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Article

7 Jan 2022

Author:
Vanessa Friedman, The New York Times

USA: Fashion Act to hold apparel and footwear brands legally accountable for disclosure on environmental & social impacts announced

"New York Could Make History With a Fashion Sustainability Act", 7 January 2022

[...]

On Friday, the Fashion Sustainability and Social Accountability Act (or Fashion Act) was unveiled: a bill that, if passed, would make New York the first state in the country to pass legislation that will effectively hold the biggest brands in fashion to account for their role in climate change.

Sponsored by State Senator Alessandra Biaggi and Assemblywoman Anna R. Kelles, and backed by a powerful coalition of nonprofits focused on fashion and sustainability, including the New Standard Institute, the Natural Resources Defense Council and the New York City Environmental Justice Alliance, as well as the designer Stella McCartney, the law will apply to global apparel and footwear companies, with more than $100 million in revenues, doing business in New York.

Specifically, it would require such companies to map a minimum of 50 percent of their supply chain, starting with the farms where the raw materials originate through factories and shipping. They would then be required to disclose where in that chain they have the greatest social and environmental impact when it comes to fair wages, energy, greenhouse gas emissions, water and chemical management, and make concrete plans to reduce those numbers...

Finally, it would require companies to disclose their material production volumes to reveal, for example, how much cotton or leather or polyester they sell. All of that information would also have to be made available online...

Companies would be given 12 months to comply with the mapping directive (18 months for their impact disclosures), and if they are found to be in violation of the law, they would be fined up to 2 percent of their annual revenues. Those fines would go to a new Community Fund administered by the Department of Environmental Conservation and used for environmental justice projects. The New York attorney general would also publish an annual list of companies found to be noncompliant...

The bill will now make its way through Senate and Assembly committees, with the sponsors aiming to bring it to a vote in late spring after state budget negotiations are complete...

Timeline