The ‘E’ of ESG: New EU Ecodesign Rules for Unsold Consumer Products

Authors: Jonas Köster (Principal Associate), Tobias Klatt (Associate), with Juliane Hilf (Partner) and Sam Houshower (Counsel)
Published: October 21, 2025
Read time: 7 minutes

Overview

The European Union is set to implement new rules under the EU Ecodesign Regulation for Sustainable Products (EU) 2024/1781 (ESPR), aiming to enhance sustainability by regulating unsold consumer products. These upcoming rules introduce audited transparency requirements and enforce a ban on the destruction of certain unsold goods. The regulation, effective since July 18, 2024, targets preventing waste and promoting sustainable business practices across the EU market—applying uniformly to companies inside or outside the EU that sell products domestically.

Why These Rules Matter

• Environmental Impact: The systematic destruction of unsold consumer products is a growing environmental concern, especially due to the rise in online retail. Such destruction results in significant resource wastage.
• Market Distortions: Varying national laws on product destruction create inconsistencies within the single market. The ESPR introduces a harmonized regulatory framework across all Member States.
• Economic Resource Preservation: Preventing destruction is also about preserving valuable materials and encouraging reuse and recycling.

Key Elements of the ESPR Rules

1. Audited Disclosure Obligations (Article 24 ESPR)

• Who Must Comply: Large enterprises initially (deadlines begin 2026 based on 2025 data) and medium-sized enterprises from July 19, 2030.
• Scope: Covers all products placed on the EU market, regardless of the company’s location.
• Information Required:
  • Quantity and weight of unsold products discarded annually, segmented by product type.
  • Reasons for discarding products, including any applicable exemptions.
  • Details on waste treatment: proportions reused, recycled, recovered, or disposed of.
  • Measures taken or planned to prevent destruction of unsold items.
• Disclosure Format:
  • Information must be posted on an accessible company webpage or included in a sustainability report aligned with the EU Accounting Directive 2013/34/EU.
  • Consolidated reporting by parent companies is permitted.

2. Ban on Destruction (Article 25 ESPR)

• Enforces a prohibition on destroying certain unsold consumer products starting July 19, 2026.
• Allows for justified exceptions regulated by a delegated act expected by Q3 2025.
• Member States will establish penalties; for example, Germany previously imposed fines up to €50,000 per infraction under related rules.

Draft Implementing and Delegated Acts

The European Commission has proposed:

• An implementing act detailing disclosure requirements including standardized reporting formats to ensure data comparability.
• A delegated regulation specifying exceptions to the ban on destruction.

These acts provide clarity on transparency obligations and legitimate derogations. Adoption is anticipated by the third quarter of 2025. —

Verification and Compliance

• Entities required to publish sustainability reports must obtain limited assurance from statutory auditors or accredited providers confirming the accuracy of disclosed data.
• This ensures reliable and trustworthy reporting, strengthening ESG commitments.

Practical Implications for Businesses

• Urgency: Large companies must prepare promptly for the shift, with initial disclosure deadlines in 2026.
• Scope: International companies selling into the EU market must also comply.
• Regulatory Landscape: These harmonized EU-wide rules will supersede fragmented national laws, simplifying compliance but increasing transparency and accountability.
• Risk of Penalties: Non-compliance may result in significant fines and reputational damage.

Conclusion

The EU’s new Ecodesign rules for unsold consumer products mark a significant step forward in embedding sustainability within the “E” component of ESG frameworks. By targeting wasteful destruction practices and increasing transparency, these rules encourage a circular economy approach and responsible consumption. Companies engaged in the EU market should closely monitor the finalization of these regulations and align their sustainability and reporting processes accordingly.

For businesses and sustainability professionals, understanding these rules early is crucial for compliance and supporting the EU’s broader environmental goals.

References:

• EU Ecodesign Regulation for Sustainable Products (EU) 2024/1781
• EU Accounting Directive 2013/34/EU
• Commission Recommendation 2003/361/EC
• Draft Commission implementing regulation and delegated acts, Q3 2025

Stay informed with our blog for authoritative insights on ESG regulations and sustainable product compliance in the EU.

Design Delight Studio curates high-impact, authoritative insights into sustainable and organic product trends, helping conscious consumers and innovative brands stay ahead in a fast-evolving green economy.