EU Ecodesign Regulation ESPR: Sustainability and AI in Supply Chains

Sustainability 2026 Sustainability is Moving from a Desired Goal to an Obligation

2025-12-17 A guest commentary by Saskia van Gendt* | Translated by AI 2 min Reading Time

The EU Ecodesign Regulation ESPR makes sustainability a compliance obligation. Companies must introduce digital product passports and are no longer allowed to destroy unsold goods. Saskia van Gendt evaluates the impact this has on supply chains and the potential role of AI in her commentary.

From 2026, digital product passports will be mandatory in the EU.(Image: © Media Stock - stock.adobe.com / AI-generated) — From 2026, digital product passports will be mandatory in the EU.
(Image: © Media Stock - stock.adobe.com / AI-generated)

Starting in 2026, sustainability will no longer be a voluntary commitment for companies but will be subject to the obligations of the EU Ecodesign for Sustainable Products Regulation (ESPR). From 2026, companies will no longer be allowed to destroy unsold goods. Additionally, they must implement a digital product passport and ensure that information such as material composition, repair instructions, sustainability certificates, or the CO₂ footprint is transparently available throughout the entire supply chain. This way, progress in sustainability becomes measurable, and companies can clearly demonstrate their actions regarding circular economy. Sustainability, which has so far been communicated primarily as part of marketing, will thus become a verifiable corporate standard.

AI As the Key to the Circular Economy

Starting next year, businesses and organizations will be required to integrate circular economy principles into their core business models. Products must be designed to largely avoid waste and pollution, keep goods and materials in circulation, and regenerate natural systems, for example, through recycling. To achieve this, they must invest in technologies that provide comprehensive transparency across the entire supply chain, from raw materials to sales. Artificial intelligence will play a central role in this process. Through predictive demand planning, performance optimization, and intelligent reverse logistics, significant efficiency improvements are possible. As AI can connect data across all stages of the supply chain, companies can not only trace goods and information but also ensure compliance with regulations and prevent waste before it occurs.

Sustainable Companies Rely on Technology

The intersection of technology and sustainability holds great potential to elevate the digital transformation of companies to a new level. According to the Supply Chain Compass report by Blue Yonder, which surveyed nearly 700 leading supply chain managers worldwide, the companies that named sustainability as one of their top three strategic priorities are also leaders in the use of digital technologies and AI. 94 percent state that end-to-end data connectivity is fundamental to their company's success (compared to 85 percent overall). 80 percent say that AI is already transforming the way they work (compared to 74 percent overall), and 61 percent indicate that they are currently exploring the use of generative AI.

Saskia van Gendt, as Chief Sustainability Officer at Blue Yonder, is responsible for the development and implementation of the sustainability strategy.(Image: Blue Yonder) — Saskia van Gendt, as Chief Sustainability Officer at Blue Yonder, is responsible for the development and implementation of the sustainability strategy.
(Image: Blue Yonder)

The convergence of legal regulations and technological innovations will lead to unprecedented transparency in the coming years. The initial disclosures under the Corporate Sustainability Reporting Directive (CSRD) in 2025 have already demonstrated that sustainability data can be as verifiable as financial data. This development will continue worldwide by 2026 and will also reach supply chain partners outside the EU.

2026 Will See the Circular Economy Slowly Becoming A Reality

Customers can play a key role in shaping the change: Many retailers are already preventing food waste through dynamic pricing, fashion brands are curbing overproduction through intelligent planning, and manufacturers are regaining value through optimized returns.

By the end of 2026, the circular economy will no longer be wishful thinking but a regulatory and technological reality. Those who lead through innovation and transparency will significantly shape the next generation of sustainable companies.

Saskia van Gendt is Chief Sustainability Officer at Blue Yonder.

Consent to the use of data for promotional purposes

I hereby consent to Vogel Communications Group GmbH & Co. KG, Max-Planck-Str. 7-9, 97082 Würzburg including any affiliated companies according to §§ 15 et seq. AktG (hereafter: Vogel Communications Group) using my e-mail address to send editorial newsletters. A list of all affiliated companies can be found here

Newsletter content may include all products and services of any companies mentioned above, including for example specialist journals and books, events and fairs as well as event-related products and services, print and digital media offers and services such as additional (editorial) newsletters, raffles, lead campaigns, market research both online and offline, specialist webportals and e-learning offers. In case my personal telephone number has also been collected, it may be used for offers of aforementioned products, for services of the companies mentioned above, and market research purposes.

Additionally, my consent also includes the processing of my email address and telephone number for data matching for marketing purposes with select advertising partners such as LinkedIn, Google, and Meta. For this, Vogel Communications Group may transmit said data in hashed form to the advertising partners who then use said data to determine whether I am also a member of the mentioned advertising partner portals. Vogel Communications Group uses this feature for the purposes of re-targeting (up-selling, cross-selling, and customer loyalty), generating so-called look-alike audiences for acquisition of new customers, and as basis for exclusion for on-going advertising campaigns. Further information can be found in section “data matching for marketing purposes”.

In case I access protected data on Internet portals of Vogel Communications Group including any affiliated companies according to §§ 15 et seq. AktG, I need to provide further data in order to register for the access to such content. In return for this free access to editorial content, my data may be used in accordance with this consent for the purposes stated here. This does not apply to data matching for marketing purposes.

Right of revocation

I understand that I can revoke my consent at will. My revocation does not change the lawfulness of data processing that was conducted based on my consent leading up to my revocation. One option to declare my revocation is to use the contact form found at https://contact.vogel.de. In case I no longer wish to receive certain newsletters, I have subscribed to, I can also click on the unsubscribe link included at the end of a newsletter. Further information regarding my right of revocation and the implementation of it as well as the consequences of my revocation can be found in the data protection declaration, section editorial newsletter.

Sustainability 2026 Sustainability is Moving from a Desired Goal to an Obligation

AI As the Key to the Circular Economy

Sustainable Companies Rely on Technology

2026 Will See the Circular Economy Slowly Becoming A Reality

Agricultural Engineering

Smart and Efficient: An Opportunity for Automotive Suppliers?

Subscribe to the newsletter now

Don't Miss out on Our Best Content

Consent to the use of data for promotional purposes

Right of revocation