A new European Union rule banning large companies from destroying unsold clothing, accessories and footwear came into force on Sunday as part of the bloc’s efforts to reduce waste and make the fashion industry more sustainable.

Every year, hundreds of thousands of tons of clothes and shoes are discarded across the EU due to damaged products, excess inventory, outdated collections and online returns that are not resold. The new regulation targets major fashion retailers, wholesalers and clothing manufacturers, despite the fact that only around 20% of apparel sold in the EU is produced within the bloc.

The measure is part of the EU’s Ecodesign for Sustainable Products Regulation and applies initially to large companies with more than 250 employees and annual net revenue exceeding 50 million euros. These businesses are now prohibited from destroying unsold clothing, footwear and fashion accessories.

Instead, companies will have to look for alternative solutions, such as selling items at reduced prices, moving them to other markets or donating them to charitable organizations. Destruction will only be allowed in specific cases, including when products are unsafe, damaged, counterfeit or refused by charities.