Collaboration in Action: Policy

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The sustainability regulatory landscape continues to evolve rapidly — and shows no signs of slowing down. Since our last Policy spotlight in September 2023, in-progress regulations have been finalized and new proposals have emerged, impacting all stages of the fashion and apparel value chain. Though there’s some time before these changes become law, fashion brands and organizations need to familiarize themselves with what’s coming and take proactive measures to get ahead.

We met with policy experts from Fashion Conveners member organizations to unpack the latest developments and shed light on what brands should be doing to prepare. We also share how Fashion Conveners members are working together to exchange knowledge, support brand implementation and engage with policymakers on current and future updates.

WHAT’S CHANGED IN THE POLICY LANDSCAPE

While new policies are being proposed in key markets all over the world, there’s been an influx of recent activity in the European Union (EU), with 16 legislative proposals impacting the textile industry. Over the past six months, several proposed EU regulations have been negotiated and approved, many of which apply to any brand placing goods on the European market (whether headquartered in the EU or not).

Here are some of the key pieces of legislation relevant to the fashion industry according to Baptiste Carriere-Pradal, Chair of the Policy Hub; María Luisa Martínez Díez, Public Affairs Director at Global Fashion Agenda (GFA) and Elisabeth von Reitzenstein, Senior Director of Public Affairs at Cascale (formerly the Sustainable Apparel Coalition).

  • Ban on Products That Use Forced Labour – text approved by the European Parliament in April 2024, with the European Council’s approval expected in June 2024. The main objective of this regulation is to prohibit products made with forced labor from being sold in the EU market. It applies to the import and export of products made with forced labor and applies to all products from all countries. At a later date, the European Commission will issue guidelines for economic operators and competent authorities to help them comply with the regulation's requirements.

  • Corporate Sustainability Due Diligence Directive (CS3D) – formally adopted in April 2024. The CS3D requires companies to demonstrate the action they are taking to protect the environment and human rights – not limited to their operations but across subsidiaries and value chains. In the event of non-compliance, authorities can require remedial action and impose financial penalties of up to five percent of the company’s global annual turnover. The European Commission is expected to develop some specific guidelines to help companies comply with the new rules.

  • Ecodesign for Sustainable Products Regulation (ESPR) – framework approved by the European Parliament in April 2024 and the European Council in May 2024, now awaiting publication in the EU’s Official Journal. The ESPR will replace the EU Ecodesign Directive, establishing a framework for more extensive ecodesign requirements that all products have to comply with to be placed on the EU market, such as durability, recyclability, recycled content, energy and resource use and information requirements. Though specific requirements for the fashion industry aren’t confirmed, the work to start defining them is underway, including a minimum threshold for recycled content, the creation of a Digital Product Passport, and environmental footprint transparency measures.

  • Empowering Consumers for the Green Transition (ECGT) Directive – formally published in the EU’s Official Journal in February 2024. This directive bans unsubstantiated environmental claims and encourages disclosure around durability and repairability. EU member states will have two years to integrate the ECGT into their national laws.

  • Green Claims Directive (GCD) – negotiating position adopted by the European Parliament in March 2024 and the EU Council on June 17 2024. The GCD outlines measures to prevent false or misleading environmental advertising and is intended to complement the ECGT with more specificity on the criteria required to substantiate green claims. Following the June 7-9 European elections, the new European Parliament will now follow up on the directive and if an agreement is reached, EU member states will have two years to implement the directive into national law and three years to apply the measures.

  • Unfair Commercial Practice Directive – existing legislation that continues to hold brands accountable. The European Commission and member states are doubling down on implementing this existing law aimed at tackling greenwashing.

  • Waste Framework Directive – negotiating position adopted by the European Parliament in March 2024 and the EU Council on June 17 2024. This Directive sets the basic concepts and definitions related to waste management, including definitions of waste, recycling and recovery. The European Commission has proposed revisions that would reduce textiles and food waste and hold producers responsible for the entire lifecycle of their products. A central part of this proposal is the introduction of mandatory Extended Producer Responsibility (EPR) across Europe.

FRANCE

In March 2024, The French Parliament approved the Law for the reduction of the environmental footprint of the textile sector. This legislation imposes duties on every garment marketed to French consumers starting at five euros in 2025 and increasing to up to 10 euros in 2030, based on the garment’s environmental score. “This is a particularly interesting step as it aims to define what is and isn’t fast fashion and puts taxes on garments that will damage – and in some cases render obsolete – certain business models,” says Carriere-Pradal. The bill needs to be approved by the Senate and is expected to go into effect in mid-2025.

UNITED STATES

The U.S. is making progress on new regulations that will impact the fashion industry, both at the federal and state levels. Frank Zambrelli, Vice Chair of Fashion Makes Change, summarized a few key pieces of legislation to keep tabs on this year. 

  • After wrapping up a lengthy consultation period, the Federal Trade Commission (FTC) is expected to release updated Green Guides in 2024, aiming to enhance credibility in sustainability advertising. 

  • We saw the introduction of The Americas Act in March 2024 – legislation that earmarks $14 billion in incentives to accelerate innovation in circular apparel, footwear, accessories and home textiles.

  • In California, lawmakers are discussing the California Responsible Textile Recovery Act, which would mandate apparel and textile producers to form and fund an Extended Producer Responsibility program tasked with recycling the state’s discarded garments and fabrics.

WHAT BRANDS & ORGANIZATIONS CAN DO TO PREPARE

To support the apparel industry in navigating the policy landscape, Fashion Conveners members identified a few steps that brands and organizations can take to prepare:

Understand the new requirements. Start by reviewing the approved legislation and collaborating internally to break it down. “Now, we have access to final texts, companies can find out exactly what’s expected of them, understand the penalties for violations and start exploring new approaches,” says Carriere-Pradal.

Set up a compliance roadmap. There are overarching themes that tie new requirements together – like increasing traceability capabilities, deepening your understanding of your company’s entire value chain and sharing honest updates externally. To meet these new demands, companies will need to prioritize conducting assessments, developing new strategies and identifying the data frameworks needed to manage emerging reporting and solution requirements, says Zambrelli.

Reach out to industry partners for support. Apparel brands and manufacturers don’t have to navigate these transitions alone, as a number of Fashion Conveners members are stepping up to support companies through these changes. For instance, Cascale, in close partnership with the sustainability data and insights platform Worldly, is regularly mapping, updating, and evolving its Higg Index tools in line with new regulations, according to von Reitzenstein. “By staying ahead of policy changes and offering comprehensive tools and resources, we aim to empower our members to navigate these challenges successfully,” she adds. Additionally, GFA hosts a dedicated Policy Group for its Strategic Partners, where policy experts from those organizations gather monthly to share expertise and draft joint policy priorities and actions.

Engage in policy conversations. Beyond internal initiatives, our policy experts recommend that brands engage in some of the ongoing policy dialogues taking place among peers and policymakers. “There’s a big opportunity for fashion brands to align on a solid perspective about proposed regulations – first as individual players and then as an industry. We’re looking for those impactful policy recommendations,” says Carriere-Pradal. For brands with a strong interest in the EU, Carriere-Pradal suggests becoming a member of the Policy Hub. For those looking to engage further in U.S. policy conversations, Zambrelli and von Reitzenstein note that much of the action is being coordinated through industry associations like the Retail Industry Leaders Association and the American Apparel and Footwear Association.

HOW FASHION CONVENERS MEMBERS ARE TAKING ACTION

Fashion Conveners members are building up their teams and capacity to engage more deeply around policy, both as individual organizations and collectively.

THE POLICY HUB

A notable vehicle for collaboration and engagement is the Policy Hub, a unique coalition representing over 700 stakeholders across the value chain (including Fashion Conveners members Cascale, Global Fashion Agenda and Textile Exchange) that aims to unite the apparel and footwear industry to speak in one voice and propose ambitious policies that accelerate circular practices, primarily in the EU. 

“Our shared goal among the Policy Hub partners and members is to propose ambitious sustainability policies that enact real, lasting change,” says von Reitzenstein, who engages in the Policy Hub on behalf of Cascale. “While the Policy Hub focuses on engagement with EU policymakers, the impact of the legislation is, of course, much broader. With consumer goods supply chains being both global and extremely complex, ‘harmonizing global regulatory frameworks’ is simply pivotal.”

Through its permanent team and its Brussels office, the Policy Hub has developed a close working relationship with European policymakers. Coupled with the unique expertise of its members, the Policy Hub can educate and provide technical recommendations to institutional decision-makers throughout the legislative process.

One of its key priorities is the development of technical guidance aimed at helping the European Commission define the criteria that will be used for the eco-design standards of textile products sold in the EU. This involves leveraging Textile Exchange’s expertise around recycled content, Cascale’s experience with product and factory information and more – and bringing that knowledge forward to policymakers.

“It’s clear these global legislative updates will have a material effect on all members. We want to make sure we’re having meaningful conversations and making the best of each others’ knowledge,” says Carriere-Pradal.

MEMBER-TO-MEMBER PARTNERSHIPS

Beyond the Policy Hub, Fashion Conveners member organizations are regularly taking advantage of opportunities to exchange policy knowledge and expertise with one another and with the industry at large.

For instance, GFA facilitated a leadership roundtable on EU policy alliances at this year’s Global Fashion Summit that included 20 high-level representatives from companies and industry associations and federations, including the Policy Hub and Cascale. During the roundtable, participants discussed policies impacting the industry and participants agreed to continue to coordinate amongst each other. “Together, our goal is to identify opportunities to show up more united as an industry towards policymakers, especially those who are newly elected,” said María Luisa Martínez Díez, Public Affairs Director at GFA. 

Recognizing a need for global policy coordination within the fashion industry, GFA leveraged its network and policy expertise to launch the Global Textiles Policy Forum in June 2023. This initiative provides a platform for governments and industry associations around the world to collaborate, share insights and develop ambitious sustainability pathways and recommendations toward the Group of Seven (G7), the Group of Twenty (G20) and the United Nations Environment Assembly (UNEA), to list a few examples. 

Additionally, GFA is a member and the Policy Hub, an observer of Cascale’s Public Affairs Strategic Council, which is composed of globally dispersed public affairs specialists from brands, manufacturers, NGOs, and trade associations. Cascale also works closely with Textile Exchange and considers them an important partner. “These collaborations with key stakeholders allow us strong alignment on policy and advocacy," says von Reitzenstein.

HOW YOU CAN LEARN MORE

To help you navigate the changing policy landscape, here are a few recommended resources from Fashion Conveners members:

The Fashion Conveners is a global collaborative of non-profit alliances working individually and collectively to accelerate positive action in the fashion industry. We are on a mission to accelerate collective action through connected partnerships within the apparel and accessories value chain, with the ultimate goal of building greater social, economic and environmental prosperity. 

Learn more about the Fashion Conveners here. 

Read our Q2 briefing on the latest launches, events and collaboration opportunities in sustainable fashion here.

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