By Sara Fabek Zovko
Justin Polkey
What are the new regulations and how will they work to make fashion a more sustainable industry?
The Environmental, Social, and Governance (ESG) sustainability regulations coming into full force in 2024 are expected to have a significant impact on the fashion industry, both in terms of manufacturing and retail. Within the EU, there are 16 pieces of legislation coming into effect in 2024 that directly relate to fashion and textiles.
The overarching sentiment is the elimination of self-regulation within the fashion industry, assuring a more sustainable approach to all stages of clothing production and elements such as textile production and recycling. Despite the progress that has been made within the industry, the regulations will assure a more thorough adherence to sustainability rules and further streamline the environmental consciousness of the fashion industry.
Some of the areas impacted and bills to come into effect are as follows:
The Ecodesign for Sustainable Products Regulation (ESPR) will be setting minimum design standards for products sold within the EU, addressing recyclability, reusability and use of hazardous substances, along with other elements of production. An updated Waste Framework Directive will also aim to address companies managing the collection and recycling of their own textile waste, with fees varying based on production output and pollution levels. By 2025, it is expected that the destruction of unsold goods will be banned.
The Corporate Sustainability Reporting Directive (CSRD) will demand companies to report on ESG activities, whilst the Corporate Sustainability Due Diligence Directive (CSDDD) will enforce environmental and human rights action plans throughout production and value chains.
Tierney Gearon
Despite not being a direct part of the production chain, marketing will also be affected by the incoming regulations, with the overwhelming greenwashing perpetuated by many fashion retailers being a target. The EU Green Claims Directive will introduce requirements for evidence to be provided in regards to sustainability declarations and claims in order to avoid false claims being made by brands to generate more revenue.
The new regulations will also demand full supply-chain transparency across all stages of manufacturing. Most established brands currently lack this visibility in a massive way, meaning the effects of the ESG regulations will be heavily felt in this area.
Sourcing, production and design, as major parts of the clothing manufacturing cycle, are also subject to the changes in 2024. The regulations regarding these production stages will involve decarbonisation, shifting to sustainable materials, and requirements for circularity. Design will be expected to use materials with a target on durability, longevity and recyclability.
These main points addressed by the newly actioned ESG regulations are likely to shake up the world of fashion design and production in a big way, asking brands to invest far more into production processes. While big brands shouldn’t be too affected, smaller brands that are just starting out may struggle to meet the requirements financially. However, in order to create a more sustainable and ethical world within fashion, regarding both production and consumption, the incoming rules are definitely a very positive change for the fashion landscape.