The fashion industry’s blissful time in Eden has come to an end. Fashion brands and retailers are being held accountable for their impact on human rights and the environment – two major grey areas that have gone under the radar for far too long.

Instances of apparel and textiles made with forced labour, such as the controversy over the Xinjiang cotton region in China, or garments being sourced from areas of conflict such as in Myanmar are now in the limelight. The new rules and regulations are designed to make every stage, right from sourcing to production to the end garment a fully transparent cycle.

Both government agencies and end consumers want to know fashion brands’ sustainability claims printed on labels and advertised in media campaigns hold some legitimacy.

This has been especially true for Europe, where the EU Parliament is voting on key due diligence legislation as part of its efforts to identify these grey areas and seek remediation if there are instances of violation.

The latest amendments to the Corporate Sustainability Due Diligence Directive (CSDDD), for example, incorporated a set of rules to safeguard human rights and environmental impact.

Based on this, non-compliant companies will be liable for damages and can be sanctioned by national supervisory authorities. In fact sanctions can include measures such as “naming and shaming,” taking a company’s goods off the market, or fines of at least 5% of the net worldwide turnover. With non-EU companies that fail to comply with the rules being banned from public procurement in the EU.

However, human rights support groups and apparel labour unions like the Clean Clothes Campaign and IndustriAll have pointed out the efforts are falling short and there’s a need to address remaining loopholes.

Additionally, in a cross-continental partnership, the EU and the US are stressing the urgent need to combat forced labour and ensure a successful green transition for workers and businesses.

Fashion companies have arguably been profiting from exploitation and always hunting down the cheapest dollar for far too long so the EU’s stance will ensure fashion industry improves it reputation for good.

But what is more interesting to see is whether consumers will keep their part of the deal and shun companies that try to find loopholes in the system?

By Just Style