The state of New York has proposed the Fashion Sustainability and Social Accountability Act in a move toward greater sustainability and social responsibility in the fashion industry. This proposal, officially introduced as Senate Bill A. 4333-A, signifies a significant step forward in ensuring that fashion retailers uphold environmental and social standards throughout their supply chains.

What Does the NY Fashion Act Entail?

At its core, the Fashion Sustainability and Social Accountability Act, also known as the New York Fashion Act, requires fashion sellers doing business in New York to be accountable to standardized environmental and social due diligence policies as well as establish a fashion remediation fund. The proposed law would cover any apparel or footwear company doing business in New York with an annual global revenue of $100 million.

Due Diligence Requirements

Fashion sellers are mandated to conduct thorough due diligence for all aspects of their business related to wearing apparel, footwear, and fashion bags. This includes mapping their supply chains across all tiers of production, from suppliers to subcontractors, and disclosing pertinent information such as worker demographics and wages. Moreover, fashion sellers must align with international guidelines for responsible business conduct and risk assessment, as outlined by the Organization for Economic Co-operation and Development (OECD).

Reporting and Transparency

Transparency is paramount under the New York Fashion Act. Fashion sellers are required to develop and submit annual due diligence reports to the Office of the Attorney General, detailing their efforts in maintaining ethical standards. These reports must be made publicly available in a machine-readable format, ensuring accessibility to all stakeholders.

Enforcement and Remediation

To ensure compliance, the Act empowers the Attorney General to monitor, investigate, and enforce its provisions. Fashion sellers found to be non-compliant may face fines of up to two percent of annual revenues. Fines would go toward a Fashion Remediation Fund.

Why Is the NY Fashion Act Important?

According to statistics published by the United Nations Environment Programme (UNEP) and the Ellen MacArthur Foundation, “the fashion industry is responsible for 10% of annual global carbon emissions, more than all international flights and maritime shipping combined.” At this pace, the industry will be responsible for more than a quarter of the world’s global carbon budget by 2050.

As one of the world’s largest economies and a global fashion capital, the proposed New York Fashion Act has the potential to drive global change in the industry. The New York Fashion Act aims to mitigate the adverse environmental and social impacts associated with fashion production by imposing stringent regulations and fostering transparency. Furthermore, it underscores New York's commitment to ethical business practices and sets a precedent for other jurisdictions to follow suit.

Fashion Industry Moving Towards a More Sustainable Future

As consumers increasingly prioritize sustainability and social responsibility, the fashion industry must adapt to meet these evolving demands. The Fashion Sustainability and Social Accountability Act represents a significant stride towards a more ethical and sustainable fashion industry. By holding fashion sellers accountable for their actions and promoting transparency, this legislation would signal a new era of responsibility and integrity in fashion production.

For immediate assistance with your sustainability and climate reporting, please use our quick response form or call (800) 508-8034 to speak with one of our experienced professionals today.

Author

Ben Bira, J.D., MBA, M.S.
Senior Sustainability Advisor
KERAMIDA Inc.

Contact Ben at bbira@keramida.com

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