There are concerns the EU Omnibus will reduce the Corporate Sustainability Due Diligence Directive (CSDDD')s impact, but it remains critical that fashion brands understand the impact of high-risk textiles in the supply chain, writes Katrina Duck, enterprise account executive at Inspectorio.

The EU’s recently enacted Corporate Sustainability Due Diligence Directive will require fashion brands to identify, mitigate and report on environmental and social impacts across their supply chains.

As companies implement measures to enhance compliance with the CSDDD, many commonly used textiles, like cotton, polyester and animal fibres, pose significant challenges due to their environmental impact, labour concerns and ethical issues.

While the CSDDD imposes new requirements, including the implementation of various due diligence measures, it also creates an opportunity for fashion brands to actively address environmental and social risks at each level of their supply chains.

There are concerns the EU Commission’s “simplified rules” around sustainability reporting (Omnibus) will reduce the impact of the CSDDD, however organisations that commit to sustainable practices and engage responsibly with their suppliers will be well-equipped to not just comply with the directive but also appeal to a growing base of eco-conscious customers.

How to address key risks with high-risk textile materials

Consider the following high-risk textiles and how fashion brands can effectively address the key risks associated with each:

Cotton

Concerns: Pesticides, water use, and forced labour

Conventional cotton farming is one of the most water-intensive and pesticide-heavy agricultural processes. In fact, cotton farming accounts for just 2.6% of the world’s cultivated land but uses up to 10% of the world’s agricultural water. Cotton production also soaks up 16-25% of the total pesticides produced worldwide. This results in intense soil degradation and water pollution, especially for commonly affected ecosystems in Central Asia, Pakistan and Australia.

In conjunction with cotton’s environmental impact, forced labour involved in cotton production raises serious ethical concerns. Sourcing from certain regions poses additional challenges for organisations due to a lack of visibility into operations, and businesses can’t turn a blind eye to forced labour around the world.

Fashion brands can mitigate the risks associated with cotton by sourcing organic or Fair Trade-certified cotton. These types of cotton limit pesticide use and promote fair labour standards. While a good first step, it’s imperative to establish traceable supply chains that verify compliance at every stage of the production chain. This not only aids both transparency and regulatory compliance, but it also enables brands to make smart sourcing decisions about where they source their cotton.

Polyester and other synthetics

Concerns: Carbon footprint and microplastics

Polyester remains the most produced fibre globally, accounting for 57% of total fibre production in 2023. Since polyester is derived from petroleum, the synthetic fibre is non-biodegradable, non-renewable and extremely energy-intensive. And this goes for other virgin fossil-based synthetics as well.

Polyester’s risks don’t just end after production. Microplastics that get released during the washing process add to the material’s environmental pollution and affect marine ecosystems. According to the Marine Pollution Bulletin, a 6kg wash of 100% polyester clothing releases 496,030 10µm of microplastics, comparable to a full drum of laundry containing 20-30 football team shirts or shorts in total.

To reduce reliance on virgin polyester, fashion brands should consider using higher-quality recycled polyester that meets both aesthetic and functional standards. As consumers become more eco-conscious, an opportunity also exists for companies to educate customers on responsible washing practices to minimise microplastic pollution, a key environmental goal of the CSDDD.

Viscose/rayon

Concerns: Chemical hazards and deforestation

Viscose (or rayon), a semi-synthetic fabric made from wood pulp, is one of the most popular materials in the fashion industry. Made by dissolving wood pulp into a solution before cleaning, bleaching and treating to create fibres, unsustainable sourcing practices can lead to deforestation and harmful impacts on biodiversity.

Additionally, the viscose production process often involves many harmful chemicals, including carbon disulfide, which affects worker health and surrounding ecosystems. Carbon disulfide has been linked to higher levels of coronary heart disease, birth defects, skin conditions and cancer, adding a humanitarian risk to the fibre’s production.

When building an effective CSDDD compliance strategy for viscose, fashion brands should put a priority on sourcing from certified sustainable suppliers, such as those endorsed by the Forest Stewardship Council (FSC) or the CanopyStyle initiative, which advocate for responsible forestry practices. As an additional layer of protection, closed-loop production, which captures and recycles chemicals, also enables brands to meet CSDDD environmental standards.

Wool

Concerns: Animal welfare and greenhouse gas emissions

Wool is much higher in greenhouse gas emissions than many other fabrics. Sheep farming emits high volumes of methane, with sheep wool contributing nearly 98% of the 35m tonnes of carbon the animal fibre industry produces annually, and raises animal welfare concerns.

Mulesing, the surgical removal of sections of skin from around the tail of a sheep, often without anaesthetic for the animal, is one example of a common practice that has fallen out of favour ethically.

As such, brands should seek wool suppliers that adhere to high animal welfare and environmental standards, such as the Responsible Wool Standard. Carbon offset initiatives or sourcing from lower-impact wool alternatives can also help reduce the overall environmental impact associated with wool production.

Leather

Concerns: Chemical use and resource intensity

Another highly resource-intensive production process, the creation of leather often involves toxic chemicals like chromium. If not managed properly, chromium use in the tanning process can lead to water pollution and poses serious environmental and health risks for both workers and consumers.

With most leather originating in developing countries like India and China, where animal welfare laws are either non-existent or not enforced, animal welfare and the broader environmental impact of livestock farming is also a concern.

Fashion brands should mitigate leather’s environmental risks by working with certified suppliers that use processes like vegetable tanning that are natural and more eco-friendly. Exploring sustainable leather alternatives, like plant-based or lab-grown leather, also offers a unique way to align with the CSDDD.

Cashmere and other animal fibres

Concerns: Overgrazing and ecological impact

In regions like Mongolia, where unsustainable grazing practices are common, the production of luxury fibres like cashmere can result in extensive overgrazing by cashmere goats, land degradation, and desertification. Like other animal-based production methods, variations in animal welfare standards add another layer of risk.

Suppliers, such as those endorsed by the Sustainable Fibre Alliance (SFA), that work to promote sustainable grazing practices should be the go-to for fashion brands. Using recycled cashmere or other alternative fibres also reduces the demand on traditional sources, aligning with commitments to responsible sourcing.

Aid compliance by enhancing supply chain visibility

To manage these high-risk fibres effectively in today’s compliance-driven world, brands must enhance visibility into their supply chains. Even for companies that operate outside of the European Union, where regulations aren’t as encompassing, today’s consumers expect a higher level of commitment to sustainability and ethical practices.

Using advanced traceability tools, such as optimised quality operations and AI-driven supplier improvement plans, allows fashion brands to rate their suppliers and better assess potential risks at each stage of the production process. This visibility then empowers organisations to take targeted actions to drive improvements with high-risk suppliers or implement alternate sourcing strategies.

By embedding rigorous due diligence and sustainability practices, fashion brands can not only comply with CSDDD standards but also enhance brand equity in a market that increasingly values ethical practices. With a targeted, careful and holistic approach to supply chain management, brands can attract both loyal customers and sustainability-focused stakeholders and investors, reinforcing a company’s legacy while meeting today’s sustainability and ethical expectations.

By Just Style