How the Digital Product Passport will contribute to SMEs’ Sustainability & How AI will support its implementation.

AI4GREEN SMES

How the Digital Product Passport will contribute to SMEs’ Sustainability & How AI will support its implementation.

The European Union is paving the way for a more transparent, circular, and sustainable economy with the introduction of the Digital Product Passport (DPP) under the Ecodesign for Sustainable Products Regulation (ESPR). This regulation will require companies from different economic sectors (Iron, Steel, aluminium, textiles, furniture, tyres, chemicals, energy, ICT, among others) to provide key environmental and product data in a standardized digital format throughout the product lifecycle, from manufacturing and distribution to reuse and recycling.

Understanding the Digital Product Passport (DPP)
The DPP is designed to improve traceability and enable informed choices for consumers, regulators, and businesses. It mandates that by 2027, products such as textiles, electronics, or batteries must include detailed, accessible data on material composition, environmental footprint, durability, repairability, and more. This initiative aims to combat greenwashing, reduce waste, and drive sustainable consumption. While large corporations may have the infrastructure to comply, small and medium-sized enterprises (SMEs) face both a challenge and an opportunity. DPP compliance may seem complex, but it opens doors to innovation, improved product design, and competitive advantage, especially with the help of artificial intelligence (AI).

How AI can support DPP implementation
AI technologies offer powerful tools for automating and optimizing the DPP process. Natural language processing (NLP) can extract sustainability data from supply chain documentation, while machine learning algorithms can predict product lifespan and environmental impact. Computer vision systems can classify and track materials during manufacturing, and AI-enabled platforms can ensure data consistency across systems. Moreover, AI can help SMEs create digital twins of their products to simulate lifecycle scenarios, assess circularity metrics, and identify areas for eco-design improvements. In essence, AI transforms the data-heavy DPP process into a manageable, even strategic, endeavor for resource-constrained SMEs.

Boosting Sustainability and Business Transformation
The integration of DPPs and AI tools can radically improve the environmental performance of SMEs. Better insights into raw materials and emissions help companies reduce their carbon footprint, extend product life, and design for reuse or recycling. It also facilitates participation in green procurement and sustainable supply chains, offering SMEs a competitive edge in a rapidly evolving market landscape. Beyond compliance, DPPs foster a culture of accountability and transparency, encouraging businesses to embed sustainability into their core operations. Over time, this contributes to the EU’s broader Green Deal objectives and accelerates the transition to a circular economy.

Empowering SMEs through the AI4GREEN SMEs course
To support this transition, the AI4GREEN SMEs project equips SME managers with the knowledge and tools to leverage AI for sustainability. Through our learning platform and challenges, the project demystifies AI technologies and showcases their practical application in meeting broader circular requirements.

Want to know more about the AI4GREEN SMEs project and free educational tools?
https://ai4greensme.eu/