Opinion

The Digital Product Passport: curse or opportunity for SMEs?

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Published: December 7th, 2021,
Last updated: May 28th, 2025

By Karl Haeusgen
Karl Haeusgen is President of the German Engineering Federation. The VDMA represents around 3,400 German and European companies in the mechanical engineering industry.

It is one of the most important initiatives in the EU Commission’s new circular economy package, which is planned for the first quarter of 2022. In theory, the idea of the Digital Product Passport (DPP) is a good one: In the future, companies will document all the substances used in their products. They name spare parts and calculate the CO2 footprint of their actions. This will make processes more transparent and give products sustainability criteria. In this way, the circular economy can be advanced.

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