SUPPLY CHAIN
“Increased transparency and accountability in the fashion industry has largely been voluntary and unregulated ”
LAURA GIBSON HEAD OF SUSTAINABILITY , CORE
New York fashion ESG Act might be game changer In January 2022 , the New York State Assembly unveiled the Fashion Sustainability and Social Accountability Act . If passed , this would make New York the first city to pass legislation holding the biggest fashion brands to account for their role in climate change .
Backed by a powerful coalition of nonprofits and renowned designer Stella McCartney , the law will apply to global apparel and footwear firms with more than US $ 100mn in revenue that conduct business in New York – which is pretty much every large multinational fashion brand .
Specifically , it would require such companies to map a minimum of 50 % of their supply chain , starting with the farms where raw materials originated , through to factories and shipping .
“ The new legislation will require sustainability claims to be verified and disclosed by fashion companies , or else the brand faces a fine ,” says Laura Gibson , Head of Sustainability at supply chain management company Core . “ It will affect every large multinational fashion business , from Prada to Armani , as well as fast-fashion giants such as Boohoo .
Asked if she sees New York ’ s legislation making a lasting difference , Gibson says that , although the bill is “ geographically limited ”, if passed , it will be an “ important milestone ” for sustainability in the fashion industry and is likely to drive calls for stronger legislation in other regions .
She adds : “ While there have been recent shifts towards increased transparency and accountability within the fashion industry , this has largely been voluntary and unregulated , so the Fashion Act could provide a blueprint of how to regulate these initiatives to drive change .”
Also driving change is the European Commission ( EC ), which has announced plans to make far-reaching changes to a key sustainability reporting directive . Under the old EC directive , around 11,000 EU companies with more than 500 employees were obliged to report on their sustainability and ESG practices .
82 September 2022