In brief
On 9 February 2026, the European Commission adopted new measures under the Ecodesign for Sustainable Products Regulation (ESPR), covering two key areas:
- The available derogations for the ban on destroying unsold clothing, accessories, and footwear.
- The disclosure requirements on unsold consumer goods, which are already in force for large companies and will extend to medium sized companies in 2030.
Background
The ESPR, in force since 19 July 2024, was introduced to address significant environmental issues associated with the disposal of unsold consumer goods. Alongside establishing a framework for setting ecodesign requirements, the ESPR establishes two key measures aimed at preventing the destruction of unsold consumer products:
- It requires certain companies to publish annual information on the unsold consumer products they place on the EU market and subsequently discard. This disclosure requirement already applies to large companies from the first full financial year following the ESPR’s entry into force (18 July 2024), and will extend to medium sized companies from 19 July 2030.
- It prohibits the destruction of certain types of unsold consumer goods, including unsold apparel, clothing accessories and footwear. This prohibition will come into effect on 19 July 2026 for large companies.
Key takeaways
To support implementation of the ESPR, the European Commission adopted two key measures on 9 February 2026:
- An implementing act setting out the standardized disclosure requirements (“Disclosures Implementing Act”); and
- A delegated regulation specifying exceptions to the destruction prohibition (“Derogation Regulation”).
Disclosures Implementing Act
Under the Disclosures Implementing Act, companies will need to adhere to a standardized reporting format, included in the Annex of the Act, for disclosing discarded unsold consumer goods. This includes disclosing, for each product category:
- The relevant combined nomenclature (CN) code;
- The number and weight of product units discarded, including information on packing weight;
- The reason for discarding the products;
- The proportion of products which undergo preparation for reuse, recycling, other recovery, and disposal; and
- Measures taken and planned to prevent the destruction of unsold consumer goods.
The Disclosures Implementing Act will apply to products discarded in each financial year starting from the first full financial year after its own date of application (which the Commission has confirmed will be February 2027), giving companies additional time to adapt to the detailed reporting format. Large companies in scope will already have started reporting this information — and must continue to do so, transitioning to the standardized reporting format under the Implementing Act from February 2027.
The Derogation Regulation
The Derogation Regulation outlines specific circumstances under which the destruction of unsold apparel, clothing accessories and footwear will be permitted. At a high level, these include where a product:
- Is “dangerous” within the meaning of the General Product Safety Regulation 2023/988;
- Is “unfit for purpose” because it is non-compliant with EU law and destruction is required by law or is the appropriate and proportionate corrective action;
- Infringes intellectual property rights;
- Is subject to a valid and enforceable licence restricting the sale or distribution of the product after a specified time period;
- Is unacceptable for consumer use due to damage, including physical damage, deterioration or contamination, including hygiene issues; or
- Was offered for donation to at least three social economy entities within the EU or on an easily accessible page of the entity’s website for at least eight weeks without being accepted for donation.
The Derogation Regulation additionally sets out stringent requirements in respect of the documentation required for verification of compliance with the above derogations.
Looking ahead
The ban on the destruction of unsold consumer products will apply to large companies from 19 July 2026, and to medium sized companies from July 2030. The ESPR disclosure obligations already apply to large companies and will extend to medium sized companies in 2030. These new measures adopted by the Commission provide businesses with certainty around requirements and obligations.
Failure to comply with the ESPR requirements may expose companies to penalties under the ESPR, which — although determined at Member State level — must be effective, proportionate, and dissuasive. Beyond these penalties, businesses should also be aware of the significant reputational risks associated with non‑compliance, given the high‑profile nature of the legislation and the public scrutiny on the environmental issues it seeks to address.
For more information, please contact our team of experts.