There's no doubt that the conversation around sustainability in fashion has come on in leaps and bounds over the past three years, with brands vying to announce various green policies, whether they're commitments to go net zero or ambitions to be carbon positive (whatever means that companies extract more carbon from the atmosphere than is emitted).
However, while many companies continue to demonstrate their commitment to reducing their carbon footprint, over the decades what we are still missing is just one thing: responsibility. That is why Legislation will be key when it comes to accelerating change in the industry. Fashion has historically been largely unregulated due to its unwieldy supply chains that stretch across multiple continents.
But new legislation introduced by the New Standard Institute of New York, called “The Fashion Act”, aims to address this, requiring brands to disclose their greenhouse gas emissions, as well as their energy, water, materials and plastic use and chemical management; set and achieve science-based goals (which are in line with the Paris Agreement goal of keeping global warming to 1.5°C); and implement mandatory due diligence throughout its supply chain (including wage reporting).
The proposed bill, already supported by the likes of Stella McCartney, would apply to any brand that does business in New York and has an annual global revenue of $100 million or more, meaning it could change the rules. of the game for the entire industry. “It's not just New York-based companies; that is really important”, she asserted in dialogue with Vogue magazine Maxine Bédat, founder of the New Standard Institute. "It's using a model that California has used in the automotive space to drive improvements in the industry globally," she said.
The legislation finally would hold major fashion companies accountable for their environmental and social impacts, since any brand that does not comply with the law would be fined two percent of its annual income (all funds would be given to environmental justice organizations such as UPROSE ). “We have had some voluntary commitments, but there is not a lot of pressure on companies at the moment. The data is quite hidden,” Bédat explained. “We are also seeing players enter the scene who have no respect for the environment and work. This type of legislation would ensure that no company can exploit the environment and labor and use that as a competitive advantage.”
While the Fashion Law still needs to be passed by the New York Senate and Assembly, it is part of a growing movement toward more regulation of the fashion industry. The European Union, for example, is set to introduce a bill covering due diligence, eco-design and product labeling this year, which would affect all companies doing business in the EU. “There is a lot of movement and I think we will start to see the impact this year.” For her part , Claire Bergkamp, director of operations at Textile Exchange, a global non-profit organization, assured.
An important issue expected to be covered by the proposals is textile waste (an estimated 92 million tonnes is dumped globally each year). Extended producer responsibility legislation, already in place in countries like France and Sweden, will make companies responsible for paying for the collection, sorting and recycling of textiles. “If there is a real push in extended producer responsibility, there will be a need to move away from throwaway fashion, which I think would be an incredibly positive outcome for the industry,” Bergkamp continued.
Greenwashing is also likely to be a key contact point, as the UK will clamp down on false or misleading marketing about a product's environmental impact, through its Green Claims Code published last year. . The EU is also expected to introduce specific labeling guidelines for brands that want to make claims about a product's green credentials. “This is about transparency for clients,” explained Pascale Moreau, founder of Ohana Public Affairs.
The pandemic has also highlighted the need for more protections for garment workers, who have lost their jobs or faced drastic pay cuts due to billions of dollars in canceled orders. The Garment Worker Protection Act passed in California last October, guaranteeing hourly wages for garment workers and holding both manufacturers and brands accountable for wage theft and illegal payment practices , set a precedent for greater brand responsibility within its supply chain, and it is hoped that due diligence proposed EU legislation will do the same.
“The big question is: how rigorous is it going to be?” asked Elizabeth Cline, policy director at the advocacy group Remake . “Are you going to include that responsibility in the brands? Are there really built-in incentives for companies not only to report on human rights, but also to change their business behavior to support human rights?” she added.
Of course, even when legislation has been passed, it is essential to ensure that it is actually implemented. “The legislation we're looking at is really exciting, but it also feels like the beginning,” Cline said. "Getting these laws passed is half the battle."
While much of the attention is currently focused on more regulation for the industry, financial incentives, for example, for brands that use more environmentally friendly fibers (something the Textile Exchange calls for), will also be key. “Legislation is incredibly important, but it must be both rewarding and punitive in nature. Both incentives and regulation need to go hand in hand to really influence change.” Bergkamp added.
Given the amount of work that is currently being carried out, there is no doubt that 2022 will be a key year for legislation in the fashion industry. “COVID-19 and the climate crisis have really resulted in a tipping point for us to recognize that the problem of fashion overconsumption and embedded human rights issues will not be addressed through voluntary efforts,” concluded Ayesha Barenblat, Founder and Director. Remake executive. "Much of the change we need will come from smart legislation."
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