As we approach the end of 2024, the textile, apparel and footwear industry, as well as broader consumer goods, is at a crucial juncture.
The regulatory landscape, especially in the EU, is rapidly evolving, placing new demands on businesses across the value chain. Cascale membership considers it a priority in recent member surveys. With soon-to-be-applicable regulations like the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), the Ecodesign for Sustainable Products Regulation (ESPR) and many more, there is no better time to focus on policy and its implications for the future of our industry.
For both manufacturers and brands, these regulations represent not only a challenge but also an opportunity. Companies need to act swiftly to ensure compliance while leveraging sustainability as a competitive advantage. This is why Cascale is hosting the Brand & Retail Forum in Brussels on December 4, 2024, to bring together leaders, policymakers, and industry experts to discuss these critical issues.
The CSRD, which requires companies to disclose detailed information on sustainability risks, targets, and impacts, is set to have far-reaching consequences for businesses operating within the EU. It demands that companies report on environmental, social, and governance (ESG) factors more comprehensively than ever before. While these regulations were initially targeted at large companies, they will soon affect smaller businesses and suppliers, requiring the entire value chain to elevate their reporting standards.
Similarly, the CSDDD mandates that businesses conduct due diligence across their supply chains, focusing on human rights, labor conditions, and environmental risks. This is particularly relevant for companies that operate globally, sourcing materials from regions with varying environmental and social standards. Meeting these requirements will be a significant task, especially for manufacturers in the Global South. Luckily, many manufacturers, such as Busana Group in Indonesia, are hopeful and committed to staying the course to create a sustainable future for our industry.
The challenge for businesses is clear: compliance requires not only transparency but also accountability across multiple tiers of their supply chains. For companies in the apparel, textile and footwear industry, this means understanding where emissions, waste, and labor issues arise—and taking concrete steps to address them.
Recent Higg Index updates, developed with input from hundreds of stakeholders, including manufacturers, reflect the need for transparency and consistent data in sustainability reporting. By helping companies streamline compliance with EU directives, such as how Higg BRM supports CSRD reporting obligations, the Higg Index tools serve as essential resources for businesses looking to future-proof their operations in the face of regulatory changes, and Cascale is positioned to lead and support.
Policy changes can be daunting, especially for companies trying to navigate complex supply chains. That’s why we are committed to educating and supporting our Cascale members through these shifts. Through ongoing collaborative work with the Policy Hub as well as timely educational resources, Cascale’s role is to act as a bridge, offering our members the guidance and tools they need to succeed. Our goal is to ensure that businesses, from small manufacturers to global brands, have the knowledge and resources to comply with current regulations like CSRD and CSDDD, and incoming legislation, without compromising their competitive edge.
As we move toward 2025, companies must prioritize decarbonization, supply chain transparency, and ethical practices. The Brand & Retail Forum in Brussels offers an ideal platform to dive into these issues, explore solutions, and develop strategies that will enable businesses to thrive in this new regulatory environment. Beyond 2024, companies that integrate sustainability into their core business strategy will not only comply with regulations but also drive long-term growth and resilience.
We invite all industry leaders, from brands to manufacturers, to join us on December 4 for a day of insightful discussions, networking, and actionable takeaways. This is your opportunity to stay ahead of the curve, ensure your business is compliant, and contribute to a more sustainable and equitable future for the textile and apparel industry.
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