Digital Product Passport Implementation: A Strategic Framework for SMEs

Although Värnamo of Sweden served as the consulting company for this study, the analysis was not limited to a single organization. Instead, the findings were developed from a broader industry perspective with the aim of contributing to research and practice among SMEs within the European textile and apparel sector.

Abstract

The European Commission's transition towards a circular economy is introducing new regulatory requirements for the textile and apparel industry. A central component of the Ecodesign for Sustainable Products Regulation (ESPR) is the Digital Product Passport (DPP), a framework designed to improve product traceability, transparency and sustainability throughout the product lifecycle. However, several technical standards and mandatory requirements for the textile and apparel sector have not yet been finalized, creating uncertainty for companies preparing for implementation. These challenges may be particularly significant for small and medium-sized enterprises (SMEs), which often face limitations related to financial resources, digital infrastructure, expertise and organizational capacity.

The purpose of this study is to examine how SMEs can implement the DPP strategically and to develop a practical framework that supports preparation for future regulatory requirements. 

A desk study method was conducted based on academic literature, EU regulations, industry reports and publicly available documents related to the DPP, circular economy and SMEs. The findings identify key challenges and opportunities associated with DPP implementation, including regulatory uncertainty, data management, digital infrastructure, supply chain collaboration and competence development.

Based on the analysis, the study proposes a four-step implementation strategy that supports SMEs in gradually preparing for DPP requirements while strengthening internal organization, competitiveness, supplier relationship and long term contributions to the circular economy.

Project details

 Type of Study: Consulting field study.

Tagline: How can SMEs implement DPP strategically?

Title: Digital Product Passport Implementation: A Strategic Framework for SMEs.

Year: 2026

Language: English

Author: Alona Anderson

Course: Field Study in Textile Management

Program: Masters program in Textile Value Chain Management 

Researcher / Supervisor: Marianne Louwerse and Jenny Balkow

Case company: Varnamo of Sweden

Technology: Digital Product Passport