Design Delight Studio

New EU Ecodesign Rules Targeting Unsold Consumer Products for Sustainability

The EU is advancing its sustainability agenda through new Ecodesign Regulation for Sustainable Products (ESPR) 2024/1781 rules, specifically addressing the environmental impact of unsold consumer goods. These rules impose stringent transparency and anti-destruction obligations for enterprises releasing products on the EU market, aiming to reduce waste and promote circular economy principles.

Key Objectives and Scope

• Prevent systematic destruction of unsold consumer products: The EU regards the widespread disposal of unsold goods, especially propelled by the growth of online sales, as a critical environmental and economic issue.
• Harmonize regulation across Member States: Existing national laws vary significantly, resulting in a fragmented market. ESPR seeks uniform rules to ensure fair competition and consistent incentives to limit product destruction.
• Apply to all enterprises offering goods in the EU, regardless of location: This global reach ensures non-EU businesses comply when selling products in EU markets.

Timeline for Compliance

• Ecodesign Regulation in force since July 18, 2024.
• Audited disclosure obligations start in 2026 (based on 2025 data) for large enterprises.
• Ban on destruction of selected unsold products effective from July 19, 2026.
• Medium-sized enterprises will be subject to disclosure from July 19, 2030.

Disclosure Requirements Under Article 24 ESPR

Companies must annually report on:

• Quantity: Number and weight of unsold consumer products discarded, categorized by product type.
• Reasons: Explanation for discarding and applicable legal exceptions.
• Waste Treatment: Breakdown of unsold products prepared for reuse, recycling, or disposed of.
• Prevention: Current and future measures to avoid destruction of unsold goods.

Disclosure Presentation: Information must be publicly accessible either via a dedicated webpage or within sustainability reports aligned with the EU Accounting Directive (2013/34/EU). Consolidated reporting by parent companies for subsidiaries is permitted.

Upcoming Regulatory Details and Enforcement

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

1. Implementing act on disclosure format and requirements (Art. 24 ESPR).
2. Delegated regulation specifying acceptable exceptions to the destruction ban (Art. 25 ESPR).

Draft proposals emphasize:

• Standardized reporting templates categorizing products by Combined Nomenclature codes.
• Mandatory limited assurance audits for sustainability reports to enhance transparency and reliability.
• Penalties enforced by Member States for non-compliance, with Germany previously imposing fines up to €50,000 or higher per violation.

Implications for Businesses

• Enterprises, especially large and multinational ones, must prepare to enhance internal tracking and reporting processes around unsold inventory.
• Transparency obligations will increase public and stakeholder scrutiny, pushing companies to adopt more sustainable inventory management and circular business models.
• The ban on destruction may necessitate alternative strategies for handling surplus stock, such as donation, resale, or recycling.

In summary, the new EU Ecodesign rules under ESPR represent a significant step toward integrating sustainable product lifecycle management into the environmental, social, and governance (ESG) frameworks of businesses across the EU and beyond. Companies active in consumer goods should proactively adapt to these emerging legal requirements to ensure compliance, mitigate risks, and support the EU’s circular economy goals.

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