As the fashion industry faces increasing scrutiny, 2024 marks a pivotal year with new sustainability regulations set to reshape the sector. Self-regulation may soon be a thing of the past, as global mandates are introduced to address everything from textile production and chemical use to recycling and waste management. Despite some progress, the industry's transformation lags behind the urgency of these new rules. The EU is spearheading the charge with its Strategy for Sustainable and Circular Textiles, which aims to enforce stricter standards on product design, marketing, waste management, and corporate reporting.
Key regulations include the Ecodesign for Sustainable Products Regulation (ESPR), setting minimum design standards for recyclability and durability, and the Green Claims Directive, which targets greenwashing by enforcing transparency and evidence-backed sustainability claims. The Waste Framework Directive will introduce Extended Producer Responsibility, requiring companies to manage the recycling of textile waste. Additionally, the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive will impose comprehensive reporting and diligence requirements.
These regulations will impact not just European brands but also international players, with ripple effects in Asia, the US, and the UK. The year ahead presents an opportunity for fashion companies to overhaul their business models. Achieving regulatory compliance will necessitate improved traceability, more sustainable sourcing and production, and innovative design practices focused on circularity. New business models, including resale, rental, and closed-loop recycling, are expected to gain prominence. For example, companies like Renewcell are advancing fibre-to-fibre recycling technologies to support circularity. However, full integration of these practices remains a challenge, as evidenced by slower-than-expected sales of recycled materials.