Welcome to the fashion revolution!
The fashion industry is undergoing a transformative shift towards transparency, traceability, and sustainability. Criticized for its environmental impact, the industry is now adopting digital solutions to address issues related to waste, resource use, and lack of information about clothing attributes. The emergence of Digital Product Passports (DPPs) and innovative technologies promises a more sustainable and circular future for fashion.
Digital Product Passports (DPPs) for textiles
Digital Product Passports (DPPs) in the EU for textiles are addressing significant challenges related to clothing, footwear, and household textiles, such as raw material usage, water consumption, land use, and greenhouse gas emissions. The European Commission is taking urgent action to enhance transparency and introduce DPPs, which will serve as a digital record for these products.
Additionally, there will be a common reporting methodology for reuse, with specific targets for textile waste reuse and recycling set to be established by the end of 2024. These initiatives focus on producer responsibility and take- back schemes. In 2017, textile production per person in the EU was 7.4 kg, while consumption reached nearly 26 kg. To meet demand, over 18 kg of textiles per person were imported from external regions. Various entities, including charitable and commercial collectors, municipalities, waste companies, and clothing brands/retailers, collect used textiles.
Municipalities play a crucial role in this process, aiding in reducing waste management costs and achieving environmental targets. However, there is a lack of overall data on textile separate collection rates in the EU. The EU aims to establish a comprehensive framework to enhance the circularity, competitiveness, sustainability, and resilience of the textile sector. This involves promoting sustainable production, encouraging sustainable lifestyles, addressing substances of concern, and improving textile waste collection and recycling. Implementation of these measures will create conditions and incentives for positive change in the textile industry. By aligning with sustainability principles, these initiatives ensure a prosperous future for all stakeholders involved.
What are the standards for Digital Product Passports?
The European Commission has urged the European Committee for Standardization (CEN) and the European Electrotechnical Committee for Standardization (CENELEC), which are European standards organizations, to create unified European standards for the Digital Product Passport system. These standards hold significant importance, not only for the battery passport but also for potential applications in various sectors such as electrical appliances, textiles, furniture, steel, cement, and chemicals. CEN and CENELEC are proposing the establishment of a “Joint Technical Committee Digital Product Passport” to develop these standards. GS1, a globally recognized non-profit standardization organization, has played a vital role in promoting industry-wide digital transformation, supply chain automation, and the widespread adoption of barcodes. Notably, GS1 also offers standards for Digital Product Passports.
What’s changing
Traditionally, once a clothing item was sold, its connection with the brand ceased. Limited information hindered the efficient reuse and recycling of materials. However, new data standards and digital labeling technologies are set to revolutionize this landscape. Future clothing items may feature a “digital passport,” providing detailed data through QR codes or hardware tags (NFC, RFID, Bluetooth). This data facilitates circular business models like rental, repair, resale, and recycling.
The Circular ID
Protocol, a key player in this transition, establishes a common language for fashion brands, enabling communication across the product lifecycle. Eon’s connected products platform will create digital passports using this protocol, fostering data exchange throughout the circular value chain. This initiative initially focuses on fashion but holds potential for expansion into other industries.
Accelerating adoption
Government policies and industry initiatives are propelling the use of digital product passports. The European Commission is creating a common European Dataspace, while the American Apparel and Footwear Association advocates for an overhaul of labeling rules to incorporate digital labels.
Signals of change:
Advancements in smartphone technology, NFC chips, and partnerships between tech companies like Avery Dennison and Certilogo demonstrate a growing readiness for digital authentication. Wiliot’s battery-free Bluetooth sensor tag opens possibilities for real-time updates, creating “digital twins” of clothing items.
Business implications
Fashion brands are witnessing a paradigm shift from traditional revenue generation models to circular approaches. The clothing resale industry, growing significantly faster than the broader retail sector, emphasizes the potential for circular models. Digitally connected clothing opens avenues for ongoing value generation, connecting brands with consumers throughout the product lifecycle.
What about sustainability?
Acknowledging the fashion industry’s environmental impact, a shift to circular models is crucial. However, social inclusivity must be prioritized to avoid negative impacts on vulnerable populations, particularly women workers. Companies can take proactive measures, such as mapping marginalized groups within circular business models and aligning social justice goals with circular strategies.
Consumer privacy considerations
While the CircularID Protocol emphasizes product data over consumer data, evolving technologies raise privacy concerns. Safeguards must be in place to protect consumer privacy as new technologies, like battery-free Bluetooth sensors, may collect usage information.
Pros and cons
Pros:
- Enhanced transparency and traceability in fashion production.
- Circular models create value from existing materials.
- Opportunities for ongoing brand-consumer relationships.
- Potential for equitable distribution of value in the supply chain.
Cons:
- Concerns about consumer privacy with evolving technologies.
Summing up
The rise of Digital Product Passports and circular economy models signifies a positive shift towards a more sustainable and transparent future for the fashion industry. While addressing environmental concerns, companies must navigate the social implications and privacy considerations to ensure a holistic and inclusive transition.