Earlier this month, the Fashion Sustainability and Social Accountability Act was unveiled, a bill that, if passed, will effectively hold the biggest brands in fashion to account for their role in climate change.

The Fashion Act will require fashion retail sellers and manufacturers who are based in or do business in New York to disclose environmental and social due diligence policies. The Act will also see the establishment of a community benefit fund – the funds of which will consist partly of fines paid by companies who are found to be in breach of the Act.

According to The New York Times, the Act is “Sponsored by State Senator Alessandra Biaggi and Assemblywoman Anna R. Kelles, and backed by a powerful coalition of nonprofits focused on fashion and sustainability, including the New Standard Institute, the Natural Resources Defense Council and the New York City Environmental Justice Alliance, as well as the designer Stella McCartney, the law will apply to global apparel and footwear companies, with more than $100 million in revenues, doing business in New York. That is pretty much every large multinational fashion name, ranging from the very highest end — LVMH, Prada, Armani — to such fast-fashion giants as Shein and Boohoo.”

The bill notes that such companies should disclose “Environmental and social due diligence policies, processes and outcomes, including significant real or potential adverse environmental and social impacts and disclose targets for prevention and improvement”. This information must also be posted on the retailer’s or manufacturer’s website with a clear and easily understood link to the required information.

What this means is that every major brand based in or operating in New York must disclose at least 50% of its supply chain, mapping suppliers from every stage of production and manufacturing; conduct a social and environmental impact report; outline responsible business conduct policies including worker and labour rights along with potential risks and the actions taken to prevent or mitigate those risks; report details of workers’ wages and how they compare with local minimum wage; report an outline of reduction targets on energy and greenhouse gas emissions, water, chemical management and explain plans to reduce them; and supply a report on the annual volume of material produced, including breakdown by material type and the amount of recycled materials used.

At present, the law will only apply to clothing and footwear companies with more than $100 million in annual revenues doing business in New York, so smaller brands who do not meet that figure will not be subject to the same process or scrutinisation. 

If it sounds like a mouthful, that’s because it is. This Act, if passed, would be the first in the world of its standard. According to The New York Times: “While similar legislation regarding due diligence is being debated in the European Union, and while Germany, France, Britain and Australia have laws requiring due diligence when it comes to human rights and slavery, there is no general legislation in any country governing the greater social and environmental actions of the fashion industry and mandating change.” And given the fashion industry is thought to be one of the most polluting industries due to its output of greenhouse gas emissions, water consumption and water pollution, and the volume of textile waste that ends up in landfill, legislation of this kind could be monumental in changing the course of the impact the fashion industry has on the planet. It also ensures better treatment of workers in relation to workplace safety, labour practices and fair wages. 

So what does this mean for the industry as a whole? It could mean a lot more transparency, a lot less greenwashing and a lot more change in the right direction. We know that in the battle against climate change many brands are taking it upon themselves to reduce their impact on the environment – and some consumers are making the decision to shop in a more ethical and sustainable manner themselves – but a top-down approach like this could see a sea change in the industry and in turn, its impact on the future of the planet. Transparency as we know is key in trying to affect change. The more visible an issue is, the more likely it is to be rectified and with the worldwide awareness that a movement like this will bring, brands will have no choice but to start producing with the planet and people in mind.

And if public and political pressure isn’t enough to incite change, the repercussions of failing to comply with the Act will encourage retailers and manufacturers to meet the minimum requirements rather than face a fine. As stated in the Act, “fashion retail sellers and fashion manufacturers found to be out of compliance … may be fined up to two percent of annual revenues of four hundred fifty million dollars or more. Such fines shall be deposited in the community benefit fund.” The bill will be voted on in late spring. Here’s to the future of fashion.