The Greening of the Apparel Industry conference emphasized the upcoming Environmental and Social Governance (ESG) laws that will impact the fashion industry worldwide, Just Style reported.
Dirk Vantyghem, the director general of Euratex, stated that the European Commission introduced its ambitious EU sustainable strategy in 2022. The goal was to promote sustainability and transparency in the apparel industry while also supporting a strong textile sector in Europe.
Since the EU started working on turning that provision into laws, they have focused on key concepts like transparency, improved quality, and circularity.
Importantly, Vantyghem included that in recent months a few of these laws have been implemented.
He pointed out that an essential law is Eco Design, which will specify the quality requirements for garment production and how this data is communicated throughout the supply chain.
"It's a crucial bill that has been approved and we are in the last phase of implementing it." We have also established a directive for waste framework to regulate the management of our textile waste.
Vantyghem stated that the waste legislation framework has been finalized and we are now moving into the operational phase, which will involve implementing Extended Producer Responsibility (EPR).
Additionally, the EU recently implemented the due diligence legislation, aimed at enhancing accountability throughout the entire supply chain.
Vantyghem also disclosed that Euratex is currently in talks regarding textile labeling laws, which will determine the information displayed on labels in the future. This includes discussions on fiber composition and determining the origin.
Developing feasible and enforceable ESG laws for the fashion industry.
Vantyghem is eager for the legislation to be relevant to the textile industry and stated he is advocating for comprehensive legislation that is logical and feasible from a technical standpoint, while also being enforceable.
He mentioned that having a framework that is ineffective is pointless.
Vantyghem also highlighted that Euratex aims to give EU legislation a worldwide scope.
The new legislation should include all individuals in textile and garment manufacturing, not just those in the EU. We aim to create equal opportunities globally. "It is a challenging procedure."
Importantly, Vantyghem conceded that the clothing and fabric industry is not prepared to accept, compensate for, and purchase the necessary items to produce environmentally friendly products. This puts the manufacturer in a difficult position, caught between the demands of the EU legislator and consumers and brands unprepared to support sustainable products.
He explained that the equation is currently not working properly. We aim to achieve a balance between producers and consumer demand.
Euratex also plays a part in assisting everyone in adjusting to the change. Vantyghem announced earlier this month that the Horizon Europe partnership programme has been launched, which focuses on a research innovation fund for the industry.
"We must ensure that our businesses can adjust, assimilate, and prepare for a fresh and sustainable setting."
The programme, which has a EUR60bn budget should give some help to SMES on technology and green skills. Plus, Vantyghem explained that in the last few months Euratex has been working with education providers to make sure future workers can cope with the new legislation and the opportunities offered by digitalisation.
The good news from our perspective, he says is that the EU understands that its next priority will be to come up with a a plan, vision and programme to strengthen industrial competitiveness of the European economy while rebalancing the green deal with resilience in the industry.
Turkish suppliers advocate for laws that are 'responsible.'
Selçuk Mehmet Kaya, a board member of the Istanbul Textile and Apparel Exporter Association (IHKIB) and president of the sustainability committee, thinks that sustainability is crucial for both present survival and future existence.
He encouraged the industry to shift its language on sustainability and ESG towards engaging in a responsible supply chain.
Kaya clarified that while they are prepared to meet expectations and are accountable, they must also consider the cost aspect when discussing a cyclical economy and supply chain.
Similarly to Euratex's Vantyghem, Kaya highlighted that the responsibility for sustainability is often placed on manufacturers. In order to obtain the desired outcomes, he declared that it is essential to begin with sustainable sourcing and materials. We must also assess if they are reusable and how we will certify them.
He said that in Turkey, there are numerous encouragements for renewable energy, leading to significant investments from major companies. However, he highlighted the significance of logistics related to carbon emissions from transportation.
We need to address the recent shortage as trade relies on global pricing and reducing costs and distances are key for producers, making sourcing from nearby markets crucial.
Kaya stated that countries like Turkey, situated in the middle of target markets, play a crucial role in reducing carbon emissions. We possess a regional benefit for both Europe and the US.
He also emphasized the importance of suppliers being viewed as genuine partners by both brands and retailers. He specifically emphasized that big companies can address their logistics issues by collaborating with supplier countries and suppliers who have expertise in seasonal stocking and can efficiently process orders.
Additionally, Kaya agreed with Vantyghem's standpoint that consumers have not fully transitioned to buying only sustainable products based on their attitudes and actions.
Still, adhering to social and environmental standards and meeting legal requirements involves expenses, therefore the important issue at hand is how to distribute these costs.
Kaya stated that a compliant supplier should have an edge over a non-compliant one, but having the highest compliance score does not guarantee receiving the largest order.
ESG reports from fashion brands compared to ESG laws.
Social Compliance and Audit Programme WRAP's SVP, Mark Jaeger, operates worldwide but is based in the US. He emphasized that while the US lags in ESG legislation, major US fashion brands and retailers are proactively addressing sustainability issues.
He clarified that the US has particular enforceable laws against forced labor instead of extensive ESG regulations, but emphasized that US fashion buyers are advancing with ESG requirements for their supply chain.
Jaeger pointed out that American fashion companies and stores are drawing from the United Nations' 17 sustainable development goals established in 2015 and are progressing towards 2030. He further elaborated on how WRAP’s principles align with the UN’s sustainable development goals.
While speaking at the conference, he encouraged the audience to review Walmart's ESG report to demonstrate that, although not required to adhere to ESG regulations, the retailer has established its own ESG objectives and expects its suppliers to comply.
On the opposite side, Jaeger also presented an ESG report from a producer and supplier in Sri Lanka, emphasizing that it demonstrates proactive rather than just reactive actions in meeting requirements.
This Sri Lankan producer is examining the legislation emerging from Europe, like the Corporate Sustainability Due Diligence Directive, using it for inspiration and staying proactive in response.
Jaeger's recommendation for global fashion suppliers is to be ready: "The global trend is heading towards required human and environmental safeguards in global value chains. The majority of our clients in the US already have criteria in place for human rights, and a significant number have established ESG programs such as Walmart.
Successful suppliers and regions will predict needs and strive to fulfill buyer demands prior to receiving orders. Get ready, be prepared, and we wish you a lot of success,” he finished.