The firm, which has manufacturing sites in Castleford and Keighley and an office in Leeds, said it will stop destroying "unsaleable products" with immediate effect.
Burberry said: "We already re-use, repair, donate or recycle unsaleable products and we will continue to expand these efforts.
"At Burberry, we are passionate about driving positive change. Our responsibility goals cover the entire footprint of our operations and extend to the communities around us."
Chief executive Marco Gobbetti added: "Modern luxury means being socially and environmentally responsible. This belief is core to us at Burberry and key to our long-term success."
There will be no real fur in its collection presented later this month and the firm will phase out existing fur products.
Burberry's showcase at London Fashion Show on September 17 will be the debut collection for the brand's new chief creative officer, former Givenchy designer Riccardo Tisci.
The use of real fur by Burberry has been restricted for many years to rabbit, fox, mink and Asiatic racoon. These, alongside angora, will be banned from future Burberry collections.
The company said it is passionate about "driving positive change", and in May it became a core partner of the Make Fashion Circular Initiative convened by the Ellen McArthur Foundation.
Burberry said: "We continue to invest in communities, from supporting young people in disadvantaged areas of London and Yorkshire, to developing a more inclusive and sustainable cashmere industry in Afghanistan. These efforts have been recognised by Burberry’s inclusion in the Dow Jones Sustainability Index for the third consecutive year."
Burberry burnt £28.6m worth of products, including £10.4m in beauty items, over the past year, according to its annual report, provoking widespread criticism.
At the time, Burberry said it only destroyed items that carried its trademark and only worked with specialist companies which were able to harness the energy from the process.
The company said it had careful processes in place to minimise the amount of excess stock it produces.
It said the destruction of cosmetic items was a one-off related to the licence agreed with beauty company Coty last year.
Destroying products has become common practice for the industry, with retailers describing it as a measure to protect intellectual property and prevent illegal counterfeiting by ensuring the supply chain remains intact.
Burberry's clothing is priced at the high end of fashion retail, with men's polo shirts selling for £250 and its famous trench coats are priced at around £1,500.