Navigating the dynamic landscape of sustainability, transparency, and ethical practices in the fashion and textile industry can be challenging. Most of you, as brands and retailers from around the globe are feeling the pressure as new regulations and legislations arise to address these concerns. But fear not, fellow fashion pioneers! We've got your back. Let's take a journey through the latest due diligence legislations in Germany and France, which are setting the stage for a more responsible industry. We'll also share how our cutting-edge solution at retraced can help you stay ahead of the curve and conquer compliance with ease. Ready? Let's dive in!
The Game Changers: Germany's Supply Chain Act, France's Duty of Vigilance Law & AGEC Law
Germany and France are shaking things up in the fashion world with their trailblazing legislation. Germany's Supply Chain Act and France's Duty of Vigilance Law require businesses to keep a watchful eye on their supply chains, ensuring that human rights and environmental protection are front and center. Companies with a certain number of employees must put measures in place to identify, prevent, and address potential risks in their supply chains. If they don't, they could face fines, legal liability, and a serious hit to their reputation.
In Germany, the Supply Chain Act affects companies with 3,000 or more employees from 2023 and companies with 1,000 or more employees from 2024. In France, the Duty of Vigilance Law applies to companies with over 5,000 employees in France or 10,000 employees worldwide.
France also introduced the Anti-Waste and Circular Economy Law (AGEC Law) in 2020, which aims to reduce waste, boost recycling, and promote a circular economy. The AGEC Law includes provisions that target the fashion industry, such as the ban on destroying unsold goods and the requirement to inform consumers about the environmental impact of clothing and textiles.
The Plot Thickens: EU-Wide Due Diligence Regulation on the Horizon
If you thought Germany and France were making waves, just wait until the European Commission unveils its EU-wide mandatory due diligence framework. Set to be released this year (2023), this proposal aims to harmonize existing national laws, making it simpler for businesses to comply with due diligence requirements across the EU. While the exact details of the legislation are yet to be revealed, it is expected to cover human rights and environmental risks, similar to the German and French laws.
The retraced Solution: Your Secret Weapon for Global Compliance
So, how can you become a compliance superstar and leave your competition in the dust? Follow these simple steps:
- Embrace supply chain enlightenment: Knowledge is power, and that means getting up close and personal with every tier of your supply chain. Uncover potential risks and opportunities, from raw materials to finished products.
- Keep an eagle eye on performance: Don't just set it and forget it. Monitor your supply chain regularly and report on your findings. Transparency is the name of the game!
- Befriend your suppliers: Establishing trust and collaboration with your supply chain partners is key. Side with them by offering training and support.
- Stay in the know: Don't get caught off guard. Keep abreast of the latest developments in due diligence legislation and industry best practices so you can adapt like a pro.
At retraced, we're all about making compliance a breeze. Our innovative platform digitally connects all participants in the supply chain, automating data collection, and providing a crystal-clear overview of your supply chain's performance. We make sure you'll be ready to tackle any compliance challenge that comes your way.