The End of The Throwaway Economy?

The world generated a record 62 million tonnes of electronic waste in 2022, yet only 22.3 per cent was formally collected and recycled. The remainder was largely discarded, stored or lost within poorly managed waste streams. For decades, consumers have been encouraged, directly or indirectly, to replace faulty products rather than repair them. ESG discussions have traditionally centred on carbon emissions and energy efficiency, but regulators are now focusing on the entire lifecycle of products. Against this backdrop, the EU’s Right to Repair Directive could become one of the decade’s most significant ESG measures, tackling waste at source and accelerating the transition towards a genuinely circular economy.

Why Repair Has Become an ESG Issue

Repair has become central to ESG because it supports environmental, social and governance objectives simultaneously. Extending product lifespans reduces waste, lowers demand for scarce raw materials and cuts emissions linked to manufacturing replacements. Repairing a smartphone, for example, helps preserve valuable minerals such as lithium, cobalt and rare earth elements. Easier access to affordable repairs also helps households manage cost-of-living pressures while strengthening consumer rights. Independent repair networks can create local jobs and support regional economies. From a governance perspective, the EU’s Directive introduces new obligations covering spare parts, repair information and supply-chain accountability. Investors are paying increasing attention to these issues. Asset managers and ESG ratings providers are examining resource efficiency, circularity and product longevity alongside carbon metrics. Companies that demonstrate strong resource productivity may gain an advantage in sustainability reporting and investment markets.

What Exactly Does the Directive Do?

The Right to Repair Directive is designed to make repair the default option rather than the exception. Covering a range of repairable consumer products, including goods already subject to EU repairability rules, it encourages sellers to repair faulty items during the legal guarantee period whenever repair is practical and cost-effective. Beyond that period, manufacturers must offer repair services for certain products and provide access to spare parts, repair information and relevant tools. A consumer whose washing machine fails, for example, should find it easier to obtain replacement components rather than purchase a new appliance. The Directive also introduces a standard European Repair Information Form, helping consumers compare repair options and prices. In addition, Member States must establish online platforms that help consumers locate repair providers. National implementation measures are expected to take effect across the EU from 2026 onwards.

Repair Versus Replacement: A Fundamental Market Shift

For years, the economics of consumer goods favoured replacement over repair. A faulty smartphone, coffee machine or washing machine was often replaced with a new model, boosting repeat sales and product turnover. The EU’s Right to Repair Directive aims to change those incentives. By encouraging repair during the legal guarantee period and expanding repair options afterwards, it makes extending product life more attractive and practical. Durability may therefore become a stronger competitive advantage. Manufacturers could increasingly promote longevity, repairability and lifetime value rather than frequent upgrades. Fairphone, with its easily repairable smartphones, offers a glimpse of this approach. The key question is whether the Directive can weaken planned obsolescence and encourage more sustainable after-sales strategies that keep products in use for longer.

New Business Obligations and the Rise of the Repair Economy

The Directive creates new responsibilities for manufacturers. Companies must provide spare parts, technical documentation and repair information, while ensuring access to repair services. Although this may increase compliance costs, it also forces businesses to rethink supply chains, inventory management and after-sales support. Independent repairers could benefit from better access to parts and information, creating new commercial opportunities and greater consumer choice. Investors are also showing growing interest in repair, refurbishment and remanufacturing markets. Meanwhile, Product-as-a-Service models are gaining momentum. Because companies retain ownership of products, they have a strong incentive to maintain and repair them. Examples include leased office equipment, refurbished smartphones sold through Back Market and certified second-life electronics. In this emerging model, durability becomes a competitive advantage rather than an obstacle to sales.

Will It Really Deliver Environmental Benefits?

Supporters argue that the Directive could make a meaningful contribution to reducing Europe’s growing mountain of electronic waste. Extending the lifespan of smartphones, washing machines and laptops reduces demand for newly manufactured products, cutting the extraction of critical minerals. It also lowers the embodied carbon associated with production, transport and disposal. In this respect, the legislation aligns closely with the EU’s Circular Economy Action Plan.

Critics, however, question how much consumer behaviour will actually change. Many people may still prefer newer models, while repair costs can sometimes exceed the price of replacement products. Some devices also remain difficult to repair despite regulatory efforts. The most intriguing development may come from technology itself. AI-powered diagnostics, digital product passports and lifecycle tracking systems could help businesses monitor component histories, predict failures and improve resource efficiency. If widely adopted, these innovations could transform repair from a niche activity into a measurable ESG performance indicator.

How Product Design and Innovation Could Change

One of the Directive’s most significant effects may be on product design. Manufacturers are likely to focus more on modular construction, easier battery replacement, standardised components and longer software support. Fairphone has already shown how replaceable modules can extend smartphone lifespans, while EU battery rules are pushing the market in a similar direction. Critics argue that such changes could increase manufacturing costs and raise initial prices. Supporters, however, believe innovation will evolve rather than decline. Instead of concentrating solely on new features, businesses may compete on durability, upgradeability and repairability. Consumers and investors are also paying closer attention to repairability scores and circular design credentials. Consequently, concepts such as Design for Sustainability and Design for Circularity are moving into mainstream business strategy. In the long term, longevity may prove as important as novelty in determining commercial success.

The UK Perspective

Brexit has not shielded British businesses from the EU’s regulatory influence. UK manufacturers selling consumer goods into EU markets will still need to comply with the Directive. Consumer expectations are changing too, with many shoppers favouring durable, repairable and environmentally responsible products. Meanwhile, UK policymakers have introduced Right to Repair measures for certain household appliances, reflecting similar sustainability goals. For multinational companies, maintaining different repair standards across markets may be inefficient, making EU rules the practical benchmark for wider operations. This reflects the Brussels Effect, whereby EU regulations shape business practices well beyond the Union’s borders.

Remaining Challenges and the Road Ahead

Despite its ambitions, the Directive is not a complete solution. Many regions still lack accessible repair networks, while consumers may remain unaware of their new rights. Labour costs can make repairing a low-cost appliance more expensive than replacing it, particularly when discounted imports are readily available. Software restrictions and proprietary components may also continue to limit repair options. In addition, specialist technicians are in short supply in some sectors. The larger question is whether repair rights alone can transform consumer behaviour. Governments may also need to consider tax incentives for repairs, support for skills training and measures that make sustainable choices more financially attractive. Ultimately, the success of the Directive will depend not only on legislation but also on broader economic and cultural change.

Beyond Carbon

The Directive reflects a wider shift in ESG thinking. Sustainability is no longer just about cleaner production but also about keeping products in use for longer. Companies that embrace repairability, circularity and durability may well gain regulatory, competitive and reputational advantages. Those reliant on rapid replacement cycles could face growing pressure from regulators, investors and increasingly sustainability-conscious consumers.

And what about you…?

  • How prepared is your organisation to meet growing expectations around product durability, repairability and circular-economy principles?
  • Could your business benefit from adopting a more circular model, such as refurbishment, remanufacturing or Product-as-a-Service offerings?