Beyond Compliance: Managing the Practical Implications of the European Union’s Digital Product Passport on Companies

As the importance of sustainability grows, the necessity for authentic and transparent information in relation to this subject is becoming increasingly important. In light of this, the European Union's Digital Product Passport, surface as a timely tool to provide stakeholders with accessible and transparent information about the environmental impact of a product. Yet, due to the novelty of the DPP, a research gap emerges in comparing the intended objectives of the DPP with the actual impact on businesses affected by this regulation. The objective of this study is to investigate whether sustainability initiatives, such as the DPP, are regarded as authentic opportunities to adapt more sustainable business practices, or viewed as mere bureaucratic requirements. Subsequently, the study examines how businesses modify their strategies and operations in response to this, with the objective of identifying the perceived benefits and drawbacks of such adaptations. Furthermore, the study aims to provide valuable insights for manufacturing companies. A comparative qualitative research approach provided rich insights from two case studies, which were conducted through semi-structured interviews. The findings of the research indicate that the DPP is perceived not merely as a requirement but rather an authentic way of facilitating more conscious decision-making and providing stakeholders with relevant information. This is due to the company's intrinsic value and a secondary benefit of enhancing brand reputation and competitiveness. The extent of strategic readjustment that companies have to implement was identified to be dependent on their already existing engagement with sustainability and the complexity of their operational processes which could impose drawbacks such as additional resource allocation. The significant advantages of these modifications were identified as enhancing consumer engagement long-term and facilitating the accessibility of information regarding sustainabil