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Fashion is finally going a new shade of green.
From 19 July 2026, the EU’s Ecodesign for Sustainable Products Regulation (ESPR) will ban large companies (250+ employees) from destroying unsold apparel, clothing accessories and footwear. Brands must also disclose more information on the unsold products they discard as waste, with only a handful of circumstances (like safety reasons or product damage) permitting justified destruction. Otherwise, businesses will face strict penalties.
The ESPR promises a landmark shift for the industry. It impacts any global brand that manufactures or sells goods in the EU market, and it reflects a shared ambition many brands already hold: to operate with greater purpose, produce less waste and leave a more positive impact on people and the planet.
However, the ban also introduces hefty business hurdles. Product end-of-life is a tough process to get right, with multi-component goods like shoes proving particularly complex to reuse or recycle. Meanwhile, discounting unsold stock or sending it to liquidators both risk negative consumer perceptions, while destroying it is not only soon-to-be illegal, but reputationally catastrophic.
So, what are your brand’s options once the ESPR comes into force? Let’s explore the causes of – and the safest route through – one of the biggest logistical shakeups in a generation.
Why the EU is cracking down on unsold fashion stock
The EU’s reasoning for the ban is well justified, highlighting how the fashion industry’s relationship with excess inventory must fundamentally change.
According to the trading bloc, “every year in Europe, an estimated 4-9% of unsold textiles are destroyed before ever being worn, with around €630 million worth of unsold products destroyed in France alone. Online shopping also fuels the issue: in Germany, nearly 20 million returned items are discarded annually. This waste generates around 5.6 million tons of CO2 emissions – almost equal to Sweden’s total net emissions in 2021.”
To minimise this waste and the industries’ environmental footprint, the ESPR helps to promote more sustainable production while, crucially, allowing European businesses to remain competitive. After all, brands that previously committed to sustainability sometimes faced higher production costs – a ‘green premium’ – which led to financial pressure and impaired wider uptake. The ESPR creates a level playing field, enabling more businesses to benefit from the opportunities offered by a circular economy.
The regulation will also drive manufacturers to create more durable, reusable and recyclable products. Companies will need to improve stock management, better handle returns and consider options such as resale, remanufacturing, donation or reuse. And while these new processes may seem painful to implement, they will ultimately enhance a brand’s resource efficiency.
In principle, the ESPR promises to improve both business bottom-lines and environmental performance. But while the aims behind the regulation are simple enough to grasp, achieving them in practice is a different story. Will brands need to fundamentally change their manufacturing processes? Reimagine their supply chains and end-of-life practices? Or is there a credible, scalable route for excess stock that reduces waste, supports compliance and protects brand equity?
This is where the right circularity partner can make an invaluable difference.
A practical way to respond to ESPR
One organisation already helping brands prepare for ESPR requirements is Soles4Souls.
Soles4Souls is a non-profit that helps keep shoes and clothing in use for longer, diverting new and used products from landfill and channelling them to people who need them most. We partner with some of the world’s leading shoe and clothing brands – from Nike to Footlocker, Crocs to Allbirds – to bridge social impact and sustainability.
Simply, these brands send Soles4Souls their excess stock. Then, we process and channel the products across four crucial programmes:
- 4Opportunity: We equip entrepreneurs in low-income countries with donated shoes and clothing to sell, helping them create sustainable small businesses that lift families out of poverty and drive community growth.
- 4Relief: We provide new shoes and clothing to people facing hardship, from survivors of natural disasters to those rebuilding their lives after homelessness or domestic violence. These essentials help restore dignity and ease financial burdens, so people can focus on what’s next.
- 4EveryKid: We partner with schools and community organisations to provide new athletic shoes to children in need, removing barriers to school participation, sports and a brighter future.
- Solutions4Good: Through sorting, grading, recommerce, repurposing, repairing and responsible end of life solutions, we extend the life of shoes and clothing to maximise their impact while reducing environmental waste.
Alongside this social impact, brands who partner with Soles4Souls can build a lower-waste supply chain. Rather than incinerating a pair of shoes or sending a t-shirt to landfill, your excess stock will go directly to people in need, your business will better comply with regulations and, importantly, your brand will enjoy a well-deserved reputational boost.
Your circular route for excess stock
The ESPR marks a clear turning point for fashion: waste is out, accountability is in. Brands can no longer treat unsold stock as an afterthought – but they shouldn’t see it as a hurdle, either. With the right partner, your excess shoes and clothing can transform the lives of communities worldwide and measurably reduce your environmental impact.
The businesses that act early will be best placed to protect value and build a more resilient circular strategy. So, if you’re urgently rethinking your approach to unsold products, now’s the time to explore a smarter alternative. Get in touch with Soles4Souls at [email protected] to step forward today.
