---
title: EU Eco-Design Regulation Changes the Game for Tech Hardware
image: https://connect.sustainalytics.com/hubfs/INV/Reports/Marketing%20Creative/Eco_Design_Tech_Report_Assets_V1_SM_1200x627_2.png
---

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Research Report

# EU’s Eco-Design Regulation Changes the Game for Tech Hardware

Circularity Requirements for Technology Products Heighten Cost and Market-Access  
Risks for Producers and Suppliers

The EU’s adoption of the Ecodesign for Sustainable Products Regulation (ESPR) is a key step in turning sustainability from a disclosure-led exercise to a binding market-access condition.

New requirements, including Digital Product Passports to track suppliers, will test companies’ readiness for a circular economy. technology hardware companies stand to differentiate themselves from their peers if they have strong eco-design principles and management of products at the end of their life. But the new requirements may spell higher costs and production disruptions. 

Using Morningstar Sustainalytics’ ESG Risk Ratings framework, we highlight the companies that are best and worst positioned for the regulatory changes.

In this report, you'll learn:

- The specific risks that producers of displays, smartphones, and tablets will face when the EU begins mandating compliance with the ESPR.
- Where the industry currently stands in terms of eco-design and product management.
- How investors can use Morningstar Sustainalytics’ ESG data to identify the strongest and weakest companies. 

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