What does the ESPR change for SMEs?

What you must do concretely

What is expected of you

The ESPR (Regulation (EU) 2024/1781) is a framework regulation: it sets out the rules, but only fills them in per product category through separate delegated acts. For a company with 10 to 100 employees, this means that the regulation itself does not yet require direct action, but it does determine what will come later, product category by product category. Article 1 of the ESPR describes the subject matter and scope: the regulation applies in principle to physical products placed on the EU market, with a number of exceptions such as food, medicines and living organisms. The practical obligations that follow from this framework reach companies in phases.

Check whether and when a product category is due

Because the ESPR itself does not set product-specific requirements, the first practical step for an SME manufacturer or importer is to find out whether its own product will fall under a delegated act, and if so when. This requires following the Commission's work programme per product category, something many smaller companies do not set aside structured time for. Anyone wishing to investigate this for their own assortment will find an overview of which product categories of small and medium-sized enterprises fall under the ESPR and can check the status of their own product category via the order in which product categories come up.

Understanding that requirements differ per product category

The ESPR gives the Commission the power to set requirements on sustainability, repairability, recyclability and information provision through delegated acts — but each time tailored to one product category. This means that a manufacturer of, for example, furniture and a manufacturer of electronics will face different concrete requirements, even though they fall under the same framework regulation. For a company that carries products in multiple categories, it is therefore not a matter of "complying with the ESPR" as a single action, but of finding out per product category what will specifically apply. More information on how those delegated acts work can be found on what a delegated act is and why it determines what a company must do.

Take into account the digital product passport as a recurring element

One of the instruments that the ESPR makes possible is the digital product passport: a structured dossier with product information, made accessible via a data carrier such as a QR code. Not every delegated act will necessarily require a passport, but the passport is the instrument that the Commission has in mind for multiple product categories. For an SME, it is practical not to wait until its own product category becomes concrete, but to already understand what a passport entails and what data belongs in it. An introduction to this can be found on what a digital product passport for products actually is, and an overview of the expected data categories on which data will be included in the digital product passport of products.

Assess whether "small" means an exemption

A recurring question among smaller manufacturers is whether company size is a reason to fall outside the obligations. The ESPR reasons primarily from product categories and not from company size, although delegated acts can take smaller market participants into account. That distinction — product category versus company size — is precisely where much confusion arises. A more detailed discussion of that question can be found on whether the product passport also applies to small companies.

Where things go wrong in practice

A first recurring pattern is that companies confuse the ESPR with a concrete obligation that already applies, and subsequently postpone action because "nothing has been published yet for our product category" — while the preparation time for data collection is often longer than expected.

A second situation is underestimating product category classification: an assortment that at first glance forms one category sometimes falls into multiple product groups, each with their own timeline, upon closer examination. Those who do not clarify this in advance only discover it when the first delegated act is already in force.

A third pattern is that companies assume an importer or supplier will provide the data without a documented agreement to that effect — resulting in no one actually having collected the information when it is needed.

A fourth situation arises with composite products: a component falls under a different regulation than the end product, as can be seen with the combination of battery and device. Those who do not know this difference run the risk of treating two obligations as one.

A fifth recurring point is failing to recognize that product category classification is not always straightforward: companies assume their product logically falls into a certain category without testing it against the official classification.

What you can document

• An overview of your own product assortment linked to the presumed product group, including the question of whether the product can fall into multiple groups simultaneously — see for guidance when a product falls into multiple product groups simultaneously.
• A file per product group with the status of the associated delegated act: not yet published, under consultation, or adopted.
• A list of suppliers and components per product, with a note on which party can provide which data.
• A review of your own product classification, for example using the questions on which product group a product falls under.
• A timeline with the expected entry into force per relevant product group, so that data collection does not start only when an obligation takes effect — see also when the product passport becomes mandatory for products.
• A brief note on which products may fall outside the scope of Article 1, and on the basis of which reasoning that assessment was made.