British supermarket Tesco stitching tech into fashion: clothes get digital passports

Technology can help to reduce our energy usage and our carbon footprint in our homes. But things quickly get complicated when trying to make a difference elsewhere. Whether you proudly share your latest shopping haul online or have mastered the art of stealth shopping, most people still have no way of knowing how their new purchase was made or where it came from.

The EU is on a mission to change this over the next few years by ushering in new sustainability rules to clamp down on poor supply chain practices. To stay one step ahead of EU regulations, Tesco is introducing digital passports to provide much-needed transparency to the supply chain. Like nutritional labeling on food and drink items, the EU aims to help shoppers see detailed information on everything from fashion to toys and furniture.

The regulation states that digital product passport (DPP) information is accessible to shoppers by QR code, NFC, or RFID throughout the product's life cycle. Everything from the materials used and repair instructions to how to dispose to recycle methods will provide full transparency around every aspect of the product's environmental impact.

The fight against greenwashing

There are 1.2 billion tonnes of greenhouse gas emissions from textile production alone every year. To put this figure into perspective, that's more than international flights and maritime shipping combined. Something needs to change for authorities to win the battle against greenwashing and hold brands accountable.

Although the Ecodesign for Sustainable Products Regulation (ESPR) came into force on 18th July 2024, digital product passports are not mandatory in Europe yet and will be gradually phased in between 2026 and 2030. At the heart of the new rules is the goal to help consumers make informed choices and make a difference in their shopping habits.

Although Tesco is implementing clothing passports early, there is a counter-argument that the quality of its clothing line and the part it plays in disposable fashion is part of the problem rather than the solution.

How EU's regulations could widen the gap between big and small

Tesco's introduction of digital passports for clothing is widely seen as a well-meaning step towards sustainability and transparency. However, some critics have argued that it's a classic protectionist move to shield the major players from competition in the industry.

With already stretched profit margins and a lack of resources needed to implement new systems, many fear that many SMEs are being set up to fail. Could the cost and complexity of compliance effectively squeeze out smaller players, further consolidating power among a few big companies?

Many believe that the pattern of favoring giant corporations through intricate regulations is a recurring theme in EU policy. By unwittingly protecting a handful of industry giants, the EU could risk stifling innovation, reducing competition, and ultimately hindering its overall economic growth and adaptability in the global marketplace.

If successful, the regulatory changes will impact sustainability credentials in the short term and force every business to play fair. But what will the future of shopping look like for consumers?

What does this mean for consumers?

In theory, shoppers could scan a QR code on the label of a new laptop or a pair of jeans. This would take them directly to the digital product passport information, which would include the product's manufacturing process and carbon footprint. It could also feature information about how to move the item on as part of the circular economy or dispose of it when the item reaches end-of-life.

The bigger question is whether consumers find digital product passports useful and encourage them to change their shopping habits. If we dare to look further into the future, many will be suspicious of data collection practices on every product we buy and the privacy concerns this would raise. It could also fuel the conspiracy that we are sleepwalking into a dystopian future where carbon emission-tracking apps

provide every citizen with their own unique carbon credit score based on their purchases and lifestyle.

The EU's sustainability push and Its impact on retail

By introducing real-time monitoring and collaborative data sharing, the new regulation could enable companies to finally solve the problems with fakes across the industry that have plagued the industry for decades.

It's hard to disagree with any incentive to extend product lifespans, boost resource efficiency, and enhance repairability and recyclability. In the years ahead, we can expect many more regulations that appear to be on a collision course with industries that have had it their own way for too long and are unaccustomed to navigating complex policies. Only those who evolve and adapt will survive.

On the surface, ensuring every business adopts a sustainability-first mindset has more advantages than disadvantages. However, additional resources and flexibility will be needed to help SMEs adapt and not get left behind. After all, shopping sustainably doesn't have to cost the earth.