Strategic Focus: Applying Digital Product Passports To The Electric Vehicle Value Chain

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Executive Summary

The EU Batteries Regulation – which will replace the EU Battery Directive – has the primary objective of establishing a legal framework to make batteries more sustainable throughout their entire life cycle. By 2026, digital product passports (DPPs) will be required for all new batteries on the EU market, with the electric vehicle (EV) value chain at the forefront of the regulation due to its significance in the transition to a low-carbon economy. These passports will play a crucial role in ensuring transparency and accountability within the industry, as well as serving as the key information hub of the circular economy. Sustainability executives should use this report to better understand regulatory requirements and identify next steps to prepare their firm for compliance.

Table of contents

The pivot towards electric vehicles presents unique sustainability challenges
Regulations in the EU set the pace for global DPP adoption
Industry initiatives aim to develop guidelines for digital product passports
Four ways organizations can prepare in advance of DPP deployment

Table of figures

Figure 1. Key articles of the EU Batteries Regulation 
Figure 2. Benefits of DPPs throughout the EV battery value chain
Figure 3. A selection of software vendors supporting DPP functionality

About the authors

Luke Gowland

Senior Analyst
Luke is a Senior Analyst in the Verdantix ESG & Sustainability practice. His current research agenda focuses on the ESG reporting and data management landscape, as well as emerging technologies and market trends across industries. Prior to joining Verdantix, Luke worked at research and advisory firm GlobalData, producing ESG research reports for corporate clients. Luke holds an MSc in Sustainability and Management from the University of Bath.

Kim Knickle

Research Director, ESG & Sustainability
Kimberly Knickle is Research Director of the ESG & Sustainability practice at Verdantix. Her research areas encompass ESG regulations and reporting, ESG risk, supply chain sustainability, circular economy, social impact, and sustainable finance. Kim has worked for more than 20 years in the IT industry, providing research and analysis to help companies invest wisely in new technologies. Before joining the analyst industry, she held various roles in IT services, engineering and product safety testing, beginning her career at Underwriters Laboratories, Inc. Kim holds an MBA from Boston University and a BS in Electrical Engineering from Cornell.

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