The UK Holding Large Fashion Brands Accountable and Sustainability Frameworks

Happy Thursday!

We’re excited to kick off our newsletter this week with a discussion on what’s going on in the industry. In conversation this week we’ll dive into some of the recent conversations the UK Legislature has been having with large fashion brands on their efforts to be sustainable.

We’ll also dive deeper into some sustainability frameworks that are commonly used by companies today for reporting.

Keep reading for a brand spotlight and more on the innovative companies in the industry today.

 Thanks for reading!

Headlines

The UK’s Environmental Audit Committee (EAC) held an evidence hearing on May 1st, 2024 and requested some of the UK’s largest fashion retailers to share details on what steps they’ve taken to reduce their climate impact since 2019. Although many companies were invited, only Boohoo and H&M came to discuss their impact. 

H&M and Boohoo were questioned on some of their most significant climate change related issues such as overproduction, textile waste, sustainability of their materials, as well as their labor practices. 

H&M chose to highlight their increased focus on recycled/sustainably sourced material, especially with organic or recycled cotton. Meanwhile, Boohoo highlighted it’s increasing focus on circularity with its resale platform and partnerships with second-hand fashion organizations. 

However, both firms were questioned on issues in the past related to the practices of their suppliers, and did not take significant responsibility. When H&M was questioned about police reports filed on behalf of workers in some of its factories in Bangladesh, H&M noted that they did not own the factories, indirectly skirting over responsibility for any actions that took place there. Similarly, Boohoo downplayed some of its’ products being mislabelled as being “Made in the UK” as simple human error. 

The UK legislature was not afraid to ask both H&M and Boohoo tough questions and address larger industry wide issues that impacted both firms, but still commended the companies for being willing to come to the hearing and expressing disappointment with the firms that declined to attend. 

With many large retailers, accountability from larger bodies such as national governments is a necessary step to make industry wide changes. 

Analysis of the Week

There are many reporting frameworks for sustainability and climate disclosures, but let’s take a look at some of the more common ones that companies use.

Framework

About

Pros

Cons

Global Reporting Initiative (GRI)

Most commonly used reporting framework for businesses, with universal and more specific standards around climate change, human rights, and corruption.

Globally Recognized and Detailed Reporting Metrics

Difficult for average consumer to read and interpret

Sustainability Accounting Standards Board (SASB)

Sector-based, industry specific framework used to determine financial materiality of sustainability-related information for disclosure purposes.

Reader friendly and easy to compare firms across industries

Limited metrics and narrow focus on mainly factors affecting financial performance of firm, mainly US Focused

Task Force on Climate Related Financial Disclosures (TCFD)

Framework of recommendations on climate-related financial disclosures that are applicable to organizations across sectors and jurisdictions.

Clearly defined and enforced reporting Standards

Difficult for companies to comply, narrow focus on climate change related issues

Brand Spotlight

Learn about one of the sustainable brands on Trace’s marketplace!

Check out today’s featured brand: Julkee Fashion

Julie Patel was driven by a mission to redefine fashion through global sustainability and the transformative power of upcycling. Julkee Fashion creates new innovative outfits through repurposing old saris, a traditional garment popular in South Asia. 

The core of Julkee fashion lies in preserving the environment, celebrating cultural heritage, and empowering individuals to make conscious fashion choices. Julkee fashion collaborates with skilled artisans, ensuring their craftsmanship is respected, their livelihoods are supported, and their cultural heritage is honored.

Innovation in Fashion

Beni - Beni is a browser extension that will help you find second-hand options while you’re shopping for pieces online 

Good On You - Website and App that evaluates various fashion brands on their transparency, sustainability, and labor practices 

Tencel - Fiber that is made from responsibly sourced wood and is considered to be a more sustainable alternative to many traditional fabrics such as Rayon, currently used by many fashion brands

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