Introduction as early as 2026
"A Powerful Tool for ESG Regulation"
The Korea International Trade Association's International Trade and Commerce Research Institute advised on the 5th that urgent corporate response is needed regarding the European Union (EU) Digital Product Passport (DPP) system. This system requires all products distributed within the EU to digitally collect, store, and share lifecycle information.
The institute published a report titled 'Current Status and Implications of EU DPP Promotion' on the same day.
The DPP must include sustainability information such as raw material supply, distribution information, product durability, recyclability and repairability, recycled material ratio, and environmental footprint.
The DPP was first specified in the 2022 Ecodesign for Sustainable Products Regulation (ESPR). The regulation will come into effect once it receives final approval from the EU Council and Parliament within this year. The EU is expected to actively proceed with discussions on DPP promotion after the regulation takes effect.
In the case of batteries, the system has already been established. From February 2027, the Digital Battery Passport (DBP) system related to electric vehicle and industrial batteries will be implemented. It will apply to batteries with 2 kWh (kilowatt-hour) or more distributed within the EU.
The headquarters building of the European Union (EU) Commission in Brussels, Belgium. [Photo by EPA Yonhap News]
The report advised that Korean companies should monitor the trends of EU DPP promotion. It emphasized the need to accumulate information at each stage of the supply chain and adopt digital technologies. It also recommended efforts to improve Environmental, Social, and Governance (ESG) factors such as reducing carbon footprints and addressing human rights and labor issues.
At the government and related institution level, it is urgent to support the production of pilot DPPs for batteries and textiles, assist small and medium-sized enterprises in responding to DPP and building infrastructure, establish industry-specific carbon footprint calculation and reduction carbon emission management platforms, and prepare plans for participation and cooperation in international consortia related to DPP.
Kim Hee-young, a research fellow at the Korea International Trade Association, stated, "The DPP is expected to become a powerful tool to verify compliance with sustainability and ESG regulations promoted by Europe," adding, "The government should actively support companies to steadily prepare the contents to be included in the DPP, such as carbon footprints, along with preparing the technology for DPP implementation."
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