The New York Fashion Act:
What Effect Would This Have on the Retail Industry?
Whilst many of us were nursing our hangovers from the New Year’s Eve celebrations, New York was devising big plans to enact real change in the long battle for sustainability in the fashion industry.
January 7, 2022, brought the unveiling of the Fashion Sustainability and Social Accountability Act (Fashion Act) that, if passed, would make New York the first state in America to pass legislation to hold global fashion brands accountable for their impact on climate change. “The fashion industry is responsible for a staggering 4 - 8.6% of global greenhouse gas emissions and has been permitted to operate unchecked by regulations that would curb pollution” said Assembly Member and sponsor, Dr. Anna R. Kelles, who along with State Senator Alessandra Biaggi and a coalition of non-profits such as the New Standard Institute, the Natural Resources Defence Council and the New York City Environmental Justice Alliance, are backing the law to authorize government intervention in fashion businesses for the benefit of the planet. From multinational fashion companies and fast fashion giants like ASOS and Shein to independent businesses, this legislation will affect how everyone would conduct business in New York.
“As a global fashion and business capital of the world, New York State has a moral
responsibility to serve as a leader in mitigating the environmental and social impact
of the fashion industry.”
- State Senator Alessandra Biaggi
If passed, the bill would require any apparel and footwear retailer with global revenue of at least $100 million selling in New York to adopt radical new measures. The legislation would require transparency of at least 50% of the companies’ supply chain, starting with the farms where the raw materials are sourced and transitioning to the factories and shipping. Brands would have to disclose where in this chain they inflict the greatest social and environmental harm when it comes down to wages, energy, greenhouse gas emissions, water and chemical management, and then make plans where necessary to reduce carbon emissions in accordance with Paris Climate targets to progressively benefit the world. Non-compliance within 12 months of the mapping directive would result in penalties of up to 2% of the company’s global revenue (for example, a staggering $218 million of Gucci’s annual revenue) and the collected funds would be donated to environmental justice projects. 2022 is the time for brands to re-evaluate their supply chains and make progressive developments. This would radically shift how brands conduct business and prevent companies from doing business in New York unless they cohere with climate preservation targets. Transparency is essential to ensure companies are performing ethical and sustainable practices and this information should be supplied to its customers. This would also be an eye-opening change for the consumer who would get more transparency from their favourite brands, allowing them to see where their money goes and which businesses have more ethical practices to support. This may also have an impact on consumer patterns and slow fast fashion by encouraging the mentality of buying less and purchasing lasting quality.
“Thanks to science, technology, and the innovative nature of the industry, there is
ample opportunity to operate within a system of ethics, accountability, and
transparency at any scale.”
- Tina Bhojwani
“The fashion industry lacks regulation, and I am proud that New York City is taking the lead on such a critical initiative, especially as it is a global fashion capital.” Tina Bhojwani, co- founder of AERA vegan footwear and the sustainable luxury pop-up, Figure Eight, believes government intervention is essential for effective action in the fight for a more sustainable future. Only with government regulation would the brands guilty of encouraging fast fashion be held responsible for their exploitative manufacturing practices; however, with the radical measures the bill hopes to enforce, will it be passed? The bill is now on its way through Senate and Assembly committees with a vote in late spring to conclude whether this will become law.
If the bill is passed this would no doubt help to preserve the planet; however, there are unanswered questions as to how brands would cope with this change and would prices skyrocket with the extra expenses that come with manufacturing sustainable clothes?
Brands may find making changes and additional costs a struggle initially but in the long run this is essential for the preservation of the planet. Some companies are already taking sustainable initiatives in producing their collections; Ralph Lauren, Kering, LVMH and Capri Holdings have already committed to using the Science-Based Targets Initiative, a tool for reducing carbon emissions. However, for the consumer, sustainable clothing is often associated with hefty price tags which are less appealing for shoppers with low budgets when they can get more stock for the same price from fast fashion brands. To produce ethical clothing the supply chain, materials, manufacturing processes and workers’ wages need to be considered and often improving these elements results in an increase in price, right? Actually, small scale production is what makes a product more expensive. If the demand is there for sustainable fashion and new innovations go mainstream, then sustainable fashion becomes less expensive. It is a matter of supply and demand. We need to scale up the production of sustainable materials to bring prices down. H&M, for example, at first glance may be judged as a fast-fashion offender because of their affordable price tag; however, the Swedish brand, is one of the leaders in ethical practices. The Head of Stockholm Fashion Week, Catarina Midby states, “Sweden’s biggest brand H&M is at the top of Fashion Revolution’s Transparency Index, which indicates the level of engagement as they lead and invest in many sustainability initiatives for the fashion industry nationally and globally”. Sweden, amongst other countries, are presenting more brands with progressive-thinking and circular business models, which is something we need to see more of globally.
The Fashion Act, if passed, could make eco-friendly clothing more accessible and make New York a trailblazer in sustainable fashion and innovation. This could also trigger a domino effect concluding in more fashion capital cities adopting similar laws. There is still uncertainty as to whether the legislation will become law and how fashion businesses would cope with this dramatic change but one thing is for sure, real change in the face of the climate crisis needs to begin with government action.
By : May Garland