The European Commission is currently consulting on a draft implementing regulation that will provide further detail on how to report discarded unsold consumer products under the ESPR. The consultation closes on 10 July, is expected to be finalised in Q3 2025 and to apply from Q3 2026. Businesses will need to be aware of how to report the information required in line with the legislation once finalised.
Background
Article 24 of Regulation (EU) 2024/1781 of the European Parliament and of the Council of 13 June 2024 establishing a framework for the setting of ecodesign requirements for sustainable products (the “ESPR”) contains reporting requirements in relation to discarded unsold consumer products. Under the ESPR, the Commission is required to adopt implementing acts setting out the details and format for disclosure for these reporting requirements.
The draft implementing regulation clarifies the scope, format, and verification of these disclosures.
Reporting requirements under ESPR
Article 24(1) requires that economic operators disclose detailed information about the disposal of unsold consumer goods, being:
- The number and weight of unsold consumer products discarded per year, differentiated per type or category of products;
- The reasons for discarding products (and where applicable, the relevant derogation for being able to do so);and
- The proportion of discarded products delivered, whether directly or through a third party, to undergo each of the following activities: preparing for reuse, including refurbishment and remanufacturing, recycling, other recovery including energy recovery, and disposal operations in accordance with the waste hierarchy.
The draft implementing regulation clarifies the scope, format, and verification of these disclosures. Below is a summary of the key changes and requirements under consideration.
New information on how to report under the ESPR
Categorisation of product types
A system is established for categorising the consumer products subject to disclosure. The delimitation is based on the Combined Nomenclature (CN) codes, a widely recognised classification system used across the EU. In most cases, companies would be required to report discarded products using the first two digits of the CN code, which broadly identifies the product category. However, for certain products listed in Annex II of the draft regulation, a more granular four-digit CN code is required to ensure precise identification.
This approach is intended to ensure consistency and comparability across disclosures, while also allowing for more detailed reporting where necessary.
Format for disclosure of information
The implementing regulation would introduce a standardised format for the disclosure of information on discarded unsold consumer products. The required disclosure would include:
- Organisation details: Name and identifier of the legal entity, and the relevant financial year.
- Product information: For each product category, companies must report the CN code, a description, the number of units discarded, the total weight (in kilograms), and whether packaging is included in the weight.
- Reasons for discarding: Companies must specify the reason for discarding each product, referencing legitimate reasons such as safety, hygiene, intellectual property protection, or legal requirements.
- Waste treatment operations: The proportion of discarded products subjected to various waste treatment operations must be disclosed, including preparation for reuse, recycling, other recovery (such as energy recovery), disposal, and cases where the treatment is unknown.
- Preventive measures: Companies must describe measures taken in the previous financial year to prevent the destruction of unsold products, as well as planned measures for the future, particularly targeting categories and reasons for destruction identified in the past.
Verification of disclosed information
To ensure the reliability of the disclosed information, the implementing regulation would introduce verification requirements, particularly for companies already subject to sustainability reporting obligations under Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings. It is proposed that these companies obtain an opinion based on a limited assurance engagement from a statutory auditor, audit firm, or independent assurance services provider. The opinion would confirm whether the disclosed information meets the requirements of ESPR and the implementing regulation. This opinion would be published alongside the disclosure, either as part of the management report or within the sustainability reporting.
Integration with sustainability reporting
The implementing regulation would allow companies to integrate the required disclosure into their existing sustainability reporting, provided it follows the prescribed format. Companies may publish the information within their management report and provide a clear link on their website, ensuring the information is accessible and visible to stakeholders.
Application and entry into force
In accordance with Article 24 of the ESPR, the rules do not apply to micro and small enterprises, and would only apply to medium-sized enterprises from 19 July 2030.
The new rules are proposed to apply to products discarded from the first full financial year after the implementing regulation’s entry into force, providing businesses with time to adapt their processes and reporting systems. However, note that the first disclosure under the ESPR is required to cover unsold consumer products discarded during the first full financial year after 18 July 2024.
Feedback on the draft regulation is open until 10 July 2025, with Commission adoption currently planned for Q3 2025.
