KPMG helped Luhta Sportswear Company prepare for the implementation of the Digital Product Passport

KPMG assisted Luhta Sportswear Company with a readiness assessment aimed at evaluating the company’s capabilities to adopt and leverage the Digital Product Passport (DPP). Through this assessment, Luhta identified its current level of readiness and gained a clear understanding of key development areas. The textile sector is one of the product groups prioritised by the European Commission, which will be subject to product-specific requirements under the EU Ecodesign for Sustainable Products Regulation (ESPR). This makes the topic especially timely and relevant for Luhta.

ESPR introduces an obligation to provide digital product passports for products. A product passport is a digital record that includes information such as the origin of raw materials, carbon footprint, and recyclability of the final product. It covers the entire supply chain and requires data that companies have not historically collected at the product level. The product passport improves the comparability of products and supports consumers in making more sustainable purchasing decisions. This is a significant change that will challenge companies’ existing ways of working, so it is advisable to begin preparing for the implementation of the product passport as soon as possible.

Luhta was among the pioneering companies in preparing for the introduction of the Digital Product Passport, and KPMG conducted the readiness assessment based on the best understanding of future requirements. The work was primarily carried out through a series of interactive workshops designed and facilitated by KPMG, where the availability and organisation of information in different categories were analysed. The workshop focused on data organisation was held in collaboration with KPMG’s IT specialists.

These workshops brought together different stakeholders from across the organisation, increasing shared understanding of both the requirements and implementation of the Digital Product Passport. This collaborative approach enhanced teamwork and information sharing - factors that are critical for the effective adoption of the product passport and maximising its benefits.

Based on the outcomes of the workshops, a readiness assessment was compiled that described the current state of the company’s information management and how well it meets the expected requirements of the digital product passport. The engagement also produced a summary and recommendations for further development.

As a result of the project, Luhta is now better equipped to meet evolving requirements. The assessment enables the company to address data-related requirements in future initiatives and to integrate the necessary considerations into product design processes. The project offered concrete next steps for implementation, while also increasing organisational awareness of the importance of data.