Transparency as a Foundation to a More Sustainable Fashion Industry
Author: David Leys
Publication date: 10 January 2022
If a fashion company aspires to be sustainable and profitable at the same time, it needs to act transparently. Fashion Revolution uses the Fashion Transparency Index 2020[1] to assess the social and environmental policies, practices and impacts of 250 fashion companies.
Transparency on its own does not render fashion companies more sustainable, however, transparency ensures accountability and supports companies’ sustainability claims. Being transparent provides fashion companies and designers an idea of their impact on the environment. For instance, 2,700 liters of water is necessary to produce one cotton t-shirt.[2] This is equivalent to “one person’s drinking water for two-and-a-half years.”[3] The disclosure of such information creates awareness among fashion companies and consumers. Transparency also allows traceability of clothing textiles in the whole supply chain. Some consumers only trust fashion companies and buy their clothing textiles if they have access to transparent information about the whole supply chain and the substances used for the garments.[4]
In some cases, transparency is not an option for fashion companies but it is a legal requirement. For example, one of the US binding regulations requires fashion companies to be transparent about the origin of their clothing textiles. Indeed, Title 19 of the United States Code, Chapter 4, Section 1304, enacts that all clothing textiles imported into the U.S. must be marked about their origin and the ultimate purchaser in the US. This ensures some transparency of the whole supply chain.
In other cases, fashion companies needs to be transparent when they examine long-standing practices across their businesses.[5] One of these practices is environmental sustainability. This transparency can be achieved through different environmental strategies: the management of waste, the promotion of clean energies, the actions undertaken to mitigate impact on the environment, and the reduction of the consumption of nonrenewable materials.[6] As a consequence, additional questions about sustainable raw materials may arise, namely the use, origin and impact on the environment after the life cycle of materials and substances and the alternative substances fashion companies consider using in their clothing textiles.[7]
Transparency builds trust in the mind of certain consumers who favor sustainable clothing textiles.[8] As a consequence, fashion companies may be more profitable with transparency.[9]
[1] Fashion Revolution, The Fashion Transparency Index 2020, available at https://www.fashionrevolution.org/about/transparency/ and https://issuu.com/fashionrevolution/docs/fr_fashiontransparencyindex2020?fr=sNmI5NzYxMDk0OA.
[2] Elise Epp, Why Transparency in Fashion Matters, What’s the environmental impact of your closet?, IISD (April 22, 2019), available at https://www.iisd.org/articles/fashion-transparency.
[3] Id.
[4] The Power of Transparency, RETRACED, available at https://retraced.co/en/blog/power-of-transparency-part-1-consumer-fashion-marketing-perspective.
[5] McKinsey & Company, What radical transparency could mean for the fashion industry (Feb. 14, 2019), available at https://www.mckinsey.com/industries/retail/our-insights/what-radical-transparency-could-mean-for-the-fashion-industry#.
[6] Maria Jose Munguia Romero, Who Made Your Clothes? Transparency Is the First Step in Creating a Sustainable Fashion Industry, re/make (November 5, 2020), available at https://remake.world/stories/style/who-made-your-clothes-transparency-is-the-first-step-in-creating-a-sustainable-fashion-industry/.
[7] Id.
[8] Alice Newbold, Why We Need To Talk About Transparency In Fashion, VOGUE (May 17, 2018), available at https://www.vogue.co.uk/article/sustainability-transparency-traceability-fashion.
[9] Catherine Salfino, Why Being Transparent is Vital—and Profitable—for Fashion, SOURCING JOURNAL (June 6, 2019), available at https://sourcingjournal.com/topics/lifestyle-monitor/why-being-transparent-is-vital-and-profitable-for-fashion-155114/.
David Leys, Winter Policy Analyst
David is a qualified lawyer of the Brussels Bar and an applicant for California as well as New York Bars. With experience at Sidley Austin LLP, the European Commission, and the Embassy of Belgium in Tokyo, he brings an international perspective towards trade, competition and intellectual property.
Having twice attended the Marché du Film at the Festival of Cannes, David has considerable experience in licensing, partnerships and NDAs for SMEs in the cultural and creative sectors. He has recovered up to 200,000 USD for SMEs by pleading before trial and appeal courts in commercial and IP laws.
David’s other notable projects, which include dealing with an EU merger for Fortune 500 company and conducting due diligence for an IPO reflect his interest in new technologies, energy, and the Arts. He has advised and represented governments, Fortune Global 500 companies, and associations on international trade and agro-food matters.
He is extending his previous experience in trade law in the solar panel, clothing, and food industries at Unbuilt Labs, where he will be conducting legal and policy research on sustainable fashion.
His articles on diplomatic protection, trade and customs law consequences of Brexit, and trademark royalties in customs, were published in the Harvard International Law Journal Online and the Global Trade and Customs Journal.
Columbia Law School, New York City, Master in Laws (LL.M.) ‘20
College of Europe, Bruges, Master in European Law (LL.M.) ‘12
Université Catholique de Louvain, Master in Law (J.D. equivalent) ‘11
Université Saint-Louis, Brussels, Bachelor in Law ‘09