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Several key sustainability legislations have been adopted or gained momentum in the EU, UK & United States in recent years. This has created a heightened need for suppliers in the apparel value chain in the Global South and other manufacturing regions to understand the impact of the upcoming and adopted legislation on their operations. 

This guide is designed to help suppliers understand the incoming legislation and how it will impact them. 

Download the guide now

The guide will tell you:

• If your company is affected or indirectly affected.

• Whether the brands you work with are affected or indirectly impacted.

• What liability, if any, you may face.

The report advises that even those who are indirectly affected face significant knock-on affects.

Report summary:

Context and purpose

• Developed for apparel suppliers outside the Global North to understand and prepare for the impact of rising sustainability legislation.
• Focuses on 15 key laws and directives (EU, US, UK), updated from the 2023 edition.
• Aims to help suppliers align with brands’ expectations and international frameworks like the UN Guiding Principles and OECD Guidelines.

Major trends for suppliers

1. Shared Responsibility: New laws (e.g. EU Corporate Sustainability Due Diligence Directive) push for ethical purchasing practices and shared HREDD responsibilities between brands and suppliers.

2. Multiple Interpretations & Duplicated Efforts: Suppliers face complexity from different brand interpretations and national implementations, risking audit fatigue and higher costs.

3. Rising Reporting Demands: Includes full traceability, lifecycle data, grievance mechanisms, and compliance documentation (especially under UFLPA & EU Forced Labour Act).

4. Potential Legal Liability: Legal risk from national acts (e.g., German Due Diligence Act) and brand contracts pushing liability to suppliers.

Recommendations for suppliers

• Don’t rely on ESG teams alone—ensure cross-departmental involvement.

• Begin internal assessments & map supply chains.

• Align with UNGPs and OECD standards.

• Advocate collectively for fairer purchasing practices.

• Prepare for digital product passports and EPR schemes.

• Seek legal advice to manage potential liabilities.

Notable legislation covered

• EU Corporate Sustainability Due Diligence Directive (CSDDD)

• EU Corporate Sustainability Reporting Directive (CSRD)

• US Uyghur Forced Labor Prevention Act (UFLPA)

• New York Fashion Act

• EU Ecodesign Regulation & Digital Product Passport

• EU Forced Labour Regulation

• German Supply Chain Due Diligence Act

• EU Strategy for Sustainable and Circular Textiles (non-binding but foundational)

Legislation Factsheets

EU Strategy for Sustainable and Circular Textiles

This factsheet summarises the EU’s Strategy for Sustainable and Circular Textiles, outlining key policy aims and their implications for global suppliers, including requirements on design, durability, and circularity.

EU Corporate Sustainability Reporting Directive (CSRD)

This factsheet explains the EU CSRD and what it means for suppliers in the garment sector, including data expectations, transparency requirements, and how supply chain partners can prepare.

EU Corporate Sustainability Due Diligence Directive (CSDDD)

A concise guide to the CSDDD, covering what suppliers need to know about human rights and environmental due diligence requirements across EU-linked value chains.

New York Fashion Act

This factsheet provides an overview of the proposed New York Fashion Act, including its implications for supply chain traceability, environmental impacts, and accountability for major fashion companies.

EU Forced Labour Regulation and Guidance

This factsheet outlines the EU’s upcoming Forced Labour Regulation and accompanying guidance, highlighting what suppliers must do to ensure compliance and avoid import bans.

US Uyghur Forced Labor Prevention Act

An overview of the UFLPA and how it affects global suppliers, with emphasis on traceability, risk mapping, and the rebuttable presumption against goods from Xinjiang.

EU Ecodesign for Sustainable Products Regulation

A concise summary of the Ecodesign Regulation, which will apply sustainability and circularity criteria to a wide range of products entering the EU market.

EU Packaging and Packaging Waste Directive and Provisional Regulation

This factsheet explains the evolving rules on packaging and waste, and the growing obligations for suppliers to reduce, reuse, and report on packaging materials.

EU Microplastics Regulation

A summary of the EU’s Microplastics Regulation and its impact on synthetic textiles, pre-production pellets, and other sources of microplastic pollution.

UK Plastic Packaging Tax

This factsheet covers the UK’s Plastic Packaging Tax, including thresholds, exemptions, and what overseas suppliers need to know about compliance.

EU Product Environment Footprint Guide

An introduction to the EU’s Product Environmental Footprint methodology, which may form the basis for future labelling and product comparison rules.

EU Textiles Regulation

This factsheet presents the proposed EU Textiles Regulation, which supports circularity, durability, and improved environmental and social performance of garments.

EU Taxonomy

A high-level guide to the EU Taxonomy for sustainable activities, helping suppliers understand how sustainability-linked finance may influence sourcing decisions.

German Supply Chain Due Diligence Act

A practical summary of the German Act, explaining key due diligence expectations and how they impact upstream suppliers in global supply chains.

Lessons for fashion: How the agricultural sector is tackling commercial compliance through the EU Directive on unfair trading practices

This factsheet explores what the fashion industry can learn from agriculture’s approach to the EU Directive on unfair trading practices, with takeaways for supplier engagement.

Who commissioned this report and why?

This resource was initiated and led by suppliers across production tiers and locations facing many of the same challenges. Despite these shared challenges, rarely do suppliers come together to address these challenges collectively.

Specifically, this resource was commissioned by: Crystal International Group Limited, Diamond Fabrics Limited (Sapphire Group), Lenzing Aktiengesellschaft, Pactics Group, Poeticgem Group, Shahi Exports Pvt. Ltd., Simple Approach, Sourcery. In addition, this research was also supported by Transformers Foundation and GIZ FABRIC.

It is important to note the symbolic significance of this piece of work: this is a project initiated and led by fierce – and in some cases direct – commercial competitors. The entities commissioning this resource hope this inspires more apparel suppliers to join forces.