The EU's Ecodesign for Sustainable Products Regulation (ESPR) came into force on 18 July. This is a piece of framework legislation which will drive a number of industries, including the beauty sector, towards greater sustainability. It sets the scene for new rules on product design, enhancing sustainability and providing greater transparency. The rules for specific products will follow in secondary legislation, including performance requirements and/or information requirements (such as Digital Product Passports). The ESPR also sets out a framework to prevent the destruction of unsold products.
The Commission will adopt a working plan, setting out a list of product groups which will be prioritised for secondary legislation along with the estimated timelines, with the first working plan expected in Q2 2025. An "Ecodesign Forum" will also be established where stakeholders will be consulted on the development of product rules. The text of the ESPR includes some products that must be prioritised such as textiles, furniture, lubricants and chemicals. These are expected to be in the first working plan. Cosmetic products are not included expressly in the ESPR as a priority, so the new rules and timelines for cosmetic products will depend on consultation with stakeholders in the Ecodesign Forum.
For the UK beauty industry, the ESPR presents both a unique challenge and opportunity, as UK businesses exporting to the EU will need to comply with the ESPR.
What are the key provisions of the ESPR?
The ESPR will enable the Commission to establish both quantitative and/or non-quantitative requirements for product design. Quantitative requirements may set minimum or maximum thresholds in relation to design or production. For example, this could include a restriction on the amount of water usage in the production of a product. Non-quantitative requirements may include other measures such as banning certain chemicals in production. However, neither of these requirements should hinder the functional performance of the product. In setting requirements for a product, the Commission will identify sustainability improvements based on parameters like energy and water consumption, carbon footprint, and recycled material usage. The Commission will take into account economic viability and existing benchmarks in other markets.
Another significant feature of the ESPR is the proposal for Digital Product Passports ("DPP") to enhance consumer choice, facilitate information sharing across the supply chain, and improve product traceability. Products would need a DPP to enter the EU market. The specific information required to be included in the DPP would be set out in the secondary legislation, but may contain unique identifiers for the product, value chain actors, and locations. It may also include environmental performance data and recycling or disposal instructions. DPPs would need to be accessible, interoperable, and available via a data carrier like a QR code.
The ESPR also imposes a general principle for businesses to take necessary measures to prevent the destruction of unsold consumer products. A ban on destroying unsold clothing and footwear will apply and may be introduced later for other products. Medium-sized companies will have a transition period of six years, while smaller companies would be exempt from the ban. There may be limited exceptions e.g. for health and safety reasons. The ESPR also proposes annual reporting by companies on the number of unsold products discarded, the reasons for discarding, and the proportion directed towards reuse, remanufacturing, or recycling.
The ESPR's implications are far-reaching, affecting a broad spectrum of economic operators including manufacturers, importers, distributors, retailers, and online marketplaces. To stay ahead and prepare for the changes, beauty industry stakeholders should remain vigilant and be proactive. Engaging in consultations, mapping supply chains, and reviewing supplier contracts are essential steps to prepare for the ESPR's implementation.
The ESPR is part of is a package of new green EU legislative measures that will impact every stage of a product's lifecycle. If you would like more information, you can download our Guide to Green Reforms in Retail handbook or register for one of our free online pop-up sessions.