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

The European Union is advancing its sustainability agenda under the Ecodesign Regulation for Sustainable Products (ESPR) 2024/1781. This regulation introduces significant new requirements aimed at reducing the environmental impact of unsold consumer goods. Key highlights and practical implications for businesses operating in the EU market include:

Overview of ESPR’s Focus on Unsold Products

• Objective: Prevent systematic destruction of unsold consumer products, a growing environmental concern aggravated by online sales.
• Scope: Applies to all products placed on the EU market, irrespective of whether businesses are based inside or outside the EU.
• Legal Framework: ESPR has been in force since 18 July 2024, with critical implementing and delegated acts anticipated by the third quarter of 2025.
• Enforcement: Member States will impose penalties for non-compliance; for example, Germany’s prior Ecodesign Directive allowed fines up to €50,000 per incident.

Key Regulatory Measures

1. Annual Disclosure Requirements (Article 24 ESPR)

• Who: Initially large enterprises, expanding to medium-sized enterprises from 19 July 2030 as per EU definitions.
• What: Mandatory disclosure of detailed data on discarded unsold consumer products, including:
  • Quantity and weight by product type/category.
  • Reasons for discarding and any applicable derogations.
  • Waste treatment methods used (reuse, recycling, recovery, disposal).
  • Measures taken or planned to prevent future destruction.
• How: Information must be published either on an easily accessible website page or via sustainability reports under the EU Accounting Directive.
• Verification: Entities subject to the Accounting Directive must secure limited assurance from accredited auditors, ensuring data accuracy and credibility.

2. Ban on Destruction with Specified Exceptions (Article 25 ESPR)

• Implementation Timeline: The destruction ban will come into effect on 19 July 2026.
• Exceptions: The EU is developing a delegated regulation clarifying justified derogations, balancing sustainability goals with practical business needs.

Practical Impacts for Businesses

• Harmonized Framework: The EU aims to standardize rules across Member States, overcoming current fragmented national laws that create market distortions.
• Transparency and Accountability: Enhanced reporting mandates foster transparency regarding wasteful practices and promote preventive strategies.
• Extended Obligations: Non-EU companies must comply if their products enter the EU market.
• Preparation Time: Businesses should prepare for compliance well before deadlines, particularly the 2026 destruction ban and 2026 reporting obligation on 2025 data.

Conclusion

The EU’s new sustainability rules under ESPR mark a transformative step in reducing waste and promoting circular economy principles. Companies selling consumer products in the EU must proactively revise their product lifecycle and unsold inventory practices to meet stringent transparency and destruction bans. Early adaptation will not only ensure compliance and avoid penalties but also advance corporate ESG performance aligned with evolving regulatory and consumer expectations.

References:

• EU Ecodesign Regulation for Sustainable Products (EU) 2024/1781
• Draft implementing and delegated acts published by the European Commission (Q3 2025 expected adoption)
• EU Accounting Directive 2013/34/EU
• Freshfields Bruckhaus Deringer LLP analysis, October 2025

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.