With the mounting pressure of global warming, sustainability has shifted from a buzzword to a business imperative. Today’s consumers are more eco-conscious than ever, with many willing to pay a nearly 10% premium for sustainable products — even amidst rising living costs and inflation.
Tech giants like Apple are making big strides when it comes to greater sustainability. In pursuit of its goal to become carbon-neutral by 2030, in 2025, the company reported that it had already slashed greenhouse gas emissions by 55% since 2015. This commitment underscores how sustainability is now a core business objective due to growing consumer demand for more sustainable products.
A range of governments can also be seen stepping up to the plate, with the European Union’s Ecodesign for Sustainable Products Regulation (ESPR) being a prime example. As part of the EU’s Circular Economy Action Plan, the regulation pushes businesses to prioritize eco-friendly product design and lifecycle management. It is worth noting the EU’s ESPR is not set just to affect European companies but all businesses trading in the EU marketplace, wherever they’re based.
Alongside government pressure, the rise of greenwashing — where companies exaggerate or falsely claim sustainability credentials — poses another business challenge. Discerning consumers often struggle to separate genuine efforts from baseless claims. By embracing tools, such as DPPs, electronics companies worldwide demonstrate their true commitment to sustainability, build consumer trust, and highlight their innovative edge. In a world where sustainability sells, authentic action will always stand out.
Product circularity and fostering stronger consumer relations
The EU’s sustainability movement could be seen as a burden for electronics businesses that place products in the EU market due to these varied and complex demands. At the same time, businesses are feeling the strain of having to appeal to the modern consumer’s increasing appetite for sustainable products and services. These two pressures combined are making many businesses feel overwhelmed when it comes to carving out more sustainable processes.
However, if electronics companies employ a strategic mindset, there is an incredibly clear way to solve one issue by leaning into another. Through their ESPR compliance efforts, and particularly the legislation’s mandate of Digital Product Passports (DPPs), businesses can comply, and prove their sustainability credentials to appeal to consumers in one motion. Even for companies who don’t sell in the EU marketplace or to whom the mandate doesn’t apply, by employing DPPs brands can foster a transparent relationship with the modern consumer while prioritising product circularity and sustainable sourcing.
DPPs and advancing sustainable electronic enterprises
DPPs, by design, act as a lynchpin for sustainability efforts by facilitating information sharing that is vital to both consumers and producers in terms of the sustainability credentials of a product.
DPPs serve as a product's digital record and can be accessed through a smart device, such as a mobile phone, via scanning the data carrier (such as a barcode) which is attached to the product, DPPs can securely keep track of information about the product, across its lifecycle -including event or transactional data, or even data about its sustainability credentials like the carbon footprint of its production and more.
Through this invaluable product insight, DPPs have the potential to make a vast difference to the amount of waste the electronics industry is responsible for. To put it into context, as of 2022, approximately 62 million metric tons of e-waste were produced worldwide, yet only about 22.3% was formally collected and recycled.
DPPs can enable electronics businesses to provide a clear path to end-of-life handling - for example, they can provide information on how to dispose of electrical items in the safest and most environmentally friendly way and what materials can be recycled.
With this data also being accessible to consumers , there is readily available guidance for them to take more sustainable action. Similarly, they can feel reassured that the purchases or 'parts' of purchases they make have another lease of life. Moreover, by DPPs including such information, the insight remains accessible to future customers should the item enter the resale market, or even recyclers at the point the product reaches them. This seamless access to data throughout a product’s lifecycle, through whoever encounters it, empowers all parties to become active, sustainable decision makers.
DPPs also support electronics businesses in their consumer appeal by providing a way to offer and access information on the sustainable ‘make-up’ of their product. This can include additional information, including - but not limited to - where a product’s materials were sourced and key data points relating to the raw material extraction processes. They can also include information on the percentage of recycled materials used in an item’s production, further empowering the consumer to make more sustainable choices.
By providing the consumer with such precise data on the entire lifecycle of a product, businesses can validate their sustainability claims and ensure accusations of greenwashing are quickly dismantled due to the proof DPPs provide.
A study conducted late last year found that 64% of consumers rank sustainability as a top-three purchasing consideration in the modern day, highlighting just how attitudes have changed. Integrating DPPs gives consumers an inside look at the efforts behind making products more sustainable. This transparency not only helps counter greenwashing concerns but also fosters customer loyalty by presenting the company as open, trustworthy, and committed to its sustainability promises.
Advanced DPPs can also enhance the resale experience by offering customers a reliable way to verify product ownership, trace sourcing details, and access information on past repairs or upgrades. They can also serve as a valuable tool for confirming the authenticity of secondhand purchases, providing buyers with greater confidence and transparency. This is particularly important when we consider the concerns many have with resale in the electronics industry due to a lack of transparency about repairability and device history, which can make buying second-hand risky.
Two birds, one stone - Tackling sustainability challenges in tandem
Businesses keen to thrive and connect with the modern consumer and their shifting mindset should take action now, not only to comply with the EU’s ESPR and its DPP mandate but also to be seen as a key brand taking sustainability seriously. As DPPs enable brands to showcase the sustainability of their products, they prove their commitment to sustainability.
Beyond the ESPR’s DPP mandate, all businesses employing DPPs can position themselves in a forward-thinking manner, enabling them to enter a new chapter as ‘brands of the future’ - with the data to back it up.
Matthew Ekholm is strategic engagements manager for Protokol, an IT services and consulting firm based in Amsterdam.