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Regulations

This page provides an overview of global regulations affecting the textile industry and upcoming compliance requirements. These regulations aim to promote sustainability, ethical practices, and transparency within the industry. Check out the table for a quick overview, or scroll down for a more in-depth explanation!

Regulation
Region
Status
Key Points
Who is Affected
Anti-Waste for a Circular Economy
France
Entered into force 2023 January
- Requires companies to inform consumers about waste-generating production along with limiting excess waste.
- Brands or retailers selling product in France.
Supply Chain Due Diligence Act
Germany
Entered into force 2023 January
- Mandates human rights and environmental due diligence for companies.
- Companies with a presence in Germany.
Norwegian Transparency Act
Norway
Entered into force 2022 July
- Increases transparency and ensures respect for human rights.
-Large and mid-sized companies registered in Norway.
Ban on Forced Labor
EU
Provisional Agreement on 2024 March
- Aims to prohibit products made with forced labor from the EU market and exports.
- All companies producing products in the EU.
Corporate Sustainability Reporting Directive
EU
Entered into force 2023 January
- Aims to enhance the sustainability of products sold in the EU.
- All companies placing products on the EU market.
Directive on Green Claims
EU
Adopted 2024 March
- Ensures environmental claims made by businesses in the EU market are accurate.
- Businesses making environmental claims about products or services in the EU market.
Corporate Sustainability Due Diligence Directive
EU
Provisional Agreement on 2023 December
- Aims to promote sustainable and responsible corporate behavior.
- Companies within and outside the EU, with direct operations, subsidiaries, or value chain connections.
Extended Producer Responsibility
EU
Enacted, PRN due 2024 April
- Obligates producers to cover the total cost of managing the waste they generate.
- Any business using, handling, importing, or generating packaging in the EU.
Waste Framework Directive
EU
Enacted 2024 March
- Establishes fundamental principles for waste management.
- All people and companies operating within the EU.
Registration, Evaluation, Authorization, and Restriction of Chemicals
EU
Enacted 2007, Updated 2023 June
- Ensures safe use of chemicals while protecting human health and the environment.
- Industries worldwide and all chemicals manufactured, used, or present in products in the EU.
New York Fashion Act
New York
Enacted 2024 January
- Regulates the fashion industry’s environmental and social impact.
- Apparel and footwear retailers operating in New York with a global revenue of at least $100 million.
The FABRIC Act
US
Reintroduced 2023 September
- Aims to position the US as a leader in responsible apparel production.
- Any business in the textile industry within the United States.
The Responsible Textile Recovery Act
California
In Assembly 2024 April
- Establishes an Extended Producer Responsibility (EPR) program for textiles to enhance recycling and reuse.
- Any producer of clothing or textiles in California, expected to extend to the entire United States.
The Americas Act
US
Introduced 2024 March
- Aims to support domestic circular businesses, textile manufacturing, and incentivize reshoring and nearshoring manufacturing from China to the US.
- Businesses in the textile industry operating in the US or trading with the US.

01

Overview: 

This strategy addresses the production and consumption of textiles, whilst recognizing the importance of the textile sector. It implements commitments of the European Green Deal, the Circular Economy Action Plan, and the European Industrial Strategy. It aims to create a greener, more competitive sector that is more resistant to global shocks. 

Objectives to reach by 2030: 

  • All textile products placed on the EU market are durable, repairable, and recyclable. Set to be made of recycled fibers, free of hazardous substances, and produced in respect of social rights to the environment.

  • "fast fashion is out of fashion" and consumers benefit longer from high quality affordable textiles.

  • profitable re-use and repair services are widely available.

Key Actions:

  • Set design requirements for textiles to make them last longer, easier to repair and recycle, as well as requirements on minimum recycled content.

  • Introduce clearer information and a Digital Product Passport

  • Tackle greenwashing to empower consumers and raise awareness about sustainable fashion.

  • Reverse overproduction and overconsumption, and discourage the destruction of unsold or returned textiles.

  • Introduce mandatory and harmonized Extended Producer Responsibility schemes for textiles with eco-modulation fees.

  • Address the unintentional release of microplastics from synthetic textiles.

  • Restrict the export of textile waste and promote sustainable textiles globally.

  • Incentivize circular business models, including reuse and repair sectors.

  • Encourage companies and Member States to support the objectives of the strategy.

02

Issuing Body: France

Status: Enacted 10 February, 2020

Overview: 

  • Defines requirements for companies to inform consumers about the environmental characteristics of waste-generating products, including textiles.

  • Mandates disclosure of harmful substances, material content, and traceability for products.

  • Claims like “biodegradable” or “environmentally friendly” are prohibited.

Critical Dates:

  • AGEC law adopted on 10 February, 2020; Decree 2022-748 published on 29 April, 2022.

  • Disclosure requirements progressively apply from 1 January, 2023.

  • As of 1 January, 2024 disclosure required if company sells over 10,000 units and annual turnover of 10 million EUR or more.

Who is Affected:

  • The law applies to all goods sold in French territory.

  • Any brands or retailers selling in France need to comply with this law.

03

Issuing Body: Germany

Status: Enacted June, 2021

Overview: 

  • SCDDA, or Lieferkettengesetz (LkSG), mandates human rights and environmental due diligence for companies across their value chains.

  • Applies UN Guiding Principles on Business and Human Rights and the National Action Plan for Business and Human Rights.

  • Requires companies to provide a comprehensive overview of supply chains, set up risk management systems, carry out regular risk analyses, make policy statement related to human rights strategy, take measures to prevent and remedy abuses, establish complaint procedure including whistle-blowing function, and terminate business relationships with direct supplier if there has been a grave violation.

Critical Dates:

  • June 2021: German parliament passes SCDDA.

  • January 2023: SCDDA regulations come into force for enterprises with more than 3,000 employees.

  • January 2024: SCDDA regulations come into force for enterprises with more than 1,000 employees.

  • 2024: Companies must report under the CSRD in line with mandatory EU sustainability reporting standards.

  • 2026: The German government will carry out an evaluation of SCDDA's effectiveness.

Who is Affected:

  • Any company that has their central administration, principal place of business, administrative headquarters or statutory seat in Germany must comply with the due diligence obligations set out in the Supply Chain Act.

04

Issuing Body: Norway

Status: Enacted June, 2021

Overview: 

  • Aims to increase transparency and ensure respect for human rights and decent working conditions in business relationships.

  • Companies must conduct due diligence assessments and document efforts to prevent or mitigate risks.

  • Aligned with UN Guiding Principles on Business and Human Rights, OECD Guidelines, and UN Sustainability Goals.

Critical Dates:

  • 1 July, 2022: The Act came into effect.

  • 30 June, 2023: Companies must publish their first reports.

Who is Affected:

  • Applies to large and mid-sized companies registered in Norway, and foreign companies that must pay taxes in Norway that meet at least 2/3 of the following conditions:

    • Over 70 million NOK in sales revenue (€6 million)

    • Over 35 million NOK in balance sheet (€3 million)

    • Over 50 average number of employees in the financial year (or equivalent annual man-hours)

05

Issuing Body: European Union

Status: Agreement for Implementation reached 5 March, 2024

Overview: 

  • The EU Regulation on the ban on products made with forced labor aims to prohibit such products from the EU market and exports.

  • Forced labor is defined as all work or service which is exacted from any person under the threat of a penalty and for which the person has not offered himself or herself voluntarily.

  • Aligned with UN Guiding Principles and OECD Guidelines, it targets products found to involve forced labor.

  • Member states must assign a National Competent Authority (NCA) to investigate and punish non-compliant companies.

Critical Dates:

  • 14 September, 2022: Proposed

  • 26 January, 2024: Council adopted negotiating position

  • 5 March, 2024: Agreement for implementation

  • 2025: Potential Implementation

Who is Affected:

  • Impacts all companies that produce products in the EU for domestic consumption and export, and imported goods.

06

Issuing Body: European Union

Status: Enacted 5 January, 2023

Overview: 

  • CSRD standardizes corporate sustainability reporting requirements for large and listed companies in the EU, aiming to improve the quality of reporting.

  • Builds upon the Non-Financial Reporting Directive (NFRD) to address deficiencies in sustainability reporting.

  • Sustainability reports must cover aspects such as business model, targets, governance, policies, due diligence, and risks.

  • Must include both qualitative and quantitative information, take a retrospective and forward-looking perspective, and be in a digital format.

  • Scope of matters include: environmental factors, social factors, and governance factors.

Critical Dates:

  • 21 June, 2022: Members of the European Parliament and EU governments confirmed provisional agreement on CSRD terms and implementation.

  • November 2022: The EU Commission formally approves and adopts a first set of sustainability reporting and disclosure standards. CSRD approved by EU Parliament on 10 November, 2022, and approved by EU Council on 28 November, 2022.

  • December 2022: EU Member States adopt the EU Directive into law allowing it to enter force 20 days after publication and provisions integrated into national laws after 18 months.

  • 5 January 2023: The Corporate Sustainability Reporting Directive enters into force.

  • 2023: CSRD takes effect for eligible entities in corporate fiscal year 2024 and organizations will need to start implementing ESG reporting capabilities and infrastructure in 2023 to prepare their CSRD reporting for the following year.

  • 2024: Qualifying large businesses will need to disclose a CSRD report. All EU Member States need to comply by 6 July, 2024.

  • 2025: Companies will repeat the same ESG reporting cycle for fiscal year 2025.

  • 2026: EU small and medium enterprises will need to start their own CSRD reporting. Sector-specific CSRD reporting standards introduced by June 2026.

  • 2028: International companies with more than €150 million annual revenue within the EU will be required to start reporting under CSRD.

Who is Affected:

  • Companies within the EU meeting two of the following three conditions will have to comply with the CSRD:

    • €50 million in net turnover​

    • €25 million in assets

    • 250 or more employees​​

    • Small and medium enterprises specificities will be introduced in 2026.

  • Non-EU companies that have a turnover of above €150 million in the EU will also have to comply.​

07

Issuing Body: European Union

Status: Provisional Agreement 5 December, 2023

Overview: 

  • Aims to enhance the sustainability of products sold in the EU by imposing eco-design and consumer information requirements.

  • Part of the EU Green Deal and Circular Economy Action Plan (CEAP), focusing on sustainable product design and circularity.

  • Divided into four sections:

  • Eco-design Framework:

    • Delegated acts to set eco-design and information requirements for specific product categories.

    • Products must comply with these requirements to enter the EU market.

  • Digital Product Passport & Labels:

    • Introduction of DPP for consumer access to product information.

    • Labels may be required for some products specifying content, layout, and means of display.

  • Destruction of Unsold Consumer Products:

    • Economic operators discarding unsold products must disclose information on quantity, reasons, and disposal methods.

    • Destruction may be prohibited for certain products with significant environmental impact.

  • Liability & Implementation:

    • Manufacturers, importers, distributors, and online marketplaces have specific responsibilities regarding product compliance and information disclosure.

    • Conformity assessment procedures and EU declaration conformity required.

Critical Dates:

  • 30 March 2022: Adoption of ESPR proposal (as part of Sustainable Products Initiative)

  • 31 January 2023 - 12 May 2023: Open Public Consultation (New product priorities for ESPR)

  • 5 December 2023: Commission welcomes provisional agreement for more sustainable, repairable, and circular products.

  • Mid 2025: expected to be finalized for textile sector.

Who is Affected:

  • Impacts all companies placing products on the EU market, whether produced inside or outside the EU.

08

Issuing Body: European Union

Status: Provisional Agreement on 19 September 2023

Overview: 

  • Proposed as part of the EU Green Deal, the EU Green Claims Directive aims to ensure environmental claims made by businesses in the EU market are substantiated and accurate and contain no “greenwashing”.

  • Requires businesses to use standardized methodologies like Product & Organization Environmental Footprint (PEF & OEF) for calculating emissions.

  • The directive aligns with the Circular Economy Plan (CEAP) and other initiatives promoting sustainable consumption and product labeling.

  • Impacts businesses making environmental claims about their products or services in the EU market, regardless of communication medium.

Critical Dates:

  • 22 March 2023: Proposed by the European Commission

  • 19 September 2023: The European Council and European Parliament reached a provisional political agreement.

  • Parliament is expected to vote on the report adopted jointly by ENVI and IMCO during its 2024 March plenary session with individual countries adopting the GCD 24 months later.

Who is Affected:

  • Covers all sustainability claims that relate to a product, brand, company, or service made in a business-to-consumer (B2C) context.

09

Corporate Sustainability Due Diligence Directive (CSDDD)

Issuing Body: European Union

Status: Provisional Agreement on 19 September 2023

Overview: 

  • Aims to promote sustainable and responsible corporate behavior, embedding human rights and environmental considerations into companies’ operations and governance.

  • Obliges businesses to address adverse impacts, including in their value chains, inside and outside of Europe.

  • Allows for better protection of human rights, a healthier environment, and increased trust and transparency.

Critical Dates:

  • 1 June 2023: European Parliament voted to provisionally approved CSDDD.

  • 2024: The final draft of the CSDDD passed into EU law.

  • 2026: Will be transposed into national law by member states.

  • 2027: The first year large, eligible businesses in Group 1 will need to comply with the law, including reporting and disclosure standards.

    • Group 1: EU companies with over 1000+ employees.​

  • 2028: Companies in Group 2 will need to begin CSDDD reporting and disclosure.

    • Group 2: EU-based with over 500+ employees and €150 million+ annual revenue.​

  • 2029: Group 3 & 4 companies must begin reporting, disclosure, and compliance.

    • Group 3: EU companies operating in defined high impact sectors who do not meet both Group 1 thresholds, but have more than 250 employees and turnover of €40 million worldwide and more.​

    • Group 4: Non-EU, global companies active in the EU who meet turnover thresholds aligned with Group 1, generated within the EU.

Who is Affected:

  • This proposal applies to a company's direct operations, subsidiaries, and their value chains. Small and medium enterprises (SMEs) are not directly impacted by the disclosure and reporting requirements this proposal, however many of these businesses are suppliers within larger corporate supply chains of companies who do meet the criteria.

10

Extended Producer Responsibility (EPR)

Issuing Body: European Union

Status: Enacted

Overview: 

  • A new Legislation set to replace the Packaging Waste Regulations.

  • Producers are obligated to cover the total cost of managing the waste they generate, from packaging placement to end-of-life.

  • Aims to reduce environmental impact of packaging and encourages recyclable materials.

  • Shifts costs from taxpayers to producers.

Critical Dates:​​

  • 2023: Organizations start collecting EPR data about the packaging they produce, handle, or supply.

  • 2024: Introduction of a Waste Management Fee for businesses with £2m+ turnover or 50+ tons of packaging.

  • January 2024: Organizations to conduct and submit EPR recyclability self-assessment for packaging.

  • 2025: Modulated fees issued based on packaging's recyclability.

  • 2026: All packaging must be correctly labeled under the Recycle Now Scheme (RNS).

  • March 2026: Compostable and biodegradable packaging must include the 'do not recycle' label by 31st March 2026.

  • 2027: All packaging labeled if it is recyclable or not.

  • March 2027: Plastic films and flexible packaging are to be labeled correctly under the RNS.

Who is Affected:

  • Any business that uses, handles, imports, or generates packaging.

11

Waste Framework Directive (WFD)

Issuing Body: European Union

Status: Enacted

Overview: 

  • Establishes fundamental principles for waste management, emphasizing prevention and minimizing environmental harm.

  • Introduces concepts like the Extended Producer Responsibility (EPR), and the “polluter pays principle”.

  • Stricter regulations govern hazardous waste and mandates labeling, record-keeping, and separate handling of hazardous waste to prevent contamination.

  • Focuses on textile waste management to enhance circularity and sustainability and mandates separate collection of textiles by 2025, making producers financially responsible for their products’ lifecycle.

Critical Dates:​​

  • 2020: Preparing for re-use and the recycling of waste materials (such as paper, metal, plastic and glass) from households shall be increased to a minimum of overall 50 % by weight.

  • 2020: Preparing for re-use, recycling and other material recovery, including backfilling operations using waste to substitute other materials, of non-hazardous construction and demolition waste shall be increased to a minimum of 70 % by weight.

  • 2025: Preparing for re-use and recycling of municipal waste increased to a minimum of 55%.

  • 2030: Preparing for re-use and recycling of municipal waste increased to a minimum of 60%.

  • 2035: Preparing for re-use and recycling of municipal waste increased to a minimum of 65%.

Who is Affected:

  • All people and companies operating within the EU.

12

Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH)

Issuing Body: European Union

Status: Enacted

Overview: 

  • Comprehensive regulation aimed at ensuring the safe use of chemicals while protecting human health and the environment.

  • Requires companies to register, evaluate, and authorize chemicals before placing them on the market.

  • Restricts use of certain hazardous substances in products to minimize their negative impact.

  • Promote alternative (non-animal) methods for the assessment of the hazards of substances.

  • National competent authorities from EU Member States and EEA countries are required to submit to the Commission every 5 years a report on the operation of REACH and the compliance with CLP.

Critical Dates:​​

  • 2021/2022: the EU clarified the REACH information requirements to further enhance safety and management.

  • 1 June 2023: New completeness checks of REACH registrations.

Who is Affected:

  • It will affect industries worldwide and applies to all chemicals manufactured, used, or present in products in the EU.

13

New York Fashion Act

Issuing Body: New York State Legislature

Status: Enacted January 2024

Overview: 

  • Fully known as The New York Fashion Sustainability and Social Accountability Act, it aims to regulate the fashion industry’s environmental and social impact.

  • Requires Fashion companies operating in New York to adhere to specific standards, including transparent reporting on environmental practices, labor conditions, and supply chain ethics.

  • Emphasizes the importance of reducing waste, promoting fair labor practices, and ensuring ethical sourcing of materials.

Critical Dates:​​

  • 2022: Originally introduced but did not move forward due to a lack of support.

  • 2023: Nearly verbatim version introduced.

  • 2030: Targets set to be fully in motion.

Who is Affected:

  • Apparel and footwear retailers that operate in New York with a global revenue of at least $100 million would be required to map their supply chains and subsequently address and remediate the supply chain issues.

14

The FABRIC ACT

Issuing Body: New York State Legislature

Status: Proposed

Overview: 

  • Fully known as The Fashioning Accountability and Building Real Institutional Change Act (FABRIC) is a proposed amendment to the Fair Labor Standards Act of 1938.

  • Aims to position the United States as ‘the global leader in responsible apparel production’ through changes to the piece-rate pay system, regulating working conditions, and making investments into domestic apparel manufacturing.

  • Introduces incentives for companies to manufacture their garments domestically in the US, instead of offshoring and outsourcing.

Critical Dates:​​

  • 12 May, 2022: Introduced in the Senate.

  • 14 September, 2023: Bill was reintroduced.

  • Has yet to be enacted as there is much opposition.

Who is Affected:

  • Any business in the textile industry within the United States.

15

The Responsible Textile Recovery Act

Issuing Body: California State Legislature

Status: Proposed

Overview: 

  • Establishes an Extended Producer Responsibility (EPR) program for textiles under the regulatory authority of the California Department of Resources Recycling and Recovery (CalRecycle).

  • Intends to enhance recycling and reuse of textiles.

  • The bill would require producers to fund, design, and implement the program for collecting, sorting, and recycling textile articles under CalRecycle’s oversight.

  • As currently written, contains numerous problematic provisions that industry and nonprofits experienced in textile circularity, and as a result did not progress in 2023, but is expected to be taken up in 2024 after revisions are completed.

Key Concerns:​​

  • Important definitions are extremely broad and cover a wide array of textile products.

  • Small businesses in California may be at a disadvantage.

  • Online foreign retailers delivering direct to consumers are not covered.

  • Liability due to existing state law regarding chemical constituents.

  • The regulatory capacity to oversee the program may be limited.

  • Requirements on producers and program operators are extensive and burdensome.

Who is Affected:

  • Any producer of clothing or other textiles in California, expected to extend to the entire United States.

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