Legislation promises to move fashion industry towards greater transparency

Legislating transparency in global supply chains and why we need it.

International principals and declarations including ILO have existed for decades to guide ethical manufacturing in global in supply chains, as businesses increasingly moved operations overseas, due largely to economic factors. Long have such principals been overlooked and treated as an afterthought by globalized companies, largely because legislation around both human rights and environmental issues has historically been weak, or non-existent.

The Act on Corporate Due Diligence in Supply Chains (LkSG) passed by the German government in mid-June has been touted as a game changer. It obliges companies with headquarters in Germany to ensure that risks to human rights and the environment are monitored and reported on throughout their global supply chains, with harsh penalties for those failing to comply.

The Fashion Transparency Index 2021 released from multistakeholder activist and education platform Fashion Revolution exposed the need for the implementation of serious legislation such as the LkSG. Fashion Revolution have worked for over 6 years to collect and release data from some of the world’s largest and most popular brands, highlighting the need for more transparency around supply chains.

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