From Fabric to Future: How DPP is Transforming European Fashion

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The transition toward a circular and sustainable fashion industry is gaining momentum across Europe, driven by both environmental urgency and evolving policy frameworks. At the center of this transformation is the Digital Product Passport (DPP), a tool designed to improve transparency, traceability, and circularity across textile value chains.

More than a technical solution, the DPP represents a systemic shift in how fashion products are designed, produced, used, and reused, requiring coordinated innovation across industries, governance, and society. By embedding detailed product data, from material composition to lifecycle impacts, the DPP has the potential to reshape consumer behavior, enable new circular business models, and strengthen the competitiveness of European fashion, particularly for small and medium-sized enterprises (SMEs).

HERE ARE EKIP´S MAIN FINDINGS:

Based on discussions from the Policy Lab and further research, several key insights emerge regarding the opportunities and challenges of implementing the Digital Product Passport in fashion:

• The DPP offers strong potential but faces structural barriers. While it can enhance transparency, circularity, and competitiveness, its implementation is complex, especially for SMEs, which make up 99.9% of the sector and often lack resources, digital infrastructure, and regulatory clarity.
• Fragmentation across supply chains and regulation limits effectiveness. Global and multi-tiered supply chains, combined with unclear governance, data standards, and interoperability issues, risk producing inconsistent or incomplete DPP systems.
• Digital infrastructure and data governance are critical enablers. Without secure, interoperable, and trusted systems, the DPP cannot function as a reliable “single source of truth” for product information across the lifecycle.
• Consumer engagement and behavioral change remain key challenges. Although awareness of sustainability is increasing, many consumers struggle to interpret information or adopt circular behaviors such as repair, reuse, or resale.
• Skills gaps and innovation barriers slow down the transition. Across the value chain, there is a lack of digital, environmental, and circular design skills, particularly among creative professionals and SMEs, limiting the sector’s ability to fully leverage the DPP.

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EKIP POLICY RECOMMENDATION:

A mandatory yet gradual implementation of the Digital Product Passport is essential to ensure that all actors, especially SMEs, can adapt without being excluded.

The cost and complexity of adopting Digital Product Passport (DPP) systems risk deepening the divide between large corporations and smaller, innovation-driven firms. A phased rollout could ease the transition, allowing companies to meet initial requirements and gradually build capacity—helping to prevent market imbalances and support broader inclusion.

”Policy discussions stress that the Digital Product Passport (DPP) must not become a tool that benefits only companies with advanced digital capabilities. Instead, it should empower SMEs to showcase their sustainability performance, enter new markets, and take part in circular business models such as resale, repair, and rental” says Luena Collini, Principal Consultant at Technopolis Group, focusing on the decarbonization of industrial ecosystems, including the textile sector.

”To deliver on its promise, policymakers will need to establish clear and harmonized rules across the EU, introduce simpler compliance mechanisms, and provide targeted support for SMEs. Without these measures, the Digital Product Passport (DPP) risks falling short of its potential as both a regulatory tool and a driver of innovation and competitiveness.”

EKIP POLICY RECOMMENDATION:

For the DPP to function effectively, it must be supported by a robust digital backbone that ensures data quality, security, and interoperability across the entire value chain.

Fragmented systems, inconsistent data standards, and concerns over intellectual property continue to slow progress, creating hesitation among industry players. “At present, fragmented systems, inconsistent data protocols, and concerns around intellectual property create hesitation among industry actors,” says Luena Collini.

Strengthening open innovation and unlocking cultural value will depend on building trust and coherence across the system. According to Luena Collini a centralized EU framework, combined with certified private tools, can help establish trust and consistency while allowing flexibility in implementation.

”Such an approach could enable seamless data exchange across global supply chains, safeguard sensitive business information, and support circular practices such as recycling, repair, and reuse through more reliable product data.”

“By building this foundation, the DPP can evolve into a ‘resource library’ for materials and products,” Luena Collini adds, “unlocking new circular opportunities such as remanufacturing and advanced recycling.”

EKIP POLICY RECOMMENDATION:

 The success of the Digital Product Passport ultimately depends on people, designers, workers, businesses, and consumers, being able to understand and use it effectively.

Erminia D’Itria, researcher in circular fashion at the Design Department of Politecnico di Milano, focusing on sustainable strategies for the fashion ecosystem highlights persistent skills gaps across the fashion sector.

“Designers often lack knowledge of materials and circular design, while engineers may not fully grasp the creative and cultural dimensions of fashion. At the same time, consumers frequently struggle to interpret sustainability information,” she explains.

Addressing these challenges requires a multifaceted approach. Education must be reformed to integrate digital, environmental, and circular skills, while new hybrid roles—such as DPP specialists and eco-design advisors—should be developed to bridge knowledge gaps. At the same time, public awareness campaigns need to communicate sustainability in clear and accessible ways.

According to Erminia D’itria, the Digital Product Passport (DPP) has the potential to be more than a compliance tool.

“If implemented effectively, the DPP can go beyond compliance and become a tool for behavioral change, encouraging more conscious consumption, longer product lifecycles, and greater trust in sustainable fashion.”

EKIP POLICY RECOMMENDATION:

For the Digital Product Passport (DPP) to move beyond a regulatory concept and become a functioning system across the fashion ecosystem, it requires a shift from fragmented pilot initiatives toward coordinated investment in innovation, skills, and market deployment, ensuring that all actors, especially SMEs, can actively participate in and benefit from the transition.

Many SMEs in the fashion and creative industries struggle to engage with the Digital Product Passport (DPP) due to limited resources and technical capacity. Erminia D’itria warns:

“Without targeted support, the transition to a data-driven system could marginalize those best positioned to drive systemic change.”

She adds that while initiatives testing traceability systems and digital identities exist, they remain fragmented.

“A shared infrastructure and investment framework is essential to link them into a coherent system.”

Skills development is equally crucial.

“The transition requires hybrid competences that combine digital, environmental, and creative expertise. Without investment in education and training, even well-designed DPP systems risk being underused.”