The European Commission has finalized critical operational measures under the Ecodesign for Sustainable Products Regulation (ESPR), formally outlawing the destruction of unsold apparel and footwear. This legislative milestone targets the estimated 5.6 million tons of CO2 emissions generated annually by the disposal of unused textiles - a volume comparable to the total net emissions of Sweden. Large enterprises must comply with the ban by July 19, 2026, while medium-sized firms are granted a transition period until 2030.
Mandatory disclosure and standardized waste reporting
The newly adopted measures introduce a rigorous transparency framework requiring companies to publicly disclose the weight and quantity of unsold products they discard. According to Jessika Roswall, Commissioner, Environment and Circular Economy, these rules aim to eliminate the ‘take-make-waste’ model and establish a level playing field for sustainable brands. To facilitate this, a standardized reporting format will become mandatory in February 2027, forcing retailers to move beyond vague sustainability claims toward data-backed inventory governance.
Derogations and strategic shifts in inventory management
While the ban is broad, the Commission has outlined specific ‘derogations’ where destruction remains permissible, such as for products that pose health and safety risks or have suffered irreparable physical damage. However, the regulatory pressure is already driving significant commercial realignment. Retailers are increasingly investing in Digital Product Passports (DPP) and AI-driven demand forecasting to minimize overproduction. This shift is particularly critical as online return rates in Europe hover around 20 per cent, frequently resulting in ‘deadstock’ that was previously incinerated or landfilled.
The Ecodesign for Sustainable Products Regulation (ESPR) is the EU’s primary tool for making products more durable and recyclable. It targets high-impact sectors, specifically textiles and footwear, to reduce resource dependency.
The framework introduces Digital Product Passports to track material provenance. Non-compliance after the July 2026 deadline for large firms could result in significant fines and exclusion from public procurement contracts across the European Union.
