Digital product passports enabling value creation in circular economy : a case study in clothing sector

Abstract

The prevailing linear production model in the apparel industry based on take-make-use-dispose has resulted in excessive resource consumption, pollution, and waste. To address these issues EU proposes Digital Product Passports (DPPs) to provide product life cycle data, enabling transparency, sustainable consumption, and circular economy (CE). This thesis explores the implementation and potential of DPPs as a tool for enabling CE practices such as resale, rental, repair, and recycling by improving data sharing, product transparency, and life cycle extension within the clothing industry. Finnish down wear brand Joutsen is used as a case study and the company’s data availability and data gaps are identified and a DPP prototype developed based on the different needs of the value chain partners. The research pinpoints the need for a phased approach to DPP implementation due to technical and regulatory challenges, including data fragmentation and limited standardisation. Key insights from pilot cases and stakeholder interviews highlight the importance of automation, granularity level, and stakeholder engagement in creating effective data ecosystems. The study also examines the role of DPPs in enhancing sustainability communication, regulatory preparedness, and customer engagement through storytelling. This thesis provides recommendations for developing a value-driven DPP system and the findings help to better understand how DPPs can support circular practices and digital change in the clothing industry.