Standards Development

Scope

This document specifies a set of principles for application of Digital Product Passport(DPP)in modular product throughout its lifecycle, including application methodologies, application technical frameworks, overall application requirements, and application evaluation. This documents also provide examples for DPP application.

Purpose

Modular construction, as a building method with the highest degree of industrialization, integration, intelligentization, and digital application, can achieve the production of houses like cars and can be promoted worldwide. McKinsey & Company’s report " The next big arenas of competition" in 2024 pointed out that the revenue of the modular construction market will grow from $180 billion in 2022 to $540 billion to $1.1 trillion by 2040. Although the modular construction industry has developed rapidly in recent years, the characteristics of being project-based, customized to customer needs, highly complex, and decentralized have led to difficulties in supply chain management, lacking in collaboration and trust, making the development of stakeholders unsustainable.

Following the global green and sustainable development, the rapid development of digital technology has injected new momentum and driven new practices into the industrial chain, supply chain, and product lifecycle management. The information requirements of product users, regulators, supply chains, and other stakeholders for products and services have gradually evolved into a new form of DPP that covers the entire lifecycle of products, including requirements for quality, safety, health, energy efficiency, environment, and social responsibility. DPP is gradually becoming an effective tool for promoting global circular economy and enhancing supply chain transparency.

Firstly,DPP improve enterprises and supply chain management abilities. By integrating the core concepts of DPP, such as product life cycle management, corporate social responsibility, and sustainable development, into the enterprise's production and operation as well as the supply chain management system. Consideration should be given to the maturity of technology, economic feasibility, and the sustainability of business models to improve the competitiveness and compliance of enterprises along the industrial chain, and to create sustainable value for stakeholders. Secondly, Transparency, standardization, and timely disclosure of DPP application-related information. It is necessary to follow the principles of systematization, integration, standardization, and sustainability, fully considering the requirements of laws, regulations, standards, and stakeholders. Quantifiable and evaluable application goals should be established to enhance the standardization, transparency, traceability, and timely disclosure of DPP-related information throughout the entire process, including product quality, human health, environmental protection, supply chain, corporate social responsibility, and sustainable development. Thirdly, mutual recognition of the DPP application evaluation system in construction industry. It is advisable to establish unified evaluation principles, indicators, and methods, taking into account the characteristics and differences of countries, regions, and industries, and adopting economically viable evaluation methods. mutual recognition of the DPP application-related evaluation system can be promoted in a classified and graded manner, with priority given to urgent needs