The Pillars of Successful Digital Transformation for CG Companies

Strategies to Accelerate Digital Transformation in Consumer Goods Companies

How to Embed Transparency and Traceability into Your Products

Your Complete Guide to Understanding DPP Legislation (With Timeline)

Your Ultimate Blueprint to Crafting a Digital Product Passport

Digital Solutions for Sustainable Clothing Transformation

As businesses continue to grapple with the [effects of climate change](https://www.climatechange.environment.nsw.gov.au/effects-business#:~:text=Direct%20impacts%20affect%20your%20business,weather%2C%20or%20income%20being%20reduced.) and environmental degradation, it is becoming increasingly important for companies to focus on sustainability. __Businesses are turning to sustainable practices to reduce their ecological impact__ and appeal to the growing number of customers who prioritize sustainability when purchasing.

As the customers' understanding of sustainability grows, businesses need to understand the degree to which their __customers prioritize sustainability__ when purchasing. Do customers really care about sustainability? This article will explore this question and provide insights into how companies can best leverage sustainable practices to engage and retain their customer base.

## Who cares about sustainability?
When it comes to making purchase decisions, consumers place an increasing emphasis on sustainability. A survey by Simon-Kucher & Partners found that [85%](https://www.simon-kucher.com/en/blog/2021-global-sustainability-study-what-role-do-consumers-play-sustainable-future) of global consumers consider a company's environmental and social practices when deciding what products or services to buy. While the statistics vary depending on age, gender, and location, overall, customers make decisions based on a company's sustainability practices.

According to research, customers are also willing to pay more for goods and services if they are aware that the business is using sustainable business methods. That suggests that customers prioritize sustainability when making purchasing decisions and reward companies for taking steps to reduce their environmental impact.

Here are five ways how customers care about sustainability:

### 1. Choosing companies that have adopted sustainable practices
Customers are increasingly choosing to purchase products from businesses that have a track record of sustainability. That means that customers are more likely to purchase products and services from businesses that have taken action to reduce their carbon emissions, minimize waste, and promote fair labor practices.

## 2. Educating themselves
Consumers are investing the time to educate themselves on which companies are engaging in sustainable practices. That includes checking labels for certifications, reading product reviews and user manuals, and researching a company's sustainability initiatives online before making their purchase decision.

When researching, customers also pay attention to a company's four post-sales sustainability practices, which include:
- __Packaging__: Whether a company is using sustainable packaging and [shipping methods](https://www.americanexpress.com/en-us/business/blueprint/resource-center/manage/green-sustainable-shipping-practices/).
- __Recycling__: Whether the products are recyclable or can be reused.
- __Maintenance__: How much energy is used to maintain the product over its lifespan?
- __Repairability__: How easily the product can be repaired should it break or malfunction.

### 3. Sharing information
Many customers share information about companies engaging in sustainable practices with their peers. Through word-of-mouth, reviews, or social media posts, customers actively promote businesses that prioritize sustainability and discourage others from buying products and services from unsustainable companies.

### 4. Supporting brands
In addition to buying from sustainable companies, many customers will go out of their way to support these brands. That includes:
- Staying informed on the company's sustainability initiatives.
- Providing feedback and reviews.
- Engaging with them on social media.

Below are three simple ways how customers can support brands that are engaging in sustainable practices:
- Join the brand's social media channels and share their content.
- Write reviews on sites like Yelp and Amazon.
- Recommend the brand to friends and family.

### 5. Purchasing Sustainable Products
Consumers are increasingly driven by their values and want to know that the products they purchase live up to those values. By purchasing sustainable products, consumers can contribute to a better environment for themselves and future generations. Customers care about sustainability because it reflects their values and gives them a sense of pride when buying from companies that share them.

When purchasing sustainable products, customers can also reduce their environmental impact by opting for the company's digital product manuals and virtual assistant services.

### Six reasons you should reduce your environmental impact
Sustainability is now more than just a trendy word; today it is a crucial component of any business plan. Companies that reduce their environmental impact can reap many economic benefits, which will help them to become more competitive and successful. 

Here are a few reasons why you should prioritize reducing your environmental impact:

### 1. Attract more customers
Consumers have become increasingly aware of the importance of sustainability, which means they are more likely to purchase from businesses that demonstrate a commitment to it. By reducing your environmental impact, you can signal to customers that you prioritize their needs and interests.

### 2. Build brand trust
Reducing your environmental impact shows customers that you take sustainability seriously, improving your reputation and trustworthiness in the eyes of potential buyers. That can help build customer loyalty, ultimately leading to more sales. Businesses that prioritize environmental sustainability can also benefit from earned media coverage.

### 3. Increase efficiency
Reducing waste and using fewer resources can save money in the long run by helping you run more efficiently. Several adjustments can be made immediately to improve operational efficiency:
- Invest in renewable energy.
- Improve waste management processes.
- Invest in energy-efficient equipment.
- Leverage natural resources like solar and wind power.
- Encourage recycling.

### 4. Boost employee morale
The company's commitment to beneficial environmental reforms will certainly boost employee morale. That can lead to more productive and engaged employees who are proud of the company's efforts. Also, employees who participate in sustainability initiatives, such as waste reduction programs, often feel more involved in the company's activities.

### 5. Promote corporate social responsibility
Reducing your environmental impact demonstrates to customers and potential investors that you are taking [corporate social responsibility](https://www.businessnewsdaily.com/4679-corporate-social-responsibility.html) (CSR) seriously. Doing so can improve customer relationships and increase sales opportunities due to the positive publicity associated with CSR.

### 6. Support customer excellence
Reducing your environmental impact supports customer excellence by enabling you to provide better service and products that meet the needs of both customers and the environment. Additionally, it demonstrates a commitment to customer support, which can increase customer loyalty and sales opportunities.

## 8 ways to reduce your environmental impact 
Companies prioritizing reducing their environmental impact can reap many economic and social benefits. You may lessen your impact on the environment by using these eight tactics:

### 1. Invest in renewable energy
This can involve investing in solar, wind, geothermal, or hydropower sources to produce power instead of relying solely on fossil fuels. Over time, it will slash energy expenses and minimize your carbon impact, benefiting your company.

## 2. Reduce water usage
Installing water-efficient fixtures such as smart toilets and faucets can help reduce water and energy consumption. Additionally, consider collecting rainwater for irrigation or other non-potable uses.

### 3. Leverage recycled materials
Using recycled materials whenever possible can reduce the amount of waste generated. Companies can utilize the following strategies to leverage recycled materials:
- Encouraging employees to recycle at their desks.
- Offering incentives for employees who bring in recyclables from home.
- Offer tax credits or rebates for businesses that use recycled materials.
- Research suppliers specializing in recycling and upcycling materials.

### 4. Manage waste properly
Ensure all waste materials are sorted and disposed of correctly, such as through composting or other recycling methods. As a result, less waste will be dumped in landfills, and the environment will be cleaner. When done correctly, waste management can also be a source of revenue in the following ways:
- Materials can be gathered and used as the starting point for new products.
- Waste can be reused in manufacturing processes.
- Accumulated waste can be resold as secondary raw materials.
- Through techniques like incineration with energy recovery, waste can also be turned into energy.

### 5. Promote employee education
Employees are vital to reducing your environmental impact. Educating them on sustainable practices can help them become more aware of their actions and how they affect the environment. Creating a sustainability program for employees to participate in achieves the following:
- Fosters an environmentally conscious culture
- Encourages collaboration
- Motivates employees to make positive changes.

This kind of education can also extend to customers, as they may become more aware of the company's green initiatives and be more likely to purchase its products.

### 6. Implement sustainable packaging solutions
Providing environmentally-friendly packaging, such as biodegradable or recycled materials, can reduce your carbon footprint and make your business more attractive to customers who are conscious of its environmental impact. Additionally, investing in efficient shipping and transportation processes can help reduce the amount of energy consumed and lower the total cost of production.

### 7. Introduce eco-friendly practices
Incorporating eco-friendly practices into your daily operations is a great way to reduce environmental impact. These can include:
- Reducing paper usage by utilizing digital files and documents
- Enhancing energy efficiency with LED lighting or other energy-saving technologies.
- Implementing green cleaning products and techniques.
- Installing water filtration systems to reduce single-use plastic.

Tools like Layerise can help you reduce paper usage, as it completely eliminates the need for physical manuals. 

### 8. Invest in new technologies
Incorporating new technologies into your business can help reduce energy consumption and emissions. For example, adopting advanced sensors, [artificial intelligence](https://sustainabilitymag.com/sustainability/sustainability-applications-for-artificial-intelligence#:~:text=Using%20AI%20to%20aid%20sustainability%20efforts&text=AI%20applications%20can%20balance%20electricity,wind%20farms%20and%20solar%20panels.), and robotics can help automate processes and improve efficiency while reducing waste.

Keeping up with the times is essential to attract customers in today's dynamic market. Investing in technologies geared towards sustainability can also help your business stand out from the competition and demonstrate to customers that you genuinely care about their well-being.

## How Layerise can help you cut emissions
Reducing your environmental impact improves customer loyalty, increases brand recognition, and provides more cost-effective operations. Sustainability strategies can positively affect customer relationships and the bottom line when implemented effectively.

__Customers increasingly care about sustainability as much as they do about product quality__. Focusing on reducing your environmental impact is key to staying ahead of the competition and long-term success. Only be sure to go beyond the bare minimum and be forthright about your sustainability strategies.

Layerise provides the tools to help you identify opportunities and find the solutions that will enable your business to cut emissions – one of these being reducing paper usage. [Book a demo](https://www.layerise.com/) with us today to learn how we can work for your business and help build an environmentally sustainable future.

Do customers really care about sustainability?

As customers, when we purchase any product from a business, we expect an honest interaction. Paying customers hate being tricked, whether it’s about the ingredients and materials that go into the product or how a company uses customer data for marketing processes. 

Modern companies are increasing the openness and transparency of their operations. While some do this via transparency platforms, others simply periodically display their progress to customers. 

__Being transparent with your customers__ can significantly affect their attitude toward your brand and __help in developing consumer trust and loyalty__. It is similar to eating at a restaurant with an open kitchen, so you can see how food is prepared. 

For instance, [Heineken](https://www.heineken.co.uk/wp-content/uploads/2019/01/Sourcing.pdf) shares with all the customers its sustainability journey, from the safeguard of apple and barely farmers to the protection of their local livelihoods. As another example, parents and kids can now discover where their milk comes from with [Friso TrackEasy](https://www.friso.com.sg/campaign/learn-more-friso-trackeasy).

The takeaway is that __businesses worldwide have realized how meaningful customer transparency is__ as it helps gain customer trust while also engaging with them. 

However, being transparent does not include making every aspect of your company known to the general public, as this could give your rivals access to your trade secrets.The objective is to identify what consumers want to know, comprehend what aspects of your organization you can communicate to them, and choose the most effective method for delivering that information.

## What do we mean by transparency? 
According to a recent [Verizon research](https://www.verizon.com/about/news/what-customer-experience-do-consumers-really-want), 45% of young customers (aged 18 to 24) claimed they would be willing to disclose personal information in exchange for a more personalized and intuitive user experience. However, [69%](https://www.verizon.com/about/news/what-customer-experience-do-consumers-really-want) of all respondents said they would steer clear of businesses with a history of data breaches.

To deliver the level of personalization that customers demand without compromising their data, __businesses must strike a balance between gathering customer data and the need for data protection__. Prioritizing client transparency is the key to building long-term relationships. It enables brands to provide a superior experience, build solid relationships, and encourage loyalty.

But what does customer transparency mean? *It means operating effortlessly and honestly so customers can observe and validate your business values.*

The transparency culture helps businesses position themselves for success. Transparent businesses make information available to customers, so that they know how these companies operate. This information includes information on product and service prices, delivery schedules, and any other policies that might be relevant to the customer. By being completely honest with clients, brands can __increase customer retention rates and make them loyal advocates__.

## Why should your business embrace transparency? 
Nowadays, customer transparency is particularly essential because customers are skeptical of how businesses use their data. 

According to the [Zendesk Customer Experience Trends Report 2021](https://www.zendesk.com/in/customer-experience-trends/), 75% of customers are willing to spend more money on a business that really values them. But what does it mean to be valued? 

Customer happiness doesn't exclusively depend on benefits and gifts but also on __reasonable pricing__, __courteous communication__, and __data security__.  

Nowadays, so many customers don't trust how companies handle their personal information. That’s why data transparency has never been more important to build successful customer-brand relationships. __Firms must be clear about how they collect, use, and share customer data__ in order to create and maintain a strong connection with their audience.

According to a [2020 McKinsey survey](https://www.mckinsey.com/business-functions/risk-and-resilience/our-insights/the-consumer-data-opportunity-and-the-privacy-imperative), 71% of customers said they would stop doing business with a company if it disclosed their private information without their consent. Even younger generations are quite concerned about data privacy. According to [Internet Innovation Alliance research](https://internetinnovation.org/wp-content/uploads/White-Paper-Concerns-About-Online-Data-Privacy-Span-Generations.pdf), three out of four Millennials are worried about how technology and social media businesses utilize their location data. 

The silver lining is that __brands can gain the trust of their customers by being transparent with them__. According to a recent [Sprout Social survey](https://sproutsocial.com/insights/data/social-media-transparency/), when an organization has a transparent track record, nine out of ten customers are willing to give them another chance even after experiencing bad customer service. 

The [2021 Cisco Data Privacy Benchmark Study](https://www.cisco.com/c/dam/en_us/about/doing_business/trust-center/docs/cisco-privacy-benchmark-study-2021.pdf) reports that businesses can receive roughly twice as much value for every dollar invested in customer privacy, with benefits such as a significant boost in customer trust and hence customer retention and referral marketing. 

## 4 Benefits of being transparent toward your customers 
Although the primary benefit of being transparent with your customers is customer loyalty and high retention, it is not the only one. 

### 1. Prioritizing customer transparency can unify the business. 
Transparency in a business cannot be mandated by executive order or limited to customer service. __Every department must be committed__ to it, including the C-suite, help desk, public relations, and product development. Everyone on the team needs to uphold the company's goal to always be open and sincere with customers, regardless of the situation.

### 2. Customer transparency leads to increased efficiency and improved performance. 
Businesses can operate more efficiently by collecting customer data responsibly through a sophisticated feedback system. A brand that prioritizes complete transparency can improve operational efficiency by creating a great workplace culture.

__The culture of transparency fosters strong relationships between staff and customers__. Good communication between the company and its customers is important to increase efficiency and improve performance. 

When clients have access to information about the different projects and can give honest feedback on the progress, businesses can faster address their customers’ needs. In this way, brands can avoid any negative customer feedback afterwards, client withdrawals, and loss of client loyalty, which would result in decreased corporate revenue.

### 3. Being transparent with your customers boosts brand reputation. 
Transparency with customers benefits the brand in innumerable ways.__A corporation will be considered highly respectable in the market if it is honest and open__ with its customers. Businesses build brand loyalty by developing a relationship of trust between them and their customers. Customer loyalty is the zenith of the sales funnel since loyal customers make repeated purchases, and recommend it to their friends.

### 4. Customer transparency boosts sales. 
Customer openness increases sales because __repeat business results from brand loyalty__. With your customers being loyal to your business you will build a good reputation. This will help you sell more to potential customers, thus leading to business growth. 

## How to increase transparency in your business?

Here are some ways to create transparency with clients:

### 1. Foster in-house trust. 
Creating transparency within the brand is the first step in pursuing it with the customer. It is pointless to try and implement transparency in some processes if it is not already part of the corporate culture. __Top-down transparency is required__. Before they feel comfortable being open with customers, employees need the management to be honest and open within the organization.

### 2. Be fair and clear when billing.
The key to overcoming clients' frustration with ambiguous bills is transparency. Brands shouldn't play games with pricing. A critical moment of truth occurs when your customer pays for your services. 

Start by being transparent with your pricing and __outlining all associated charges, taxes, fees, and specified deliverables__. Ensure your invoices accurately reflect the services rendered and provide a clear understanding of your terms by following through.

### 3. Keep the promises you have made. 
Customer happiness is significantly dependent on delivering on the promises made to them. The customer feels tricked and loses faith when promised services are not provided. Therefore, __make sure you keep your promises__ or, at least, make the customer aware of why services may not be delivered as promised.

### 4. Establish two-way communication. 
Effective communication is __two-way__. When a conversation is one-sided, both its worth and impact are diminished. Inform the client that steps are being taken to enhance their experience by listening to their needs and concerns and acting based on them.

### 5. Be responsible with customer data. 
Most businesses passively gather customer information. They have a database containing information such as a customer's past purchases or online browsing habits. While web analytics can provide businesses with hints about consumer browsing habits, a CRM system can track a customer's past purchases. 

However, __it's crucial to be open and honest with customers about the data the business collects and why__ — and to offer an opt-out if the client is uncomfortable with it. Brands should never sell a customer's data without that person's consent.

### 6. Own up to your mistakes.
Mistakes are bound to happen. When they do, don't stay silent. Instead, talk to your customers. You can move on more quickly from a setback if you __deal with the situation immediately__ by finding a solution or making a reasonable offer. The message you want the customer to understand is that you are acting fast to correct the error and taking steps to ensure it won't happen again.

### 7. Be timely and responsive. 
It should be an obligation to answer customer calls and emails as soon as possible. A [recent study](https://www.oecd.org/coronavirus/policy-responses/productivity-gains-from-teleworking-in-the-post-covid-19-era-a5d52e99/) found that 42% of customers who contacted a business by phone or email expected a response within an hour. Ensure your clients know your stated response time and that you are reachable.

### 8. State company values. 
A reputation for honesty goes a long way, and if it is a core value of the organization, it will go much further. Businesses should be upfront with customers about their expectations for job quality, corporate responsibility, and relationship-building strategies. This gives the transparency at the core of the customer connection a meaningful framework.

### 9. Share knowledge. 
Customers choose your brand because of the team's experience and knowledge. Thus, gatekeeping knowledge will not help you develop a solid rapport with your clientele. Give them the information they require to make wiser judgments.

### 10. Keep your customers up-to-date on change. 
If you inform your consumers of changes (good or bad) occurring within your business, you'll gain their trust and create stronger relationships. Therefore, __promptly communicate any changes to your price, business plan, or items__.

Remember, what is suitable for your customers is also good for your brand. Data transparency provides customers with security. They can share their information with you because they trust your business to treat it properly and ethically.

Transparency policies not only reassure customers but also assist in distinguishing your company from competition. If you always have your clients' best interests in mind, they will trust you more and continue to do business with you.

## How Layerise can help you enhance transparency in your business?

Layerise provides a unique solution that blends customer transparency and client support to assist brands in improving their customer experience.

To personalize the buying experience, brands can employ Layerise to gather client information responsibly. Brands can start collecting vital customer data during the onboarding process. 

Utilizing [QR technology](https://www.layerise.com/customer-registrations), Layerise is developed keeping accessibility in mind to provide every customer with the best possible experience. As a result, customers get a superior experience and transparency is improved. 

Using this consumer data, brands can [automate marketing campaigns](https://www.layerise.com/marketing-campaigns) depending on their target market's demographics and enhance conversions by creating customized and topical send-outs. Brands may also create enduring customer relationships and a recurring revenue stream by integrating CRM and marketing with Layerise's cutting-edge customer experience capabilities.

To learn more about our solution, [schedule a free demo](https://www.layerise.com/) with us! 


Transparency Toward Your Customers is a Must

Digital solutions have been widely deemed the key to a circular economy’s success. The European Union (EU) has proposed several legislative suggestions aimed at advancing the current ecodesign guidelines for energy efficiency. Among these new measures, the Digital Product Passport also referred to as DPP, is proposed as the ideal solution for a more sustainable economy. 

The adoption of the Digital Product Passport will lead to extended product lifespans, assist customers in making ecologically responsible purchasing decisions, and promote the creation of circular economy business models. DPPs enhance transparency throughout the entire value chain as they are easily accessible for all, from the original manufacturers to the final consumers. 

Considering the global climate challenge that the world is currently facing, the implementation of [digital solutions like the Digital Product Passport will play a crucial role in reducing pollution](https://www.layerise.com/resources/blog/post/save-a-tree-go-digital-and-paper-free), overconsumption, and, more generally, lowering the environmental impact. Companies should keep up with these evolutions to sustain their competitive position in the market and attract a new generation of conscious customers. 

This article will help you gain an overall understanding of what a Digital Product Passport is and will provide you with several reasons why it is important for companies performance to adopt this solution.

### What is a Digital Product Passport?

A Digital Product Passport is a certified method of digitally recording information or inventorying a product to produce an easy-to-access and centralized bank of information. 

The information included in the Digital Product Passport depends on the specific product. With regards to consumer electronics devices, for instance, Digital Product Passports provide important information about the materials contained in the particular product, any repairs that may have taken place, how to maintain the product, and details on how to recycle the product. On the other hand, the DPP regulation for packaging may not require information about recycling the product but will contain a guide to show the percentage of recycled material it possesses.

The information that should be included in the Digital Product Passport is, in most cases, already present; however, its fragmented throughout the value chain. Meaning,  while different actors possess different pieces of information that are not linked to each other, the benefit of each piece of information does not represent any value for the consumer. The DPP is the solution for this, as it requires a centralized location for all the necessary information throughout the value chain. 

![with layerise](//images.ctfassets.net/scrf7o05zai3/6SjstpJLY46CjJzIkQkSfz/6d494f64c33d17e5d2954fdb13b06a08/with_layerise.jpg)

This is the idea behind creating a circular economy, and improved information flows would allow companies to improve their sustainable approaches. The sectors where the Digital Product Passport will be implemented are [consumer electronics, batteries, ICT, fashion, furniture, as well as “high impact intermediate products” such as steel, cement, and chemicals.](https://www.renewablematter.eu/articles/article/europe-digital-product-passport-is-coming-soon#:~:text=The%20sectors%20and%20products%20for,as%20steel%2C%20cement%20and%20chemicals.)

### Digital Product Passport and the impact of the EU Battery Regulation

A major obstacle to achieving the circular economy is the absence of reliable and verifiable information about product content, reuse, and recycling potential. A Digital Product Passport has been proposed as the solution to closing this information gap. The new EU Battery Regulation was formed as part of the circular economy action plan.

The DPP was considered for the first time in an EU-wide regulation, namely in the “*[Proposal for a Regulation of the European Parliament and the Council concerning batteries and waste batteries](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52020PC0798)*”. This has been coined as the “[*New EU Battery Regulation*](https://www.europarl.europa.eu/RegData/etudes/BRIE/2021/689337/EPRS_BRI(2021)689337_EN.pdf)" and is expected to come into force in the near future. This addresses the urgent need for action to implement sustainable solutions.

Therefore, the European Union published an action plan that dealt with advancing a circular economy. This was one of the prominent features of the [European Green Deal](https://ec.europa.eu/competition-policy/sectors/energy-and-environment/european-green-deal_en), a set of proposals to make the EU the first climate-neutral continent by 2050. 

Out of the many defined measures in the regulation, the most significant is the Digital Product Passport for batteries, also known as the battery passport. It is supposed to come with the following characteristics:

- The setting up of an electronic information exchange system for batteries and a passport scheme (for industrial and electric vehicle batteries). The Global Battery Alliance already propounded this, and several international firms have accepted this.
- The battery passport has been established for batteries with an internal storage capacity of 2 kWh or more. The battery passport is unique for each battery and will also be given an individual identifier. 
- The economic operator putting the battery on the market will be responsible for assigning a unique identity to the battery. It will either be printed or engraved on the battery. The economic operator placing the battery on the market should also make sure that the information contained in the battery passport is accurate, up to date, and complete. 
- Relevant information in the battery passport includes data about hazardous substances, durability, performance, capacity, removability, replaceability, recyclable content, carbon footprint, and proof of due diligence in the responsible sourcing of raw materials. 
Suppose a particular battery needs to be repaired or replaced. In that case, keeping the digital battery record will be passed on to the economic operator placing the repaired battery on the market. This is to ensure the information is available centrally and electronically in machine-readable content through easily accessible data services, even for third parties.

### What are the general requirements for the Digital Product Passport?

Apart from the requirements arising out of the regulations, manufacturers must consider several general DPP requirements. Taking these requirements into account will increase the acceptance of Digital Product Passports worldwide.

#### Flexibility
In global value chains, many stakeholders change periodically. Therefore, the required characteristics that a Digital Product Passport must contain should also evolve constantly. This demands a system that would flexibly add new companies, product attributes, and stakeholders and remove information that is no longer relevant.

#### Access Control
Some companies consider information and data about products’ performance and success as a confidential enterprise secret. To maintain the information confidential and prevent competitors from catching relevant knowledge, secrecy needs to be a requirement for the access control mechanisms of the system that implements the Digital Product Passport.

#### Data Quality
It must be noted that the Digital Product Passport will only be valuable if the information it contains is accurate, relevant, and verifiable. To avoid unnecessary information or “garbage in - garbage out,” the most viable technical solution is to ensure the highest data quality. This can be achieved by regularly performing audits and letting independent stakeholders verify the reliability of the information and processes used.

#### Inclusivity
Last but not least, the expense and technical requirements to implement the Digital Product Passport must not be too high that they exclude small economic players. Inclusivity means the standards that will be used for the solution must allow all players to access and build their own DPP mechanism. 

![in-Article](//images.ctfassets.net/scrf7o05zai3/Lqr3UhwiAC72ccoZEWatD/695865afed1caaf060a03bc7b8d1ef1b/in-Article.jpg)

### 5 reasons why you should start using Digital Product Passports

Here you can find five reasons supporting the use of Digital Product Passports:

#### 1. Increased transparency for consumers
Digital Product Passport regulation represents a solution to the lack of transparency surrounding product documentation. Consumers typically do not have easy access to information about a product’s materials and manufacturing, but DPPs attempt to change that.

In light of movements such as Right to Repair, information accessibility for consumers has been increasing, but Digital Product Passports represent a major breakthrough in terms of enhanced transparency.  It is important to highlight that informed customers are also happy customers because they have control over their choices and feel safe and confident in using a specific product. Information is the key to easing a client’s mind, that is why companies should invest in solutions that allow for greater transparency towards their customers. 

Therefore, DPPs will increase transparency for consumers and businesses, but they will also make waste streams efficient as recyclers will separate waste into correct channels.

#### 2. Tackling greenwashing
For manufacturers to have a positive impact on the environment, and for the global and European regulative community to achieve the climate goals, products should be kept in circulation for as long as possible. To tackle greenwashing, there should be a mandatory European standard for durability and repairability that will make eco-friendly products the norm in the market.

Consumers can’t know whether a product is repairable or recyclable unless the information is provided to them. Thus, Digital Product Passports can sustainably offer this information.

#### 3. Centralized information flow
Governments have mandated several informational flows required for different products. Some of these include energy efficiency ratings and [WEEE (Waste from Electrical and Electronic Equipment)](https://ec.europa.eu/environment/topics/waste-and-recycling/waste-electrical-and-electronic-equipment-weee_en) reporting. A Digital Product Passport is the one-stop-shop solution for providing all necessary information. This will benefit consumers and each stakeholder at every stage of the supply chain.

DPPs provide a single solution to manufacturers for their initial reporting. This allows them to enter all information into one central channel without any hassle. End-users also benefit as they have an easily accessible platform in case of any issues encountered during the product’s lifecycle. And for recyclers, it simplifies environmental reporting.

The director of the European Remanufacturing Council, David Fitzsimons has also reported that [data loss is one of the biggest threats](https://www.renewablematter.eu/articles/article/remanufacturing-a-vast-untapped-potential-for-circularity) to the circular economy. To improve the flow of information, DPPs are a must.

In short, the Digital Product Passport will centralize information flow, prevent data loss, and standardize procedures for each member of the value chain.

#### 4. Improved sustainability
As Digital Product Passports are expected to play a key role in a more circular economy, their impact on sustainability is the most important. DPPs will allow recyclers to sort waste more effectively due to awareness. This will also lead to recycled raw materials based on their actual grades. At present, there is a drop in quality when raw materials are recycled, and this happens because higher-grade materials can be recycled as lower-grade. This can be avoided by analyzing the information provided by Digital Product Passports.

Digital Product Passports also allow end-users to understand their product’s material footprint. For instance, you can know how much of the product is made of recycled materials. This helps consumers calculate the environmental impact of their purchases and make conscious choices.

DPPs provide comparisons between brand-new products and remanufactured products. This allows end-users to calculate their carbon savings.

Digital Product Passports make the process of repairing products easier. It allows repairers to access important information about the product’s components and find spare parts for the repair. This is especially important in the IT sector, where components vary slightly. With DPPs, alternative components used during repair are recorded.

#### 5. Information about consumer behavior
The implementation of Digital Product Passports provides information about consumer behavior, and this offers the opportunity to optimize products efficiently. This will promote upselling and direct customer service.

### How to start building Digital Product Passports
Sustainability measures are critical to your future, and Digital Product Passports will play a crucial role in the ability to reduce your potential environmental impact. Starting the journey can provide great commercial, competitive, and consumer benefits with the effects reaching as far as the enablement of second life operators to make informed product maintenance decisions. The sheer fact that a DPP strategy will allow recyclers to plan their recycling efficiencies carefully, and make new customers conscious of their purchase choices, will allow you to position yourself as a conscious brand. 

If your goal is reducing transparency towards your customers and reducing your environmental impact, Layerise is here to help you. 
Layerise provides a platform that acts as a digital assistant for physical products, allowing the customer to find deeper information about the product, be reminded of maintenance, confirm ownership, and track warranty and claims.

With Layerise, your company can reduce paper consumption deriving from printed user guides, owner manuals, registration forms, warranties, etc. In addition, by providing full support to customers regarding maintenance and repairing, you can prolong the product life cycle, reducing the overall consumption rate. Get started today or learn more [here](https://www.layerise.com/).

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