As the fashion industry grapples with sustainability, experts emphasize the critical role of supply chain transparency and regulatory compliance in scaling effective solutions.
Traceability at the Forefront
The fashion industry’s journey towards sustainability is fraught with intricate challenges, as highlighted at the American Apparel & Footwear Association’s event. Ralph Lauren’s chief product officer, Halide Alagöz, underscored the necessity of deep supply chain knowledge, stating, “We have to go deep into transparency and traceability.” This approach is not only vital for regulatory adherence but also for addressing the multifaceted issues of sustainability, ranging from forced labor to waste management and scope 3 emissions.
Evolving Due Diligence
The intensifying global regulatory landscape, coupled with heightened consumer and investor expectations, is propelling companies to adopt more rigorous due diligence processes. Alagöz likened the shift to a medical analogy: “We used to do an x-ray scan of our partners… Now we need to do MRIs.” This enhanced scrutiny is essential for fashion companies to navigate new laws like the Uyghur Forced Labor Prevention Act and to manage the interconnected nature of global fashion supply chains.
Scaling Circular Solutions
Patrik Frisk, CEO of polyester recycling startup Reju, and former Under Armour executive, discussed the complexities of establishing large-scale circular systems within the fashion industry. He pointed out the necessity of integrating into the intricate web of fiber, fabric, and manufacturing supply chains that span across 40 countries and involve thousands of suppliers. Frisk emphasized the urgency of action, acknowledging that even with aggressive planning, achieving scalability in circular fashion will be a gradual process.
The fashion industry’s sustainability efforts are increasingly focused on supply chain transparency and compliance with emerging regulations. As companies strive to meet these challenges, the path forward involves a combination of technological innovation, collaborative efforts, and a commitment to rigorous due diligence.