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

Overview of the EU Ecodesign Regulation for Sustainable Products (ESPR)

The EU Commission is set to implement new rules under the EU Ecodesign Regulation for Sustainable Products (EU) 2024/1781 (ESPR) to address the environmental impact of unsold consumer products. These rules include mandatory audited transparency requirements and a ban on the destruction of certain unsold goods. The regulations aim to prevent wastage of resources amid rising online sales and market fragmentation from varying national laws across Member States.

Key Objectives and Scope

• Prevent Systematic Destruction: The destruction of unsold products is viewed as an environmental and economic loss. The EU aims to harmonize regulations to eliminate market distortions caused by inconsistent national policies.
• Broad Application: Rules apply to all products placed on the EU market, regardless of whether the producer is based inside or outside the EU, affecting enterprises on a global scale.
• Deadlines for Compliance:
  • Audited disclosure obligations begin in 2026 (reporting on 2025 data).
  • The destruction ban takes effect from 19 July 2026.
  • Medium-sized enterprises must comply starting 19 July 2030. ## Disclosure Requirements (Article 24 ESPR)

Certain enterprises must annually publish detailed reports on their disposed unsold products. This includes:

• Quantity and Weight: Number and mass of discarded unsold products, categorized by product types.
• Reasons for Disposal: Justifications for discarding products, including any applicable exceptions.
• Waste Treatment Methods: Breakdown of products sent for reuse, recycling, recovery, or final disposal.
• Preventative Measures: Steps taken or planned to reduce future destruction of unsold goods.

Format and Verification

• Enterprises can disclose information either on an accessible web page or within their sustainability report as per the EU Accounting Directive.
• Parent companies may consolidate disclosures for subsidiaries.
• Large enterprises must obtain limited assurance from auditors to verify the accuracy of reported data.
• The EU Commission released draft implementing regulations specifying a standardized reporting format, structured into organization info, product data, and preventative initiatives.

Enforcement and Penalties

Member States must enact national penalties for non-compliance. For example, Germany previously imposed fines up to €50,000 per incident under the earlier Ecodesign Directive. Penalties under the new framework could be higher depending on profits linked to violations.

Next Steps

The EU Commission aims to finalize two key regulations by Q3 2025:

1. An implementing act outlining disclosure requirements.
2. A delegated regulation detailing justified exceptions to the destruction ban.

Once enacted, the rules will bring significant operational and reporting changes for businesses selling consumer products in the EU, promoting transparency, sustainability, and resource efficiency aligned with ESG principles.

Sources: EU Ecodesign Regulation (EU) 2024/1781; Freshfields Bruckhaus Deringer LLP analysis (October 2025)

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