Adoption of the Digital Product Passport : A qualitative study within SMEs in the Swedish furniture sector

Abstract: In the last decade, the European Union has looked to become more sustainable toreach the global environmental goals. With The European Green deal, a transition towards a circular economy has been set in place. One of the proposals is the Ecodesign for Sustainable Products Regulation (ESPR) that will improve the circularity and sustainability of almost all categories of physical goods. The digital product passport is a significant part of the ESPR with the goal to enable circular economy and carbon reduction plans by providing product information in a digital format and enable traceability. The purpose of this study is to investigate the Digital Product Passport in product design and manufacturing and to assess the potential opportunities and challenges associated with its introduction. The study also identifies the key traceability aspects that need to be considered when implementing this technology. A qualitative study has been conducted with a focus on small-to-medium sized enterprises in the Swedish furniture industry. In this study, the Technology-Organization-Environment (TOE) framework has been used to identify key factors that will have an impact on the future implementation of Digital Product Passport. Based on empirical findings and the literature review, an adapted model of TOE is presented in the discussion. The study has identified several opportunities in the Swedish furniture industry, such as transparency, digital identification, marketing and competitive advantages, value chain collaboration and the traceability aspect. Challenges found were organizational resources, decentralised databases, lack of frameworks, establishing access levels and digital platforms. A traceability aspect that needs to be considered are the security and privacy. Blockchain solution could be seen as a traceability enhancer that provides security, while interoperability between different blockchain networks is questioned.