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

Overview of Upcoming EU Regulations

The European Union sets new eco rules under the EU Ecodesign Regulation for Sustainable Products (ESPR, Regulation 2024/1781). The rules target unsold consumer goods. They add a clear duty: companies must show how much product waste they have. They also ban the needless destruction of unsold items. This change helps cut waste and boost a circular economy.

Scope and Applicability

• All products that enter the EU market fall under these rules, no matter where the company sits.
• Large enterprises meet fast deadlines. They must start audited disclosures in 2026 (using 2025 data). The ban on destruction begins on July 19, 2026.
• Medium-sized enterprises face disclosure needs starting on July 19, 2030. ## Objectives
The main aim is clear: stop the regular destruction of unsold consumer goods. This practice adds to environmental harm, especially in online retail. The EU unites Member States under the same guidelines. This unity helps end market gaps and saves valuable resources.

Key Regulatory Components

1. Transparency and Disclosure (Article 24 ESPR)

• Each year, companies must share data on unsold products. They must list the number, weight, and reasons for disposal.
• They must show how waste is treated: reused, recycled, recovered, or disposed of. They also share steps taken to prevent waste.
• Disclosure appears on a simple webpage or in sustainability reports that fit the EU Accounting Directive (Articles 19a or 29a). Parent companies may join reports for their subsidiaries.
• Data must follow a set format. The draft act (expected in Q3 2025) splits reports into three parts: details of the organization; product and disposal facts; and measures to prevent waste.
• Products are reported using the Combined Nomenclature system for better clarity.

2. Ban on Destruction (Article 25 ESPR)

• From July 19, 2026, companies cannot destroy unsold products on purpose. Some exceptions will come in the delegated regulation.
• It is up to each Member State to enforce these rules and set fines. For example, Germany once fined companies up to €50,000 per breach under earlier law.

3. Audit and Verification

• When companies release sustainability reports, they must have an auditor check the data. This step uses either statutory auditors or accredited providers.
• These checks build trust and make sure the numbers are right.

Practical Implications for Businesses

• Firms selling in the EU must get ready for tougher reporting and new operational plans to avoid waste.
• They have to check unsold stock more closely. They must improve how they manage waste and share their eco efforts clearly.
• Acting early is key, as deadlines for reports and for the ban on destruction come soon—even before final laws are in place.

Conclusion

The new Ecodesign rules under ESPR mark an important shift. They bring the ‘E’ (Environment) into ESG by demanding clear transparency and cutting waste from unsold goods. Businesses on the EU market must follow these rules. By doing so, they support sustainability and help build a circular, resource-wise economy.

References:

• EU Ecodesign Regulation for Sustainable Products (ESPR) 2024/1781
• Draft Implementing and Delegated Acts by the EU Commission (expected Q3 2025)
• EU Accounting Directive 2013/34/EU Articles 19a and 29a
• Freshfields Bruckhaus Deringer analysis by Jonas Köster, Tobias Klatt et al. (October 2025)

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