Regulatory compliance and sustainability for clothing and textiles in 2026

Osborne Clarke has contributed to the Sedgwick State of the Nation 2026 Product safety and recall report, European edition.

The clothing and textiles sectors continue to face an increasingly complex regulatory landscape in 2026. In the coming months, industry stakeholders operating across Europe will be required to adhere to and keep abreast of a broad spectrum of compliance and reporting obligations. Among these are rules regarding unsold consumer goods, extended producer responsibility, green claims, and textile waste. Businesses will need robust compliance frameworks alongside continued monitoring of their supply chain operations.

European Union

New rules for unsold consumer goods kick in this year — are you ready?

For the industry, 2026 marks a key milestone under the EU Ecodesign for Sustainable Products Regulation (ESPR). The ban on the destruction of unsold consumer goods comes into effect on 19 July 2026. Currently the restriction only applies to clothes, accessories, and footwear—but this list is expected to grow in the future. Businesses that place these products on the EU market must prepare for the incoming ban by prioritising circularity and focusing on resale, donation, remanufacturing, and repair. Businesses in scope of the ESPR will also need to comply with public reporting obligations on unsold consumer goods across all EU market products, not just textiles. They must publish information—such as the number and weight of products they discard, as well as their reasons for doing so—on their website annually. Businesses that are required to comply with the Corporate Sustainability Reporting Directive may integrate these public reporting obligations into their sustainability reporting. The data will be made public, which means there will likely be great interest from consumers, regulators, and the media. This focus could conceivably impact a company’s credibility around its environmental strategy or green marketing claims.

For large businesses, the first reporting deadline under the ESPR is fast approaching in 2026. The initial reporting period covers the first full financial year (FY) after the regulation’s entry into force in July 2024, with disclosure due in the subsequent FY. For companies whose financial year aligns with the calendar year (January–December), reporting is required on FY 2025 (1 January 2025–31 December 2025). For those companies, reports are due in 2026. Many companies are therefore already in their reporting period and must prepare and publish their first ESPR reports within the coming months.

The key message for the textiles sector is that if your company falls within scope and operates on a calendar-year basis, your reporting deadline is imminent. Preparation and disclosure cannot be delayed—2026 is the year of action.

How can you prepare? 

There are several steps companies can take to prepare for the expanded obligations of the ESPR.

For the ban on the destruction of unsold consumer goods, businesses selling apparel, clothing, accessories, and footwear must identify which group or supply chain entity is in scope and clearly document the current supply chain of unsold stock and returns.

Companies must introduce a no-destruction policy for unsold consumer goods effective from 19 July 2026 and explore alternative solutions—which are exempt from the ban. Possible options are customer return schemes with waste processed into new products or donating unsold goods to charity.

To meet the reporting obligations on the disclosure requirements on unsold consumer goods, businesses should be collating data now on the number and weight of unsold consumer products discarded per year, document why these products were destroyed, and plan to publish this information on their websites.

Companies must collate their data from their first full financial year after the ESPR came into force on 18 July 2024 and publish their report the following financial year. For example, businesses operating on a calendar year basis will collate 2025 data and report in 2026. An implementing act setting out the required reporting format is expected to be adopted this year.

Businesses should monitor developments and familiarise themselves with the requirements of the act to ensure their reports are prepared in the correct format.

EU Member States to start to define EPR schemes in 2026 

Extended Producer Responsibility (EPR) for textiles is set to become a reality across the EU. Throughout 2026, Member States are expected to define the details of their national EPR schemes. Rules must be transposed into national law by 17 June 2027 and established by each Member State by 16 April 2028.

Businesses placing textiles on EU markets should closely monitor developments in each jurisdiction where they operate. Because the rules will be set by national laws, the requirements, including fees and risk of enforcement action, will vary from state to state.

Once the schemes are implemented, companies will need to identify which entities in their supply chain are responsible for compliance and begin establishing systems to collect the data needed for EPR reporting.

From permitted to prohibited: the new reality for textile waste exports 

The Waste Shipment Regulation entered into force on 20 May 2024. Bans on sending any waste exports for disposal and hazardous waste exports for recovery to countries which are not members of the Organisation for Economic Co-operation and Development (OECD) are already in force. However, from 21 May 2027 onwards, the export of non-hazardous waste, also known as "green-listed" waste, will also be prohibited to non-OECD countries. This category includes worn clothing and cotton and silk waste. The only exceptions are for countries that have proven to the European Commission that they can manage their waste in an environmentally sound manner.

Even where exports are permitted, businesses must commission independent audits of receiving waste facilities to verify environmentally sound management. If a facility fails an audit, businesses must immediately stop shipping waste there or face enforcement action and penalties. 

Green claims – can you prove it? 

From 27 September 2026, the EU’s Empowering Consumers for the Green Transition Directive (ECGTD) will apply across all Member States. It will require businesses to provide consumers with clear pre-purchase information about product durability and reparability. Vague environmental claims such as "green" or "environmentally friendly" will be banned unless companies can substantiate their claims with "excellent environmental performance". Businesses should review their marketing claims and materials to ensure all environmental claims are substantiated with evidence before the deadline.

The EU’s proposed Green Claims Directive remains on hold after the European Commission attempted to withdraw the measure. It was intended to accompany the ECGTD as the next step by setting standards on substantiating specific environmental statements. According to the Commission’s 2026 work programme, the proposal is still pending. Businesses should monitor further developments.

PFAS and textiles 

The new Registration, Evaluation, Authorisation, and Restriction of Chemicals (REACH) Regulation restrictions on the use of perfluorohexanoic acid (PFHxA) and PFHxA-related substances will apply from 10 October 2026. These chemicals are subgroups of per- and polyfluoroalkyl substances (PFAS), or “forever chemicals,” and are used to help repel water, oil, and stains.

The measure covers the use of these substances in textiles, leather, furs, and hides in clothing, footwear, and related accessories for the general public. It also applies to paper and cardboard used as food contact materials, cosmetic products, and mixtures for the general public. The concentration limits are 25 parts per billion (ppb) for PFHxA and its salts and 1,000 ppb for PFHxA-related substances.

From 10 October 2027, the same limits will also apply to textiles, leather, furs, and hides not used in clothing and related accessories for the general public. In 2026, the European Chemicals Agency will also advance its review of the restriction proposal covering more than 10,000 PFAS, which was submitted by Denmark, Germany, the Netherlands, Norway, and Sweden. A draft opinion is likely to be agreed upon at the European Chemicals Agency’s Committee for Socio-Economic Analysis (SEAC) meeting in March. A consultation on the ban is expected to be launched following that meeting.

Textile businesses — and other businesses which rely on intentionally added PFAS — should carry out an assessment of their products and supply chain. They are advised to consider the commercial and technical viability of moving away from PFAS as part of their long-term compliance and environmental, sustainability and governance strategies.

United Kingdom 

The UK currently has no equivalent legislation to the ESPR in the pipeline. The government’s circular economy strategy for England is expected in early 2026. It is uncertain if this plan will introduce new ecodesign or right-to-repair obligations to maintain alignment with the EU.

Whilst the EU has faced political hurdles on green claims, UK regulations on misleading green claims remain strict. The Advertising Standards Authority has reiterated its Climate Change and the Environment project, prioritising action on advertising for carbon neutrality, net zero, and fast fashion. UK progress on PFAS remains slow. The Health and Safety Executive is prioritising firefighting foam, with a public consultation closing 18 February. The outcome is expected later this year and a final decision in 2027.

Consumer products, including textiles, seem to be much further off. The National PFAS Plan, as part of the Environmental Improvement Plan 2025, is expected in 2026. It will set out measures to tackle PFAS concerns and protect public health. 

Conclusion

Stakeholders across the clothing and textile sector should prepare for a year of action. Not only are there multiple regulations coming down the pipeline, the differences across Member States and between the UK and EU will add even more complexity to organisations’ compliance strategies. 

Download full report: Sedgwick State of the Nation 2026 Product safety and recall report, European edition