How on Earth #5 ??? August: Sustainability Reporting Rules, insetting, environmental labeling

As of 2024 we will see the first mandatory sustainability reporting as EU Commission adopts the European Sustainability Reporting Standards. We've made a timeline for the upcoming?environmental labeling requirements. An extensive guide on the impact of legislation on suppliers has recently been released by Transformers Foundation. Big companies are moving away from offsetting. Let's not forget resale investments & social impact projects.??

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The European Commission announced on the 31st of July?that it has adopted the European Sustainability Reporting Standards (ESRS), the rules and requirements for companies to report on sustainability-related impacts, opportunities, and risks under the EU’s upcoming Corporate Sustainable Reporting Directive (CSRD), marking a major step towards the implementation of the law, with reporting set to begin for some companies as soon as the 2024 financial year.

Who is impacted?

The new rules will significantly expand the number of companies required to provide sustainability disclosures to over 50,000 from around 12,000 currently.

The?CSRD directly applies to organizations with over €20 million in total assets, a net turnover of €40 million, and/or 250+ employees. These entities are referred to as ‘large undertakings’ within the CSRD and include both EU companies and EU subsidiaries of non-EU companies.?Indirectly these might affect also smaller companies, pushed by different needs of the market to still provide reporting data.?

What does it require?

The ESRS introduces more detailed reporting requirements on company impacts on the environment, human rights and social standards, and sustainability-related risk.

TOP NEWS

“Previously, businesses were working at the strategic leadership level to make big, broad commitments. Now, we’re in the decade of delivery, which needs to embark the entire organization on changing ways of working.”From LVMH to Vivobarefoot, this is why companies are hiring transformation directors and implementing "regenerative leadership".?

Secondary market sales of fashion and luxury goods are booming, with the?global market for secondhand?luxury?goods growing by 28 percent in?2022?to reach $45.21?billion, according to Bain & Company.?Here's a timeline of resale investments & M&As.?

Nestlé is one of the first major brands that has changed its mind about using offsets to become carbon-neutral - following Gucci and other luxury fashion companies. But, there is an “instead”: Nestlé is going to “invest in programs and practices that help reduce GHG emissions in our own supply chain and operations, where it makes the most difference to reach our net zero ambition”.?

What about social responsibility?

Liberty, DKNY, Vivienne Westwood, The Very Group, New Look, Primark, Vogue, The White Company, Chloé,?and Kering were amongst those who joined the roundtable from MADE51 and the refugees and artisan groups they work with.?

Transformers Foundation is the unified voice representing the denim industry and its ideas for positive change.

Guides that extensively cover the impact of legislation on brands is easy to find.

But what about the indirect or direct effect on suppliers?

This?guide covers twelve pieces of legislation focusing on those that will have the most significant impact on suppliers. It includes a range of topics from forced labor and packaging to microplastics and reporting and addresses potential legal and operational implications for clothing suppliers and beyond.

Commissioned by: Epic Group, Norlanka, Shahi Exports & Simple Approach, and supported by Transformers Foundation and GIZ FABRIC.

UPDATES & REGULATIONS

Environmental labeling is one of those "tricky" regulatory requirements that is impacting fashion companies operating in various countries. We've recap-ed the current countries requiring adaptation and the upcoming ones in this timeline:

UPCOMING EVENTS

Register here for the webinar: 12th September 5.30pm CEST // 8.30am PDT

That's all for this month.

Have a good day on planet Earth ??,?

Renoon's team