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

Introduction

The EU Commission finalizes rules that support sustainability. These new rules, based on the Ecodesign Regulation for Sustainable Products, require transparency and ban the destruction of unsold consumer products. Enterprises that sell goods in the EU must meet these rules. Compliance in time is key for companies both in and outside the EU.

Background

Unsold consumer goods harm both ecology and the economy. E-commerce has grown, and so has the waste. Different EU Member States now use different laws for product destruction. This mix creates market problems. The ESPR brings all rules closer. It makes the rules the same for every economic operator in the EU and supports sustainability.

Key Deadlines and Scope

• Ecodesign Regulation In Force: since 18 July 2024
• Audited Disclosure Obligations: start in 2026, covering 2025 data for large enterprises
• Destruction Ban Effective: from 19 July 2026
• Medium-sized Enterprises Disclosure: begins on 19 July 2030

The ESPR applies to all companies selling products in the EU. It does not matter where these companies are based.

Transparency Requirements (Article 24 ESPR)

Every year, companies must share clear data about unsold products that are thrown away. They must report:

• Quantity: How many unsold products are discarded and what their weight is by type or category.
• Reasons: Why the products were discarded and which exemptions apply.
• Waste Treatment: What portion of the discarded products is reused, recycled, recovered, or disposed of.
• Prevention: How companies plan or have already reduced product destruction.

Disclosure Format

The disclosed information goes on either a dedicated web page or in a sustainability report. The report follows the EU Accounting Directive (Articles 19a or 29a). Companies that are part of a group may combine reports from parent and subsidiary companies.

Draft Implementing Act Specifics

The draft, expected by Q3 2025, makes reporting easier. It sets a standard format that splits information into three parts: organizational data, product details, and preventive measures. It uses Combined Nomenclature codes to classify product groups. Companies already reporting under the EU Accounting Directive must have a statutory auditor check their data with a limited assurance opinion.

Ban on Destruction (Article 25 ESPR) & Exceptions

From July 2026, unsold products should no longer be destroyed by companies. The EU Commission will soon issue delegated regulations that explain the exceptions. Each EU country will define penalties for non-compliance. For instance, Germany has fined up to €50,000 per case under similar rules.

Implications for Businesses

Companies must prepare for strict compliance. They need to revise internal processes and start audited sustainability disclosures soon. Early changes help avoid legal and reputational risks. These efforts also support the EU’s goal of a circular economy.

Conclusion

The new EU Ecodesign rules stress sustainability as the key environmental part of ESG. The rules aim to cut waste and boost transparency in managing a product’s life. Businesses in the EU and beyond should follow these updates. They must adopt strong strategies that align with the ESPR’s upcoming acts.

For more detailed legal analysis and updates on sustainable product regulations, stay tuned to our blog.

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.