Highlights of the Fashion Transparency Index 2023
As the EU-led due diligence legislation looms, fashion brands are stepping up their game by revealing more about their social and environmental due diligence efforts. Interestingly, this year two brands have managed to secure a solid score of 80% or even higher for the very first time. From the luxury industry, five brands have shown the most notable improvement, underlining the industry's commitment to transparency. In a significant shift, over half (52%) of major brands have now disclosed information about their tier 1 suppliers, marking a noteworthy development in the transparency landscape.
These findings underscore the progress being made within the fashion industry to enhance transparency and sustainability practices. It's encouraging to see some of the biggest players in the field taking positive steps toward a more responsible and accountable future. By shedding light on their social and environmental due diligence, these brands are sending a clear signal about their commitment to making the fashion industry more transparent and sustainable. It's especially interesting to note the surge in scores for brands like Gucci, Armani, Jil Sander, Miu Miu, and Prada. These improvements show that even established luxury brands are taking active steps to improve their transparency and sustainability efforts.
This kind of transparency not only benefits consumers but also helps drive positive changes throughout the supply chain.
Overall, these key findings from the Fashion Transparency Index 2023 highlight the growing emphasis on transparency within the fashion industry and the steps that brands are taking to make their operations more accountable and sustainable.
Watch the official Fashion Transparency Index Launch Film below.
Challenges ahead
The Fashion Transparency Index 2023 has also uncovered some disheartening revelations about the current state of transparency within the fashion industry. Despite the assessment's outreach, only 61% of the participating fashion brands provided comprehensive responses to the questionnaire, signaling a lack of commitment to transparency.
What's even more concerning is the observed decrease in transparency, with some major brands even choosing to drop out of the transparency radar altogether. The statistic highlights that only a mere 1% of major fashion brands are willing to disclose information about the number of workers in their supply chains who receive a living wage. Another concerning revelation is that just 15% of brands are open about the number or percentage of their supplier facilities that have independent, democratically elected trade unions.
Furthermore, in light of studies showing that hazardous chemicals persist in clothing, it's concerning that only 7% of major fashion brands choose to publish their supplier wastewater test results. These negative findings underscore the urgent need for enhanced transparency and accountability within the fashion industry.
With only a fraction of major brands openly addressing issues like fair wages, worker rights, and hazardous chemicals, there's a clear gap between current practices and the sustainable and ethical standards that consumers are increasingly demanding. It's essential that the fashion industry recognises and addresses these shortcomings to build a more responsible and sustainable future for all stakeholders involved.
How can you navigate Fashion Transparency with OEKO-TEX® by TESTEX?
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Tackling Due Diligence requirements with OEKO-TEX® RESPONSIBLE BUSINESS
OEKO-TEX® RESPONSIBLE BUSINESS emerges as a powerful tool for meeting due diligence requirements within the textile and leather sector. Designed to certify a company's management system, RESPONSIBLE BUSINESS employs a strategic approach, integrating human rights and environmental considerations into business operations. This framework not only empowers brands and retailers to fulfill their due diligence obligations across supply chains but also allows them to identify and address potential risks proactively.
The framework contains seven modules, including six mandatory ones and an optional module that aligns with the OECD guidelines. Within the realm of governance, RESPONSIBLE BUSINESS verifies the allocation of accountability for social and environmental impacts within a company. Top-level commitment to managing these impacts, along with the implementation of comprehensive policies, codes of conduct, and grievance mechanisms, forms a cornerstone of this approach.
The emphasis on the 'know, show, fix' principle within modules 2 to 4 reflects the core commitment of brands and retailers to identify, assess, and rectify human rights and environmental concerns across their supply chain. This process begins with the identification of potential risks, followed by the strategic implementation of SMART measures to mitigate these risks. Continuous monitoring and regular reviews in module 4 further solidify the commitment to ongoing improvement.
In a landscape where conscious consumers and regulatory bodies demand greater transparency, OEKO-TEX® RESPONSIBLE BUSINESS is an indispensable tool, enabling brands and retailers to navigate due diligence with integrity and purpose.
Tackling Spotlight issues with OEKO-TEX® STeP
As concerns about social responsibility and environmental performance continue to grow, OEKO-TEX® STeP has become a key player in the textile and apparel industry. Our mission is to tackle these issues head-on through a comprehensive approach.
OEKO-TEX® STeP takes a comprehensive approach to address social responsibility within the textile and apparel industry. It acknowledges and promotes the adoption of well-recognised social responsibility systems, including SA 8000, WRAP, BSCI, and SMETA. This alignment reflects a commitment to ethical and socially responsible practices while ensuring compliance with both local and international legal requirements, thus guaranteeing that businesses operate within legal boundaries and uphold essential standards.
One of the key areas of focus for OEKO-TEX® STeP is the promotion of acceptable working conditions. In line with United Nations (UN) and International Labour Organization (ILO) conventions, OEKO-TEX® STeP places a strong emphasis on providing socially acceptable working conditions, which includes the provision of fair wages to ensure equitable compensation for employees.
The program also invests in training and education, offering various opportunities and initiatives that focus on social responsibility. These efforts empower workers and management to continually enhance their understanding and practices in this regard.
In addition to these measures, OEKO-TEX® STeP implements a robust grievance mechanism system, providing a structured channel for addressing concerns and conflicts. This system ensures that all stakeholders have a voice and a means to resolve issues effectively.
In addition to its social responsibility efforts, OEKO-TEX® STeP is equally committed to environmental performance. It places a strong emphasis on efficient resource use, monitoring key performance indicators (KPIs) to reduce environmental impact and conserve valuable resources, including energy and water.
Emission control is also a crucial aspect, with OEKO-TEX® STeP enforcing strict limits for wastewater, air emissions, and sludge to minimise environmental pollution, thus safeguarding ecosystems and public health. To measure and report environmental impact, companies affiliated with OEKO-TEX® STeP assess their carbon and water footprint, utilising tools such as the Impact Calculator. This data-driven approach enables them to identify areas for improvement effectively.
Lastly, OEKO-TEX® STeP considers the environmental impact of packaging and transportation, promoting sustainable practices to minimise the carbon footprint associated with these processes.
In summary, OEKO-TEX® STeP's comprehensive approach addresses critical issues related to both social responsibility and environmental performance in the textile and apparel industry. By integrating these efforts, OEKO-TEX® STeP is driving positive change and sustainability within the sector.
If you would like to find out more about how OEKO-TEX® can help improve the results of the Fashion Transparency Index watch our detailed webinar: