From California to Europe, the fashion industry is bracing for a wave of legislative change that aims to promote sustainability and ethical accountability, Sourcing Journal reported.
Sourcing Journal’s Sustainability Report laid out some of the key laws, like the Americas Act, a landmark legislation harnessing the economic potential of the Western Hemisphere.
Introduced by Senators Michael Bennet (D-Co.) and Bill Cassidy (R-La.) in March, the legislation seeks to facilitate onshoring and reshoring, expand free-trade agreements and drive enforcement efforts against illicit goods made with forced labor. Most notably for the fashion industry, the Americas Act earmarks $14 billion in incentives to accelerate innovation in circular apparel, footwear, accessories and home textiles, including models that promote reuse, repair, rental and recycling.
In California, lawmakers are exploring passing the California Responsible Textile Recovery Act (SB 707), which would mandate that producers of apparel and textile products form and fund an Extended Producer Responsibility program tasked with recycling the state’s discarded garments and fabrics. The statewide platform would be composed of Producer Responsibility Organizations (PROs), managing the collection, sortation and recycling process.
Meanwhile, in Europe, one of the biggest and most contentious pieces of legislation is the Corporate Sustainability Due Diligence Directive (CSDDD). This rule would require large businesses to identify, mitigate and remedy environmental and human rights violations in their supply chains.
However, CSDDD’s passage has been especially fraught. Despite the European Council and European Parliament arriving at an interim deal in December, last-minute maneuverings by Germany, France and Italy threatened to scrap the regulation altogether. The naysayers’ argument: The requirements would be too financially, administratively and legally onerous for businesses.
Regulation has had plenty of impact elsewhere in the supply chain. With the International Maritime Organization (IMO) setting an ambitious target of achieving net-zero emissions by 2050, top brass at major ocean carriers are now feeling the heat to achieve that same goal. Mediterranean Shipping Company (MSC), Maersk, Hapag-Lloyd, CMA CGM and automobile shipping liner Wallenius Wilhelmsen have all established their own net-zero commitments either by or ahead of the 2050 target. CEOs at each carrier called on the agency to establish tougher regulations to accelerate the transition to green fuels.