As the EU’s Ecodesign for Sustainable Products Regulation1 (ESPR) comes into force over the coming year—a legislative move aiming to increase a product’s circularity and environmental impact—fashion and textiles brands placing items in the EU market are likely to be significantly impacted.
The ESPR is just one of a broad range of initiatives the EU is employing to encourage greater circularity in the fashion industry. These include the Extended Producer Responsibility (ERP) schemes, the Textile Labelling Regulation2, and the EU Strategy for Sustainable and Circular Textiles3, under which the ESPR falls.
Given that there are approximately 197,000 companies4 in the textiles and clothing industry in Europe alone, this comprehensive legislation is hardly surprising. For fashion and textile firms selling in the EU, whether based there or not, compliance with multiple aspects of the ESPR—not just the Digital Product Passport (DPP) mandate—will likely be required. This is expected to have a significant impact on the industry.
Why Could This Be the Death of Fast Fashion as We Know It?
To comply with this legislation, the fashion and textile industry must adopt more sustainable practices in major production countries such as China, India, and Bangladesh. Brands that act swiftly on sustainability will not only position themselves to comply but also gain a strategic edge in the race to meet regulations.
In addition to the implementation of DPPs, mandated by the ESPR to improve transparency regarding sustainability credentials, brands will be expected to take greater ownership of the end-of-life management of their products. This involves ensuring that products can be reused or recycled, along with other requirements.
Textile brands will also be expected to improve energy efficiency and repairability, including providing easier access to repair manuals. Furthermore, the regulation is also expected to encourage manufacturers to make more sustainable decisions in sourcing materials and designing products.
Non-compliance or delays in compliance will likely result in fines and financial losses, as clothing brands supplying the EU market will prefer to work with economic operators who are compliant with the new legislations.
Moreover, brands that prioritise compliance will gain a competitive market edge. As a result, fast fashion will undergo drastic changes, especially for the EU market, with manufacturers needing to move away from low-cost, disposable clothing. In its place, ‘sustainable fast fashion’ brands—those using recycled materials or championing take-back initiatives—may rise.
Consumer Demand and Environmental Impact
The regulations align with rising consumer demand for sustainable clothing. According to McKinsey & Co, over a quarter (26 per cent) of consumers say their purchasing decisions are influenced by sustainability considerations5. DPPs will make it easier for consumers to access information about the sustainability of the products they choose.
With the fashion industry responsible for an estimated 10 per cent of global carbon emissions6—more than international flights and maritime shipping combined—adopting more sustainable practices could have a significant positive environmental impact.
What Can Clothing Manufacturers Do Now?
The delegated acts for the ESPR, which will include specific guidelines for each impacted industry, are yet to be announced. However, given the reliance on compliance for the future of their businesses, textile and fashion manufacturers need to act proactively.
The broader ESPR deadline is earmarked for 2030, but compliance may be required as early as 2027 for some industries. While uncertainty remains as DPP frameworks are yet to be confirmed, businesses can begin preparing now to ensure a smooth transition when the full regulatory requirements come into effect.
Those who prepare early will certainly be in an advantageous position as deadlines approach, and the future of their businesses may depend on it.
