sustainability / Regulation

An Italian union is seeking to hold Richemont legally accountable for alleged workers’ rights violations at a Montblanc supplier, as scandals linking brands like Dior, Armani, Valentino and Loro Piana to sweatshops draw more scrutiny to the sector’s sourcing practices.

The regulatory environment is becoming more complicated as European politicians roll back on regulations that were intended to make the industry more sustainable.

Too many brands have set ambitious emissions goals while their trade associations quietly work to block the regulations needed to achieve them, argues Maxine Bédat.

The European Union has unveiled plans to significantly water down landmark sustainability rules that would require large fashion brands to report more details about their environmental footprint and take on more responsibility for abuses in their supply chains.

It’s been almost a year since Italian prosecutors linked Armani and then Dior to sweatshops on the outskirts of Milan in an investigation expected to bring up to a dozen more brands under the microscope. In response, officials and industry leaders have rushed to tighten controls over the luxury supply chain.

The French Senate has yet to take up the ‘sin tax’-style penalty on fast fashion products, a year after the country’s lower house unanimously approved the bill.

Brands like Patagonia, Nike and Lululemon have been working for years to address the exploitation of migrant workers at key fabric suppliers in Taiwan. Despite some progress, the issue has persisted.

A backlash against complex and costly new rules is threatening Europe’s pioneering efforts to make the industry operate more responsibly. Failure to address valid criticisms risks undermining the whole endeavour, argues Kenneth P. Pucker.