The European Commission recently adopted new rules to cut down on waste generated by fast fashion. As part of the ecodesign regulation, long-awaited rules banning the destruction of unsold clothing and shoes have now been adopted. The new rules also come with new disclosure requirements for textile companies, compelling them to report quantities of unsold goods. A press release from the European Commission states:
“The Delegated and Implementing Acts adopted today will support businesses in complying with these requirements by:
- Clarifying derogations: The Delegated Act outlines specific and justified circumstances under which the destruction will be permitted, for instance, due to safety reasons or product damage. National authorities will oversee compliance.
- Facilitating disclosure: The Implementing Act introduces a standardised format for businesses to disclose the volumes of unsold consumer goods they discard. This applies from February 2027, giving businesses sufficient time to adapt.
Instead of discarding stock, companies are encouraged to manage their stock more effectively, handle returns, and explore alternatives such as resale, remanufacturing, donations, or reuse.”
The press release notes that the destruction of unsold textiles generates roughly 5.6 million tons of CO2 emissions annually in the EU, almost equal to Sweden’s total net emissions in 2021. The fast fashion industry performs notoriously poorly on ESG metrics due to its fundamental business model, which requires mass quantities of poor-quality items to be produced quickly and cheaply. This not only results in high emissions and waste but also in human rights abuses. It will be interesting to see how fast fashion in Europe adapts to these new legal requirements.
Our members can learn more about ESG in the textiles industry here.
If you’re not already a member, sign up now and take advantage of our no-risk “100-Day Promise” – during the first 100 days as an activated member, you may cancel for any reason and receive a full refund. But it will probably pay for itself before then. Members also save hours of research and reading time each week by using our filtered and curated library of ESG/sustainability resources covering over 100 sustainability subject areas – updated daily with practical and credible information compiled without the use of AI.
Practical Guidance for Companies, Curated for Clarity.
