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

Overview: Strengthening Sustainable Product Practices in the EU

The European Union is introducing new regulations under the EU Ecodesign Regulation for Sustainable Products (EU 2024/1781, ESPR) to enhance sustainability standards, particularly focusing on unsold consumer goods. These amendments aim to tackle environmental waste and resource loss caused by the widespread destruction of unsold consumer products—a problem exacerbated by the surge in online sales.

Key Measures: Transparency and Destruction Ban

1. Mandatory Transparency and Disclosure (Article 24 ESPR)

• Scope & Applicability:
  • Applies to large enterprises from 2026 (reporting 2025 data) and medium-sized enterprises from 2030.
  • Covers any products placed on the EU market, including those from non-EU companies.
• Disclosure Requirements: Annual reporting of unsold product quantities (by number and weight), reasons for disposal, waste treatment methods (reuse, recycling, recovery, or disposal), and preventative measures planned to reduce future destruction.
• Format & Verification:
  • Data must be published on an accessible website or included in formal sustainability reports under the EU Accounting Directive (2013/34/EU).
  • Large enterprises must secure limited assurance from statutory auditors or accredited providers to verify the accuracy of disclosures.
• Standardized Reporting: Draft implementing acts specify detailed, uniform reporting formats and categorize products according to the Combined Nomenclature system for comparability.

2. Ban on Destruction of Unsold Products (Article 25 ESPR)

• Effective from 19 July 2026, large enterprises are prohibited from destroying unsold consumer products unless justified by certain exceptions outlined in delegated regulations.
• The ban aims to harmonize rules across EU Member States to prevent market distortions caused by divergent national laws on product destruction.

Enforcement and Penalties

EU Member States are required to enact national penalties for breaches of these rules. For example, Germany’s previous Ecodesign Directive imposed fines up to EUR 50,000 per violation, potentially higher depending on the profits related to non-compliance.

Implications for Businesses

• Companies selling consumer products in the EU will need to implement robust data collection and reporting systems to comply.
• Transparency demands increase accountability and encourage sustainable practices such as recycling and reuse.
• Early preparation is essential as key rules enter into force by mid-2026.
• Non-EU companies must comply if their products enter the EU market, broadening the scope of impact globally.

Conclusion

The new EU Ecodesign rules represent a significant step towards environmental sustainability by targeting the unnecessary destruction of consumer goods and promoting transparency in product lifecycle management. Businesses operating in or exporting to the EU should prioritize compliance strategy development to align with these transformative sustainability regulations.

Sources:

• EU Ecodesign Regulation for Sustainable Products (EU 2024/1781)
• Freshfields Bruckhaus Deringer LLP Analysis by Jonas Köster & Tobias Klatt, 2025
• EU Accounting Directive 2013/34/EU
• ESPR Draft Implementing and Delegated Acts (Q3 2025)

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