Why Digital IDs are essential to the EU’s strategy for sustainable textiles
The EU has laid out a sustainable textile strategy that aims to transform the industry by 2030. The initiative plans to integrate circular economy principles into fashion supply chains, crack down on greenwashing, and increase accountability for textile waste. It will reshape the way companies operate within the EU and impact the fashion retail sector.
The strategy introduces the use of Digital Product Passports, also known as Digital IDs, across all products sold in the EU. These passports will store essential product, material and sustainable data and make it readily available to all stakeholders in the ecosystem. It is also made available to consumers through a scannable label on their garment such as a QR code or NFC chip.
The goal is to empower businesses to make better choices on where their products are made and the materials used, and consumers to make better choices on which products they purchase. The use of Digital ID will also improve communication between producers, recyclers and other stakeholders, on important areas like fiber composition and the use of any harmful chemicals and substances.
EON’s Product Cloud platform enables retailers to create and manage virtual passports, and we are already seeing their transformational impact first-hand in our client’s businesses. Digital ID is a foundational step to scaling resale, recycling and circular business models, and a gateway to an open fashion ecosystem in which product information can be instantly accessed and exchanged.
Through 2024, the European Commission will define its Digtial Product Passport requirements, including mandatory information, product verification compliance, and the implementation of scannable labels such as QR codes and NFC tags. EON clients are leading the adoption of Digital IDs, setting a positive benchmark for all brands who will need to comply with the directive in the coming years.
