August 30, 2024
August 30, 2024
2
Min Read

Tackle Ecodesign for Sustainable Products Regulation (ESPR) Compliance: Your Guide to EU Market Success

Blog
  • Understand ESPR Requirements: Discover the key elements of the Ecodesign for Sustainable Products Regulation (ESPR) and how it impacts companies placing products in the EU market.
  • Prepare for Digital Product Passports (DPP): Learn about the Digital Product Passport requirement and how to gather the necessary data to comply.
  • Achieve ESPR Compliance with BanQu: Find out how BanQu's supply chain traceability platform can help your company meet ESPR and other EU regulatory requirements.

‍What is the Ecodesign for Sustainable Products Regulation (ESPR)?

‍"There are not enough resources in the world for us to keep this behaviour up." - Former journalist Martine Postma

‍The Ecodesign for Sustainable Products Regulation (ESPR) is a first-of-its-kind European Union (EU) initiative aimed at regulating the sustainability, quality, and circularity of products placed within EU markets. ESPR builds upon (and will eventually replace) the Ecodesign Directive, the ESPR expands its scope to cover a broader range of products beyond just energy-related goods, setting a more regulated standard for corporate sustainability.The ESPR was proposed in March 2022 and officially came into force on July 18, 2024. It marks a significant shift towards making products more durable, reusable, upgradable, and recyclable. The regulation is a key component of the EU's Circular Economy Action Plan and is designed to track and reduce the environmental footprint of products throughout their entire lifecycle — from source to shelf and beyond.Key ESPR Milestones and TimelineSince the ESPR is a framework legislation, concrete product rules will be decided progressively over time on a product-by-product or group-of-product basis. However, important milestones and timelines have been released:

  • March 2022: ESPR proposal by the European Commission.
  • July 18, 2024: ESPR officially entered into force.
  • April 19, 2025: The first ESPR Working Plan is expected to be adopted.
  • July 19, 2026: Digital Product Passport (DPP) registry to be established.
  • 2026 onwards: Prohibition on the destruction of unsold consumer products applies to large enterprises.
  • July 19, 2030: Prohibition applies to medium-sized enterprises.

For a full, detailed timeline of ESPR, see Specific Deadlines. And for general ESPR updates, check out the EU’s recent ESPR webinar.

What Makes the ESPR Unique?

‍The Ecodesign for Sustainable Products Regulation is a world-leading initiative. Having products that are repairable, recyclable and increasingly made of recycled materials provides new business opportunities, creates innovative jobs and offers more value for consumers.”  - Executive Vice-President for the European Green Deal, Maroš Šefčovič

‍Like many of the EU regulations emerging in coming years, the ESPR introduces several groundbreaking requirements — taking manufacturing sustainability to the next level.

  1. Ecodesign Requirements: The ESPR outlines design requirements that are both performance and information conditions to ensure durability, reusability, recyclability, energy efficiency, and reduced environmental footprint.
  2. Digital Product Passport (DPP): Part of the ESPR will require a new digital tool (scannable QR code and/or unique ID number) that provides detailed information about a product’s sustainability, helping consumers make informed choices and enabling better waste management.
  3. Obligations on Unsold Goods: A less highlighted but important portion of the ESPR outlines how companies should handle unsold products/goods. Under the ESPR, companies must report the quantities of unsold goods discarded and take measures to prevent destruction/overproduction.
  4. Substances of Concern: The ESPR also introduces some specific requirements for tracking and restricting substances that negatively affect product sustainability, such as specific harmful chemicals.

‍

‍Is Your Company Affected by ESPR?

If you are a company placing products within the EU market, especially in sectors like textiles (garments & footwear), metals (iron, steel, and aluminum), you might need to comply with ESPR. There are three main questions to ask yourself:

  1. Do you sell products within the EU?
  2. Do your products fall into one of the priority categories (textiles, metals, electronics, etc.)?
  3. Are you a large or mid-sized company? (affects implementation timeline)

If you answered yes to any of these questions - and you probably did -  it's time to begin planning your ESPR compliance readiness now.

Checklist for ESPR Preparedness & Choosing the Right ESPR Solution for Your Business

While the ESPR has very defined requirements and a lengthier implementation timeline, getting a handle on your supply chain and product data in order to comply will take time, effort, and resources. Here is a brief checklist to assess your readiness and to vet potential ESPR solution partners so you can ensure a competitive edge in the EU market:

  1. Supply Chain Mapping: Make sure you have a handle on your supply chain, cradle-to-cradle, so you can ensure full product lifecycle tracking.
  2. Chain of Custody Tracking: Get a system in place to track the origin and movement of your products and materials, so you can measure product impact throughout its lifecycle.
  3. Data Capture & Reporting: Ensure that any systems you have in place can both capture product lifecycle data and report on this data for comprehensive compliance.
  4. Digital Product Passport Capabilities: Since the DPP is such a cornerstone of ESPR compliance, make sure that solution partners are prepared to be able to power ESPR-compliant digital product passports for target products.
  5. Integration with Legacy Systems: No company “just needs another solution” to manage. Choose an ESPR partner whose solution can seamlessly integrate with your existing supply chain and legacy systems.
  6. EU Compliance Expertise & Capabilities: Look for multi-solving capabilities that help with compliance across various EU regulations — as many of them boil down to requiring supply chain visibility, traceability, and data to prove compliance.
  7. Data Security & GDPR Compliance: While data security and GDPR-compliance are table stakes for many EU companies, not all solutions are able to handle large amounts of data securely. Make sure any solution you choose can offer the utmost data security & handling GDPR compliance.

‍

‍BanQu: Supply Chain Data You Can Trust for ESPR Compliance and Competitive Edge in the EU Market

The ESPR is a critical step forward in the EU’s journey toward a circular economy. By understanding the requirements and preparing accordingly, companies can not only ensure compliance but also gain a competitive edge in EU markets, decrease production costs, and increase overall market share. BanQu is here to help you every step of the way with our innovative solutions for supply chain traceability and sustainability.

BanQu’s supply chain traceability platform provides companies with the tools they need to comply with ESPR, and beyond. Our platform helps capture the data needed to power Digital Product Passports and ensures compliance with all ESPR requirements, from chain of custody tracking to ESG data capture. Schedule an ESPR Consult today to learn how BanQu can help your company navigate ESPR and other EU regulations.

Download Tackle Ecodesign for Sustainable Products Regulation (ESPR) Compliance: Your Guide to EU Market Success

Learn about the Ecodesign for Sustainable Products Regulation (ESPR) and how BanQu's supply chain traceability solutions help companies achieve ESPR compliance.

Download the Guide

Resources
Tackle Ecodesign for Sustainable Products Regulation (ESPR) Compliance: Your Guide to EU Market Success
  • Understand ESPR Requirements: Discover the key elements of the Ecodesign for Sustainable Products Regulation (ESPR) and how it impacts companies placing products in the EU market.
  • Prepare for Digital Product Passports (DPP): Learn about the Digital Product Passport requirement and how to gather the necessary data to comply.
  • Achieve ESPR Compliance with BanQu: Find out how BanQu's supply chain traceability platform can help your company meet ESPR and other EU regulatory requirements.

‍What is the Ecodesign for Sustainable Products Regulation (ESPR)?

‍"There are not enough resources in the world for us to keep this behaviour up." - Former journalist Martine Postma

‍The Ecodesign for Sustainable Products Regulation (ESPR) is a first-of-its-kind European Union (EU) initiative aimed at regulating the sustainability, quality, and circularity of products placed within EU markets. ESPR builds upon (and will eventually replace) the Ecodesign Directive, the ESPR expands its scope to cover a broader range of products beyond just energy-related goods, setting a more regulated standard for corporate sustainability.The ESPR was proposed in March 2022 and officially came into force on July 18, 2024. It marks a significant shift towards making products more durable, reusable, upgradable, and recyclable. The regulation is a key component of the EU's Circular Economy Action Plan and is designed to track and reduce the environmental footprint of products throughout their entire lifecycle — from source to shelf and beyond.Key ESPR Milestones and TimelineSince the ESPR is a framework legislation, concrete product rules will be decided progressively over time on a product-by-product or group-of-product basis. However, important milestones and timelines have been released:

  • March 2022: ESPR proposal by the European Commission.
  • July 18, 2024: ESPR officially entered into force.
  • April 19, 2025: The first ESPR Working Plan is expected to be adopted.
  • July 19, 2026: Digital Product Passport (DPP) registry to be established.
  • 2026 onwards: Prohibition on the destruction of unsold consumer products applies to large enterprises.
  • July 19, 2030: Prohibition applies to medium-sized enterprises.

For a full, detailed timeline of ESPR, see Specific Deadlines. And for general ESPR updates, check out the EU’s recent ESPR webinar.

What Makes the ESPR Unique?

‍The Ecodesign for Sustainable Products Regulation is a world-leading initiative. Having products that are repairable, recyclable and increasingly made of recycled materials provides new business opportunities, creates innovative jobs and offers more value for consumers.”  - Executive Vice-President for the European Green Deal, Maroš Šefčovič

‍Like many of the EU regulations emerging in coming years, the ESPR introduces several groundbreaking requirements — taking manufacturing sustainability to the next level.

  1. Ecodesign Requirements: The ESPR outlines design requirements that are both performance and information conditions to ensure durability, reusability, recyclability, energy efficiency, and reduced environmental footprint.
  2. Digital Product Passport (DPP): Part of the ESPR will require a new digital tool (scannable QR code and/or unique ID number) that provides detailed information about a product’s sustainability, helping consumers make informed choices and enabling better waste management.
  3. Obligations on Unsold Goods: A less highlighted but important portion of the ESPR outlines how companies should handle unsold products/goods. Under the ESPR, companies must report the quantities of unsold goods discarded and take measures to prevent destruction/overproduction.
  4. Substances of Concern: The ESPR also introduces some specific requirements for tracking and restricting substances that negatively affect product sustainability, such as specific harmful chemicals.

‍

‍Is Your Company Affected by ESPR?

If you are a company placing products within the EU market, especially in sectors like textiles (garments & footwear), metals (iron, steel, and aluminum), you might need to comply with ESPR. There are three main questions to ask yourself:

  1. Do you sell products within the EU?
  2. Do your products fall into one of the priority categories (textiles, metals, electronics, etc.)?
  3. Are you a large or mid-sized company? (affects implementation timeline)

If you answered yes to any of these questions - and you probably did -  it's time to begin planning your ESPR compliance readiness now.

Checklist for ESPR Preparedness & Choosing the Right ESPR Solution for Your Business

While the ESPR has very defined requirements and a lengthier implementation timeline, getting a handle on your supply chain and product data in order to comply will take time, effort, and resources. Here is a brief checklist to assess your readiness and to vet potential ESPR solution partners so you can ensure a competitive edge in the EU market:

  1. Supply Chain Mapping: Make sure you have a handle on your supply chain, cradle-to-cradle, so you can ensure full product lifecycle tracking.
  2. Chain of Custody Tracking: Get a system in place to track the origin and movement of your products and materials, so you can measure product impact throughout its lifecycle.
  3. Data Capture & Reporting: Ensure that any systems you have in place can both capture product lifecycle data and report on this data for comprehensive compliance.
  4. Digital Product Passport Capabilities: Since the DPP is such a cornerstone of ESPR compliance, make sure that solution partners are prepared to be able to power ESPR-compliant digital product passports for target products.
  5. Integration with Legacy Systems: No company “just needs another solution” to manage. Choose an ESPR partner whose solution can seamlessly integrate with your existing supply chain and legacy systems.
  6. EU Compliance Expertise & Capabilities: Look for multi-solving capabilities that help with compliance across various EU regulations — as many of them boil down to requiring supply chain visibility, traceability, and data to prove compliance.
  7. Data Security & GDPR Compliance: While data security and GDPR-compliance are table stakes for many EU companies, not all solutions are able to handle large amounts of data securely. Make sure any solution you choose can offer the utmost data security & handling GDPR compliance.

‍

‍BanQu: Supply Chain Data You Can Trust for ESPR Compliance and Competitive Edge in the EU Market

The ESPR is a critical step forward in the EU’s journey toward a circular economy. By understanding the requirements and preparing accordingly, companies can not only ensure compliance but also gain a competitive edge in EU markets, decrease production costs, and increase overall market share. BanQu is here to help you every step of the way with our innovative solutions for supply chain traceability and sustainability.

BanQu’s supply chain traceability platform provides companies with the tools they need to comply with ESPR, and beyond. Our platform helps capture the data needed to power Digital Product Passports and ensures compliance with all ESPR requirements, from chain of custody tracking to ESG data capture. Schedule an ESPR Consult today to learn how BanQu can help your company navigate ESPR and other EU regulations.

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Download Tackle Ecodesign for Sustainable Products Regulation (ESPR) Compliance: Your Guide to EU Market Success

Learn about the Ecodesign for Sustainable Products Regulation (ESPR) and how BanQu's supply chain traceability solutions help companies achieve ESPR compliance.

Download the Guide

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