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Supply Chain Transparency in Fashion: What the EU Parliament DPP Study Says

Tracetil Team
2026-04-23
3 min read

Supply chain transparency moved from marketing to product-level information systems in EU policy discourse. This post summarises what the official European Parliament study Digital product passport for the textile sector (PE 757.808, June 2024) says — and what it does not claim.

The gap the study documents

Analysis of 54 Fashion Pact brands (cited in the study):

  • 83% publish CSR / extra-financial reports
  • 30% publish a first-tier supplier list — usually not linked to products
  • 93% show country of manufacture in-store for most products; 17% online

Conclusion in the study: move from brand transparency to product transparency (specific product + manufacturing process).

Why traceability is hard

The garment chain is buyer-driven with Level 0 (brand/retail) through Level 4 (raw materials):

LevelTierTypical activity
0BrandOrder, market, sell
1CMTCut, sew, assemble
2FabricWeave, knit
3YarnSpin, prepare fibre
4Raw materialFarm, polymer, recycled feedstock

A barcode alone cannot distinguish similar products with different processing (study Figure 3 example).

What Phase 1 transparency requires (study)

Mandatory in the minimal DPP (2027 horizon):

  • Locations of confection, weaving/knitting, dyeing/printing, significant wet processes
  • Composition themes: recycled material, dangerous substances, plastic microfibers
  • Recyclability, packaging data, environmental innocuousness

Not Phase 1 mandatory:

  • Full public tier 4 traceability to every trim supplier (survey: very difficult)
  • Public supplier name lists where confidential (study + survey: access control required)
  • Manufacturing costs

Confidentiality is part of the design

Survey comments in the study (81 stakeholders):

  • Supplier names can be confidential — use authorisation and need-based transparency
  • Different user views for consumer vs business vs authority
  • Each actor should be responsible for local data with quality standards

Transparency ≠ publishing everything on a public website.

Business benefits (aligned with study aims)

The study lists aims relevant to brands:

  • Informing companies — centralised supply-chain data for quality, sourcing, compliance
  • Managing resource flows — sourcing shifts (e.g. organic vs conventional cotton)
  • Market surveillance and regulatory compliance
  • Commercial differentiation for brands that prove claims
  • Circularity — repair, resale, recycling need product data

Specific ROI percentages (conversion uplift, wholesale revenue) are not in the study — treat those as your own business cases if you measure them.

Other EU instruments the study mentions

  • ESPR and delegated acts (product requirements, DPP rules)
  • Textile labelling revision (physical + digital labelling with ESPR)
  • CIRPASS (standards-based DPP data model)
  • Corporate Sustainability Due Diligence proposal / CSRD (social reporting may feed DPP)
  • AGEC (France) — since January 2023 for product environmental information

Minimum viable transparency for Phase 1

  1. Recycled content, dangerous substances, microfibers (as applicable)
  2. Recyclability
  3. Process locations (confection, fabric formation, dyeing/printing)
  4. Packaging circularity fields
  5. Innocuousness / environmental product information

Add tier names, certificates, and transport in Phase 2 or as voluntary data when buyers ask — consistent with the study’s phased model.

How to start

  • One product line, Phase 1 fields only
  • Restricted supplier identity where needed
  • Supplier portal instead of email PDFs (study: manual collection is costly and error-prone)
  • Link public pages from e-commerce

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Source: PE 757.808, EPRS/STOA, June 2024.

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