Inge Bujakiewicz-Baars, Head of Sustainability at ReBound Returns:
“With the EU’s Eco-design for Sustainable Products Regulation (ESPR) introducing new requirements from 19 July 2026, retailers are facing one of the first major operational tests of circularity. For years, the focus has been on setting targets, publishing commitments and demonstrating progress. Now, regulation is pushing sustainability further into day-to-day operations – inventory management, returns processes and supply chain decision-making.
One of the most significant changes under ESPR is the ban on the destruction of certain unsold consumer goods, including apparel, footwear and textile accessories. For large retailers and brands selling into the EU market, this creates immediate implications for excess inventory, returns handling and stock recovery strategies.
A common misconception is that recycling provides a compliant route for unsold goods. In reality, ESPR classifies recycling as a form of destruction, alongside landfill and energy recovery – so cannot always be relied upon as a default solution for unsold inventory.
The regulation encourages businesses to prioritise higher-value circular routes such as resale, reuse, repair and donation. It also introduces greater transparency requirements, with organisations expected to disclose what happens to unsold goods and demonstrate the steps being taken to prevent destruction.
With the July deadline approaching, retailers should focus on three immediate priorities: mapping current inventory and returns processes, identifying compliant circular routes for different product categories, and establishing clear reporting and governance procedures.
The retailers best positioned for ESPR will be those that treat circularity as an operational capability rather than a reporting exercise. As both regulation and industry expectations evolve, success will depend on turning sustainability ambitions into practical systems that work across the business.”
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