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Is Fashion Ready for ESG Rules?

The "Realistic Road Ahead for the Greening of the Apparel Industry" conference underscored the sweeping Environmental and Social Governance (ESG) regulations coming for the global fashion sector. Dirk Vantyghem, Euratex’s Director General, highlighted that the European Commission's 2022 sustainable strategy is pushing the industry towards greater sustainability and transparency, focusing on circularity and high-quality standards. Recent developments include the Eco Design legislation, which will guide garment production standards and supply chain transparency, and the Extended Producer Responsibility (EPR) framework for managing textile waste.

The EU's due diligence legislation, aimed at ensuring environmental and human rights accountability throughout supply chains, has been adopted, though some regulations, like textile labelling, are still under negotiation. Vantyghem emphasized the need for these regulations to be practical and enforceable while also advocating for a global approach to ensure fairness across the industry.

In Türkiye, Selçuk Mehmet Kaya of IHKIB stressed the importance of integrating sustainability into the entire supply chain, from sourcing to certification. He noted that while Türkiye benefits from local advantages and renewable energy incentives, the real challenge remains balancing cost with environmental goals. Kaya also called for recognition of suppliers as crucial partners in achieving sustainability targets.

Mark Jaeger from WRAP discussed how US fashion brands, though lagging behind in formal ESG legislation, are independently advancing their own sustainability agendas. He encouraged suppliers to proactively meet ESG expectations, using examples from both US retailers like Walmart and forward-thinking producers in Sri Lanka.

The conference revealed a sector at a crossroads, where aligning with emerging regulations and consumer expectations will be pivotal for future success.

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