Despite the urgency and calls for regulation of the unbridled fashion industry, there still appears to be friction over the introduction of new laws that aim to do just that. This also applies to the New York Fashion Act, which has been being negotiated in the US Senate committee for two years.
However, that hasn’t stopped organizations from already working to prepare retailers and brands for the possible integration of the law, as consumer demand for ethical and environmentally friendly offerings has increased.
What is the Fashion Act?
The Fashion Act – or Fashion Sustainability and Social Accountability Act – was introduced in the New York State Legislature in 2022 and taken up again in 2023. It obliges the companies in question to undertake improved due diligence with regard to environmental and human rights issues. This includes introducing public overviews of the global supply chain, integrating science-based targets for reducing greenhouse gas emissions and publishing details on chemical management.
The law would apply to all clothing, footwear and handbag brands with annual sales of more than $100 million. Failure to comply would result in a penalty of up to two percent of the company’s annual New York revenue, the funds of which would go toward environmental or worker protection programs.
A number of brands such as Patagonia, Ganni and Another Tomorrow have expressed their support for the law. Even celebrities like Leonardo DiCaprio, Ciara and Zooey Deschanel have come out in support of the law. So why is it that progress on the law has seemingly come to a standstill?
Criticism of the law
While the bill’s proponents have said the bill has entered the new year with renewed momentum and is back on the New York legislative session’s agenda, the fact that it still faces hurdles leaves observers unmoved ask for the reasons. After the law was revised following its initial introduction due to strong criticism, the amended version once again relies on existing sustainability standards as the minimum requirements that brands must meet. Qualified companies should also be required to reduce their impact on the climate, to align with the Paris Climate Agreement and to disclose certain employee wages.
Despite the changes, the latest version of the bill has not been spared from criticism. In addition to fears that such requirements could negatively impact fashion companies operating in the state, circular retail platform Cosh noted there is also a lack of enforcement of brands’ accountability for their damages. Cosh highlighted that the law “only requires brands to disclose information about their supply chain, but not necessarily to improve their sustainability.”
Cosh also pointed out that it is currently unclear how retailers’ “science-based goals” will be monitored, as the law does not require brands to act on or attempt to achieve those goals, meaning it lacks enforceability. Specifically, the law requires brands to disclose 50 percent of their supply chain without specifying which part they should detail, leaving room for interpretation and the opportunity to be selective about what is shared. These concerns were initially raised by Senator Alessandra Biaggi and Representative Anna R. Kelles, who described the law in an open letter as “far weaker” than similar measures in other countries.
How organizations are helping brands adapt
Although there are still some obstacles in the way of the law, there are some organizations that continue to work to help brands and retailers adapt and adapt to the requirements. Gen Phoenix is one of these companies. The UK-based circular materials technology platform has already partnered with companies such as Coach and Dr. Martens and launched various initiatives and programs that meet the requirements of the law.
“If brands and manufacturers are held responsible for greater transparency, consumers can better assess the level of sustainability of a brand…”
“Our approach is to establish reporting systems that are flexible enough to adapt to the diverse needs of our brands, rather than adopting a rigid data reporting system that does not easily translate to the unique needs of each brand’s reporting model,” said Gen Phoenix CEO John Kennedy. “We work with our brands’ sustainability teams and their advisors, giving them data they can trust and helping us refine and adapt our thinking about how to anticipate and prepare for their future needs .”
Gen Phoenix’s responsibilities include assisting affiliates in formulating and executing transparency plans, which form a key part of the Act’s requirements. When asked what was essential to creating such maps, Kennedy added: “Eliminating the often transactional ‘supplier/customer’ relationship and fostering a truly collaborative partnership to create roadmaps that work for the brand and their environmental goals are appropriate is where we have seen the greatest impact – there is no one size fits all. Only complete transparency and openness can reveal opportunities for improvement and bring about positive change.
Another important factor for Gen Phoenix is that the law transfers responsibility from the customer to the brand. “This shift promotes accountability among industry leaders, promotes a more sustainable approach and reduces the environmental impact of the fashion and retail industries,” said Kennedy. “When brands and manufacturers are held accountable for greater transparency, consumers can better assess a brand’s level of sustainability rather than relying on misleading or inaccurate marketing claims. This is an important step to level the playing field and recognize the brands that are already making progress and demand more that they do too.”
There are also delays in statewide laws
The Fashion Act is not the only bill currently being considered in both New York and the United States. The state is also considering implementing the Fashion Workers Act, which would regulate model and content creator management agencies that have largely avoided responsibility when it comes to the treatment of employees. The bill, also introduced in early 2022, is also going through New York’s lengthy legislative process and has not yet received the much-needed green light to make the changes it seeks.
However, there are some states that are much quicker to implement such procedures. This includes California, which has already passed the Garment Worker Protection Act, another law banning plasticizers in textiles and a climate accountability law that has received widespread support from North American industry groups. There are other bills across the country on similar topics that have yet to be implemented. These include the Fashioning Accountability and Building Real Institutional Change Act (FABRIC Act), which is intended to create new protections for garment workers, and the recently introduced Americas Trade and Investment Act (or Americas Act), which is intended to encourage and motivate manufacturers , preferring local production to production in China.
However, the campaign for the New York Fashion Act continues. One of the latest updates is that one of the supporters, the New Standard Institute, traveled to Albany to promote the cause. The organization also remains active on social media and advocates for its goal in the hope of one day gaining a permanent place for the law.
This article originally appeared on FashionUnited.com