Impact Policy
In order to achieve the seismic change needed to half the fashion industry’s greenhouse gas emissions by 2030 and drastically reduce the impact of textile consumption so that it is well within planetary boundaries, legislation is essential.
The current model of voluntary action is not working.
Only a handful of brands have signed up for certifications like GOTS. Over 50% of major fashion brands disclose zero information about their supply chains and 85% do not disclose annual production volumes, according to Fashion Revolution’s 2022 Transparency Index.
It’s clear that most brands will not fundamentally change unless they are forced to by law.
Meanwhile, those companies who have taken steps to improve their environmental impact and labor standards are incurring rising costs and therefore at a competitive disadvantage.
It’s time to level the playing field with the same environmental and social standards for ALL. Here’s a look at the leading global policies on sustainability and human rights in the fashion industry.
EUROPE
European Union
-
-
An ambitious strategy focused on waste reduction and the transition to a circular economy.
With textile consumption identified as the 4th largest climate impact in the EU after food, housing and mobility and the 3rd highest impact on water consumption and land use, this set of proposals builds on the EU’s pre-existing EcoDesign framework which has reduced energy consumption of products by 10% and saved customers 120 billion euros!
-
First presented on March 30 2022, the authors of this strategy have invited fashion industry players to propose specific actions around the policy objectives through surveys and workshops. Based on feedback, an updated strategy will be presented at the end of 2022 including a “transition pathway” for textile companies to achieve these objectives.
-
Some insiders say this is the most comprehensive plan to date. And as part of the larger EU Green New Deal and Circular Economy Action Plan, this set of proposals fits in with a much broader plan for the EU’s green transition that is already in motion. For example, digital product passports will be mandatory for all rechargeable and electric vehicle batteries from 2026. However, as the name implies, the EU Strategy for Sustainable and Circular Textiles is currently a strategy, not a set of enforceable rules. The issue of enforcement across the EU’s 27 member countries remains in question.
Here are the main goals:
Adopt a circular design approach by setting requirements for textiles to make them last longer, easier to repair and easier to recycle. Set a minimum standard for recycled fibre content and mandate that textiles be free from hazardous substances.
Profitable re-use and repair services widely available. Stimulate growth by adopting favourable taxation measures for re-use and repair sectors.
Curb the release of microplastics from synthetic textiles by developing new manufacturing processes like pre-washing.
Introduce “digital product passports” containing easily accessible information on a product’s materials, supply chain, impact and disposal guidance, empowering customers to make informed choices and tackling greenwashing.
Further tackle greenwashing by ensuring the accuracy of companies’ green claims.
A mandatory Extended Producer Responsibility scheme, making brands responsible for the entire life cycle of their products from raw material through to end of life waste processing.
Tackle overproduction, overconsumption and waste by requiring brands to reduce their number of annual collections and disclose the number of products they discard and destroy.
FOR MORE INFO: Check out this fun visual fact sheet!
FRANCE
-
-
A world leader in the fight against waste and the transition to a circular economy, France has a number of laws in this area that have been recently passed or are in consideration.
PASSED
Prohibiting Destruction of Unsold Items
A world first, this law prohibits the destruction and discarding of unsold and returned fashion items through burning and landfilling. Instead, companies must donate, reuse or recycle their excess product. In effect as of Jan 1, 2022, this is an extension of France’s ground-breaking Anti-Waste Law passed in 2020.
From Feb 1, 2023, all clothing, linen and footwear products must be labelled with a “Triman pictogram” - a symbol containing a character and 3 arrows – with a sentence explaining that the product is subject to sorting rules and the type of collection point to use – kerbside, banks in shops etc. Aimed at reducing waste and increasing circularity.
Ending Printed Labels
10’s of billions of receipted are printed each year in France alone with an average lifespan of a few seconds. From Jan 1, 2023, printing of receipts will be banned except upon customer request.
PROPOSED
Better Information for Customers
Mandatory product information must be visible or accessible to customers about environmental characteristics like the presence of recycled materials, presence of hazardous substances, service lifespan and recyclability.
Bonus-Penalty System
A financial reward for companies that have circular practices - a “take-back scheme,” use of recycled materials – and a penalty for those who don’t.
Boosting Extended Producer Responsibility
An Extended Producer Responsibility scheme (EPR) has been in place in France since 2007, requiring companies introducing products on the market to contribute to the collection, recovery and sorting costs of their used items. This law builds on the existing scheme, requiring companies to cover ALL collection and sorting costs, registering with an official take-back scheme operator like this one or implementing their own waste management system.
Recycled Content Minimum
A requirement for certain products to have a minimum amount of recycled content before being placed on the French marketplace.
GERMANY
-
German Supply Chain Act
EFFECTIVE AS OF: Jan 1, 2023 -
Based on the UN Guiding Principles, this law mandates German companies across all sectors including fashion to investigate, disclose and address human rights and environmental issues in their supply chains. Companies with over 3000 employees and a head office or principal place of business in Germany – expanding to companies with over 1000 employees from 2024 – are required to establish risk management systems, identifying risk areas in their supply chains including child labour, forced labour, minimum wage, health hazards and environmental damage. If a company identifies a risk, senior management must issue a public policy statement, disclosing this information and how they will address it. If a company fails to disclose or address an issue, they could be fined up to 8 million euros or 2% of the company’s global revenue.
-
It will be interesting to see how this law is enforced across the complex global supply chains. Watch this space.
UNITED KINGDOM
-
-
Published in September 2021 by the UK’s Competition & Markets Authority (CMA), the Green Claims Code is not a standalone law. Instead, it is guidance for fashion companies on how to manage their sustainability marketing in adherence with existing 2008 consumer protection laws here and here. The CMA’s guide advises that companies making claims of sustainability on their products must ensure these claims are truthful, do not omit relevant information, consider the full lifecycle of their product and only make comparisons that are fair and meaningful.
SO FAR: The CMA are not messing around, with investigations into green claims from several major fashion brands already underway. The results of these investigations are yet to be seen, but at the very least, the companies face brand damage from negative publicity.
FOR MORE INFO: Check out the fun, graphic version of UK’s Green Claims Guide
United States
The Fashion
Act
-
First introduced in January 2022 and recently amended based on stakeholder feedback to clarify and strengthen the bill, The Fashion Act has major high level support – everyone from Leonardo DiCaprio, Rosario Dawson and Jane Fonda, New York Assembly member Dr. Anna Kelles and Senator Alessandra Biaggi, sustainable fashion leaders Stella McCartney, Patagonia, Reformation and Mara Hoffman and non-profit leaders Fashion Revolution.
The Fashion Act aims to hold all major brands accountable for the environmental and social impacts in their supply chain.
How?
By requiring all fashion brands selling in New York with sales over 100 million – AKA every major fashion brand - to assess, disclose and mitigate their impacts. This is one of the bill’s unique selling points – it may come from New York but it has a MASSIVE global reach.
Under the bill, brands are required to map up to 75% of their supply chain within 3 years, disclosing their greenhouse gas emissions, water footprint, chemical use and median worker wages.
Greenhouse Gas Emissions
Annual reporting of emissions is required and emissions must fall within Science Based Targets. If found out of compliance, brands have 18 months to comply.
Chemical Use and Water Footprint
Brands must sample and report on wastewater, chemical concentrations and water usage for dyeing, washing and finishing. Reports must be independently verified. After 3 years, brands will be considered out of compliance.
Workers’ Rights
Brands must supply the mean wage of Tier 1 suppliers (their product manufacturers) and how this compares to the local minimum wage and living wages. They must also disclose the percentage of unionized factories, hours worked and frequency of overtime.
Volume of Clothes and Materials Disclosure
Mandatory disclosure of the total volume of materials produced, along with a breakdown of materials by type. This would be a game changer for the current milieu in which major brands tout “sustainable” lines representing less than 0.5% of their revenue while continuing to ramp up production in the rest of their business.
Fashion Remediation Fund
Non-compliance will result in a fine of up to 2% of annual revenue, entered into a community fund to be used for environmental justice projects directly benefiting the people and areas impacted by the non-compliance.
Reporting and Enforcement
Companies are required to submit annual reports to the office of New York’s Attorney General and publish them on their website.
The Attorney General will monitor, investigate and enforce action and annually publish a list of companies who are non-compliant.
-
Introduced in the 2021/2022 legislative session, the new, revamped version will be released in the 2022/2023 session with hopes of getting the bill into law in 2023.
-
Head here for guidance re: posting on social media, contacting your local representative and officially endorsing The Fashion Act.
The Garment Worker
Protection Act
-
September, 2021
-
A hallmark piece of legislation out of California, the biggest garment hub in the US. The bill guarantees a minimum wage for garment workers and holds brands accountable for violations. This law officially ends the much less favourable “per-piece” pay scale where workers are paid per item of clothing, which in California earns an average of $6 an hour versus the state’s minimum wage of $14. Crucially, brands are also now accountable for wage theft. Previously, they could evade wage theft claims from workers in their supplier facilities through loopholes, like claiming the work was sub-contracted. Now, they are directly responsible for the pay and labour standards of workers across their Tier 1 and Tier 2 facilities (cutting and sewing, fabric mills, dye and washing facilities).
The Fabric Act
-
Similar to The Garment Worker Protection Act, but on a federal level. The Fabric Act eliminates the per-piece rate in favour of hourly pay, holds brands and retailers accountable alongside manufacturing partners for workplace wage violations and encourages reshoring through a 30% tax credit to brands manufacturing within the US, plus funding to support manufacturers updating or improving their factories.
-
The Fabric Act was introduced to the House of Representatives in July 2022 and is now making its way through the US government.
-
Head here to petition, call local representatives, shout on social media & if you’re a fashion brand, endorse.
Are we missing something?
Please email becky@duckproductions.co to tell us about an exciting policy in your region.