5 reasons companies need a Digital Product Passport solution today

How Spherity’s Digital Product Passport software helps you stay compliant, build trust, cut costs, and lead in a global circular economy

How can Digital Product Passports help companies reduce compliance costs and increase efficiency?

Businesses across Europe—and increasingly, around the world—are entering a new regulatory and market environment. With the EU’s Ecodesign for Sustainable Products Regulation (ESPR) and other frameworks like the EU Battery Regulation coming into force, manufacturers and traders are expected to provide unprecedented levels of transparency into their products’ lifecycle, composition, and sustainability impact.

This shift is more than a regulatory hurdle. It’s a chance for companies to build trust with customers, unlock efficiencies, and gain a competitive edge through data-driven product management. At the center of this transformation is the Digital Product Passport (DPP)—a digital record that stores and shares essential product information across the value chain.

VERA, Spherity’s advanced Digital Product Passport solution, helps businesses meet these new expectations while streamlining operations, reducing costs, and staying ahead of global compliance trends.

Let’s explore the five key reasons why a Digital Product Passport solution is becoming essential for businesses today—and how Spherity’s Digital Product Passport solution, VERA, can support your journey.

1. Stay ahead of regulations: ESPR and beyond

Regulatory requirements in the EU are becoming both broader and stricter. The ESPR, which came into force in July 2024, makes Digital Product Passports mandatory for a growing list of product groups—starting with batteries, electronics, textiles, furniture, steel, and more. Without a DPP in place, companies risk being shut out of the EU market or facing fines and audits that can disrupt operations.

As a Digital Product Passport provider, Spherity’s VERA solution is built with ESPR compliance at its core. It automates the gathering and formatting of data to meet regulatory standards and streamlines the reporting process. With VERA, companies can ensure they're always prepared for audits and aligned with future delegated acts. Spherity’s forward-looking approach ensures businesses stay compliant as regulations evolve.

2. Win consumer trust with secure, transparent product data

In today’s market, trust is currency. Buyers—whether end consumers or B2B partners—want transparency. They want to know where a product came from, how it was made, and whether its environmental claims are verifiable. Greenwashing and counterfeit risks erode that trust.

VERA enables secure, tamper-proof Digital Product Passports that provide authenticated product data at the scan of a QR code. Consumers can instantly verify a product’s origin, composition, and environmental footprint. Behind the scenes, cryptographic security and decentralized identifiers ensure data integrity.

This isn’t just theoretical. In the battery sector, Spherity implemented VERA for Berlin’s public transport provider, BVG, to digitize and authenticate battery lifecycles for electric buses (see gated content for free here). It gave stakeholders confidence in the environmental claims and regulatory compliance of each battery, setting a new standard for public-sector accountability.

3. Reduce costs through reusable data and digital efficiency

Compliance used to mean managing endless spreadsheets, printing updated manuals, and constantly revising packaging. Each of these tasks consumes time, increases risk, and drives up operational costs. Spherity’s Digital Product Passport solution, VERA, turns these legacy processes into streamlined, data-driven workflows.

Instead of duplicating efforts across departments, VERA creates a single source of truth. All product-related data—compliance certificates, user manuals, material declarations—are stored digitally and updated centrally. This means fewer printing costs, faster updates, and less human error.

For example, a company updating sustainability data for thousands of products can do so once in VERA, and the changes instantly reflect across the value chain. The cost savings in documentation alone are significant—studies by Oxera show up to 30–35% reduction in compliance and labeling expenses.

4. Enable cross-border interoperability—EU and beyond

Even within Europe, companies face complexity in shipping and compliance across different countries. Add global markets like China, Korea, or Japan—each developing their own product transparency rules—and the challenge grows exponentially.

Spherity’s Digital Product Passport software is built for interoperability, ensuring seamless integration across industries and markets. This ensures that the same Digital Product Passport can be used for customs declarations, recycling schemes, and compliance reporting across borders.

As Asian countries begin developing their own DPP ecosystems, companies using Spherity's VERA will already be prepared. Instead of scrambling to meet each market’s demands, they’ll be equipped with a solution designed to integrate with global systems from day one.

5. Differentiate your brand and stay ahead of competitors

Spherity’s Digital Product Passport solution allows companies to showcase their commitment to sustainability, quality, and transparency. In competitive industries, this can be the deciding factor for consumers, investors, or partners.

With Spherity’s Digital Product Passport solution, VERA, your DPP becomes a digital asset you can use in marketing campaigns, on packaging, or during procurement processes. Whether it’s proving recycled content in textiles, validating ethical sourcing in electronics, or offering predictive maintenance in automotive—Spherity’s DPP solution helps tell a verified story that builds brand equity.

Global momentum: DPP is not just a European trend

The Digital Product Passport is gaining traction globally. According to recent projections by MarketsandMarkets, the global DPP market will reach $1.2–1.4 billion by 2030, growing at a CAGR of over 22%. Initiatives by the UNECE and ISO signal growing international alignment. Countries around the world, like China, India, Japan, South Korea, Indonesia, Australia, Brazil, and Chile, are actively exploring how to implement DPP-like systems to enhance product traceability and environmental performance.

A 2024 study from Amazon Europe revealed that over 90% of EU SMEs believe DPPs could help them grow across the single market. These statistics show a clear direction: transparency and traceability are the future of commerce.

The bottom line: Spherity’s Digital Product Passport software, VERA, delivers scalable DPP solution for any physical product, in any industry

Spherity’s Digital Product Passport isn’t just a software tool—it’s a strategic enabler for any product in any industry. Built to meet regulatory requirements and support business growth, VERA equips companies to navigate the complexities of today’s global markets with confidence. From compliance to 

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Learn how VERA, Spherity’s Digital Product Passport solution, can help your business comply, grow, and lead.

Learn more: www.spherity.com/digital-product-passport

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