This report addresses the problem definition: How will the EuP Directive create incentives for improving the environmental performance at B&O, and how can a proactive strategy for improving product performance be incorporated in the company? The problem definition is investigated through an interdisciplinary case study of Bang & Olufsen a/s and their product oriented environmental management. B&O places high emphasis on the design and the quality of their products and considers compliance with environmental legislation as being a part of this. The EuP Directive aims at integrating environmental considerations in the design of energy-using products. No final requirements exist as the Directive is not fully implemented, but possible requirements are found to concern standby and on-mode energy consumption as well as noise limits. With a point of departure in the current practices at B&O, a strategy for complying with the EuP Directive is developed, and it is assessed that B&O is able to comply without changing significantly in the existing procedures. It is concluded that the EuP Directive does not create significant incentives for improving the product related environmental performance at B&O. A proactive strategy is developed, consisting of three overall steps, which contain a number of concrete measures B&O can apply. Significant changes in the company attitude are however needed, before a proactive strategy can be applied.