Dear PFI community,
The European Parliament has long advocated for a stronger legal framework to oblige European companies to be accountable for the protection of human rights and the environment in their global supply chains. A legally bound supply chain transparency mandate is currently being negotiated within the European Union.
Supply chain due diligence laws implemented in countries like France and the United Kingdom, as well as the recently established German Lieferkettensorgfaltspflichtengesetz and international compliance regulations, will be the basis of the new supply chain law at EU level.
Companies can pave their way for supply chain transparency by employing toolkits that consist of supply chain management, risk assessment, risk management, and more. A comprehensive solution not only reduces time and high costs, which may occur from a reactive response to the law. Proactively documenting supplier behaviour and managing risk that are identified is the only way to get ahead of the new legally bound due diligence requirements.
PFI supports companies along the way with our supply chain and process digitalisation relating solutions. We are more than happy to advise you on the development, implementation and digitalization of the management process for the transparency of your supply chain.
Let us take the first steps together to build resilient, responsible and sustainable supply chains.
Mrs. Candice Wang
Managing Director of PFI Fareast
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Legislation promises to move fashion industry towards greater transparency
Legislating transparency in global supply chains and why we need it.
Global Supply Chain News
Nearly 30 organizations urge UK government to introduce corporate accountability laws
With the passing of the supply chain due diligence law in European countries like France, Germany and Norway, almost 30 organisations came together and urged the UK to act in accordance with its partners. Right groups such as TUC and Amnesty International argued that the Modern Slavery Act in the UK was not extensive enough to hold businesses liable for human rights abuses in global supply chains. By introducing corporate accountability laws, local companies are required to perform human rights and environmental due diligence across their supply chains rather than in a single market.
Increasingly, countries are implementing supply chain laws to oblige companies to take responsibility for the protection of human rights and environment in their global supply chains. It is necessary for companies to learn more about their supply chains and start to take action against human rights abuse and environmental issues within them.
PFI is a global leader in sustainable supply chain solutions with over 65 years of experience in the footwear, garment, leather, and consumer goods industries, your leading experts in the world of fashion. We assist fashion companies to verify, improve and optimise the social and environmental performance of their supply chains according to PFI standards or designated code of conducts.
Rights groups join forces to call for UK corporate accountability laws
Mobile Technology – one of the best and cost-effective solutions to make fashion industry more sustainable
Technological advancement and increasingly educated consumers’ values on brand transparency and environmental issues, consumers able to track the supply chain of a product using mobile technology. QR Codes and Near Field Communication (NFC) tags are a key driver inspiring more responsible consumers to track data about the products they purchase. Brands like have adopted mobile technology – QR code on its product labels.
According to “QR technology: The Bridge to a Sustainable Fashion Industry”, 2021, Sarah Swenson – Global Senior Manager Sustainability at pointed out the two main reasons mobile technology is driving the fashion industry to become more sustainable: higher consumer education levels and brands inability to “buy” consumers with greenwashing. Sarah said “We’re getting more and more educated consumers that are willing to dive into the data. Brands are no longer able to greenwash and say, ‘Hey, we’re doing something sustainable’, they actually have to prove they’re doing something sustainable with the data that backs it up or approves it.”
Mobile technology provides consumers and other supply chain stakeholders with convenient access to end-to-end product information through their mobile devices. This increase their wiliness to look for information which helps to make responsible decisions about their purchase and who they are buying from.
PFI Fareast helps brands to communicate their achievements in environmental aspect to end-consumers. Our sustainability team offers accredited product certifications: Recycled Material Certification (RMC) and Recycled Material Certification Blue (RMC Blue) to trace the recycled content of products from source to finish. The aim is to avoid plastic in the sea and in landscape, to ensure a traceable reuse and to increase the amount of recycled material in global manufacturing processes. The RMC Blue is especially focused on preventing plastic from entering the ocean – by collecting it from coastal regions.
QR technology: The Bridge to a Sustainable Fashion Industry
Asia’s garment workers lost billions of income during COVID-19
Ever since the COVID-19 pandemic began, international fashion brands and retailers have been cancelling orders, suspending payments for placed orders and requesting price cuts to save production costs. Subsequently, many garment workers lost their jobs, as well as being deprived of wages and severance pay.
According to the Financial Times article “Pandemic deprives Asia’s garment workers of almost $12bn in wages”, Clean Clothes Campaign has revealed that “roughly 1.6m garment workers had lost their jobs in seven Asian countries, including Bangladesh, India and Myanmar, with many denied severance pay”. The article also highlights that the garment industry still owes almost $12 billion to workers.
PFI offers social audit services that keep track of factory social compliance performance and consultancy by our experts to support global supply chains. We assist brands in their efforts to source from trustworthy ethical suppliers. Our highly experienced experts verify and improve the social performance of factories according to PFI standards or designated codes of conduct.
Check out the PFI’s social audit services now and see how we can help you.
Pandemic deprives Asia’s garment workers of almost $12bn in wages
Cleaning Up Fashion Report, All-Party Parliamentary Group for Ethics and Sustainability in Fashion.
The report demonstrates “how the UK can play a vital role in the national and global transition towards Net Zero emissions and national and international climate and social justice commitments. Although some of the areas outlined in this report have been highlighted in previous papers and initiatives, progress towards addressing fashion’s negative impacts on the environment is critically lacking”
The Australian Ethical Consumer Report, Christian Aid, Baptist World Aid Australia, McCrindle.
This report intends to understand Australian consumers’ attitudes and values when it comes to ethical fashion consumption. The report “uncovers the key motivations for Australians when making purchasing decisions and measures their position on the journey towards becoming an ethical consumer through the Ethical Consumer Index (ECI).”