CSRD
Corporate Sustainability Reporting Directive (CSRD)
WHAT
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Standardizes ESG reporting within the EU
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Yearly disclosures on environmental and social matters
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Requires climate targets & concrete transition plan and report progress
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Sustainability report has to be audited
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WHO
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Every listed company that sells into the EU except micro-enterprises
WHEN
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Phase 1, 2025: Companies currently subject to the NFRD report on 2024 Phase 2, 2026: Large companies (both EU and non-EU) report on 2025
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Phase 3, 2027: Listed SMEs report on 2026
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Phase 4, 2028: Non-EU companies with branches in the EU report on 2027
CSDDD
Corporate Sustainability Due Diligence Directive (CSDDD)
WHAT
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Goal: Liability for human rights & environmental violations in supply chains.
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Develop due diligence policies and processes
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Identify human and environmental impacts of activities
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Prevent potential negative effects
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Ensure business models are inline w the Paris Agreement
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Include CO2e reduction objectives in their business plans.
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WHO
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Large brands w 1000+ employees and net EUR 450+m turnover worldwide
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Large non-EU w 1000+ employees w EUR 450+m turnover in the EU
WHEN
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2027 for 5000+ employees/ €1.5b+ turnover companies
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2028 for 3000+ employees/ €900m+ turnover companies
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2029 for 1000+ employees/ €450m+ turnover companies
ESPR
Ecodesign for Sustainable Products Regulation (ESPR)
WHAT
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Reduce the environmental impact of products throughout their lifecycle.
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Setting minimum requirements for physical performance (durability, reparability, recyclability, environmental footprint)
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Digital product passport
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Ban of destruction of unsold footwear and textiles
WHO
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Every brand that sells into the EU market
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SME’s will receive financial help and are initially excluded from the ban of destruction uf unsold goods
WHEN (expected)
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Q2 2025: Reporting obligations on the destruction of unsold goods
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Q2 2026: Ban of the destruction of unsold goods
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2027 (tbc): Textile companies will have to comply with the Delegated Act
Digital Product Passport
Digital Product Passport
WHAT
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Digital record of a product’s key characteristics throughout the entire lifecycle.
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Potentially 16 categories of information, including product’s origin, material composition, environmental impact, social impact etc.
WHO
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Every brand that sells in the European market
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SME’s will receive financial help
WHEN (TBD)
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Phase 1: “Minimal & simplified DPP” for Textile 2027
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Phase 2. Advanced DPP” or Textile 2030
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Phase 3: Full circular DPP” for Textile 2033
Green Claims
Directive on Green Claims
WHAT
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Complements the existing Unfair Commercial Practices Directive, and introduces more specific rules about environmental claims:
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Need to substantiate any green claims (by independent verifiers)
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Detailed guidance on how to communicate any green claims them
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Introduce new rules on environmental labeling
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Fines of at least at 4% of annual turnover.
WHO
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All companies except micro enterprises
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SMEs have an extra year and can expect financial help
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Also, non-EU companies that make voluntary environmental claims directed at EU consumers
WHEN
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2027/2028 - Proposal was adopted in March 2024, now the dialogue phase starts w the Parliament after the European elections in June 2024
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Until then the UCPD is the only European law that EU legislative act that addresses claims about the environmental impact of a product or brand.
AGEC law
France: Anti-Waste Law for a Circular Economy (AGEC law)
WHAT
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Aims to eliminate improper waste disposal and reduce waste by targeting single-use plastic packaging, extending product lifespan, implementing eco-design principles, and prohibiting the destruction of unsold goods
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Requires extension of product lifespan through measures like reparability and durability, establishing textile waste collection systems, etc.
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It will phase out all single-use plastic packaging by 2040.
WHO
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Applicable to all fashion and textile products sold in France
WHEN
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January 2023 – Companies with €50M+ in annual turnover and 25k units
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January 2024 – Companies with €20M+ in annual turnover and 10k units
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January 2025 – Companies with €10M+ annual turnover and 10k units
Climate & Resilience Law
The Climate & Resilience Law – Environmental Labeling for Products
WHAT
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Mandates environmental impact labeling on products sold by large fashion corporations in France.
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Environmental impact label to include greenhouse gas emissions, impact on biological diversity, and consumption of water and natural resources, promoting transparency and eco-consciousness.
WHO
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Requires companies with €50M+ turnover and 25,000 units to provide environmental impact labels on products.
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Eventually, this requirement will extend to all companies with €10M+ turnover and 10,000 units.
WHEN
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Enacted in 2021, the law initiates mandatory environmental labeling
NY Fashion Act
New York Fashion Act
WHAT
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The New York Fashion Act proposes mandatory detailed reporting on the environmental and social impact of fashion brands' products
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The act mandates enhanced due diligence procedures in fashion brands' operations to ensure compliance with environmental and social standards
WHO
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Applies to fashion businesses with annual global revenue exceeding $100M.
WHEN
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As of August 2023, the act is still under consideration and must pass both the New York State Assembly and the New York State Senate to become law.
Waste Framework
Waste Framework Directive
WHAT
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Aims to foster a circular economy and halt the EU's textile waste export
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Ensure that the EU does not ship its textile waste to developing nations
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Facilitates intra-EU waste transport and improves illegal waste tracking.
WHO
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Introduces Extended Producer Responsibility (EPR) for fashion brands, making them accountable for the entire textile lifecycle. Brands must join country-specific EPR schemes.
WHEN
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Mandates member states to establish separate textile waste collection by January 1, 2025.
Waste Shipments
Regulation on waste shipments
WHAT
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A proposed amendment to harmonize Extended Producer Responsibility (EPR) schemes in the textile industry under the Waste Framework Directive
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Aims to make textile producers accountable for textile waste management costs to incentivize waste reduction and circularity.
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Introduces eco-modulated fees based on environmental performance to cover textile waste management costs
WHO
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Applies to textile producers operating within the European Union.
WHEN
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Proposed as an amendment to the Waste Framework Directive by the European Commission in 2023
Textile Labeling Regulation
Textile Labeling Regulation
WHAT
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Revision of the Textile Labeling Regulation to address inconsistencies and inadequacies in fiber labeling, while accommodating advancements in fabric and recycling technologies
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Will introduce specifications for both physical and digital textile labeling, requiring brands to adopt standardized practices for providing accurate composition and origin information to consumers
WHO
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Fashion and textile brands operating within the EU must prepare to adapt their labeling procedures
WHEN
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The European Commission plans to revise the Textile Labeling Regulation in the fourth quarter of 2023
UCPD
Unfair Commercial Practices Directive (UCPD)
WHAT
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Established in 2005 for consumer protection, the UCPD now includes guidelines for sustainable claims, aiming to prevent greenwashing
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Complements upcoming Green Claims Directive by providing general rules for substantiating and communicating environmental claims, focusing on verification and clarity.
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Has already been enforced against major fashion retailers like H&M and Decathlon
WHO
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Applies to all commercial practices within the EU, particularly influencing companies making environmental claims and labeling
WHEN
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The UCPD has been in effect since its adoption in 2005, with the incorporation of sustainable claim guidelines in December 2021. The upcoming Green Claims Directive is proposed for March 2023
Producer Responsibility
Extended Producer Responsibility
WHAT
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Fashion and textile producers will be responsible for the collection, recycling, reuse, and waste of their products
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Brands will need to take numerous measures like providing textile collection locations, completing a one-time registration at Rijkswaterstaat, etc.
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Applies to apparel, as well as household items like bed linens and tablecloths
WHO
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Fashion and textile producers operating in the Netherlands or selling products in the Dutch market are obligated to comply with this regulation.
WHEN
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Implementation beginned on July 1, 2023. Starting from 2024, brands must submit annual reports, and from 2026, they must include objectives in their documentation.
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Textiles put on the market in 2024 will need to include at least 50% recycled materials, 20% of which are prepared for reuse.
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In 2029, all textiles will need to include 75% recycled materials with 25% prepared for reuse.
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Transparency Act
Transparency Act
WHAT
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Mandates companies to enhance transparency, uphold human rights, and promote decent working conditions throughout their value chains
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The act mandates that companies should take measures like conducting routine due diligence evaluations in line with OECD's multinational company guideline and making due diligence assessments readily accessible via the company website
WHO
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Applicable to large and mid-size companies either based in Norway or providing goods and services in the country.
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Companies meeting specific financial criteria, such as over 70 million NOK (ca EUR 6m, USD 6.5m) in sales revenue, over 35 million NOK in balance sheet total, or over 50 average employees in the financial year, fall within its purview.
WHEN
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Enacted in 2022, the act mandates companies to conduct due diligence assessments aligned with OECD's multinational company guidelines, focusing on human rights and labor conditions.
Supply Chain Act
Supply Chain Due Diligence Act
WHAT
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Fashion and textile brands will be required to implement rigorous due diligence processes throughout their supply chains, focusing on human rights and environmental standards.
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Monitoring and reporting on potential risks and adverse impacts in their global operations
WHO
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Affects large businesses operating in Germany, initially those with more than 3,000 employees, expanding to those with 1,000 or more in 2024.
WHEN
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Effective since January 2023, this law imposes fines of up to 2% of global turnover and potential bans from public contracts for non-compliance.
The FABRIC Act
The FABRIC Act
WHAT
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The Fashion Accountability and Building Real Institutional Change (FABRIC) Act, introduced in the US Senate in May 2022, aims to address the environmental and social impact of outsourcing garment production.
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Proposes a 30% tax credit for clothing producers willing to relocate their manufacturing to the US.
WHO
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The FABRIC Act targets clothing producers and fashion brands operating within the United States.
WHEN
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Introduced in May 2022, the FABRIC Act is currently pending passage in the US Senate, after which it will proceed to the House of Representatives for consideration
SB 253
California’s Climate Corporate Data Accountability Act (SB 253)
WHAT
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The act mandates large fashion companies operating in the state to annually report their greenhouse gas (GHG) emissions, including Scope 1, 2, and notably, Scope 3 emissions.
WHO
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The law applies specifically to large fashion companies in California, targeting those with annual revenues exceeding $1 billion
WHEN
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Effective January 1, 2026, the Climate Corporate Data Accountability Act necessitates the first emissions reports by 2027
SB 261
California’s Greenhouse Gases: Climate-Related Financial Risk Bill (SB 261)
WHAT
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Goes beyond emissions reporting to assess corporations' financial risks stemming from climate change
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The bill mandates compliance for brands, requiring them to assess and disclose climate-related financial risks, both physical and transitional.
WHO
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The legislation applies to corporations in California with revenues over $500M, encompassing a broad range of industries.
WHEN
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In October 2023, the California Governor signed SB 261 into law.
Labor Prevention Act
Uyghur Forced Labor Prevention Act
WHAT
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The Act aims to combat forced labor practices targeting ethnic minorities in China's Xinjiang Uyghur Autonomous Region
WHO
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American fashion companies importing products from the Xinjiang region are required to ensure no forced labor was used in the manufacturing process.
WHEN
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Effective as of June 2022, the act mandates companies to provide evidence of labor practices compliance when importing products from Xinjiang.
