Emergence of Sustainability Regulations in the Fashion Industry

For years, the fashion industry has been scrutinized for the harm it causes to people and the planet. Mountains of textile waste are growing in landfills, and millions of workers are still trapped under harmful working conditions. As the world changes its course towards sustainability, players in the fashion industry must follow suit. Sustainability regulations in the fashion industry are one of the most crucial instruments to foster this change.

Sustainability Regulations in the Fashion Industry

Did you know it takes 3,781 liters of water to make one pair of jeans? Fabric dyeing and treatment contribute to approximately 20% of wastewater worldwide. Additionally, the fashion industry is responsible for 10% of annual global carbon emissions. In short, the industry requires extensive resources and produces a lot of excess.

Regulations become crucial to minimize the harmful impacts of the fashion industry. In The State of Fashion 2024 report, sustainability rules are listed as one of the aspects that the industry players need to consider moving forward. However, beyond companies’ self-regulation, the industry is looking into the establishment of regulations at international, regional, and national levels.

For instance, the European Union passed the Strategy for Sustainable and Circular Textiles in June 2023. The strategy contains 16 pieces of regulations aiming to create a fashion industry that respects the environment and social rights. This regulation’s impact extends beyond Europe’s borders to Asian countries, which supply more than 70% of the EU’s textiles. Similar regulations have also been proposed and adopted in other places, such as New York’s Fashion Sustainability and Social Accountability Act.

Business Transformation Needed

As the regulatory landscape evolves, businesses must start to shift their operations and revamp their business models toward sustainability to adhere to the regulations. This will require a holistic approach that addresses every part of the value chain to create significant changes. The State of Fashion 2024 report outlines several crucial aspects of this approach:

Traceability: Enabling more transparent, reliable, and efficient data to achieve complete visibility of fashion brands’ value chains.
Sourcing and production: Decarbonizing upstream supply chain, as the major carbon emitters in the production process, with energy efficiency and energy transition initiatives
Design: Creating new designs that focus on longevity and durability while paying attention to material sustainability and packaging designs.
End-of-life waste: Incorporating new business models such as resale, rental, and repair to minimize production and waste and accelerate recycling programs.

Navigating this change is not an easy task. Therefore, establishing a designated team focusing on sustainability is critical to adapting. Additionally, C-level executives’ support is a significant factor in fostering actual change. Fashion brand leaders should keep an eye out for regulatory developments while continuously acquiring new knowledge and identifying opportunities ahead.

Editor: Nazalea Kusuma

Kresentia Madina

Reporter at Green Network Asia | Website | + posts

Madina is the Assistant Manager of Stakeholder Engagement at Green Network Asia. She holds a bachelor’s degree in English Studies from Universitas Indonesia. As part of the GNA In-House Team, she supports the organization's multi-stakeholder engagement across international organizations, governments, businesses, civil society, and grassroots communities through digital publications, events, capacity building, and research.