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[Simply explained] Full overview of the EU textile strategy and regulations
"Fashion Rules" is a LinkedIn publication by Carbonfact aimed at providing clarity on regulatory matters to brands within the apparel, luxury, and footwear industries.
Carbonfact, a Carbon Management platform, helps fashion brands to measure, report and reduce emissions, with no manual effort.
This article was originally published on the Carbonfact blog, find the full version here.
The European Union (EU) is taking significant strides toward reducing carbon emissions and building a more sustainable future.
EU Strategy for Sustainable and Circular Textiles?
EU has developed the EU Strategy for Sustainable and Circular Textiles to implement the European Green Deal and CEAP commitments. This strategy aims to transform the entire lifecycle of textile and footwear products, including increasing their longevity, promoting the use of recycled fibers, addressing fast fashion issues, and facilitating repair or recycling through a Digital Product Passport. Read all the details.
Now let’s take a look at the main climate regulations and directives, and how they affect fashion and textile companies in greater detail.?
Corporate Sustainability Reporting Directive (CSRD)
Current Status: Adopted?
The CSRD, a component of the Sustainable Finance Initiative, mandates companies to consider sustainability alongside their financial health. It applies to large companies with 250+ employees and EU-listed companies, eventually extending to non-EU corporations. These companies must disclose ESG information, including greenhouse gas emissions, supply chain transparency, labor practices, and diversity initiatives. Reporting requirements start in 2024, affecting reports published in 2025. The EU is working on European sustainability reporting standards (ESRS).?
Waste Framework Directive
Current Status: Adopted
In 2021, the? Waste Framework Directive was adopted to foster a circular economy, prevent EU textile waste export, improve recycling within the EU, and combat illegal waste shipments. It introduced EPR—short for Extended Producer Responsibility, making producers responsible for the entire textile product lifecycle. Member States must establish textile waste collection systems by January 1, 2025. Each country will have its own EPR, and fashion brands must join them.
Regulation on Waste Shipments
Current Status: Proposal
Proposed in 2023, this regulation seeks to harmonize existing EPRs across Member States in the textile industry. It makes textile producers responsible for textile waste management costs, encouraging waste reduction and circularity. Producers' fees will be based on eco-modulation, reflecting their environmental performance.
Revision of the Textile Labeling Regulation
Current Status: Draft phase
The revision aims to streamline labeling systems, encompassing both physical and digital labeling of textiles. It will require brands to adopt comprehensive and standardized labeling practices, providing consumers with accurate information about textile product composition and origin. This promotes fair competition and consumer confidence. Updates will be provided once revisions are public.
Ecodesign for Sustainable Products Regulation (ESPR)
Current Status: Provisional agreement as of December 5th, 2023.
ESPR expands beyond energy products, including textiles, to address 80% of a product's environmental impact through design. It aims to enhance durability, reliability, reusability, upgradability, repairability, ease of maintenance, refurbishment, recycling, energy efficiency, and resource efficiency.
Fashion brands selling in the EU must consider end-to-end product design, emphasizing durability, recyclability, and recycled materials. This enhances transparency, traceability, and informed consumer choices. Ecodesign textile requirements will be finalized by mid-2025.
ESPR introduces the Digital Product Passport for easier repair, recycling, and supply chain substance tracking.
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Digital Product Passport
All EU market products must have a Digital Product Passport, digitally recording environmental impact across the lifecycle. It includes machine-readable elements like QR codes linked to unique product IDs.
For fashion and textile brands, this covers durability, reusability, repairability, recycled content, carbon footprint, circularity, and more. Detailed specifications are expected in 2024, with the implementation date pending.
Unfair Commercial Practices Directive (UCPD)
Current Status: Adopted
The Unfair Commercial Practices Directive (UCPD), established in 2005 for consumer protection, recently incorporated sustainable claim guidelines in December 2021. Currently, it's the only EU regulation addressing environmental claims. However, the upcoming Green Claims Directive, proposed in March 2023, will introduce specific rules for substantiating and communicating green claims, along with environmental labeling regulations. These directives complement each other by setting guidelines for companies to follow, focusing on substantiation and verification.
Although less specific than the Green Claims Directive, the UCPD provides guidelines for voluntary environmental claims:
Directive on Green Claims
Current Status: Proposal
With over 230 different environmental labels causing consumer confusion and ?53% of green claims being vague, misleading, or unsupported, the Green Claims Directive aims to combat greenwashing and provide clarity.
Under this directive, all green claims, like reduced carbon footprint, must undergo third-party verification and scientific proof. Clear communication rules will be enforced, prohibiting aggregate scoring and unauthorized labeling schemes. The directive seeks to enhance product label information, especially regarding durability and repairability. Claims about garment sustainability will require third-party reviewed data using standardized life cycle assessment (LCA) methods.
Product Environmental Footprint Method (PEF)
The EU is developing the product environmental footprint method (PEF), with data tailored for the apparel and footwear sector. PEF considers various environmental factors like carbon emissions, water usage, and energy consumption.
Once implemented, fashion and textile brands will benefit from tools like Carbonfact to manage carbon emissions. While the directive is not yet in effect, Deloitte estimates it will apply from 2026.
Corporate Sustainability Due Diligence Directive (CSDDD)
Current Status: Adopted
This directive compels large companies, including those in high-impact sectors like fashion, to assess and mitigate environmental and social impacts in their operations and supply chains. It promotes responsible practices, transparency, ethical sourcing, and sustainability integration.
Affected companies (250+ employees, 40+ million euros turnover) must take steps toward sustainability and ethical practices, although specific outcomes aren't predefined. The directive focuses on creating visibility and traceability across the value chain, requiring due diligence policies, impact identification, and prevention of negative effects, communicated publicly. Expected formal adoption by the EU (after 2024) gives Member States two years for national implementation. Member states can exceed EU requirements. Read the details.
The various proposals and initiatives listed above are at various stages, including preparatory and legislative phases. For an overview of the strategy and planned implementation, consult the European Commission's comprehensive document, "Transition pathway for the textiles ecosystem".?
In 2024 prepare for CSRD with Carbonfact
The Carbonfact platform equips fashion brands to effectively prepare for upcoming regulations like the CSRD and the NY Fashion Act.
In short - Carbonfact helps you measure, disclose and reduce all of your emissions, with no manual effort.
Our granular intelligence throughout the fashion supply chain allows us to do all the heavy lifting when it comes to supply chain data cleaning and provision, saving you months of work.
More than just a tool, our climate, fashion, and compliance experts act as an extension of your sustainability team, supporting in navigating complex new regulations and aiding in the development of decarbonization strategies.