Why the EU Is Taking Action

The destruction of new, unused consumer goods has been a growing concern for policymakers and environmental organisations for years. According to the European Commission, an estimated 4% to 9% of textiles placed on the EU market are destroyed before ever being used, generating approximately 5.6 million tonnes of CO₂ emissions annually.

Against this backdrop, the ESPR aims to keep products in circulation for longer and encourage businesses to adopt more sustainable operating models. The ban on destruction is one of the first concrete measures introduced under the regulation and initially focuses on the textile and footwear sectors due to their significant environmental impact.

Which Companies Are Affected?

Since 19 July 2026, large companies operating within the EU have been prohibited from destroying unsold clothing, clothing accessories and footwear. Medium-sized enterprises will become subject to the same requirements from 19 July 2030. Small and micro-enterprises are currently exempt from the ban.

Businesses should therefore assess carefully whether they fall within the scope of the regulation today or may do so in the coming years as they grow.

What Must Companies Do Instead?

The ESPR requires businesses to prioritise measures that keep products in use. Suitable alternatives include:

• Selling products through discount channels or outlet stores;
• Marketing goods in alternative markets;
• Donating products to charities or social enterprises;
• Reusing products;
• Repairing, refurbishing or remanufacturing products; and
• Preparing products for reuse.

The regulation reflects the EU waste hierarchy, which places reuse and continued utilisation of products above recycling and disposal.

Are There Any Exceptions?

Yes. The European Commission has adopted a Delegated Act specifying situations in which destruction may still be permitted. These include cases where:

• Products pose health, safety or hygiene risks;
• Products have been damaged and cannot be repaired in a cost-effective manner;
• Products are no longer fit for their intended purpose;
• Donations have been offered but declined by recipient organisations;
• Reuse or remanufacturing is not technically feasible;
• Products infringe intellectual property rights or are counterfeit goods; or
• Destruction can be demonstrated to be the environmentally preferable option.

These exemptions are intended to remain limited. Businesses relying on them must be able to document and justify their decisions.

New Reporting and Documentation Requirements

The ESPR also introduces extensive transparency obligations regarding unsold consumer products. Large companies must publicly disclose information on the quantities of unsold goods discarded, the reasons for disposal, and the measures taken to prevent such outcomes. The European Commission has established a standardised reporting format to support these disclosures.

In addition, companies must retain relevant records for possible inspections by national authorities, which have the power to impose penalties for non-compliance.

Practical Implications for Manufacturers, Brands and Retailers

The new rules go far beyond a simple environmental requirement. They are likely to affect key business processes throughout the value chain:

• Inventory planning and demand forecasting will become even more important;
• Returns management processes must increasingly focus on resale and reuse;
• Partnerships with charities and recommerce platforms will gain strategic relevance;
• Compliance and documentation procedures will need to be updated; and
• Sustainability considerations will become more closely integrated into day-to-day business decisions.

Companies with complex international supply chains should review their existing processes as early as possible to ensure compliance.

Conclusion

The ESPR destruction ban represents another major step in the EU’s transition towards a circular economy. For affected businesses, the routine destruction of unsold clothing and footwear is no longer an option. Instead, companies must develop effective strategies for resale, donation, reuse and other circular business models.

At the same time, the new rules introduce additional compliance and reporting obligations that require careful planning and implementation. Manufacturers, importers and retailers should therefore view the destruction ban not as an isolated requirement, but as part of a broader regulatory shift that will also include measures such as the Digital Product Passport and future product-specific ecodesign requirements.

We’re here to support you

Our training will give you a solid understanding of the ESPR and the Digital Product Passport, enabling you to identify their implications early on and implement them effectively in product development, the supply chain, and data management. You can find the upcoming training dates here.

Do you need help with implementation? Then you can rely on our expertise and confidently entrust all tasks to us. Simply schedule an appointment for a free solution check.