Starting July 19, 2026, the EU will ban the destruction of unsold textiles and footwear (under the EU Ecodesign for Sustainable Products Regulation, ESPR), pushing the question of "what to do with unsold inventory" to the forefront of the supply chain. On September 30, 2026, the SDA Bocconi Monitor for Circular Fashion (M4CF) and the Italian Confederation of Artisans' Fashion Division (CNA Federmoda) held the "Circular Economy and Fashion — 2026 Circular Fashion Manifesto Launch" at the European Parliament in Brussels, chaired by Flavio Tosi, MEP of the European Parliament's Committee on the Environment, Public Health and Food Safety (ENVI). The "2026 Circular Fashion Manifesto" released at the event proposes 28 strategies for managing unsold inventory and accompanying KPIs, covering rational product streamlining, resale, donation, repair, upcycling, and reuse.

Key Points

  • The ESPR ban on destruction of unsold textiles and footwear takes effect on July 19, 2026; this launch event was held on September 30, several months after the ban took effect.
  • The "2026 Circular Fashion Manifesto" was presented by Francesca Romana Rinaldi, Director of the SDA Bocconi Monitor for Circular Fashion, and centers on 28 unsold inventory management strategies with corresponding KPIs.
  • About 96% of Italian fashion companies are micro and small enterprises, and the number of companies in the sector fell by 26.5% between 2009 and 2025.

The logic of the ban pushes the problem upstream: since it is no longer possible to destroy warehouse stock, it becomes necessary to understand why a product was produced, how much was produced, what information it carries, and what alternatives exist to extend its life. The recurring consensus at the event was that action must start with planning and data sharing, using forecasting and unsold inventory management to better grasp demand, production, distribution, and product performance across the entire value chain. Antonio Franceschini, National Head of CNA Federmoda, said companies are not asking to be excluded from the transition but want to be its protagonists — behind Made in Italy are thousands of workshops, subcontractors, and small businesses that hold the key skills needed for the industry's transformation.

The new deal also requires more than regulation. Milan emphasized that the circular transition cannot be merely a compliance obligation; it must become an economically sustainable industrial model. In her remarks, Rinaldi noted that the ban on destruction of unsold products taking effect on July 19, 2026 has become an urgent priority for the industry, and that data collection and sharing and supply chain partnerships are the foundation of any effective strategy to prevent and manage unsold inventory. The Monitor's "Future Literacy" workshops also identified several barriers to scaling up: information gaps, fragmented responsibility, unequal power in supply chains, and a clear gap from ecodesign; corresponding enablers include technological innovation, interoperable data, stronger partnerships among supply chain actors, training, and awareness raising.

More noteworthy than the list of strategies is the shift in the discourse of responsibility. A year ago the keyword was "shared responsibility"; now CNA Federmoda anchors its position on "alliances": the ban changes the nature of unsold inventory — it is no longer merely a cost to be disposed of, but a resource that can re-enter the supply chain. Caterina Mazzei, Circular Economy and Sustainability Manager at CNA Federmoda, said there have already been many cases of brand clients returning to suppliers to jointly study how to increase the value of inventory products, through methods ranging from remanufacturing and alteration to new marketing formats. She said, "A year ago we called for moving from control to shared responsibility; today we go further: from shared responsibility to alliances." However, the transition requires specific conditions, and small businesses find it hard to invest in new capacity without predictable volumes and lead times, so more stable brand-supply chain agreements, regional networks, and training are prerequisites, along with expanding the right to repair in fashion.

At the regulatory level, Stefano Soro, Head of the Sustainable Products and Textiles Unit at the European Commission's Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs (DG GROW), gave a keynote speech on ESPR and the textile, apparel, leather, and footwear industries, proposing three keywords: ambition, impact, and level playing field. He positioned ESPR not only as an environmental tool but also as an industrial policy lever for the single market. Addressing the reality that European companies compete with products from other regulatory markets, he mentioned the impact of taxing low-value parcels from non-EU countries, saying it has reduced import volumes by up to 40%. He also previewed the future direction of the EU Product Act, with the goal of modernizing the existing system, especially in customs controls.

The discussion then extended to supporting tools. Mauro Scalia, Director of Sustainable Businesses at the European Apparel and Textile Confederation (EURATEX), presented European industry's position on ESPR and the Digital Product Passport; Edoardo De Paola, Secretary-General of the European Confederation of the Leather Industry (COTANCE), explored issues related to leather and footwear information, with one particularly important point: before determining what information the digital passport should contain, it is first necessary to define what counts as "leather" at the European level. Giorgia Di Giovanni of the Italian Ministry of Enterprises and Made in Italy (MIMIT) introduced the national ecodesign working group established by the Ministry of the Environment and Energy Security; Mariagrazia Berardi, Project Manager of the Enterprise Europe Network (EEN) at CNA Lombardy, presented the role of the Enterprise Europe Network in supporting companies through information and training; and Catherine Fragnay of the European Association of Craft, Small and Medium-Sized Enterprises (SMEunited) stressed that the essential conditions for small businesses must be guaranteed in Extended Producer Responsibility (EPR) systems. The event also covered the Circularity Hub and expectations for the future Circular Economy Act.

In her closing remarks, Gessica Lombardi, National President of CNA Fashion, Footwear, Leather Goods and Fur, offered the industry perspective: the transition can be an opportunity for industry and employment for Made in Italy, but only if it is economically sustainable for producers. In other words, the challenge is not to rebuild a supply chain from scratch, but to identify, organize, and strengthen the supply chain that already exists. This set of positions is not new — it continues the ongoing work of Monitor partners on traceability, transparency, sustainability, and circularity since the first commitment to the United Nations Economic Commission for Europe (UNECE) in 2021, and has gradually taken shape through commitments made to the European Commission's DG GROW and published on the EU Textiles Ecosystem Platform, as well as contributions to consultations by the Joint Research Centre (JRC). For companies involved in the global circular trade of used clothing and textiles, the signal from this Brussels discussion is relatively clear: unsold inventory is shifting from "waste" to a resource that must be reconfigured through data and contracts, and those who establish interoperable data and cross-stage partnerships early will be more likely to take the initiative in the next round of regulatory constraints.

Source: Moda circolare e invenduto: il Manifesto 2026 a Bruxelles - HUB Style · Originally published on 2026-10-05