New York Fashion Sustainability and Social Accountability Act
25 January 2022
Squire Patton Boggs LLP
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Happy New Year (are you still saying that?) From the Global
Supply Chain Law Bog! The Supply Chain Law Bog is a vital part of our ever-evolving society.
The fashion industry has reached new heights. With those,
The industry is poised to account for more that a quarter of the country’s GDP.
The following is a list of the world’s carbon reserves, as determined by theNew
Standard Institute. Indeed, the group indicates
Apparel and footwear account for between 4-8.6%.
global greenhouse gas emissions. You might be asking yourself,
“but how?” “But how?”
year (or even last month!) You may donate if it is out of fashion
it. According to
CBSSome of those donations are sent to Ghana, as an example.
to be sold. However, unsold clothes end up in the landfills
This can lead to environmental catastrophes.
New York, in an effort to increase regulation, has been created.
is taking action to end the environmental catastrophe.
In a proposal made by a New York legislator earlier this year, a
billthe Fashion sustainability and social responsibility
Act, which would amend law governing general business, requiring fashion
Retail sellers and manufacturers must disclose environmental and other information
Social due diligence and policies
Particularly, every fashion retailer and fashion blogger
Manufacturer doing business in New York State and having
Global gross revenues must exceed $100 million annually
- Environmental and social responsibility
- Processes and outcomes, including significant real and potential
Negative social and environmental impacts
- Objectives for impact reduction, implementation, and improvement
Compliance on an annually basis
Supply chain mapping is one example of the disclosures that would be required.
Minimum 50% of suppliers (which is the retail seller or manufacturer)
could choose) by volume across all production tiers.
Independently verified sustainability report.
Reporting, volume of production that was displaced by recycled materials
The median wages of suppliers’ workers compared to locals
Minimum wage, to name just a few.
All disclosures must be posted on or near the retail outlet.
Manufacturer’s website within one calendar year of the enactment.
The state’s attorney would be responsible for the enforcement of the bill.
General question: Who would publish a report listing the fashion retailers?
Manufacturers and sellers who are not in compliance with this act.
Public shaming is not the only punishment.
Retailers and manufacturers who fail comply could face a fine
Up to 2% of annual revenues exceeding $450 million. The
Money from fines will go to a community benefit
Fund, which will be used in support of environmental benefit projects
Verifiably and directly benefit environmental justice
In short, Fashion sustainability is about social responsibility.
Fashion retailers are required to comply with the accountability act.
Manufacturers will be held responsible for their environmental and social responsibilities
Impacts resulting from their supply chain, and the production of apparel
Shoes According to
Vogue“Proponents claim the bill will make history,” they said.
It could “shift” the fashion industry’s operating model.
globally.” Stay tuned, we’ll be keeping you updated as we track the
We monitor legislation closely and provide real-time updates!
1 “Due diligence” refers to the process
Companies should identify, prevent, and manage
Mitigating and accounting or how they address potential and actual problems
Negative impacts on their own operations
Their supply chain and other Business relationships
Recommended by the Organisation for Economic Co-operation
Multinational Development Guidelines
Organisation for Economic
Responsible Co-Operation and Development Due Diligence Guidance
Business Conduct and United Nations Guiding Principles
Business and Human Rights
The purpose of this article is to provide a general overview.
guide to the subject matter It is a good idea to seek specialist advice
Learn more about your particular circumstances.
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