Impacts of European Digital Product Passport on the Apparel manufactures of Sri Lanka

Abstract

"Digital product passports are a digital document that provides the detailed level of traceability with regard to all information about a product throughout its entire life cycle. Due to mandatory legislation by the European Commission, apparel exports to Europe will require digital product passports. The Sri Lankan apparel industry still exports approximately 25% of their total manufactured garments to Europe. Therefore, the need to obtain digital product passports will be a significant requirement for these factories in the future. The purpose of this research is to understand and analyze the degree to which these factories are prepared and capable in their present state to acquire digital product passports. Literature identified aspects related to the triple bottom line in which companies need to focus on social justice, environmental preservation as well as profit maximization. Literature further analyses the importance of technology adoption which has the capability of integrating several layers of the supply chain and providing transparency for information exchange. The quality of reporting structures as well as the interoperability of technologies were also key factors that was identified in literature. Primary research designed to acquire quantitative data through a survey questionnaire was chosen. The participants' profiles were persons in high-ranking positions in the apparel industry that had the capability of influencing the necessary changes needed to acquire digital product passports. Based on the literature the conception of a framework with the variables of green supply chain, reporting structures, technology and system interoperability was proposed with the series of hypotheses for testing. The analysis indicated that green supply chain and technology had medium positive relationships while reporting structures and system interoperability had weak positive relationships. The study further determine that green supply chain and technology were positively performing to support the use of digital product passports, with a few minor requirements of improvement. However, reporting structures and system interoperability had low levels of performance indicating that they were not up to the required levels for the use of digital product passports. Recommendations were given on areas that need to be improved in reporting structures and system interoperability, as well as minor improvements to the areas of green supply chain, reporting structures. "