Products of Change Advisor, James George is a senior strategist and consultant specialising in the circular economy and systems change for business. His expertise in the subject was fostered over years of work for the Ellen MacArthur Foundation. Today, James talks us through the EU’s latest legislative measure, the Ecodesign for Sustainable Products Regulation.

The Ecodesign for Sustainable Products Regulation (ESPR) aims to enhance the environmental sustainability of products in the EU. It focuses on improving circularity, energy efficiency, and overall environmental impact.

Overall, the regulation aims to foster a circular economy, pushing the industry towards more sustainable practices and products. ESPR will, therefore, significantly impact the consumer products industry. How? Well, let’s take a closer look at what’s now on the table.

Among the ESPR’s key features will be the introduction of the Digital Product Passport to track product sustainability, the implementation of a ban on the destruction of unsold textiles and footwear, and the setting of mandatory Green Public Procurement criteria. The ESPR replaces the 2009 Ecodesign Directive and applies to almost all physical goods, emphasizing durability, repairability, and recyclability to meet the EU’s climate and environmental goals.

The Ecodesign for Sustainable Products Regulation (ESPR) includes several key points for businesses. Let’s get to grips with them:

Digital Product Passport

The Digital Product Passport will include comprehensive details on a product’s environmental footprint, material composition, and recycling information. This aims to enhance transparency and traceability throughout the product’s lifecycle.

Who is Liable? All manufacturers, importers, and retailers of products within the EU must ensure that their products include a digital passport.

Applicable Business Size: This applies to businesses of all sizes that produce, import, or sell products in the EU market.

Ban on Destruction of Unsold Goods

To combat waste, the ESPR bans the destruction of unsold consumer goods like textiles and footwear, encouraging recycling, donation, or repurposing instead.

Who is Liable? Retailers and manufacturers are required to comply with this regulation, ensuring unsold goods are managed sustainably.

Applicable Business Size: This regulation targets businesses of all sizes, particularly those in the retail and manufacturing sectors of consumer goods.

Green Public Procurement

Public authorities will need to follow mandatory sustainability criteria when procuring goods and services, ensuring that products meet high environmental standards.

Who is Liable? Companies seeking to participate in public procurement processes must adhere to these criteria.

Applicable Business Size: All businesses that bid for public contracts, regardless of size, must comply with these green procurement standards.

Product Durability and Repairability

Products must be designed to be more durable, repairable, and recyclable, which involves changes in design, material choice, and manufacturing processes.

Who is Liable? Manufacturers bear the primary responsibility for ensuring that their products meet these new design and durability requirements.

Applicable Business Size: All manufacturing businesses, from small enterprises to large corporations, must comply with these standards.

Compliance and Monitoring

The ESPR will implement stricter compliance and monitoring frameworks to ensure adherence to the new regulations. This includes regular inspections and the possibility of penalties for non-compliance.

Who is Liable? All stakeholders in the product lifecycle, including manufacturers, importers, and retailers, must adhere to the regulations and will be subject to compliance checks.

Applicable Business Size: This applies to all businesses involved in the lifecycle of a product, ensuring that both small and large enterprises meet the regulatory requirements.

How will ESPR impact the consumer products industry?

The Ecodesign for Sustainable Products Regulation (ESPR) will significantly impact the consumer products industry in a number of ways:

1.   Enhanced Sustainability: Products will need to be more durable, repairable, and recyclable, leading to potentially higher upfront costs but longer product lifespans.

2.   Transparency: The Digital Product Passport will provide detailed sustainability information, influencing consumer choices.

3.   Inventory Management: Companies must find sustainable methods to handle unsold goods, such as recycling or donating, reducing waste.

4.   Compliance Costs: Increased compliance and monitoring may lead to higher operational costs.

5.   Market Access: Meeting the ESPR standards will be crucial for businesses to continue operating in the EU market.

Overall, the regulation aims to foster a circular economy, pushing the industry towards more sustainable practices and products.

The Products of Change Advisors

Drawing on decades of industry and wider economic experience in delivering sustainability strategies and driving change at scale, the Products of Change Advisors specialise in creating meaningful and systemic change in your business and supply chain.

The Products of Change Advisors network boasts specialism across key consumer products topics including packaging and material innovation, legislation, B Corp accreditation, and implementing the circular economy through design-led thinking for brand owners, licensed manufacturers, and retailers.

Get in touch with the Products of Change Advisors team or learn more about some of the projects the team has been behind to drive real-world positive impact across the global brand and licensing industry by visiting the Advisors page here.