ESG / CSR
Industries
Over the years, the EU has developed a series of ambitious environmental goals, such as the European Green Deal and its Fit for 55 ambitions. As part of these efforts, it has also set its sights on ensuring that the products entering the EU market are designed with sustainability at their core.
This is where the Ecodesign for Sustainable Products Regulation (ESPR) comes in. Entering into force in July 2024, the ESPR is designed to ensure that products sold in the EU are durable, energy-efficient, repairable, and recyclable.
By introducing these changes, the ESPR aims to reduce the environmental footprint of products at every stage of their lifecycle - right from raw material extraction through to their end-of-life disposal.
In this article, we will explore what the ESPR means for sustainable product design, the key requirements involved, and how it will impact businesses across the EU.
The Ecodesign for Sustainable Products Regulation (ESPR) is a significant step forward from the earlier Ecodesign Directive (2009/125/EC), which only focused on the energy efficiency of a limited number of product groups, such as household appliances.
However, the European Commission recognised that products have environmental impacts beyond just energy use, and so they proposed the ESPR as part of its Circular Economy Action Plan, which forms a cornerstone of the European Green Deal.
The ESPR is an ambitious piece of EU policy, aimed at transforming how products are designed, used, and disposed of within the European market. Its core objectives go beyond just energy efficiency to address a wide range of environmental concerns, including:
One of the most significant shifts introduced by the ESPR is its focus on enhancing the circularity of products. This means designing products to be:
By focusing on these key aspects, the ESPR hopes to reduce the overall demand for raw materials, which are often tied to harmful environmental impacts like resource extraction, deforestation, and pollution - to name just a few.
The ESPR also aims to encourage manufacturers to minimise both the carbon footprint and wider environmental impacts of their products.
This includes things like reducing the use of hazardous chemicals, improving resource efficiency, and encouraging the use of recycled materials in products.
Another key objective of the ESPR is to combat waste through its ban on the destruction of unsold goods. Many companies - particularly in the fashion industry - have been criticised for destroying unsold inventory, which is incredibly harmful for the environment.
The ESPR introduces rules that will phase out the destruction of unsold products, starting with textiles and footwear, which must either be reused or recycled.
To improve the transparency and traceability of products, the ESPR introduces the Digital Product Passport (DPP), which will store essential information about a product’s sustainability performance, materials, origin, and recycling options.
The DPP will be accessible electronically and will help both consumers and authorities make informed decisions about product sustainability. It also supports regulatory compliance by making it easier to track the life cycle of products from production to disposal
The ESPR is part of the broader Circular Economy Action Plan under the European Green Deal.
By introducing measures that address the environmental impact of products throughout their entire lifecycle, the ESPR supports the EU’s efforts to decouple economic growth from resource use, while encouraging innovation in sustainable product design.
One of the main features of the Ecodesign for Sustainable Products Regulation (ESPR) is the introduction of the Digital Product Passport (DPP).
The Digital Product Passport (DPP) is essentially a digital profile assigned to products, components, or materials, and includes information on their sustainability performance, composition, and lifecycle.
It is designed to be used by stakeholders at all levels of the supply chain - manufacturers, regulators, and consumers - and gives access to important data about a product's environmental impact.
This passport will include details such as:
The DPP will be linked to products via a scannable code (QR code).
The DPP will include:
The Digital Product Passport offers a number of advantages, including:
Another key aspect of the Ecodesign for Sustainable Products Regulation is the framework for establishing ecodesign requirements.
The ESPR allows the European Commission to set specific environmental rules for particular product categories through detailed regulations known as “delegated acts”.
The performance requirements for these products include elements such as:
In addition to product-specific rules, the ESPR also introduces general sustainability standards that apply to a wide range of product categories.
Examples of general requirements include:
The ecodesign requirements - both product-specific and general - will be implemented gradually. The timeline and product priorities are determined by the Ecodesign Forum and the ESPR Working Plan.
In April 2025, the European Commission adopted the 2025–2030 ESPR and Energy Labelling Working Plan, which identifies which products will be prioritised for new sustainability rules over the next five years.
Priority products include:
The plan also introduces horizontal measures, such as a repairability score and improved recyclability requirements for electronics and small household appliances.
Detailed rules for each product group will follow in delegated acts. For some energy-related products, work under the previous Ecodesign Directive will continue, with updates expected by 31 December 2026.
One of the boldest measures introduced by the ESPR is its ban on the destruction of unsold consumer goods.
The fashion industry is one of the primary targets of this ban.
Fast fashion brands often face excess inventory that is unsold due to overproduction, trends changing rapidly, or seasonal changes.
Instead of selling items at a discount or donating them, many companies opt to destroy unsold clothing and accessories to maintain their brand’s image or avoid paying to store them.
Although the initial focus is on textiles and footwear, the ESPR leaves room for expanding the ban to other sectors in the future.
Electronics, for example, is another industry where unsold goods are often destroyed due to rapid product cycles, with newer models replacing older ones before all stock is sold.
The ESPR also requires companies to be transparent about their disposal of any unsold goods.
Large businesses will have to disclose how many unsold products they get rid of every year, as well as the reasons for discarding them. This information will need to be made public on their website, helping to hold companies accountable for their waste practices and providing consumers with greater transparency.
Under the ESPR, any products sold in the EU - whether manufactured domestically or abroad - must meet the same sustainability and circular economy requirements.
The ESPR aligns with international trade rules but raises the bar on what is required for products to enter the EU market.
The ESPR brings both challenges and opportunities for businesses operating within the EU and those exporting to the EU market.
The regulation raises the bar for product design, sustainability, and transparency, which will mean that companies have to make adjustments to their operations, but it also opens up new opportunities for innovation and market competitiveness.
The main challenges faced by companies include:
| Business Challenge | Description (Why) | Tip to Overcome It |
|---|---|---|
|
Redisign products for durability, reparability, and recyclability
|
New standards require businesses to design products that last longer, are easier to repair, and can be recycled, which requires re-thinking traditional product designs. | Invest in R&D for innovative, modular product designs, and partner with sustainability experts to ensure compliance. |
|
Compliance with the Digital Product Passport (DPP) system
|
The DPP demands tracking and sharing detailed product lifecycle data, which can be technically complex and expensive to implement, especially when supply chains span numerous countries. | Develop or adopt digital tools to track lifecycle information, and work with tech providers to streamline DPP integration. |
|
Managing complex global supply chains
|
Global supply chains often involve many suppliers and regions, making it difficult to ensure that all parts of the chain comply with the ESPR standards. | Enhance communication with suppliers, conduct regular assessments, and adopt lifecycle assessment tools to maintain compliance. |
|
Substance transparency and reducing hazardous materials
|
The ESPR aims to reduce the use of harmful materials in goods and asks companies to audit materials used and find eco-friendly alternatives. | Conduct thorough audits of materials used and actively research or invest in alternative materials to replace harmful ones. |
|
Cost of implementing new technologies and processes
|
Implementing these changes will likely require significant investment in new technologies and processes, which can be particularly challenging for smaller businesses. | Take advantage of available EU and government grants to help reduce costs, and focus on long-term savings through improved resource efficiency. |
The scope of the ESPR is set to expand in the coming years to include other product categories and industries. While the initial focus is on textiles, electronics, and energy-related products, other sectors like construction materials or food packaging could eventually fall under the regulation.
The ESPR aims to facilitate a wider shift towards a more circular economy. By minimising waste, reducing the consumption of limited resources, and lowering carbon emissions, we can reduce the environmental footprint of the EU consumer market.
The ESPR paves the way for a major shift in how products are designed, manufactured, and sold in the EU. To comply, businesses will need precise, auditable product-level data on environmental performance, from carbon footprint and material use to repairability and recyclability.
That’s where Greenly’s Life Cycle Assessment (LCA) platform comes in.
Greenly’s platform enables product teams to run science-backed, ISO-aligned LCAs and integrate eco-design into every stage of product development. Unlike traditional approaches, which rely heavily on manual consulting, our AI-powered automation makes LCAs easier to deliver and scale across entire product portfolios.
With Greenly, you can:
Traditionally, LCAs have been expensive, time-consuming, and limited to a small number of products. Greenly changes this by making LCA a continuous, data-driven process:
Greenly helps you stay ahead of evolving sustainability requirements with our LCA platform and wider Sustainability Suite. We give you the tools to measure, manage, and reduce your environmental impact, while preparing for Digital Product Passports and future reporting obligations.
Get in touch today to learn how Greenly can support your ESPR strategy and help you turn regulatory challenges into opportunities.
Ecodesign for Sustainable Products Regulation, European Commission, https://commission.europa.eu/energy-climate-change-environment/standards-tools-and-labels/products-labelling-rules-and-requirements/ecodesign-sustainable-products-regulation_en
Directive 2009/125/EC of the European Parliament and of the Council of 21 October 2009 establishing a framework for the setting of ecodesign requirements for energy-related products (recast) (Text with EEA relevance), EUR-Lex, https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=celex%3A32009L0125
Ecodesign for Sustainable Products Regulation (ESPR) – 2024 Overview, Ecochain, https://ecochain.com/blog/espr-2024-overview/
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