The most significant legislation affecting the textile & fashion industry is the Eco Design for Sustainable Products Regulation (ESPR), enforced by the European Union in July 2024. This regulation is set to profoundly impact how fashion brands operate and we want to make sure you are ready for it.
The Eco-design for Sustainable Products Regulation (ESPR) aims to make products more sustainable. But what do they mean with sustainable products?
According to EU, a sustainable product displays the following characteristics:
Conceptually, the ESP regulation is a framework that enables the setting of performance and information conditions – known as ‘ecodesign requirements’. For fashion brands, this means complying with stricter standards to ensure transparency regarding the product's footprint, and ultimately reduce their environmental and social impact.
The ESP regulation introduces three main measures:
The ESPR introduces the Digital Product Passport (DPP), a digital identity card for products, components, and materials. This digital passport will store essential information about product sustainability, promote circularity, and ensure stronger legal compliance. Fashion brands will need to display the DPP for every product right on their ecommerce or by displaying a QR code on the labels.
The ESPR introduces a ban on destroying unsold textiles and footwear in the EU, aiming to reduce resource waste and promote sustainability. It will also require large and eventually medium-sized companies to publicly disclose annual data on discarded products, including the quantity and reasons for disposal.
The ESPR will guide EU spending toward sustainability by introducing mandatory Green Public Procurement criteria, which could significantly increase demand for sustainable products and encourage more companies to invest in eco-friendly practices.
Fashion brands will be heavily impacted by these regulations and will need to adapt their practices to meet the new standards. But what are the practical implications?
The ESP regulation has significant implications for fashion brands, requiring them to rethink the way they operate. The main areas that fashion brands will need to rethink are the following:
Companies will need to provide detailed information about their products’ impact, including energy consumption, use of recycled materials, and lifecycle emissions. This involves regular disclosure of data and adherence to the Digital Product Passport requirements.
Brands will need to ensure their supply chains are compliant with new standards, which involve working closely with suppliers to gain transparency and later implement sustainability practices.
Fashion brands must adapt their processes and documentation to meet the new regulations. This includes updating internal systems and practices to ensure compliance with the ESPR standards, incorporating necessary data for the Digital Product Passport, and aligning with Green Public Procurement criteria.
The ban on destroying unsold products means brands must find ways to manage excess inventory responsibly, such as through recycling, repurposing, or upcycling unsold items.
Brands must design products to be more durable, repairable, and recyclable, and use fewer harmful substances. This includes adopting practices that extend the product lifecycle and enhance its overall sustainability.
To prepare for the ESPR, fashion brands should begin by launching their Digital Product Passports which serves as a basis to set up systems for transparency.
Brands should focus on gathering comprehensive data across their entire supply chain, consolidating it for accurate reporting, and presenting it to consumers in a user-friendly interface. Many companies are already displaying the Digital Product Passport (DPP) for each product on their e-commerce sites by integrating an online widget or adding a QR code directly to product labels.
Here’s the key data to collect for the DPP:
By collecting and sharing this information, brands can ensure compliance with the ESPR and offer greater transparency to their customers.
With no set template provided by the European Commission, companies must either develop their own DPP systems or use tools from service providers. Building such infrastructure requires significant time and resources. That is why companies like Renoon are addressing this need by offering tools to help fashion companies comply with the regulations while creating new revenue streams through DPPs.
On July 18th 2024 New Ecodesign for Sustainable Products Regulation entered into force. These are the next steps in the timeline:
To ensure your brand stays ahead in this rapidly evolving regulatory landscape, book a clarity call with our consultants at Renoon. Together, we'll develop a tailored strategy to guarantee your brand's compliance and transparency, securing its place in the future of fashion.
At Renoon we understand the complexities involved in the EU regulations affecting Textile & Apparel.
To find out how we have been supporting other companies in this path, you can talk to our team by Booking a Demo.
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