1. Introduction

Executive Summary

The ECHT (Enable Digital Product Passports with Chemicals Traceability for a Circular Economy) status quo analysis report examines the current state of chemical traceability in the textile and carpet industries, revealing a complex interplay between stakeholders, regulatory frameworks, and market dynamics. The overarching goal is to build the foundations for effective training schemes that support the adoption of Digital Product Passports (DPPs) in line with the European Union's 2027 transparency and traceability goals.

Our analysis employs nine complementary frameworks to understand chemical traceability implementation challenges. These nine analytical frameworks converge to reveal key insights about chemical traceability implementation. The complexity of chemical management becomes evident in the need to track approximately 12,000 different chemicals throughout production processes, with particular concerns surrounding substances such as azo dyes, PFAS, phthalates, and various processing agents (Bour et al., 2023; Swedish Chemicals Agency, 2014). Current gaps in REACH registrations and information requirements highlight the need for more comprehensive solutions. The evident disparities between large corporations and SMEs emerge as a significant challenge, particularly given that SMEs represent 89% of textile companies in the NWE region (Di Bella et al., 2023). Implementation capabilities vary widely across organisations, affecting their ability to adopt and maintain traceability systems effectively. Regulatory requirements, including REACH and ESPR, create a complex compliance environment that organisations must navigate. This regulatory landscape intersects with market pressures, where consumer demand for sustainable products creates competitive advantages while complex supply chains and resource constraints pose implementation challenges.

To address these challenges, we propose comprehensive training schemes that acknowledge the diverse needs of stakeholders while ensuring an inspiring narrative about traceability objectives. These schemes must select participants representing various roles and value chain positions, structure workshops to build common understanding, and provide continuous development opportunities. Content should be tailored to role-specific needs, from technical implementation to policy development and stakeholder engagement.

Our analysis culminates in the identification of five fundamental dimensions that shape successful implementation of chemical traceability: systemic approach, training and capacity building, technology adoption, policy frameworks, and market dynamics. Progress in this transformation requires coordinated action across all five dimensions. Through this integrated approach, the textile and carpet industries can make significant strides toward greater transparency and sustainability, ultimately contributing to the circular economy objectives of the European Green Deal while maintaining their distinct sector characteristics and requirements.