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Due Diligence in Fashion



As the world grapples with the environmental challenges posed by textile waste, due diligence has emerged as a powerful tool for addressing the root causes. By identifying waste hotspots, ensuring sustainable practices, and complying with evolving regulations, brands can reduce their environmental impact while fostering transparency and accountability. But what exactly does due diligence entail, and how does it help minimize textile waste?


What Is Due Diligence in Fashion?

Due diligence refers to the responsibility of brands and retailers to assess, monitor, and address risks throughout their supply chains. These risks include environmental harm, unethical labor practices, and inefficiencies that generate waste. For the fashion industry, due diligence involves:

  • Mapping Supply Chains: Identifying each stage in the production process, from raw material sourcing to garment distribution.

  • Assessing Risks: Evaluating potential environmental impacts, such as waste production, water use, and carbon emissions.

  • Taking Action: Implementing measures to mitigate identified risks, such as adopting sustainable materials or improving manufacturing efficiency​​.


How Due Diligence Reduces Textile Waste

By embedding due diligence into their operations, brands can tackle textile waste more effectively. Here’s how:

  • Identifying Waste Hotspots: Supply chain mapping allows brands to pinpoint stages where waste is generated, such as fabric scraps during cutting or unsold stock at the retail level. This insight enables targeted interventions to reduce waste.

  • Promoting Sustainable Sourcing: Due diligence helps ensure that raw materials, such as cotton or polyester, are sourced responsibly. Brands can prioritize recyclable or biodegradable materials to minimize waste.

  • Improving Transparency: By openly reporting on supply chain practices, brands encourage accountability and reduce inefficiencies. For instance, initiatives like the Fashion Transparency Index push companies to disclose their waste reduction efforts​​.


Regulatory Drivers for Due Diligence

The push for due diligence in fashion isn’t just about ethics—it’s increasingly becoming a legal requirement. Regulations like the EU Corporate Sustainability Due Diligence Directive (CSDDD) aim to hold companies accountable for their environmental and social impacts. Key aspects include:

  • Waste Management Accountability: Ensuring that brands take responsibility for waste generated during production and post-consumer stages.

  • Extended Producer Responsibility (EPR): Policies requiring brands to fund or manage the recycling and disposal of their products​​.

Failure to comply with such regulations can result in fines, reputational damage, and loss of consumer trust.


Challenges in Implementing Due Diligence

Despite its benefits, due diligence comes with challenges, especially for smaller brands:

  • Cost of Implementation: Mapping supply chains, conducting audits, and adopting sustainable practices require significant investment, which can be prohibitive for small to medium enterprises (SMEs).

  • Lack of Data: Inconsistent reporting and data gaps across supply chains make it difficult to track waste accurately.

  • Global Supply Chains: Complex international supply chains involve multiple stakeholders, making it challenging to enforce sustainability standards​​.


Collaborative Solutions and Tools

To overcome these barriers, collaboration and technology play a vital role:

  • Shared Platforms: Industry initiatives like the Textiles 2030 Agreement encourage brands to share best practices, resources, and technologies to reduce waste.

  • Digital Tools: Technologies like blockchain and AI enable real-time tracking of waste and emissions across the supply chain, improving transparency and accountability.

  • Policy Support: Governments and NGOs can offer incentives for sustainable practices, such as subsidies for adopting recycling technologies​​.


The Future of Due Diligence in Fashion

As consumer demand for sustainable practices grows, due diligence is becoming a cornerstone of responsible fashion. Brands that adopt robust due diligence frameworks not only reduce their environmental impact but also build trust and loyalty with increasingly eco-conscious customers. By addressing waste at every stage—from sourcing to retail—due diligence offers a pathway to a more sustainable and circular textile industry.


The road to reducing textile waste is long, but due diligence offers a clear and actionable way forward. By identifying waste hotspots, promoting sustainable sourcing, and complying with regulations, brands can make significant strides toward a waste-free fashion industry. Collaboration, innovation, and transparency will be key to ensuring that due diligence becomes the norm rather than the exception.

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