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How the EU’s New Sustainability Rules Will Reshape the Fashion Industry
LAYTONS ETL Yarnwicke, 119 - 121 Cannon Street, London EC4N 5AT +44 (0)20 7842 8000 www.laytons.com
INTRODUCTION The EU’s new sustainability rules are set to change how fashion brands approach unsold stock.
With the destruction of unsold clothing, footwear and accessories now
restricted for large undertakings, luxury brands must rethink traditional approaches to stock management, distribution and disposal.
This article explores the impact of the Ecodesign for Sustainable
Products Regulation (ESPR), and what its changing requirements could
mean for the fashion industry - including UK brands operating in the EU.
NEW EU RULES ON SUSTAINABILITY
IMPACT ON THE UK FASHION INDUSTRY
The European Union’s (EU) Ecodesign for Sustainable
As an EU regulation, the ESPR does not apply under
Products Regulation (ESPR), which came into force in July 2024, is one of the most ambitious pieces of environmental legislation affecting the fashion industry. Building on the EU’s earlier Ecodesign Directive, which primarily targeted energy-related products, the ESPR broadens the framework to cover a wide range of goods with a particular focus on textiles, footwear and accessories. The ESPR empowers the European Commission (EC) to set binding, product-specific requirements covering durability, reusability, repairability and other environmental performance criteria. Article 25 prohibits the destruction of unsold consumer products. The ban on unsold clothing, footwear and accessories applies to large enterprises from 19 July 2026 and will extend to medium-sized enterprises from 19 July 2030. Fashion brands operating in the EU must also ensure products meet prescribed sustainability standards before being placed on the market. Where goods remain unsold, companies must consider alternatives including resale, reuse, repair, recycling and donation. Destruction is only permitted in limited circumstances, such as where products are unsafe, counterfeit or irreparably damaged.
TRANSPARENCY REQUIREMENTS Brands must also publicly disclose the number of unsold products destroyed and the reasons for doing so. The Regulation introduces a Digital Product Passport scheme which, once fully implemented, is expected to require brands to provide information about a product’s composition, origin and environmental impact throughout its lifecycle.
English law. It will, however, still have a substantial impact on UK-based fashion brands. Any UK brand that manufactures for, exports to, or sells within the EU market will need to comply with the Regulation’s requirements, including the product sustainability criteria and destruction ban. Fashion houses will need to consider carefully how much stock to manufacture, given the restrictions on the destruction of unsold stock. The ESPR is also likely to influence consumer expectations, supply chain practices and industry standards globally, creating a ripple effect that extends well beyond the EU.
UK POSITION It remains to be seen whether the UK Government will introduce equivalent legislation. However, there are strong indications that its direction of travel is broadly aligned. The UK’s own Environmental Improvement Plan and Extended Producer Responsibility schemes signal a growing regulatory appetite for sustainable product standards. The UK government is also continuing to develop its ‘circular economy’ strategy with the support of its Circular Economy Taskforce. Given the precedent set by the ESPR and the interconnected nature of global fashion supply chains, it would not be surprising to see the UK introduce comparable measures in the future. UK fashion brands should monitor developments closely and begin evaluating their supply chain and distribution practices now, in light of the changing regulatory environment in which they operate.
The authors: Alec Cameron IP Partner | Head of IP Disputes alec.cameron@laytons.com +44 (0)20 7842 5404
Tunay Adem Trainee Solicitor | Commercial, Corporate and IP tunay.adem@laytons.com +44 (0)20 7842 5415
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LAYTONS ETL Yarnwicke, 119 - 121 Cannon Street, London EC4N 5AT +44 (0)20 7842 8000