What is the directive for sustainable corporate governance?

EU's CSDDD mandates supply chain scrutiny in fashion, emphasizing traceability and transparency for an industry-wide ethos shift amid rising environmental concerns.

Corporate Social Due Diligence Directive: A New Paradigm in Fashion

We stand at a transformative moment in the fashion industry, heralded by the European Union's Corporate Social Due Diligence Directive (CSDDD). This landmark directive represents an “increasingly aggressive” regulatory approach, aiming to reshape the way textile firms assess and manage their supply chain impacts. Amidst growing scrutiny over green claims, the CSDDD underscores the need for greater traceability and transparency, not just as a compliance measure but as a fundamental shift in our industry's operational ethos.

Impact on the Textiles Industry: Beyond Compliance - Embracing Responsible Innovation

The CSDDD's impact on the fashion industry is profound and multifaceted. Highlighted in Planet Tracker’s "Following the Thread" report, there is a global movement towards holding companies accountable for their supply chain impacts. The directive compels us to pursue unprecedented levels of traceability in our supply chains. Moreover, the directive mandates strict accountability for environmental and human rights violations, necessitating a re-evaluation of every aspect of our operations. Additionally, the industry faces increased investor expectations and the risk of non-compliance for companies failing to substantiate their environmental claims or lacking robust traceability systems.

What’s the timeline for the Directive?

The CSDDD is currently in trilogue discussions, with a resolution expected by the end of the year. This marks the beginning of a new era of compliance and continuous adaptation to evolving regulations, including upcoming EU strategies on sustainable and circular textiles and revised textile labelling regulations.

Spotlight: Sustainable Fashion Academy (SFA) and STICA

The Sustainable Fashion Academy, headquartered in Sweden, is a non-profit organisation dedicated to accelerating progress towards science-based sustainability targets and the global sustainability goals (SDGs). SFA's mission encompasses:

• Initiating research projects to address gaps in important research and analysis.
• Empowering leaders through inspiration, education, and training for change agents across various sectors.
• Mobilising stakeholders for better legislation, financial investment, and accountability to transform the industry.

Scandinavian Textile Initiative for Climate Action (STICA)

STICA invites SMEs to join its platform for accountability and leadership. It supports companies in the apparel and textiles industry to reduce climate impacts in alignment with the 1.5C warming pathway, while also strengthening global competitiveness. Members of STICA commit to science-informed targets and collaborate in advocacy work to influence industry transformation. Join STICA's Climate Action Program & Network SFA's Learning & Innovation Network Targeted at professionals in various textile-related businesses in Europe, this network offers online webinars covering emerging policy and legislation. It facilitates learning, discussion, and collaboration on joint projects among members.

Explore SFA's Learning & Innovation Network and learn more about the SFA.