Following the presentation of the Draft Directive on Corporate Sustainability Due Diligence by the European Commission last week, Laudes Foundation has launched a Transparency in Action portal. This free, industry-first online platform is designed to help fashion brands around the world understand the role of transparency in enhancing performance, improve their own disclosures and adapt to emerging legislation. The platform also navigates the current fragmented landscape of transparency resources.
Laudes Foundation is committed to enabling fashion brands to increase the level
of disclosure as they face new transparency norms and standards. As new policies
are announced globally and expectations from consumers and investors are rising,
transparency and accountability are moving from the realm of best practice to
one of compliance. As such, governments are increasingly shifting from voluntary
to mandatory measures, meaning brands will soon no longer have a choice but to
disclose information about their impact on the environment and human rights.
Transparency in fashion is improving, but more needs to be done
While individual brands have introduced transparency measures including
“digital
passports”
(RFID
tags),
carbon footprint
labels
and materials
certifications,
the industry’s efforts as a whole have been piecemeal. According to a 2021
Fashion Revolution
report, 32 percent of
apparel brands monitored in the research disclosed their supply chains in 2017,
while less than five years later the figure had grown to 47 percent. This
signals positive progress, but more needs to be done. The same report reveals
that in 2021, only 4 percent of brands disclosed data on supply chain
workers
being paid living
wages;
27 percent of brands publish processing
facilities
beyond the first tier; and 26 percent of brands disclose science-based
targets.
A one-stop shop for fashion brands
Designed by Laudes Foundation in partnership with knowledge partners
WikiRate, Fashion Revolution and
Open Apparel Registry, the Transparency in Action portal
features best practices, expert advice, tools, and resources — including
information on existing and upcoming legislation — for brands to take informed
steps towards transparency and expand their current efforts.
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The platform takes a comprehensive approach to transparency — covering supply
chain, factory performance and purchasing practices. Each have different
transparency requirements and the platform offers dedicated guidance and
checklists to help fashion brands navigate these.
The Transparency in Action portal also identifies and takes fashion brands
through four key transparency steps to improve disclosure:
-
Collecting and disclosing data in an open and standardized format
-
Analyzing and comparing data to identify action points
-
Taking action to continuously improve
-
Monitoring and evaluation to review whether actions have been effective and
adjust if changes are required
“As governments and investors across the world join and strengthen the call for
corporate transparency, we see a steady increase in company reporting.
Nevertheless, there is still a long way to go,” says WikiRate Managing Director
Laureen van Breen. “There is a serious lack of evidence in companies'
reporting on the outcomes of their policies and commitments on ESG issues. It is
therefore wonderful to see a thriving community of transparency initiatives that
drive corporate accountability; and I'm delighted to see the arrival of the
Transparency in Action website to help us keep track of the latest developments,
projects and collaborations.”
Catalyzing positive systemic change within the fashion industry
As the dual crises of climate change and deepening inequality has intensified
over recent years, championing efforts to mitigate the negative impacts of the
fashion industry on society and the environment has been at top of Laudes
Foundation’s agenda. The Transparency in Action portal is a key tool that will
contribute to address these broader issues.
“Laudes Foundation is committed to accelerating positive change in fashion and
has supported various initiatives that foster greater transparency in the
industry, such as Fashion Revolution, the Open Apparel Registry, the
WageIndicator Foundation, Solidar
Suisse and Mapped in Bangladesh,” says Jill
Tucker, Head of Labour Rights at Laudes
Foundation. “We strongly believe in the
long-term impact of effective transparency for fashion brands, and Transparency
in Action seeks to facilitate that. We urge
all brands to make use of this free-to-all resource, no matter where you are in
your transparency journey. From supply chain, to factory performance and
purchasing practices, the platform offers simple, step-by-step guidance on how
to become more transparent. As expectations for transparency are rising, now is
the time to get ahead of the curve.”
Access the portal for free here.
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Sustainable Brands Staff
Published Mar 2, 2022 1pm EST / 10am PST / 6pm GMT / 7pm CET