Retraced, the compliance platform for the fashion and textile supply chain, has published a new Due Diligence Guide. The white paper aims to demystify the legal frameworks reshaping fashion, helping companies reduce risks and enhance their social and environmental impact.
Especially in view of new legislation being introduced to shape sustainable practices, the Due Diligence Guide gives a comprehensive ESG (environmental, social and governance) regulations overview, specifically in regards to key legislations like CSRD, ESPR and DPP.
“The fashion industry is experiencing a historic transformation. Strict regulations are now being enforced to curb unsustainable business practices that have persisted for decades due to massive relocation and deindustrialization,” states the Guide.
Using momentum towards sustainability
“The current regulatory momentum in the fashion industry marks a pivotal shift towards deeply embedding sustainability and ethical practices into business operations. European legislation, such as France’s Anti-Waste for a Circular Economy (AGEC) law and Germany’s Supply Chain Due Diligence Act (LkSG), has been instrumental in shaping these new standards, offering valuable insights into effective regulatory practices,” adds Marwa Zamaray, senior advisor and European Climate Pact ambassador for the Netherlands, who is focused on ethical sourcing and sustainability within the fashion industry.
However, all is not well currently. “Over time, common sense and trust have eroded as the distance between consumers and the manufacturing sites of their clothes has grown. As we looked the other way, commercial integrity declined. Today, as jurisdictions worldwide require companies to be accountable and responsible for their actions, it is also essential to appeal to the humanity of those who undertake and contribute to this textile industry, regardless of the size of their business,” continues the Guide.
Thus, companies need to prepare for this transformation and their role in it. In the Due Diligence Guide, Retraced offers global preparation strategies including techniques for supplier mapping and traceability. The company also explains the difference between traceability, transparency, life cycle assessment and authentication — all important keywords that are interdependent but not synonymous.
Transparency as a boon, not a burden
Finally, with its Due Diligence Guide, Retraced wants companies to understand how transparency can pay off, boost their brand’s reputation and sustainability, and the positive impact their business can have.
“Our goal is to offer a collaborative solution to fashion brands, empowerig them to control their production chains and implement the changes necessary to meet the sustainability and social impact challenges of our world,” says Philipp Mayer, Retraced’s chief product officer.
The Guide also cautions that the economic prosperity of privileged nations should not come at the expense of the working and living conditions of those in non-privileged nations whole labour supports it. “Countries with greater resources are expected to do more, especially in industries viewed as pioneers and leaders of innovation. Fashion and luxury are at the forefront of setting the standard for responsible entrepreneurship, vital for the planet’s health and the sustainability of their business models,” cautions the Guide.
After all, adapting to the climate crisis and ensuring social justice depend directly on the choices these industries make now. Retraced presents German outdoor brand Vaude as a case study to demonstrate the transformative power of brands and their role in changing production and consumption habits towards better choices.
“Retraced supports us in determining key figures, assessing the status quo of a supplier, presenting the supply chain transparently, managing certifications and audits, tracking the origin of materials (chain of custody and tracing) and ultimately providing this information to end customers in the medium to long term,” explains Bettina Roth, head of quality management & CSR supply chain at Vaude.
Overall, the new Guide explains the role of data visualisation and transparency well, along with the aforementioned key areas, and is a must read for anyone wanting a part in this transformation.
The Due Diligence Guide can be downloaded free of cost from the Retraced website.