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Digital Product Passport (DPP): Compliance Meets Sustainability Intelligence

Written by Nextbitt | Jan 23, 2026 7:11:56 PM

By 2028, every industrial asset you purchase will come with a Digital Product Passport (DPP): a standardized digital record containing materials, energy performance, repairability metrics, and recycling instructions.

Most asset teams think this is a compliance headache. It's actually an operational advantage waiting to be activated.

Here's why: Today, when you decide whether to repair or replace a pump, a chiller, or a conveyor, you're working with incomplete information. You know the repair cost. You know the replacement cost. But you don't know:

  • Can this equipment actually be repaired economically? (repairability index)

  • How long will replacement parts be available? (supply chain data in the DPP)

  • What's the material composition, and can it be recycled? (end-of-life value)

  • How much embodied carbon is locked into the new equipment? (lifecycle transparency)

DPP data answers all of these. When integrated into your asset platform, it transforms replace-vs-repair from a guessing game into a data-driven decision.

This article explains how DPP data flows into operational workflows, and how to extract immediate value before mandatory compliance deadlines arrive.

 

The operational gap: today's replace-vs-repair problem

 Right now, your replace-vs-repair decision looks like this:

Current chiller (age: 12 years) has a repair cost of €3,500, downtime of 2–4 days, expected remaining life unknown, and repairability assumed high (hope the manual exists).

New chiller has capex of €42,000, installation of 5 days, expected life "should be 20 years," and spare parts availability unclear.

Result: Finance says "repair" (cheaper), sustainability wants "replace" (more efficient), operations is confused.

With DPP data, the current chiller (from historical DPP record) shows: repair cost €3,500, downtime 2–4 days, repairability index 72% (parts replaceable, design modular), mean time to repair with documented parts 18 hours, and spare parts guaranteed until 2035.

The new chiller (from manufacturer DPP) shows: capex €42,000, installation 5 days, expected life 20 years (certified), repairability index 84% (better design), spare parts guaranteed until 2045, embodied carbon 8.2 tCO2e (tracked), operational efficiency 85 kW vs 120 kW (current), and material recovery value at end-of-life €2,400 (62% steel, 18% copper, etc.).

Now the decision is clear:

  • LCA payback: 2.1 years (energy savings + material recovery value at retirement)

  • Financial ROI: 18% over 15-year lifecycle

  • Risk: current equipment has only 3 years spare parts guarantee

  • Recommendation: REPLACE

This is the operational difference DPP unlocks.

 

Three ways DPP data changes asset decisions

Repairability index + spare parts availability

Today's problem:
You need a replacement bearing for a 7-year-old pump. Supplier says "maybe we have it. Call back next week." You schedule downtime: 3 days (what if the part doesn't exist?). Downtime cost: €15,000 (production halted).

With DPP data:
Pump DPP includes repairability index 89%, critical parts (bearing, seal, impeller), spare parts guarantee until 2032, documented suppliers for each component, and average MTTR with documented parts 4 hours.

Decision: Order part same day, schedule 6-hour window, zero uncertainty.

Asset management implication: Predictable maintenance windows → less emergency downtime → lower total cost of ownership.

Material composition + end-of-life value

Today's problem:
Your chiller reaches end-of-life. Recycler says "we'll take it. Charge you €800 disposal." You don't know if it's worth anything or if parts can be sold. Assumption: all disposal cost, no recovery value.

With DPP data:
Chiller DPP specifies:

  • Steel: 180 kg @ €0.18/kg = €32.40

  • Copper: 45 kg @ €7.50/kg = €337.50

  • Stainless hardware: 12 kg (specialty recycling, higher value)

  • PCB boards: 3 units (hazmat handling required, certified recycler)

  • Refrigerant: 22 kg (take-back program, manufacturer credit)

Total material recovery value: €2,100 – €800 disposal = NET €1,300 credit

Decision: Certified recycler handles material routing. You get cash back.

Asset management implication: End-of-life is no longer a pure cost; it's a revenue line item. This changes the replace-vs-repair payback calculation.

Embodied carbon + operational efficiency = full lifecycle transparency

Today's problem:
Sustainability team wants to replace old chillers (high embodied carbon). Finance wants to keep them (already paid for, low capex). No one agrees because there's no common language.

With DPP data:

Current chiller (historical DPP)

  • Embodied carbon: 6.8 tCO2e (at manufacture, 12 years ago)

  • Annual operational carbon: 85 tCO2e (120 kW × 1,000 hours/yr × 0.7 kgCO2/kWh)

  • Remaining useful life: 3 years

  • 3-year residual carbon: 255 tCO2e

New chiller (manufacturer DPP)

  • Embodied carbon: 8.2 tCO2e (modern manufacturing, recycled content)

  • Annual operational carbon: 50 tCO2e (85 kW × 1,000 hours/yr × 0.6 kgCO2/kWh)

  • Expected life: 20 years

  • Material recovery credit at EOL: -2.1 tCO2e (avoided virgin material)

  • 20-year total carbon: 988 tCO2e

Comparison (15-year horizon):

  • Current (3 years current + 12 years new equivalent): 255 + 600 = 855 tCO2e

  • Replace now: 988 tCO2e (higher short-term, but lower long-term trajectory)

Decision: REPLACE (15-year carbon trajectory improves faster despite higher embodied carbon)

Asset management implication: Lifecycle carbon becomes as concrete as cost. Both teams can agree on the same metric.

 

How DPP data flows into Nextbitt workflows

Step 1 - Equipment procurement: RFQ includes "provide digital product passport." Supplier delivers QR code on nameplate + digital file. Data loaded into Nextbitt asset record.

Step 2 - Asset operations: Repairability index guides maintenance intervals. Spare parts availability triggers advanced ordering. Historical performance data feeds predictive algorithms.

Step 3 - Replace-vs-repair decision point: Age + condition trigger assessment. Platform pulls DPP data: embodied carbon, spare parts guarantee, repairability. Calculates financial ROI + lifecycle carbon + material recovery. Recommends replace, repair, or extend (with confidence thresholds).

Step 4 - End-of-life execution: DPP specifies material composition, hazmat handling, certified recyclers. Platform routes equipment to appropriate recycler. Tracks material recovery value + compliance documentation. Feeds post-retirement data back to sustainability reporting.

 

DPP-informed procurement: what to ask vendors now

Even though mandatory DPP isn't until 2026–2028, you can start demanding DPP data today.

RFQ checklist: what to request from equipment suppliers

Material & composition

  • Provide material breakdown (% steel, copper, electronics, plastic)

  • Identify any hazardous materials (PCBs, refrigerants, batteries)

  • Confirm recycling pathway for each material category

Repairability & maintainability

  • Repairability index (0–100%, per ISO standard)

  • Mean time to repair (MTTR) for critical components

  • List of critical spare parts with availability guarantees (years)

  • Modular design: Can major components be replaced independently?

Lifecycle & carbon

  • Embodied carbon (tCO2e from raw materials through manufacturing)

  • Energy efficiency rating (kW per unit output)

  • Expected operational life (certified, not assumed)

  • End-of-life material recovery rate (%)

Documentation

  • Provide DPP (QR code or digital link)

  • Environmental product declaration (EPD) or equivalent LCA data

  • Spare parts availability guarantee (years after manufacture)

  • Certified recycler network + material routing instructions

Why now?

  • Early adopters get preferred supplier status

  • Suppliers start preparing for 2026 deadline

  • You build competitive advantage ahead of mandatory compliance

  • Data quality improves if you demand it incrementally

Traditional procurement vs. DPP-informed procurement

Procurement Factor Traditional DPP-Informed
Vendor selection Price + efficiency rating Price + repairability + spare parts guarantee + material recovery value
Lifecycle visibility Assumed (generic industry data) Verified per unit (DPP data)
Spare parts risk High (unknown availability) Managed (DPP guarantee visible)
End-of-life cost Assumed pure disposal Forecasted material recovery value
Downtime predictability Uncertain MTTR Documented MTTR in DPP
Scope 3 emissions Top-down estimate Bottom-up asset-level data from DPP
ESG reporting Not auditable Fully auditable, DPP-backed

 

Timeline: preparing now for 2026–2028 mandatory DPP

Year Regulation Asset Team Action
2024–2025 EU pilots (batteries, textiles, electronics) Start requesting DPP from suppliers; audit current equipment for equivalent data
2026 DPP expands to machinery & industrial equipment Mandatory for new equipment; integrate into procurement workflow
2027–2028 DPP compliance deepens; Scope 3 audits intensify All major asset classes have DPP data; feeding into CSRD reporting
2028+ Full regulatory enforcement Organizations without DPP-ready platforms face compliance gaps
  

Action now: Don't wait for mandatory. Competitive advantage goes to early movers.

 

FAQ: DPP for asset operations teams

Q: We already have an asset management system. Do we need to change it to read DPP?

A: Not necessarily. Your system needs to store DPP metadata (repairability index, spare parts guarantee, embodied carbon, recycler info). If it can ingest structured data and connect it to workflows, you're ready. Nextbitt handles this natively.

Q: What if our current equipment doesn't have a DPP?

A: Legacy equipment won't have DPP until you replace it. Use environmental product declarations (EPDs) or manufacturer data as interim. Your platform should accommodate both DPP and non-DPP assets during transition.

Q: How does DPP data improve CSRD/ESG reporting?

A: Scope 3 category 1 (purchased goods) emissions can now be asset-level verified via DPP embodied carbon instead of industry averages. This makes your ESG claims auditable. Recycling documentation from DPP also strengthens circular economy narratives.

Q: Does every spare part need its own DPP?

A: No. The main asset has the DPP. It specifies which spare parts are available and for how long. Nextbitt tracks this at the asset level, not the part level.

Q: Can we mandate DPP in our RFQs today, even if not legally required?

A: Yes, absolutely. It's good practice and prepares suppliers for 2026 mandatory requirements. Vendors will respond positively (competitive differentiation).

Q: What about data privacy and cybersecurity with DPP?

A: DPP standards include security requirements. Sensitive supplier data is firewalled. Nextbitt stores DPP references and structured data, not raw supplier files.

 

Strategic advantages: why DPP matters for asset managers

Better replace-vs-repair decisions → Data-backed ROI (financial + carbon) instead of guesses

Reduced emergency downtime → Spare parts availability forecasted, advanced ordering possible

Optimized procurement → Choose suppliers based on lifecycle value, not just price

ESG reporting becomes auditable → DPP data backs Scope 1/2/3 claims

Material recovery value unlocked → End-of-life is revenue, not cost

Competitive advantage → Early movers get better supplier relationships + compliance head-start

Circular economy alignment → Data-driven material routing maximizes recovery rates

 

Next steps