Sustainable Swag
The EU Just Banned the Destruction of Unsold Apparel. What it Means for Corporate Merchandise
A new EU rule aims to reduce textile waste by restricting the destruction of unsold apparel. Here is what marketing and procurement teams managing branded merchandise should know.
TLDR
From July 2026, the EU will prohibit the destruction of unsold apparel and require large companies to disclose when and why products are discarded. While the rule mainly targets retail fashion, it highlights a broader shift toward transparency and waste reduction that also affects how companies manage branded merchandise.
Contents
Why the EU introduced the rule
Does the rule apply to corporate merchandise
What happens to branded apparel that cannot be reused?
Donation and other alternatives
The bigger shift: transparency around product waste
What this means for global companies
A shift in how merchandise programs are designed
Where regulation is heading
The European Union has taken another step toward reducing product waste. Under the Ecodesign for Sustainable Products Regulation (ESPR), companies will soon be prohibited from destroying unsold apparel, clothing accessories, and footwear placed on the EU market.
For large companies, the rule applies from 19 July 2026. In addition to the prohibition itself, the regulation introduces transparency requirements that force companies to disclose when and why unsold products are discarded.
At first glance, this may seem like a rule aimed squarely at the fashion industry. But it also raises practical questions for companies that produce branded merchandise for employees, events, or marketing campaigns. Many of these programmes involve apparel: hoodies, T-shirts, jackets, and other branded garments produced in large quantities.
For marketing, brand, and procurement teams responsible for corporate merchandise, the regulation is worth understanding.
Why the EU introduced the rule
The destruction of unsold products has become a growing concern in Europe. According to the European Commission, between 4% and 9% of textile products placed on the EU market are destroyed before they are ever used.
The ESPR addresses this by introducing two mechanisms.
First, it prohibits the destruction of certain unsold consumer products, including apparel and footwear.
Second, it requires companies to publicly disclose information about unsold products they discard, including:
- the number and weight of discarded items
- the reasons for discarding them
- the waste treatment method used
- the measures taken to prevent destruction in the future.
Large enterprises must publish this information annually. Medium-sized companies will be required to follow the same rules from 2030.
Does the rule apply to corporate merchandise?
The regulation focuses on unsold consumer products placed on the EU market. Retail clothing is therefore the primary target.
Corporate merchandise programmes operate differently. Apparel ordered for employees or events is often distributed internally rather than sold to consumers. In many cases, these programmes fall outside the strict definition of “unsold consumer products.”
However, the product categories covered by the regulation include many types of textile goods that are commonly used in branded merchandise programmes.
This means the regulation still matters for companies that produce large volumes of branded apparel, particularly when those products enter the EU market.
Global companies with offices in the European Union must keep in mind that textile waste is being highly scrutinized.
What happens to branded apparel that cannot be reused?
The regulation allows destruction in specific situations where reuse is not possible. One of those situations occurs when products cannot be prepared for reuse because logos or recognisable design elements cannot realistically be removed.
This is relevant for many corporate garments.
An embroidered logo is technically removable, but doing so often damages the fabric. Screen-printed graphics are even harder to remove without destroying the garment. In these cases, reusing the item in another context may not be feasible.
The regulation recognises this. If removing logos or design elements is technically unfeasible and reuse is not possible, destruction may be justified. But companies must document the reason and retain evidence for five years.
Importantly, destruction is meant to be a last resort. Companies are expected to explore other options first, such as reuse, remanufacturing, or donation.
Donation and other alternatives
The regulation encourages companies to prioritise alternatives to destruction wherever possible.
In some cases, companies must even attempt donation before discarding products. The delegated regulation specifies that unsold items may be destroyed only after they have been offered for donation for a minimum period of eight weeks and no suitable recipient has been found.
This requirement reflects a broader objective within the ESPR framework: prevent waste before it occurs.
For companies producing corporate merchandise, this highlights the importance of planning programmes carefully. Large volumes of event-specific apparel or campaign merchandise can quickly become difficult to redistribute once branding or messaging becomes outdated.
The bigger shift: transparency around product waste
A significant change for many companies may be the disclosure requirement when unsold apparel is destroyed.
Under the implementing regulation, companies must publish structured data on discarded products, including the quantity, weight, product category, and waste treatment method used.
This information may appear on a company’s website or as part of its sustainability reporting.
In practice, this creates a level of transparency that has not previously existed. Companies will need to track unsold inventory more closely and justify how products are managed at the end of their lifecycle.
Marketing teams responsible for merchandise programmes should be aware that product waste is no longer just a logistical issue, but a visible sustainability metric.
Circularity in merchandise programmes begins with smarter production decisions. When companies reduce overproduction and produce closer to where products are used, they significantly reduce the risk of waste.
What this means for global companies
Many multinational organisations purchase branded merchandise centrally and distribute it across multiple regions, including Europe. When those products are placed on the EU market, they may fall within the scope of EU product regulations.
Even when the rules do not apply directly, the direction of travel is clear. European regulation is increasingly focused on product lifecycle transparency, circularity, and waste reduction.
For organisations operating globally, aligning merchandise strategies with these expectations can reduce future compliance risks.
A shift in how merchandise programs are designed
Corporate merchandise programmes have traditionally relied on bulk production. Large quantities are produced in advance to secure lower unit costs and ensure availability across offices or events.
This approach can lead to excess inventory, outdated branding, and leftover apparel that has no practical use.
Regulations like the ESPR do not eliminate these challenges overnight. However, they reinforce a broader shift toward production models that reduce the risk of overproduction.
For many companies, this means reconsidering how branded products are produced and distributed.
Platforms like Ciloo support this shift by allowing companies to produce branded merchandise closer to where it will be used and only when it is needed. Instead of ordering large volumes in advance and storing them centrally, teams can make products available through controlled ordering environments where items are produced locally as orders are placed.
This approach reduces excess inventory and makes it easier for organisations to manage branded products across multiple regions without creating large quantities of unused stock.
A sign of where regulation is heading
The EU’s decision to restrict the destruction of unsold apparel is part of a larger policy trend. European regulators are increasingly focused on the environmental impact of products throughout their lifecycle.
For companies that rely heavily on branded merchandise, the message is not that logos or promotional apparel will disappear. Rather, the expectation is shifting toward more responsible production and inventory management.
Marketing teams may not have been directly involved in sustainability regulation in the past. But as transparency requirements expand, decisions about how branded products are produced and distributed will increasingly intersect with environmental reporting and compliance.
Solutions such as Ciloo help organisations align merchandise programmes with these expectations by combining brand governance, global local production, and detailed data on what is produced and where. As regulations evolve, this type of visibility and control is becoming increasingly valuable for companies managing branded products at scale.
Want to reduce excess merchandise and improve visibility over what your teams produce globally?
See how Ciloo helps organisations manage branded products more efficiently while supporting sustainability and compliance goals. Book a demo today.
Reduce excess merchandise and improve visibility over production
See how Ciloo helps organisations manage branded products more efficiently while supporting sustainability and compliance goals.
Frequently Asked Questions
When will the EU ban on destroying unsold apparel take effect?
The prohibition on destroying unsold apparel, clothing accessories, and footwear will apply to large companies from 19 July 2026 under the Ecodesign for Sustainable Products Regulation (ESPR). Medium-sized companies will be subject to the same rules from 2030, while micro and small enterprises are exempt from the reporting requirements.
Does the regulation apply to corporate merchandise?
The rule primarily targets unsold consumer products placed on the EU market, such as retail clothing. Corporate merchandise programmes that distribute apparel internally to employees or event attendees may not always fall directly under this definition. However, many branded apparel items fall within the same textile product categories, and the regulation reflects a broader policy direction in the EU toward reducing textile waste and increasing transparency around discarded products.
Can branded apparel with logos still be destroyed?
Yes, in certain circumstances. The regulation allows destruction if products cannot realistically be reused or remanufactured because logos or recognisable design elements cannot be removed without damaging the item. However, destruction must be justified, documented, and treated as a last resort. Companies are expected to explore alternatives such as reuse, remanufacturing, or donation before discarding products.
What information must companies disclose about discarded products?
Large companies that discard unsold consumer products must publish information each year on the number and weight of products discarded, the reasons for discarding them, and the waste treatment methods used. They must also report measures taken or planned to prevent the destruction of unsold products in the future. This information may be published on the company’s website or included in sustainability reporting.
Additional resources
Article References
Ecodesign for Sustainable Products Regulation
Commission Delegated Regulation setting out derogations from the prohibition of destruction of unsold consumer products
Commission Implementing Regulation on the details and format for the disclosure of information on discarded unsold consumer products