While millions of new clothes are produced every year, a significant portion of them remain in warehouses unsold or are directly incinerated. Especially luxury brands destroying excess stock to protect their brand value has been criticized for years due to its environmental impact. Taking action on this issue, the European Union has taken one of its most concrete steps against this problem. With the new regulation, which came into force this week, companies above a certain size are now prohibited from destroying unsold clothing, footwear, and accessories.
The new ban was implemented under the European Union's Ecodesign for Sustainable Products Regulation (ESPR). The regulation covers large companies with more than 250 employees and an annual net turnover exceeding 50 million euros. These companies will now be required to reintroduce unsellable textile products into the economy through different methods instead of burning them or sending them to landfills.
Companies Will Be Required to Sell, Donate, or Refurbish Products
According to the new rules, companies' priority will be to keep leftover products in use. This will require resorting to methods such as organizing discount campaigns, offering products for sale in different markets, donating them to charities, or making them reusable through repair and refurbishment processes.
Destruction will only be possible in very limited circumstances. Products may be destroyed in exceptional cases, such as posing a risk to human health, being damaged or counterfeit, or not being accepted by charities despite documented donation attempts.
However, companies wishing to benefit from these exceptions also have certain obligations. Firms will be required to explain which products they destroyed and why in annual reports. Furthermore, relevant records must be kept for at least five years for national inspection authorities to conduct examinations. The European Commission plans to launch a standard notification system in February 2027 to ensure all companies report in the same format.
Rising Return Rates Also Contribute Significantly to Textile Waste
According to European Commission estimates, approximately 4 to 9 percent of unsold textile products in the European Union are sent to landfills or incinerated each year. High return rates following online purchases contribute significantly to this. While about one-fifth of fashion products purchased online across the EU are subsequently returned, a significant portion of these products cannot be resold.
The new regulation targets not only fast fashion companies but also luxury fashion brands that destroy excess stock to maintain brand perception. The European Union emphasizes that this practice not only leads to product waste but also wastes water, energy, raw materials, and logistical resources expended during production.
More Companies to Be Covered by 2030
The ban will initially apply only to large companies. However, the European Union plans to expand the scope of the regulation in the coming years. From July 2030, medium-sized enterprises will also be subject to the same obligations. Small-sized enterprises will be exempt from the regulation for now. Each EU member state will oversee the implementation of the regulation through its national authorities. Companies that fail to comply with the rules may face financial penalties.
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