New York Fashion Sustainability and Social Accountability Act “The Fashion Act”

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By Jeanine Ballone 

The fashion industry has long been plagued by issues of environmental degradation and unethical labor practices. Fashion represents over 8% of global greenhouse gas emissions, more than France, Germany and the United Kingdom combined. It is also one of the leading industries using modern day slavery and child labor.

To address these concerns, the New York Fashion Sustainability and Social Accountability Act, “The Fashion Act” is gaining momentum as a legislative solution. This act would require companies to disclose their supply chains and adopt sustainable practices if they want to sell their products in New York. Spearheaded by The Act on Fashion Coalition, this initiative aims to minimize the negative environmental and social impacts of the fashion industry and promote transparency within the industry.

The Fashion Act is currently being championed in the New York legislature with over 82 co-sponsors led by prime sponsors Senator Brad Hoylman-Sigal and Assemblymember Dr. Anna Kelles who all recognize the urgent need for change in the fashion industry. Led by Maxine Bédat, founder of the think and do tank, New Standard Institute, this coalition is working tirelessly to raise awareness about the detrimental impacts of the industry and garner support for the legislation.

The proposed act would require fashion companies with global revenue over $100 million selling into the state of New York to disclose information about their supply chains, including sourcing practices, labor conditions, and environmental impact assessments. It would also hold them accountable to address their practices, including requiring companies to set and achieve climate targets in line with planetary bounds. A commitment many fashion brands have voluntarily agreed to do. 

Importance of the New York Fashion Accountability and Sustainability Act:

1. Environmental Impact: The fashion industry is responsible for significant environmental degradation, including carbon emissions, water pollution, chemical use, and forest degradation. Mandating effective due diligence, including the brand’s own purchasing practices, would help minimize the industry's ecological footprint and not leave companies doing the right thing at a competitive disadvantage.

2. Ethical Labor Practices: The act would also address the issue of unethical labor practices prevalent in the fashion industry. The legislation would require companies to disclose information about their workers' rights, fair wages, and working conditions and would give the state and garment workers the power to bring a case for lost wages. This would ensure that fashion brands are held accountable for the treatment of workers throughout their supply chains, promoting fair and ethical labor practices.

3. Consumer Awareness and Empowerment: The New York Fashion Act would enable consumers not to have to choose between clothing and their ethics.

4. Industry Transformation: The impact of the New York Fashion Accountability and Sustainability Act would extend beyond the state's borders. Like California fuel efficiency standards which brought with it the conditions for the EV revolution, The Fashion Act would reach all large size fashion brands selling in the state of New York, regardless of where those companies are headquartered. Given New York's status as a global fashion hub and its market size, it would set the global floor for the industry and would catalyze a significant shift towards sustainability and transparency within the fashion industry, leading to a systemic transformation that benefits the environment, workers and allow the industry to collectively achieve its goals.

“Fashion is one of the least regulated industries. This has led to a race to the bottom in the industry and widespread exploitation of land and people. We need to lift the floor and ensure that companies that are doing the right thing are not put at a competitive disadvantage. The Fashion Act embeds methodology developed and voluntarily agreed to by companies. It is now time for the state to step in and ensure these promises are realized. It is a climate crisis it can no longer be fashionable for this industry to be one of its leading drivers.”’

“Sustainability and human rights are fashionable, but only if we collectively commit to making it so,”

said Assemblywoman Dr. Anna Kelles.

“During this 2023 Fashion Week, in addition to appreciating the latest designs on the runway, we must also examine the fashion industry’s global climate impact and labor practices. The fashion industry is responsible for as much as 8.6% of global greenhouse gas emissions and has been permitted to operate unchecked by regulations that would curb both pollution and the use of exploited, forced, and child labor. It's critical that the government play an equal and active role with the industry to achieve human rights and environmental sustainability targets. I am proud to be the prime sponsor of the Fashion Act in the New York State Assembly and to partner with all stakeholders to set binding environmental targets to reduce those impacts. The Fashion Act is good for the environment, good for workers, good for industry, and good for New York, the world’s fashion capital.”

The Fashion Act is being advanced by industry leaders including: Stella McCartney, Patagonia, Eileen Fisher, Everlane, Reformation, and others. Lagging companies, have expressed concerns about the potential impacts on their operations and profitability. While it is important to note that not all companies oppose the legislation, some have expressed reservations or actively lobbied against it. Here are some reasons behind the opposition:

1. Cost and Complexity: One of the main arguments put forth by opponents is that complying with the legislation would impose additional costs and administrative burdens on businesses. They argue that disclosing supply chains, conducting environmental impact assessments, and implementing sustainable practices would require significant investments in technology, personnel, and resources. Smaller businesses, in particular, may find it challenging to meet these requirements, potentially leading to financial strain or even closure.

2. Competitive Disadvantage: Companies fear that if the New York Fashion Accountability and Sustainability Act is implemented solely within New York, it would put local businesses at a competitive disadvantage compared to counterparts from other states or countries without similar legislation. They argue that this discrepancy could lead to a migration of fashion companies away from New York, resulting in lost jobs and an economic downturn.

3. Trade Secrets and Confidentiality: Another concern raised by opponents is the potential disclosure of proprietary information and trade secrets. Fashion companies often consider their supply chain information as confidential and proprietary, which they believe gives them a competitive edge. Requiring disclosure of these details could expose sensitive information to competitors, potentially compromising their business operations.

4. Lack of Uniform Standards: Critics argue that the legislation, if enacted only in New York, would create a patchwork of regulations across different jurisdictions, leading to confusion and inconsistency for businesses operating nationally or internationally. They highlight the need for a unified, industry-wide approach to sustainability and supply chain transparency, rather than a fragmented state-level legislation that could hinder efficiency and compliance efforts.

It is worth noting that while some companies oppose this legislation, others within the fashion industry have already taken steps to voluntarily disclose their supply chains and adopt sustainable practices. These companies recognize the growing consumer demand for transparency and ethical fashion and view it as an opportunity to differentiate themselves, build consumer trust, and do the right thing.

“We at Reformation strongly support the Fashion Sustainability and Social Accountability Act and are thrilled to see the traction it is gaining within the New York region. It's clear there is a need for effective regulation to hold businesses accountable for both their impact on people and the planet. This act is an important signal of what consumers around the globe are demanding of the industry and a chance for us to raise the standard. We are optimistic that this will be a significant step toward a truly progressive future,” said Kathleen Talbot, Chief Sustainability Officer & VP Operations at Reformation.

To address the concerns raised by opponents, proponents of the legislation argue that the long-term benefits of supply chain transparency and sustainable practices outweigh the short-term costs. They emphasize that the legislation would level the playing field, as all companies would be subject to the same requirements, and that it would drive industry-wide transformation towards more sustainable and ethical practices.

The New York Fashion Sustainability and Social Accountability Act, Act represents a crucial step towards a more responsible and ethical fashion industry. Led by a broad coalition including brands, manufacturers, environmental groups, labor organizations, influencers and celebrities including Leonardo DiCaprio, Rosario Dawson Amber Valetta and many others this legislation has the potential to transform the industry by promoting transparency, minimizing environmental impacts, and ensuring ethical labor practices.

By demanding supply chain disclosure and accountability, the act empowers consumers to make informed choices and drives companies to adopt sustainable practices. As the movement gains traction, it is hoped that New York's leadership will inspire global change and pave the way for a more sustainable future in fashion.

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