Yes, subject to conditions: for a large company, the EU regulation counts recycling as destruction, permitted only in one of the 10 derogation cases, for example a damaged item without cost-effective repair or a donation without a recipient for 8 weeks. Destruction then follows the waste hierarchy, with recycling first. Micro, small and medium-sized enterprises, the latter until 2030, remain subject to the AGEC law, which permits recycling once donation and reuse have been ruled out.
Read the source article: Ban on destruction of unsold textiles: EU and French rules