In collaboration with Otrium, we’re launching a series of blog posts aimed at simplifying the newest and forthcoming laws and legislation around sustainability in the fashion industry. These posts will also contain guidance to help fashion brands comply with these policies.
Our first blog post unraveled the Extended Producer Responsibility (EPR), and can be read here. Within this piece we’re focusing on the EU Strategy for sustainable and circular textiles, what it contains, and how fashion brands can contribute to and prepare for this new strategy.
The European Commission published the EU Strategy for sustainable and circular textiles to tackle problems in the textile industry. The proposal aims to decouple economic growth from the consumption of finite resources by making steps towards a circular European fashion landscape. If successful, the strategy would be beneficial both for businesses and the environment.
Greater longevity for clothing and sustainability-focused product design are key to reducing the fashion industry’s negative environmental impact. When implementing the strategy successfully, the European fashion landscape in 2030 will consist of:
To reach this vision several key actions should be taken:
The EU Strategy for sustainable and circular textiles is based on existing European initiatives, directives and regulations. The following three are central to the EU strategy for textiles.
1. Eco-design for sustainable product regulation
This regulation will expand durability and recyclability for specific product groups (e.g. textiles, tyres , paints, etc.) by implementing requirements to improve products’ circularity and energy performance. In addition, the regulation will require information disclosures for products’ environmental impacts and traceability of all substances of concern throughout the products’ lifecycle.
2. The voluntary EU Ecolabel scheme
The label enables consumers to make informed choices and identify environmentally friendly products. It aims to promote a circular economy and implement criteria for various products, including textiles. For example, textile products have to meet certain requirements on harmful substances, water use, air pollution, colour resistance to washing, light exposure, and perspiration.
3. Waste Framework Directive
The Waste Framework Directive was developed in 2008 to improve waste management, and protect human health and the environment from hazardous substances. The directive is based on the waste hierarchy establishing an order for managing waste.
It introduces the polluter pays principle, meaning that the polluter should bear the costs of pollution prevention and control measures.
All the signs show that soon there will be extensive binding legislation for textiles. Since the EU strategy will be applicable to all European companies, we recommend that fashion brands and producers quickly get up to speed on integrating the circularity principles into their business models.
But where to start? To make it a bit more concrete we will give insight into two existing initiatives in the UK and the US. This will give you an idea of what a legislation might look like, for whom this will be applicable and how you might have to disclose your sustainability practices in the future.
Textiles 2030 is a voluntary initiative launched by the organization WRAP (Waste & Resources Action Programme). This initiative aims to reduce greenhouse gases and the water footprint of products. In addition, it creates and delivers a circular roadmap for textiles in the UK.
Currently, the agreement gathered 92 signatories representing 62% of the UK clothing market.
Retailers and brands will have to report on:
The New York Fashion Sustainability and Social Accountability Act, will be the first US law that will hold all major brands accountable for their environmental and social impacts.
This applies to fashion companies doing business in New York and generating an annual global revenue of $100 million or more. Reaching luxury brands as well as fast-fashion brands.
Fashion companies will have to:
Consultant, Sustainalize
Former colleague, Sustainalize
In collaboration with Otrium.
Read part 1 of our blog series: Unravelling sustainability laws in fashion
Don’t hesitate to reach out to our colleagues if you need any help or assistance in the process.
With the Corporate Sustainability Reporting Directive (CSRD) published in the European Union’s Official Journal, we’d like to dive into the most recent changes, and how it affects businesses. Since publishing our last blog on CSRD updates, two major changes have taken place.
The EU Taxonomy differentiates between eligible and aligned activities. In this blog, we provide you with an overview of updated requirements, estimated timelines for your organization, and how we at Sustainalize/ERM can help guide you through the complexity of reporting in accordance with the EU Taxonomy – specifically focused on alignment.
On September 28th 2022 the Science Based Targets initiative (SBTi) launched the long-awaited addition to its expanding sector guidance portfolio. The Forest, Land and Agriculture (FLAG) guidance was made publicly available to be used by industry leaders of land-intensive sectors. We have elaborated on the guidance.
The Platform on Sustainable Finance published the final report on Social Taxonomy. The Social Taxonomy will aid investors to make informed and consistent decisions and helps to direct resources toward socially responsible activities and companies.
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