New EU Ecodesign Rules for Unsold Consumer Products: Advancing Sustainable Products under ESG

The European Union (EU) is strengthening its commitment to environmental sustainability through the introduction of new rules under the EU Ecodesign Regulation for Sustainable Products (ESPR) 2024/1781. These rules particularly target the ecological impact of unsold consumer products, aiming to prevent their destruction and promote transparency among enterprises.

Overview of ESPR and its Objectives

Effective since 18 July 2024, ESPR addresses the increasingly problematic destruction of unsold consumer goods—a practice associated with the surge in online sales—which represents a significant environmental and economic loss in the EU. The dual objectives of the regulation are:

• To harmonize legislation across Member States, reducing market distortions caused by varied national laws.
• To curb wasteful destruction practices, thereby preserving valuable resources and aligning with ESG (Environmental, Social, Governance) principles.

Key Provisions of the New EU Rules

Scope and Applicability

• The rules apply to all products placed on the EU market, irrespective of the enterprise’s location.
• Large enterprises face the initial compliance deadline with disclosure obligations starting in 2026 (for 2025 data).
• Medium-sized enterprises must comply starting 19 July 2030. ### Transparency and Disclosure (Article 24 ESPR)

Enterprises must annually disclose detailed data about unsold consumer products that are disposed of, including:

• Quantities and weights of discarded items, categorized by product type.
• Reasons for disposal and applicable exceptions.
• Waste treatment methods, including reuse, recycling, and recovery rates.
• Preventive measures implemented or planned to avoid future destruction.

Format and Verification

• Disclosure must be published either on an easily accessible webpage or within the company’s sustainability report in line with EU Accounting Directive 2013/34/EU.
• Parent enterprises may submit consolidated disclosures for their subsidiaries.
• Information must follow a standardized format to ensure comparability across entities.
• Required reporting includes classification by product categories, based on the Combined Nomenclature.
• Audited disclosure: Enterprises already bound to sustainability reporting will require a limited assurance opinion from statutory auditors or accredited assurance providers, reinforcing data credibility.

Ban on Destruction and Exceptions (Article 25 ESPR)

• From 19 July 2026, the destruction of certain unsold consumer products is prohibited.
• The EU Commission is finalizing delegated acts specifying justified exceptions to this ban.
• Member States must set penalties for non-compliance, with fines potentially reaching €50,000 or more per incident, as seen in Germany under previous legislation.

Practical Implications for Businesses

Enterprises marketing products in the EU must prepare for a more rigorous transparency regime under the ESPR. This includes adapting data collection, reporting processes, and compliance frameworks ahead of looming deadlines. Transparency and prevention efforts not only help avoid hefty fines but also enhance corporate ESG profiles—factors increasingly important to consumers and investors.

Conclusion

The EU’s updated Ecodesign rules mark a decisive step towards environmentally responsible product lifecycle management. By mandating audited disclosures and banning the destruction of unsold goods, the regulation fosters greater accountability and resource efficiency in the consumer goods sector, aligning with the ‘E’ pillar of ESG. Businesses operating in or with the EU market should proactively align their policies and reporting mechanisms to meet these emerging standards.

For further insights and legal guidance on ESPR and sustainable product compliance in the EU, contact sustainability experts Jonas Köster or Tobias Klatt.

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.