Max van der Wal
Consultant
In a world of complex (environmental) laws and regulations, I provide clarity and coherence based on my experience in Brussels.
A major retailer requests product information for a digital product passport. A customer wants to know what percentage of recycled materials is used in your product. And that’s when the acronym ESPR pops up. The Ecodesign for Sustainable Products Regulation (ESPR) raises the bar for sustainability for virtually every physical product on the European market. The regulation has been in effect since July 2024, and the specific requirements will be gradually elaborated in the coming years for each product group through product-specific delegated acts. This article explains what the ESPR entails, who it applies to, and what you can do now.
Table of contents
What is the ESPR?
The Ecodesign for Sustainable Products Regulation (ESPR) is a European regulation that sets minimum requirements for the sustainability, reparability, and traceability of nearly all physical products sold in the EU. The regulation entered into force in July 2024 under legislative number Regulation (EU) 2024/1781 and replaces the 2009 Ecodesign Directive, which until then had applied only to energy-related products such as major appliances and lighting fixtures.
The goal is simple: to make products more sustainable before they reach the market, rather than hoping for voluntary improvements after the fact.
The key terms from the ESPR:
The ESPR in a nutshell
- What: The ESPR establishes a framework of mandatory requirements for the sustainability and traceability of physical products on the EU market, including a digital product passport for product groups for which this is required under the applicable delegated acts
- Who it applies to: manufacturers, importers, and distributors who place physical products on the EU market, with a temporary exemption from certain obligations for small businesses
- When: The regulation has been in effect since July 2024. Product-specific requirements will be established through delegated acts. For the first work plan period, priority has been given to, among other things, iron and steel, textiles, tires, aluminum, furniture, and mattresses; the indicative schedule runs from 2026 to 2029.
- What to do next: Identify which product categories should be prioritized in your organization’s work plans and begin compiling an inventory of your product data
Who is the ESPR relevant for?
The ESPR has a broad scope: the regulation serves as a framework for virtually all physical products placed on the market in the European Union, regardless of whether they were manufactured in the EU or imported. The obligations vary depending on the role in the supply chain and the product group. Manufacturers, importers, and distributors may be subject to ESPR obligations depending on their role.
A number of categories are expressly excluded. These include food, animal feed, medicines, live plants and animals, and certain vehicles for which product-related aspects are already regulated by sector-specific European legislation. In addition, specific European rules apply to certain product groups. For example, the EU Battery Regulation sets out separate sustainability and information requirements for batteries, including rules for a digital product passport.
For micro, small, and medium-sized enterprises, the ESPR includes supporting measures in certain areas, and different application rules may apply to specific obligations. However, there is no general exemption from the ESPR for smaller enterprises. Even before product-specific ESPR requirements apply, large buyers may already request product and supply chain data. The supply chain can thus pass on these information needs upstream.
ESPR timeline: what needs to be done by when?
- July 18, 2024: The ESPR takes effect.
- April 2025: The European Commission publishes the ESPR Work Plan for 2025 – 2030.
- Priority product groups in the first work plan: iron and steel, aluminum, textiles, furniture, tires, and mattresses. In addition, the work plan includes horizontal measures related to, among other things, reparability and electrical and electronic equipment.
- Continued: Product-specific requirements for these product groups will be established through delegated acts. The actual obligations will take effect on the dates of application specified therein.
The timeline appears to be phased, but that sense that “it will still take a while” is misleading. Preparations are currently underway to develop product-specific requirements for the priority product groups identified in the ESPR work plan. Organizations that start compiling their product data now will be ready when the time comes. Those who wait until the requirements are finalized will start off at a disadvantage right away.
What will change, and what will happen if you do nothing?
Until now, European ecodesign requirements have applied only to a limited group of energy-related products. The ESPR replaces that limited approach with a systematic framework that allows for the establishment of mandatory sustainability and information requirements for various product groups. This enables sustainability criteria to become part of the conditions under which products may be placed on the EU market.
In practical terms, this means that product design, the procurement process, and data recording will be organized differently. Where a digital product passport is required, this necessitates product data that is currently often scattered across suppliers, production records, and ERP systems. Integrating that data takes time — and it’s not something you can pull off in three months.
The regulation requires Member States to establish effective, proportionate, and deterrent penalties for noncompliance. The amount of these fines in the Netherlands and which regulatory authority will enforce them will be determined by national implementation decisions. Even before product-specific requirements take effect, companies can prepare for the growing demand for product and supply chain data from customers and other supply chain partners.
What are the requirements under the ESPR?
How does the ESPR relate to other legislation?
The ESPR does not stand alone. Organizations that are already engaged in sustainability reporting or due diligence will find that certain product and supplier data may be relevant for multiple purposes. The extent of the overlap, however, depends on the product group, the specific product requirements, and the information already available within the organization.
For some product groups, there are separate European regulations in addition to the ESPR, each with its own sustainability and information requirements. For example, the Battery Regulation (EU) 2023/1542 contains specific requirements for batteries and introduces its own digital product passport for this purpose. The various regulations may apply concurrently, depending on the product and the applicable requirements. However, the architecture of both passports is similar, so knowledge and systems are partially transferable.
The CSDDD includes obligations regarding supply chain due diligence and can encourage organizations to systematically document information about suppliers and the value chain. Some of that information may also be relevant to ESPR obligations. The exact overlap depends on the product group, the applicable ESPR requirements, and the information an organization already collects.
Getting started with the ESPR
- Map out your product portfolio: Start by creating an overview of all the product categories you sell or purchase on the EU market. See which categories appear first in the Commission’s work plan. This assessment takes more time than you might think — especially if you have many suppliers or private-label products — and serves as the foundation for everything that follows.
- Analyze your current product data: Determine what product information you’re already recording and where the gaps are in relation to digital passport requirements, if a digital product passport is mandated for your product group: material composition, supplier information, and repair and disassembly options. Those gaps must be filled before you can generate a passport, and that requires collaboration with suppliers who may never have provided their data before.
- Reach out to your suppliers: The ESPR works both ways: you need data from your suppliers for your digital passport, and your customers will soon be asking for data from you. Start the conversation early: What information do you provide, what do you receive, and in what format? This is the step that takes the most time, precisely because you depend on others.
- Keep track of delegated acts: The specific requirements for each product category will be published in the coming years. Designate a single point of contact within your organization to monitor European Commission publications for the categories that affect you, and set up an alert for when a consultation for your sector begins. Consultations are the time to provide input and to stay informed about what’s coming.
Want to learn more about the ESPR?
Would you like to know what the ESPR means specifically for your product portfolio, or how to efficiently address the digital passport requirements? Please contact our consultants at 2bhonest.nl/contact.
Sources
This article is based on Regulation (EU) 2024/1781 of the European Parliament and of the Council (Ecodesign for Sustainable Products Regulation), published in the Official Journal of the European Union on June 28, 2024.
Written by
Hidde Kraaijveld
Consultant
