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

Introduction to the EU Ecodesign Regulation for Sustainable Products (ESPR)

The European Union is advancing environmental sustainability with new regulations aimed at reducing waste from unsold consumer products. Central to this initiative is the EU Ecodesign Regulation for Sustainable Products (ESPR) (EU 2024/1781), which introduces rigorous transparency and destruction bans on unsold goods. Draft delegated and implementing acts published by the EU Commission specify these rules, targeting both EU-based and international enterprises placing products on the EU market.

Key Objectives: Preventing Waste and Market Distortions

The ESPR aims to halt the widespread environmental and economic problem caused by the destruction of unsold products, exacerbated by surging online sales. Varied national laws across Member States have historically led to market inconsistencies and unfair competitive advantages. The ESPR intends to harmonize the regulatory framework, ensuring uniform rules and incentives for all economic operators throughout the EU.

Timeline and Applicability

• In Force Since: 18 July 2024
• Audit and Disclosure Start: By 2026 (reporting on 2025 data) for large enterprises
• Destruction Ban Effective: From 19 July 2026
• Medium Enterprises Join: From 19 July 2030
• Draft Rules Finalization: Planned by Q3 2025

These requirements apply regardless of an enterprise’s geographical location if its products are sold in the EU.

Two Pillar Regulations Under Development

1. Implementing Act on Disclosure Requirements (Article 24 ESPR)
   Establishes audited transparency on unsold product disposal.

2. Delegated Regulation on Exceptions to the Destruction Ban (Article 25 ESPR)
   Sets justified derogations from the destruction prohibition.

Member States will enforce penalties for non-compliance. For example, Germany’s Ecodesign Directive previously imposed fines up to EUR 50,000 per breach, potentially higher depending on gained profits.

Transparency Obligations: Article 24 ESPR

Scope and Data Reporting Requirements

Large and eventually medium enterprises must annually disclose detailed data about discarded unsold products placed on the EU market, including:

• Quantity: Number and weight, categorized by product type
• Reasons: Causes for disposal, including applicable derogations
• Waste Treatment: Proportions prepared for reuse, recycling, recovery, or disposal
• Prevention Measures: Actions taken or planned to avoid destruction

Disclosure Format

Data must be made publicly available either on the enterprise’s website or within sustainability reports complying with the EU Accounting Directive (Articles 19a or 29a). Parent companies may provide consolidated disclosures covering subsidiaries.

Draft Implementing Act Details (Q3 2025 Planned Adoption)

The EU Commission’s draft further specifies:

• A standardized reporting format segmented into: organizational data, product information including disposal reasons and waste treatment, and preventive strategies.
• Reporting by product categories defined via Combined Nomenclature codes.
• A mandatory limited assurance audit from recognized auditors or assurance providers for enterprises with reporting obligations under the EU Accounting Directive.

Practical Implications for Businesses

Enterprises selling consumer products in the EU must prepare for comprehensive transparency and audit obligations starting in 2026, with a destruction ban following soon after. Businesses outside the EU selling within the single market are equally bound to comply, ensuring a level playing field and fostering circular economy principles.

Conclusion

The EU’s new ecodesign rules for unsold consumer products represent a significant shift towards sustainable product lifecycle management under ESG frameworks. By mandating transparency and restricting wasteful destruction, the ESPR reinforces the EU’s commitment to environmental responsibility, resource efficiency, and market harmonization.

Authors: Jonas Köster (Principal Associate), Tobias Klatt (Associate), Juliane Hilf (Partner), Sam Houshower (Counsel)
Source: Freshfields Bruckhaus Deringer LLP blog, October 2025
Read more on: EU Ecodesign Regulation and Sustainable Product Legislation

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