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

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

The EU drives change with a new rule. This rule targets unsold products. It stops waste caused by needless destruction. Online sales fuel this waste. The law brings together small, separate national rules. It stops unfair market gaps.

Key Objectives

• Ban on destruction: Beginning July 19, 2026, the rule stops the wasteful destruction of unsold goods.
• Transparency: Firms must share data on how they dispose of unsold items. Big companies report 2025 numbers in 2026. Medium firms do this by July 2030.
• Harmonization: All companies, both EU and non-EU, must follow the same rules when selling in the EU market.

Reporting and Disclosure Obligations (Article 24 ESPR)

Each year, firms must report these points:

• Quantity: Report the number and weight of unsold products by type.
• Reasons: Explain why these products are discarded, with any exceptions noted.
• Waste treatment: Show how each unsold item is reused, recycled, recovered, or disposed of.
• Prevention: List steps that have been taken or will be taken to reduce future waste.

Disclosure Format and Verification

Companies must share this data on an easy-to-read webpage or in their sustainability reports. They follow the EU Accounting Directive (Articles 19a or 29a) to decide this. Firms with mandatory reports must get a quick check by auditors or accredited experts. The report comes in three parts: firm details, product data, and waste prevention measures.

Implementation Timeline and Enforcement

The ESPR began on July 18, 2024. However, key rules come with extra acts by Q3 2025. Each EU Country must add its own penalty laws. For instance, Germany fines up to €50,000 per violation, with even higher fines when profits are high. These steps aim to ensure all parts of the supply chain follow the rules, even beyond the EU.

Practical Implications for Enterprises

Firms selling consumer goods in the EU must act now. They need to track unsold goods and report in detail by 2026. They should change practices to cut down on destructive waste. They must also watch for new delegated acts that offer details on exceptions and fines.

Conclusion

The new EU Ecodesign rules give strong support to ESG efforts. The law makes firms manage unsold products responsibly. It urges companies to adopt sustainable, circular ways to design, use, and reuse products. In doing so, the EU sets a clear green path for global markets.

References:

• EU Ecodesign Regulation EU 2024/1781 (ESPR)
• Draft implementing and delegated regulations Q3 2025 (pending adoption)
• EU Accounting Directive 2013/34/EU
• Freshfields Bruckhaus Deringer LLP sustainability blog, October 2025

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