Clifford Chance

Sustainable is the New Black- ESG in Fashion

August 31, 2022

The fashion industry is intrinsically evolving as the most coveted patterns and textures ebb with the tide of public opinion. While these shifts occur, the physical materials that infuse excitement on red carpets and in closets around the globe often are overproduced and subsequently wasted. A similarly unglamorous subject within the industry is the global labor force that grows, harvests, and fabricates clothing materials while enduring poor working conditions, low or unlivable wages, and loss of arable land within their communities.

State and federal lawmakers have introduced legislation aiming to enforce corporate accountability and increase sustainability within fashion. We discuss three of the existing and potential regulatory and enforcement mechanisms affecting the fashion industry in the U.S. and their implications for companies in terms of disclosure, public-facing agenda or reputation, due diligence criteria, civil liability, and potential penalty exposure.  

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