Circular Economy Glossary for DPP Professionals

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Why Circular Economy Terminology Matters for DPPs

The Ecodesign for Sustainable Products Regulation (ESPR) is fundamentally a circular economy regulation. Its core purpose is to ensure that products placed on the EU market are designed, manufactured, used, and disposed of in ways that minimise environmental impact and maximise resource efficiency. Digital Product Passports are the information infrastructure that makes this vision operational.

For professionals working with DPPs, understanding circular economy terminology is not merely academic, it is essential for interpreting regulatory requirements, populating passport data fields correctly, and communicating effectively with stakeholders across the value chain. This glossary covers the most important terms you will encounter when working with Digital Product Passports in a circular economy context.

The terms are presented in logical groupings rather than alphabetical order, starting with foundational concepts and building towards more specialised terminology. Where a term has direct relevance to a specific DPP data field, that connection is noted.

Foundational Circular Economy Concepts

Circular Economy: An economic model that aims to eliminate waste and keep materials in use for as long as possible. Unlike the traditional linear economy (take-make-dispose), a circular economy designs out waste, keeps products and materials in use through repair, reuse, and recycling, and regenerates natural systems. The EU Circular Economy Action Plan provides the policy framework within which the ESPR operates.

Linear Economy: The traditional economic model in which raw materials are extracted, manufactured into products, used, and then discarded as waste. The circular economy seeks to replace this model by closing material loops and extending product lifetimes.

Cradle-to-Cradle (C2C): A design philosophy in which products are conceived from the outset to be fully recyclable or compostable at end of life. Materials are categorised as either biological nutrients (which can safely return to the biosphere) or technical nutrients (which can be perpetually recycled within industrial systems). DPPs support C2C by documenting material compositions that enable proper end-of-life processing.

Cradle-to-Grave: A lifecycle assessment approach that tracks a product's environmental impact from raw material extraction through manufacturing, use, and final disposal. This contrasts with cradle-to-cradle, which envisions no final disposal point.

Product Lifecycle and Design Terms

Ecodesign: The practice of integrating environmental considerations into product design from the earliest stages. Under the ESPR, ecodesign requirements will be set through delegated acts for specific product categories. Learn more in our guide on how ESPR differs from previous ecodesign regulations.

Design for Disassembly (DfD): A design approach that ensures products can be easily taken apart at end of life, facilitating component reuse and material recovery. DPPs may include disassembly instructions as part of their data requirements.

Design for Longevity: Designing products to last as long as possible through durable materials, modular components, and ease of repair. The ESPR includes durability requirements for certain product categories.

Planned Obsolescence: The deliberate design of products with a limited useful life to encourage replacement purchases. The ESPR explicitly aims to combat planned obsolescence by setting minimum durability and repairability standards.

Modularity: A design principle in which products are composed of interchangeable modules that can be individually replaced, upgraded, or repaired. Modular design extends product life and reduces waste.

Material and Resource Terms

Bill of Materials (BOM): A comprehensive list of all raw materials, components, and sub-assemblies required to manufacture a product. The BOM is a critical input for Digital Product Passports, as it enables material traceability and end-of-life processing decisions. See our article on material traceability with DPPs for more detail.

Recycled Content: The proportion of a product's materials that are derived from recycled sources rather than virgin raw materials. The ESPR may set minimum recycled-content requirements for certain product categories, and this information is typically captured in the DPP.

Recyclability: The degree to which a product or its materials can be recovered and reprocessed into new products at end of life. Recyclability depends on material composition, product design, and the availability of recycling infrastructure.

Substances of Concern (SoC): Chemical substances that pose risks to human health or the environment. The ESPR requires that DPPs disclose substances of concern present in products above specified thresholds. This information is critical for safe recycling and material recovery.

Critical Raw Materials (CRM): Materials that are economically important and have a high supply risk, such as rare earth elements, cobalt, and lithium. The ESPR pays particular attention to products containing critical raw materials, as their recovery is essential for resource security.

End-of-Life and Recovery Terms

Extended Producer Responsibility (EPR): A policy principle in which producers are made financially or physically responsible for the end-of-life treatment of their products. EPR schemes are widespread across the EU and are closely linked to the information requirements of DPPs.

Waste Hierarchy: A framework that ranks waste management options in order of environmental preference: prevention, reuse, recycling, energy recovery, and disposal. The circular economy aims to move as much material as possible up the hierarchy.

• Prevention: Avoiding waste generation altogether through better design and reduced consumption.
• Reuse: Using a product or component again for its original purpose without reprocessing.
• Recycling: Reprocessing waste materials into new products or raw materials.
• Energy Recovery: Extracting energy from waste through incineration or other thermal processes.
• Disposal: Landfilling or other methods that do not recover material or energy value.

Material Recovery: The process of extracting useful materials from waste streams for recycling. DPPs facilitate material recovery by providing recyclers with detailed information about a product's material composition.

Urban Mining: The process of recovering valuable materials from discarded products and waste streams in urban environments, treating the built environment as a resource reserve rather than relying solely on virgin extraction.

Measurement and Assessment Terms

Life Cycle Assessment (LCA): A systematic methodology for evaluating the environmental impacts of a product throughout its entire lifecycle, from raw material extraction to end-of-life disposal. LCA data often informs the environmental footprint information required in DPPs.

Carbon Footprint: The total greenhouse gas emissions caused by a product, measured in carbon dioxide equivalents (CO2e). The ESPR is expected to require carbon footprint disclosure for certain product categories. See our guide on carbon footprint tracking through DPPs.

Environmental Footprint: A broader measure than carbon footprint, encompassing multiple environmental impact categories such as water use, land use, acidification, and eutrophication. The EU's Product Environmental Footprint (PEF) method provides a standardised approach to calculating environmental footprints.

Product Environmental Footprint (PEF): The EU's standardised methodology for measuring the environmental performance of products across their lifecycle. PEF results may feed into DPP data requirements for certain product categories.

Durability: The ability of a product to maintain its function and performance over time under normal conditions of use. The ESPR may set minimum durability requirements and require that durability information be included in DPPs.

Policy and Regulatory Terms

Delegated Acts: Secondary legislation adopted by the European Commission under powers delegated by the ESPR. Delegated acts set product-specific ecodesign requirements, including DPP data requirements, for individual product categories.

Harmonised Standards: Technical standards developed by European standardisation organisations (CEN, CENELEC, ETSI) that provide presumption of conformity with EU regulatory requirements. Manufacturers who follow harmonised standards can demonstrate compliance more easily.

Market Surveillance: The activities carried out by public authorities to ensure that products on the market comply with applicable regulatory requirements. DPPs support market surveillance by providing authorities with easy access to product compliance data.

Digital Product Passport (DPP): A structured digital record that contains information about a product's composition, environmental footprint, compliance status, and end-of-life handling instructions. For a comprehensive overview, see our complete guide to Digital Product Passports.

ESPR (Ecodesign for Sustainable Products Regulation): EU Regulation 2024/1781, which establishes the framework for setting ecodesign requirements and mandating Digital Product Passports for products placed on the EU market.

Business Model Terms

Product-as-a-Service (PaaS): A business model in which customers pay for the use of a product rather than owning it outright. The manufacturer retains ownership and responsibility for maintenance, repair, and end-of-life processing. DPPs support PaaS models by tracking product condition and maintenance history.

Remanufacturing: The process of returning a used product to at least its original performance specification by rebuilding it with new or refurbished components. Remanufacturing is distinct from repair in that it typically involves complete disassembly and reassembly.

Refurbishment: Restoring a used product to a satisfactory working condition, which may be less comprehensive than remanufacturing. Refurbished products are tested and certified to meet defined quality standards.

Industrial Symbiosis: A relationship between two or more businesses in which the waste or by-products of one become the raw materials of another. Industrial symbiosis is a key strategy for closing material loops in a circular economy.

Reverse Logistics: The process of moving products from their final destination back to the manufacturer or a processing facility for returns, repair, remanufacturing, or recycling. Effective reverse logistics are essential for circular business models, and DPPs can facilitate these processes by providing the information needed to route products to the appropriate facility.

Applying This Glossary to Your DPP Practice

Understanding these terms is the first step towards effective DPP implementation. As you populate Digital Product Passport data fields, you will encounter many of these concepts directly, from recycled content percentages to substances of concern disclosures to durability ratings.

The key insight is that Digital Product Passports are not an isolated compliance exercise. They are the information layer of a much larger systemic shift towards a circular economy. Every data field in a DPP exists because it serves a purpose within this broader system, enabling better design decisions, informed purchasing choices, efficient repair and reuse, and effective end-of-life material recovery.

For a comprehensive list of DPP-specific terminology, see our Digital Product Passport glossary. And to begin creating your own passports with circular economy data included, explore the MyProductPassport platform.