with notable collaborators including Marimekko, Kappahl, Elis, SIS Swedish Institute for Standards, GS1 Sweden, TEXroad Foundation, Circularista, 2bPolicy, Trimco Group, Rudholm and Haak, and Aalto University.

The Trace4Value DPP will undergo testing by tagging select Kappahl and Marimekko pilot products in production with an ID carrier containing critical supply chain and transparency data. Consumers can easily access product information by scanning a QR code using a mobile device.

The DPP claims to adhere to existing global standards to ensure seamless information exchange among all stakeholders in the value chain.

In addition, TrusTrace, in collaboration with its partners, has developed a data protocol prioritising information for the DPP based on supply chain data and legislation. The data will encompass a Global Trade Identification Number, relevant commodity codes, compliance documents, substances of concern, and manufacturer details.

Ghosh explained, "There are no standard data protocols for this regulation yet, so we have developed a data protocol that is available for download at the TrusTrace and Trace4Value web pages. We are not creating a separate standard, but testing and learning, and the protocol will be continuously updated as the details of the EU regulation take shape. The protocol has been designed to be flexible to ensure we can adapt to all the changes coming in the future."

Staffan Olsson, head of public affairs at GS1 Sweden, emphasised the importance of standards for the development of a product passport: "The upcoming legislation will require brands to conform to a standardised way of exchanging information using a global language of business. GS1 can play an important role in enabling brands to uniquely identify and share information in a DPP."

Laura Linnala, project manager of circular economy at The Swedish Institute of Standards, added: "A wide range of standards are currently useful for implementing a DPP, and new standards will be developed and will be available when the regulation enters into force in Europe."

TrusTrace asserts that the pilot project not only lays the foundation for standard setting but also enables companies to gain a deeper understanding of what the DPP will entail.

Vice president of sustainability at Kappahl, Sandra Roos commented that the Trace4Value initiative has visualised what a DPPs is to her company: “It is an effective way for the organisation to prepare for the coming legislation to collaborate hands-on in a pilot."

How does TrusTrace's DPPs align with current EU regulations?

The DPP requirements are being developed by the European Commission as part of its broader strategy to create a more sustainable and circular economy in Europe. The DPP requirements are integral to the Eco-design for Sustainable Product Regulation (ESPR), which is in turn a component of the European Green Deal nested in the Sustainable Textile Strategy.

According to Marimekko's Sustainability Manager, Marjut Lovio, "Digital Product Passports aim to increase transparency and traceability of products to enable improved consumer communications. This pilot program will help the industry to prepare for planned regulations that will move us one step closer to a circular economy."

The DPP is closely linked to the Circular Economy Action Plan, which seeks to promote a circular economy in Europe by reducing waste and ensuring that products and materials are reused and recycled as much as possible.

According to the release, the DPP provides information on the environmental impact and traceability of products, while the Ecodesign Regulation sets minimum environmental requirements for products. TrusTrace believes that together, both encourage manufacturers to design more sustainable and resource-efficient products, which can help reduce the environmental footprint of products throughout their lifecycle.

Ghosh concluded: "Our goal with the project is to increase the traceability and circularity in the value chains. With a global identification system for an item and its components, we can connect it to multiple sources of data to enable accessible product traceability for consumers, brands, and authorities."

COVID-19 drove rapid digitalization within the retail and apparel sector

As ecommerce experienced booming growth during the COVID-19 pandemic, retailers accelerated their digitalization strategies to keep up with demand. The cloud has become an important model for delivering and maintaining enterprise IT resources. Many retailers have developed in-house cloud divisions that will allow them to better exploit the cloud’s capabilities. However, for those players that do not have the necessary skills in-house, the cloud can pose some significant challenges.

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