A comprehensive guide to the obligations under Articles 24 and 25 of Regulation (EU) 2024/1781, the Delegated Regulation on derogations, and the Implementing Regulation on disclosure format — for enterprises, compliance teams, and ESG professionals.
1. What the ESPR requires regarding unsold consumer products
The Ecodesign for Sustainable Products Regulation (ESPR), formally Regulation (EU) 2024/1781, entered into force on 18 July 2024. Alongside its framework for setting ecodesign requirements for products placed on the EU market, the ESPR introduces two distinct mechanisms addressing the destruction of unsold consumer products.
Disclosure obligations (Article 24): large enterprises that discard unsold consumer products — directly or through third parties — must publicly disclose information on the number, weight, reasons for discarding, waste treatment operations, and preventive measures. This obligation has applied since the first full financial year after the ESPR entered into force. Medium-sized enterprises become subject from 19 July 2030.
Destruction prohibition (Article 25): the ESPR prohibits the destruction of unsold consumer products listed in Annex VII — currently apparel, clothing accessories and footwear. The prohibition applies to large enterprises from 19 July 2026 and to medium-sized enterprises from 19 July 2030.
Prevention duty (Article 23): all economic operators — regardless of size — must take measures that can reasonably be expected to prevent the need to destroy unsold consumer products.
On 9 February 2026, the European Commission adopted two secondary instruments: Delegated Regulation C(2026) 659 (derogations from the destruction ban) and Implementing Regulation C(2026) 660 (standardised disclosure format, product categorisation, and verification framework).
Under Article 2(34) of the ESPR, ‘destruction’ means discarding an unsold consumer product as waste for any type of waste treatment operation. Donating, remanufacturing, refurbishing, or preparing for reuse does not constitute destruction.
2. Who is in scope
The ESPR applies obligations differentially based on enterprise size, following the standard EU classification under Directive 2013/34/EU.
At Generation Impact Global, we help organisations navigate complex regulatory landscapes including the interplay between ESRS sustainability standards and operational compliance frameworks like the ESPR.
3. Which products are covered
The destruction ban (Article 25) currently covers only Annex VII products — apparel, clothing accessories and footwear. The disclosure obligation (Article 24) is far broader: Implementing Regulation C(2026) 660 lists over 50 product categories. Click any sector to see the specific CN codes.
Products are disclosed at the 2-digit CN code level by default. Products in Annex II require the more granular 4-digit CN code. Components, intermediate products, or products not primarily intended for consumers are excluded.
4. The destruction ban and its 10 derogations
Delegated Regulation C(2026) 659 sets out 10 circumstances under which unsold apparel and footwear may be destroyed despite the general ban. Each requires specific documentation retained for five years. Select a derogation below for details.
Safety assessment per GPSR Articles 6–8, or test report indicating non-compliant chemicals with reference to applicable law.
Self-assessment statement indicating the type of non-compliance and applicable law.
The relevant judicial decision, ADR decision, notification, or internal investigation documentation.
The licence, contract, or agreement specifying the restriction, plus justification that destruction is appropriate and proportionate.
Inspection report or supporting documentation demonstrating that technical options were assessed and found unfeasible, including visual evidence, technical analysis, or expert opinions.
Either: (i) evidence of quality assessment procedures including sorting that prioritises restocking and repairs; or (ii) an inspection record documenting the damage and unfeasibility of corrective measures.
Same as derogation (f): quality assessment evidence or inspection record documenting the defect and unfeasibility of repair.
Evidence of the offer for donation.
Declaration attesting that the product was received as a donation and no recipient was found.
Documentation demonstrating receipt from a waste treatment operator and that no recipient was found.
Article 1(2) defines ‘cost-effective’ as the cost of repairing a product not outweighing the total cost of destruction plus replacement costs (materials, manufacturing, packaging, transport, stocking and administration). Relevant to derogation (f).
Where a derogation applies, destruction must still follow the waste hierarchy, prioritising recycling over other recovery and disposal. Operators must provide a statement on the applicable derogation to the receiving waste treatment operator (Article 4). Parliament and Council have a two-month scrutiny period — if objections are raised, the ban applies without derogations.
5. The disclosure format: what companies must report
Annex I of Implementing Regulation C(2026) 660 prescribes a standardised format. The disclosure must be published within 12 months after the financial year-end, on the company’s website or linked from a CSRD management report.
Prevention measures: companies must disclose both measures taken in the preceding financial year and measures planned for the future. Companies already subject to SFDR sustainability disclosure obligations may find overlapping data requirements, particularly around waste and circular economy indicators.
Disclosure data structure: waste treatment breakdown (illustrative)
Illustrative example only. Actual percentages will vary by operator. ‘Total destruction’ = recycling + other recovery + disposal.
6. How national authorities will verify compliance
Annex III establishes a risk-based verification framework. Authorities will consider: the absence of disclosure or unusually low figures; past non-compliance records; high percentages of ‘unknown’ waste treatment; the operator’s size and activity profile; and cross-referencing data from other sources (e.g. tax declarations).
If the difference between disclosed figures and supporting documentation is less than 10%, the operator is considered compliant. Exceeding this triggers potential non-compliance findings. Companies should ensure internal tracking systems are robust enough to stay within this margin.
7. Documentation retention requirements
Derogation documentation (Article 3, Delegated Regulation): retained for five years after destruction, in electronic form, available to authorities within 30 days of a request. May be prepared collectively where the same circumstances affect multiple products.
Delivery documentation (Article 4, Implementing Regulation): retained for five years after disclosure, including waste treatment operator statements.
8. Key compliance dates
9. Implications for ESG reporting and investment due diligence
From 2027, large enterprises across consumer goods sectors will publish standardised data on how many products they discard, why, and what happens to them. This creates a new source of comparable, structured information for fund managers and ESG analysts.
SFDR alignment: several ESPR data points align with SFDR PAI indicators on waste, hazardous waste, and circular economy. EU Taxonomy: preventive measures disclosures provide evidence for or against alignment with the circular economy objective. CSRD integration: ESPR data incorporated into management reports reaches investors through established channels.
Derogation patterns as risk signals: frequent reliance on (f) may indicate supply chain handling issues; repeated use of (h) may signal overproduction; reliance on (c)/(d) may reflect licensing management practices.
ESPR compliance tools
Use our interactive ESPR scope checker to determine which obligations apply to your organisation, or download the official EU disclosure template.
Get in touchFrequently asked questions
What is the ESPR destruction ban on unsold consumer products?
Article 25(1) of Regulation (EU) 2024/1781 prohibits the destruction of certain unsold consumer products. From 19 July 2026, the ban applies to large enterprises for unsold apparel, clothing accessories and footwear. Medium-sized enterprises become subject from 19 July 2030. Micro and small enterprises are exempt.
Which products are covered by the ESPR disclosure obligation?
Over 50 product categories using CN codes, spanning textiles, electronics, household appliances, furniture, toys, tyres, hygiene products and more. Products are reported at the 2-digit CN code level, except Annex II categories which require 4-digit codes.
What are the 10 derogations from the ESPR destruction ban?
Delegated Regulation C(2026) 659 permits destruction under 10 circumstances: (a) dangerous products; (b) non-compliance with law; (c) IP infringement; (d) expired IP licence; (e) unsuitability for reuse; (f) damage; (g) manufacturing defects; (h) rejected donation; (i) social economy entity without recipient; (j) prepared-for-reuse products without recipient.
When must companies start disclosing information on unsold consumer products?
Large enterprises have been required to disclose since the first full financial year after 18 July 2024. The standardised format applies from approximately February 2027. Disclosure must be published within 12 months after the financial year-end. Medium-sized enterprises are subject from 19 July 2030.
Can the ESPR disclosure be included in a CSRD sustainability report?
Yes. Companies publishing CSRD sustainability reports may include the ESPR disclosure within that report, provided the data follows the standardised Annex I format and a link is provided on the company website.
What documentation must companies retain?
Derogation documentation: five years after destruction, electronic form, available within 30 days. Delivery documentation: five years after disclosure, including waste treatment operator statements.
How will national authorities verify ESPR disclosures?
Via a risk-based framework. A difference of less than 10% between disclosed figures and documentation is compliant. Risk factors include unusually low figures, past non-compliance, and high ‘unknown’ waste treatment percentages.
Legal references
Regulation (EU) 2024/1781 — Ecodesign for Sustainable Products Regulation (OJ L, 2024/1781, 28.6.2024).
Commission Delegated Regulation C(2026) 659 — derogations from the prohibition of destruction of unsold consumer products.
Commission Implementing Regulation C(2026) 660 — disclosure format for discarded unsold consumer products, including Annexes 1–3.
Regulation (EU) 2023/988 — General Product Safety Regulation.
Directive 2008/98/EC — Waste Framework Directive.
Directive 2013/34/EU — Accounting Directive.
