A New EU Law Will Regulate the Disposal of Unsold Luxury Goods The time has come for fashion to take responsibility
Europe has decided to put an end to one of the fashion industry's most controversial practices: the destruction of unsold goods. With the entry into force of the Ecodesign Regulation (ESPR, EU 2024/1781), large companies in the textile sector will no longer be able to dispose of new clothing, accessories and footwear sitting in warehouses simply because it has gone unsold. This measure marks a significant stance for the fashion system, addressing one of the most pressing issues of our time: sustainability.
The regulation initially applies to companies with more than 250 employees or a turnover exceeding 50 million euros, but from 2030 it will also cover medium-sized enterprises. The logic behind the rule is straightforward: before proceeding with disposal, every product must be assessed for all possible alternatives, from resale to donation, through to reconditioning or recycling. Only when none of these options is feasible can the stock be eliminated, with every stage of the process documented.
A "new" responsibility for fashion
@twinbrett After years of wasteful cycles of fashion, causing enormous mountains of clothing in landfill and millions of tons of clothing being incinerated, the EU have banned the destruction of unsold clothing. Famously Burberry were caught out burning clothes, perfumes and accessories to the tune of £28.6m in 2018, and H&M also has a gigantic inventory issue. Returns are also another problem in the system with them very rarely being remerchandised and resold, and are more likely to be wasted instead. Let's hope this change creates more thoughtful production and better end of life systems to recirculate waste. #sustainablefashion #buybetter #slowfashion #fashionwaste #burberry original sound - Brett Staniland
The new European law responds to one of the fashion system's main Achilles' heels: sustainability, a topic that is often celebrated but all too frequently gets lost amid slogans, communications campaigns and greenwashing. In recent years, the sector has shown just how thin the line between sustainability and marketing can be — one need only think of the greenwashing accusations levelled at H&M over some of its environmental initiatives, which fuelled debate about the gap between brand narratives and their real impact.
The problem of unsold goods is one of the most glaring examples of this contradiction. According to the European Environment Agency, between 4% and 9% of textile products placed on the European market are destroyed before ever being used, with an estimated impact of up to 5.6 million tonnes of CO₂ equivalent per year. For a sector that in recent years has made sustainability one of its primary tools for communication and marketing, the time has come to take concrete responsibility for it.
However, this also represents a significant financial commitment. Companies will need to equip themselves with digital systems to track unsold stock and prepare for the introduction of the forthcoming Digital Product Passport, a tool designed to gather information on the origin, materials and lifecycle of each item. On top of these investments come the costs of so-called reverse logistics: recovering a garment, checking its condition, sanitising it, reconditioning it and returning it to market can cost between 10 and 40 euros per item, potentially accounting for up to 75% of its commercial value. There are also the obligations linked to extended producer responsibility (EPR), which requires companies to contribute to the end-of-life management of textile products as well.
Made in Italy fashion
@carotilla Attenzione Greenwashing! Bello e giusto imparare a riparare i capi per farli durare di più, ma non è corretto quando è un colosso del Fast Fashion a deresponsabilizzare se stesso e dare la responsabilità al consumatore finale. I capi fast fashion sono programmati per durare poco, perché devono costare poco, perché devono andare fuori moda velocemente, perché devono essere continuamente ricomprati. . #greenwashing #primark #fastfashion #modasostenibile #sostenibilità #primarkdoesntcare #modaetica #riparare #ripararevestiti original sound - Camilla Mendini
For Made in Italy, the real test will come in 2030, when the ban is extended to medium-sized companies as well. At that point, managing surplus stock will no longer be a marginal issue but a structural cost, with an estimated impact of between 2% and 5% of annual revenues. At the same time, the regulation of unsold goods could boost the growth of an already existing market: that of brands that build their collections from deadstock fabrics and materials.
Already established players such as Bettter and RE/DONE, along with numerous emerging labels, have demonstrated that unused stock can be transformed into a creative as well as an environmental resource. Greater availability and traceability of deadstock could therefore encourage an alternative production model, one capable of making the most of already existing materials rather than continuously generating new ones.
@gzzmtn Fashion resale — greenwashing o soluzione? #greenscreen #fashionresale #luxuryresale #sostenibilità #modasostenible #secondhandfashion #fastfashion #greenwashing original sound - Martina | fashion + culture
More than a simple ban, the ESPR represents a shift in mindset for the fashion industry, and the financial investment, however significant, is a commitment that the entire sector will need to embrace in order to build a more sustainable future — not only for the industry itself, but also to foster greater awareness among companies and consumers alike.
May this be the first step towards real change — one capable not only of rethinking the management of unsold goods, but also of calling into question the fast fashion production model. So that sustainability is no longer reduced to mere storytelling, but can become the guiding principle throughout the entire lifecycle of a garment.