In today’s market, the path to success is increasingly intertwined with sustainability, a journey that both retailers and brands must embrace. Consumers are more eco-conscious than ever, and regulatory pressures are mounting, making it essential to adopt green practices that boost brand loyalty and reduce operational costs. In the EU, regulations have mandated the adoption of the Digital Product Passport (DPP), a digital record that provides comprehensive information about a product’s environmental impact and lifecycle. Failure to keep up with these regulations can be damaging for businesses that hope to operate in the EU. However, managing and integrating DPP data can be a daunting challenge.

Syndigo is committed to supporting the changing landscape of environmental regulations with our ongoing innovation. Read on to learn more about how Syndigo MDM can improve your sustainability efforts and help you navigate the complexities of DPP compliance.

Importance of sustainability efforts for retailers and for brands

Sustainability is not a fad. It is a strategic necessity that can fuel long-term success and customer allegiance. Consumers are increasingly swayed by a company’s environmental and social commitments and are demanding more transparency and accountability from the companies they support. A brand that is dedicated to sustainability can forge a more profound emotional bond with its audience, nurturing trust and allegiance.

Further, driven by public sentiment, regulatory bodies are raising the bar to address environmental concerns. Retailers and brands that don’t meet these expectations risk losing market share and facing legal issues.

Furthermore, green practices are not just about doing good; they are also about doing well. By implementing sustainable strategies, retailers and brands can reduce waste and operational costs, leading to enhanced profitability over time.

Enhanced reputation, regulatory compliance and profitability make sustainability a critical component of any modern business strategy.

DPP as an enabler of sustainability

Digital Product Passports (DPPs) are emerging as a powerful tool to support sustainability efforts, offering a clear and concise way to communicate product information. These digital records provide a comprehensive overview of a product’s entire value chain, from its origin to its disposal. This transparency is crucial for making informed decisions that align with the sustainability goals of a business.

The European Union’s latest Ecodesign for Sustainable Products Regulation (ESPR), which came into force on July 18, 2024, is a testament to this urgency. The ESPR mandates that companies must share structured, standardized, and traceable product data digitally throughout the entire product lifecycle, including to consumers and recyclers. This means that from the moment a product is conceived to the moment it is disposed of, every step of its journey must be meticulously documented and accessible. This regulation will revolutionize business practices, particularly in sectors that will be the first to feel the effects: batteries, textiles, electronics, and construction materials.

The introduction of the ESPR also brings with it the potential for increased compliance audits. Companies will need to be able to demonstrate that they are adhering to these new regulations, and DPP can be a critical part of this process. By maintaining a strong and reliable data infrastructure, companies can quickly and confidently provide the necessary information to auditors. This not only helps in avoiding penalties but also demonstrates a commitment to sustainability that can enhance brand reputation and consumer loyalty. As the regulatory landscape continues to evolve, DPP will be a key tool in helping companies stay ahead of the curve and meet the growing expectations of a sustainability-focused market.

DPP needs a lot of support to deliver on its potential

Realizing the full potential of DPP though is rife with hurdles, from ensuring data precision to fostering consumer engagement.

• Data Fragmentation: Foremost among these challenges is the issue of data fragmentation. Product information is often dispersed across a multitude of systems, from ERP (Enterprise Resource Planning) to PLM (Product Lifecycle Management) platforms, e-commerce systems, and supplier portals, with little to no oversight. This fragmentation leads to a landscape of data that is inconsistent and disconnected, impeding the creation of a comprehensive and accurate Digital Product Passport. Retailers and brands are then faced with the daunting task of harmonizing data from various sources, each with its own format and level of detail, which can hamper the efficiency and efficacy of DPP implementation.
• Gaps in supplier data: A further challenge is the need to rely on suppliers for complete and accurate data. Suppliers have different levels of data management capability, and the data they provide can be inconsistent or incomplete. This reliance can slow down the time-to-market for products, as brands must spend additional resources verifying and correcting the data. In an industry where speed and accuracy are critical, this can be a major bottleneck.
• Lack of standardization: Additionally, the lack of standardization in DPP attributes across different product categories makes the issue worse. Without a common schema, brands and retailers must harmonize data from different sources, which is both time-consuming and resource-intensive.
• Scalability issues: As regulations and consumer demands for transparency continue to advance, the management and updating of DPPs become more intricate. Manual data handling is not only error-prone but also inefficient, particularly when dealing with extensive product lines and frequent modifications. This can have a direct impact on the accuracy of DPPs and, by extension, the credibility of a company’s sustainability initiatives.

Syndigo MDM helps overcome DPP challenges

Syndigo MDM offers a robust solution to these challenges, allowing brands to effectively utilize DPP to achieve their sustainability objectives.

• Centralized data hub: At the heart of Syndigo MDM is a centralized product hub, which serves as the definitive source for all product types, suppliers, and business operations. This hub integrates data from multiple origins, eliminating the isolated systems that often result in inconsistencies and inaccuracies. With a single, comprehensive repository, brands can ensure the reliability and currency of their product information, facilitating compliance with DPP mandates and maintaining transparency across their supply chains.
• Supplier collaboration: Syndigo MDM also emphasizes supplier collaboration through self-service onboarding portals that simplify the collection and validation of DPP-ready data from suppliers. These portals reduce the administrative burden on brands and ensure that suppliers provide accurate and complete information from the start. We also offer advanced validation rules to catch discrepancies or missing data, helping brands maintain high standards of data quality. This collaborative approach fosters a more efficient and error-free data collection process, which is essential for meeting the stringent requirements of DPP.
• Governed attribute models: To further enhance data accuracy and consistency, Syndigo MDM employs governed attribute models. These pre-configured and extensible schemas are aligned with both EU DPP requirements and GS1 standards, ensuring that product data is structured and formatted correctly. Brands can easily customize these models to fit their specific needs, while still adhering to the necessary regulatory guidelines. This governance ensures that all product information is standardized, making it easier to track sustainability metrics and report on them accurately. The flexibility of these models also allows brands to adapt to changing regulations and industry standards without significant disruptions to their data management processes.
• Automated data quality rules: Automated data quality rules are a key feature of Syndigo MDM. These data quality rules check for completeness, consistency, and accuracy, flagging any issues that need to be addressed. By automating this process, Syndigo MDM reduces the risk of human error and ensures that data is reliable and trustworthy, but also reduces processing time and ultimately makes it easier to scale up operations. This is particularly important for DPP, where even minor inaccuracies can have significant consequences. Brands can have confidence that their product data meets the highest standards, which is crucial for maintaining consumer trust and meeting regulatory requirements.

Key Capabilities Syndigo is building to enable DPP

Looking ahead, Syndigo is paving the way for a more sustainable future by making DPP implementation seamless and efficient through a range of advanced capabilities.

• One of the most significant features Syndigo is developing is DPP-ready data templates. These templates are designed to expedite the onboarding process by pre-populating the required attributes for DPP compliance. Retailers and brands can quickly and easily input their product information, ensuring that all necessary data points are captured without the need for extensive manual configuration. This not only saves time but also reduces the risk of errors, making the transition to DPP smoother and more manageable.
• To further streamline the process, we are implementing automated validations against EU regulatory requirements. These validations will serve as a built-in quality control mechanism, ensuring that the data submitted for DPP meets all the necessary standards and guidelines. This is particularly important for industries that operate in multiple regions, where regulatory requirements can vary significantly.
• Consumer-facing transparency is a cornerstone of DPP, and we are addressing this with QR code generation and Digital Link hosting. These tools allow brands to create QR codes that consumers can scan to access detailed, transparent information about a product’s sustainability and environmental impact. By hosting these Digital Links, we ensure that the information is readily available and accessible, enhancing consumer trust and engagement. This capability is especially valuable in today’s market, where consumers are increasingly demanding transparency and are willing to support brands that provide it.
• Compliance tracking: Moreover, Syndigo is introducing audit trails and expiry tracking, crucial for industries governed by stringent compliance requirements. These capabilities empower companies to maintain a comprehensive history of their DPP data, guaranteeing a clear and meticulous record of changes and updates. Expiry tracking is especially pertinent for products with a limited shelf life or those necessitating regular sustainability data updates. Through automation, Syndigo supports brands in upholding compliance and the enduring accuracy of their DPP data.

Syndigo can help with your DPP efforts

The pursuit of sustainable practices through tools like DPP is a critical step for brands. DPP implementation builds a foundation of credibility and reliability that can set you apart from the competition and improve the value of your brand. Ready to explore how Syndigo can help your brand navigate the complexities of DPP? Contact us today to learn more about how Syndigo MDM can support your DPP efforts and elevate your brand’s sustainability profile.