Several countries in Europe have binding due diligence laws that require companies – in all sectors, not just fashion – to identify and report human rights and environmental violations in their supply chains. The EU is in the process of drafting legislation that would apply to the entire region. Last September, California passed a law in the U.S. that would make brands liable for wage violations in their California supply chains. This includes, in particular, third-party entities, for which most voluntary initiatives are not responsible. While a growing number of fashion companies are setting science-based targets to align their emissions with the goals of the Paris Agreement, it remains voluntary and without industry-wide involvement, with little oversight or enforcement to ensure compliance. The fashion law, says Maxine Bãdat©, director of the New Standard Institute, one of the bill`s main authors, will hold brands accountable for defining and achieving these goals. Below, we`ve rounded up some recently announced and upcoming sustainability policies, what they mean for fashion brands, and what companies can do to prepare. What is it? The Fashion Sustainability and Social Responsibility Act is a state law that, if passed, would make New York the first state in the country to hold top fashion brands accountable for their environmental and social impacts. Ngozi Okaro, executive director of Custom Collaborative, reiterates the hope that the Fashion Act and the industry in general will be more ambitious when it comes to imagining what is possible.
“What are we doing to build the capabilities of apparel manufacturers and keep New York City the fashion capital for innovation?” she asks. “I want to make sure we can do something positive in terms of investing in garment manufacturers.” This article is part of a series that discusses responsible fashion and innovative efforts to solve problems in the fashion industry. From recycled materials and organic yarns to fair wages for workers, fashion is rife with claims about how to mitigate its impact on the planet. In the past, however, most brands` promises were voluntary and their progress was self-reported. In other words, largely out of control and unlikely to be punished if or when they fail to achieve goals. That`s just about every big name in multinational fashion, from the most high-end – LVMH, Prada, Armani – to fast fashion giants like Shein and Boohoo. The New York Fashion Sustainability and Social Responsibility Bill (S7428/A8352, `the Fashion Act`) is the first legislation of its kind in the United States to impose social and environmental sustainability disclosure requirements on global fashion brands. However, this is not surprising, as several EU countries, Australia and the UK have also begun to take steps towards a similar universal goal – for example, the UK`s Modern Slavery Act, which aims to hold companies accountable for their suppliers` employment standards by requiring an annual declaration confirming whether slavery and human trafficking are absent from the business and supply chain. The fashion law joins a growing landscape of regulatory efforts to create oversight of an industry that critics and even many brands say is desperately needed, and aims to build on a number of previous efforts. It stands out for its broad spectrum and depth – covering issues such as production volumes that are often overlooked or treated in isolation, such as climate targets and workers` wages – and its financing mechanism that benefits communities disproportionately affected by the effects of pollution and climate change. Some skeptics would like to go further, but its ambition could reshape fashion behavior, as it would affect virtually every recognizable fashion brand, from U.S. companies like Gap, Ralph Lauren and Tapestry to international mass market and luxury players like Shein and H&M, Prada and LVMH.
The Fashion Sustainability and Social Responsibility Act would require all fashion companies that do business in New York (sell their products) and generate more than $100 million in revenue to map at least 50% of their supply chains and disclose impacts such as greenhouse gas emissions. water footprint and chemical consumption. The bill does not specify which ones, but requires brands to focus on areas with the greatest social and environmental risks. Brands would have to declare the total amount of materials they produce, a remarkable move that would highlight the overall impact of the sector, which is usually hidden. Most brands pride themselves on reducing the impact of individual materials while increasing their production and overall footprint. Brands would also be forced to reduce their impact, including by setting and meeting science-based targets for their greenhouse gas emissions. Another potential problem with fashion law is that it could increase costs for consumers. It is thought that the impact on prices would likely be particularly acute for fast fashion brands whose business model relies on low-cost items to attract sales. Although rising costs are a significant issue, it should be taken into account that many companies in the fashion industry are only able to offer such cheap products if they do not fully consider the real costs of their activities to the environment and their employees. Ultimately, for fashion law to succeed, consumers must show some willingness to accept higher prices in order to achieve better human rights and environmental outcomes. The bill is currently before the consumer protection committees of the New York State Senate and Assembly.
[33] It is not yet clear whether the legislation will be passed or when the legislature will be able to vote on it. Yet at this early stage, the bill has managed to garner the support of various nonprofits focused on the fashion industry, including the New Standard Institute, the Natural Resources Defense Council, and the New York City Environmental Justice Alliance, as well as celebrity designer Stella McCartney. [34] The bill has been praised by designers and industry leaders for its depth and breadth. It addresses long-neglected issues, such as the impact of exploding production volumes, and requires fairly comprehensive coverage of climate change at workers` wages. The main supporter of the bill, the director of the New Standard Institute, Maxine Bédat, has also noted a massive interest in its reproduction in other states. Given the size of New York`s market, the Fashion Act could set off a chain reaction around the world and reshape the way the fashion industry operates globally. What is the end result? If passed, major fashion brands will have to reduce their negative impact at a pace dictated not by companies, but by legislators. The effects of the law on fashion may not be immediately obvious to buyers, but certain actions — such as an annual list of companies that violate the law published by the attorney general — give them confidence that major players in the industry will be held accountable. Who will it affect? Sellers of consumer goods – such as fashion and beauty products – in the European Union could be fined. The rules can only come into force in late 2025 or early 2026. Last September, when New York Fashion Week was held for the first time in a year, Kathy Hochul, the new governor, sat in the front row of the Prabal Gurung show, marking a new era in the relationship between the fashion industry and state government.
“Here are all the eyes in the world when it comes to fashion,” she later told Vogue. While similar due diligence laws are being discussed in the European Union, and although Germany, France, the United Kingdom and Australia have laws that require human rights and slavery due diligence, there is no general legislation in any country that regulates the main social and environmental measures of the fashion industry and imposes changes. Fortunately, the tide is turning. Lawmakers in many EU countries and US states are tightening controls to hold fashion companies accountable. If enforced effectively, these rules can create a level playing field and encourage industry to work together to solve problems that no one company can solve alone.