Signaling Sustainability: The Role of Digital Product Passports and Sustainability Reports in E-Commerce

Piper, Marie; Englisch, Christina Luisa; Helinski, Cindy; Westmattelmann, Daniel

Abstract

This study examines how digital sustainability signals, specifically Digital Product Passports (DPPs) and Sustainability Reports (SRs), influence consumers’ willingness to pay a premium and ethical purchase intentions in circular fashion e-commerce. Drawing on signaling theory, transparency theory, and ethical consumer behavior, we conceptualize transparency as a multidimensional construct encompassing disclosure, clarity, and accuracy. Using a 2x2 scenario-based online experiment (N = 492), we find that the presence of DPPs and SRs significantly improves perceived transparency and brand credibility. However, these interventions have limited effects on deeply rooted green values, willingness to pay a premium, or overall purchase intentions. Our findings emphasize the strategic role of digital transparency in signaling brand trustworthiness, highlighting the importance of communication quality over information quantity. This study thus contributes to sustainability-focused IS research by shedding light on how digital tools can support sustainable consumption and help address demand-side barriers in the transition toward circular economies.

Keywords
digital transparency; circular economy; digital product passports; sustainability reports; e-commerce