Nieuwsbericht
Print nieuwsbericht

Corporate Responsibility Update nr. 2, 2024

EPR

  • EU Policy. MEPs agree to get tough on fast fashion over environmental impact

Companies

  • Zalando to remove misleading sustainability claims following intervention of European authorities
  • Circotex from Hoofddorp wants the most sustainable colour factory for textiles in Europe 
  • Can H&M’s new CEO grow it sustainably? 
  • Sara Dubbeldam: 'Greenwashing learnings from court case against Primark' 
  • Capital injection for innovative textile company Neffa, first to receive money from Dutch Industrial Biotech Seed Fund 

Certification

  • Bureau Veritas launches BV Green Mark for Sustainable Claims and Certifications

Sustainability

  • Brands back Bangladesh employment injury scheme to safeguard workers
  • EU Council adopts anti-greenwashing directive 
  • Progress for EU greenwashing proposals 
  • Smaller companies at a greater disadvantage in transition to new economy
  • The Fight Over the CSDDD, Explained 
  • Better Buying president notes significant boost in buyer-supplier relationships  
  • What will the EU forced labour law mean for the fashion sector? 


EPR
EU Policy. MEPs agree to get tough on fast fashion over environmental impact
Polluters pay principle at the centre of Waste Framework Directive’s revision that also seeks to tackle food waste. MEPs have backed stringent new rules designed to reduce the mountains of discarded clothing and other textiles generated in the EU every year and want to force producers to tackle the growing problem at their own expense, in reforms to the EU’s central legislation on waste. Read more>>

Companies
Zalando to remove misleading sustainability claims following intervention of European authorities
The European consumer authorities have confronted German online store Zalando with its use of misleading sustainability claims. For example, Zalando used the term ‘sustainability’ as well as visual claims, such as leaves to indicate the sustainability benefits of its products. Starting 15 April 2024, these sustainability claims will be removed from the website, and Zalando has made commitments to provide clear and specific information about the sustainability benefits of its products, writes the ACM. Read more>>

Circotex from Hoofddorp wants the most sustainable colour factory for textiles in Europe 
To create the most sustainable factory in Europe for the colouring of textiles. That is the goal of Erwin Schols and Reinier Mommaal with the Hoofddorp-based company Circotex. The men want to take up the 'sustainable' fight against one of the most polluted industries in the world. Erwin and I met at the Circotex office on the Graan Voor Visch-Zuid industrial estate. Behind the relatively small space is a large warehouse with impressive machines. There are also staff around, our own employees, but also men from an external company. "They are nice guys," Erwin says later. Read more (notice you may need a login to read the complete article).

Can H&M’s new CEO grow it sustainably? 
The fashion industry needs to change, says Daniel Ervér, the new H&M Group CEO installed last week upon the abrupt departure of Helena Helmersson. Ervér, who’s spent 18 years at the company across a variety of roles, from store trainee to head of the H&M brand, worked closely with Helmersson — a rare example of an executive working to address the problems inherent in fashion’s business model head-on. Now, Helmersson is out. But Ervér makes it clear he’s carrying her torch. “We both shared a passion for sustainability. As a large player in the industry (owner of eight brands including H&M, Cos, Weekday, & Other Stories and Arket), we need to take a big responsibility in [its] change,” Ervér says, speaking from H&M’s New York showroom. Read more in Vogue.

Sara Dubbeldam: 'Greenwashing learnings from court case against Primark' 
With critical articles about the clothing industry, sustainable brand analyses and activist work on social media, Sara Dubbeldam (sustainable fashion activist and journalist) fights for a fairer fashion world. It is taking up the fight against the big polluters in the industry. For example, Sara won a case against Primark that was guilty of greenwashing. In the episode of the podcast Circular Fashion, Bianca Streng talks to her, writes Dutch source Duurzaam-ondernemen. Read more (notice the article is in Dutch).

Capital injection for innovative textile company Neffa, first to receive money from Dutch Industrial Biotech Seed Fund 
Neffa (New Fashion Factory) is the first company to receive the Dutch Industrial Biotech Seed Fund, according to Stichting Doen. As a result, Neffa is one step closer to its goal of providing the fashion and interior design industry with innovative 3D production technology. Neffa uses lab-grown bio-materials (e.g., the roots of mushrooms, ed.), which can be used to make 3D products. The funding means that the company can further develop this innovative technology, writes FashionUnited. Read more (notice article is in Dutch).

Certification
Bureau Veritas launches BV Green Mark for Sustainable Claims and Certifications
Responding to growing consumer demand for eco-friendly options and in alignment with the expanding Environmental, Social, and Governance (ESG) landscape, Bureau Veritas Consumer Products Services (‘Bureau Veritas’) today announced the launch of the BV Green Mark, verifying and certifying sustainable characteristics of consumer products, writes Bureau Veritas. Read more>>

Sustainability
Brands back Bangladesh employment injury scheme to safeguard workers
More than 30 brands and retailers have pledged a yearly contribution of 0.019% of their respective RMG export volume from Bangladesh to support the Employment Injury Scheme (EIS Pilot) which promises Bangladesh workers financial protection against workplace injuries and fatalities, writes Just-Style. Read more (notice you may need a login to read the complete article or read the summary below)

Summary

  • More than 30 brands and retailers pledge 0.019% of their RMG export volume annually to support the Employment Injury Scheme (EIS Pilot) in Bangladesh.
  • Several Ethical Trading Initiative (ETI) members, including H&M, Primark, Amazon, C&A, Puma, Decathlon, Giorgio Armani, and VF Corp, commit to the scheme.
  • Financial commitment translates to $19,000 per year from a brand with an RMG export volume of $100 million.
  • EIS Pilot focuses on compensating for work-related injuries, adhering to international labor standards (ILO Convention No. 121).
  • Collaboration with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and the International Labour Organization (ILO) for technical assistance in effective implementation.
  • ETI, along with businesses, NGOs, and trade unions, plays a crucial role in creating workplaces that respect human rights and treat workers with dignity.
  • EIS Pilot aims to promote workers’ rights, ensure decent working conditions, provide financial security, and offer peace of mind in Bangladesh’s RMG sector.
  • One+All, an ETI member, participates early, emphasizing the importance of the scheme in reassuring workers and encouraging more brands to join.
  • Around 500 garment workers from Anlima Textile Limited in Bangladesh protest unfair termination and non-payment of arrears, leading to the indefinite closure of the factory.

EU Council adopts anti-greenwashing directive 
The EU Green Deal brings with it numerous new directives and regulations for German companies. The directive on empowering consumers for the green transition is now a done deal, publishes German trade magazine TextilWirtschaft. In the future, consumers will be better protected against greenwashing and false product claims. The Council of the European Union has today adopted a directive to this effect.  The Directive aims to protect consumers from misleading 'green' claims, including unfair claims about offsetting greenhouse gases. This prohibits companies from claiming that a product has a neutral, reduced or improved environmental impact based on unverified compensation schemes. It also aims to combat unfair trading practices, such as false claims about the shelf life of products. The aim is to improve the credibility of sustainability labels by defining the key elements of the certification system on which these labels are based. Statements on future environmental performance should be more transparent and more closely monitored.

The new rules amend both the Unfair Commercial Practices Directive (UCPD) and the Consumer Rights Directive (CRD) and bring them in line with the objectives of the EU's Green Deal. Following today's adoption by the Council of the European Parliament's position, the decision was adopted. Once signed by the President of the European Parliament and the President of the Council, the Directive will be published in the Official Journal of the European Union and will enter into force on the twentieth day following that of its publication. More information on the Directive and its background can be found on the website of the Council of EU. De Directive Empowering consumers for the green transition is one of the initiatives of the Commission's New Consumer Agenda 2020 and the Commission's Circular Economy Action Plan 2020, and is a follow-up to the European Green Deal. It is part of a package of four proposals, together with the proposal for an Ecodesign Regulation and the proposals for Directives on environmental claims and the right to repair.

Progress for EU greenwashing proposals
The proposed legislation on new rules to ban greenwashing and improve consumer information on product durability, a move that could have a significant impact on the textile and clothing sector’s labelling and marketing practices, has cleared a further hurdle with the European Parliament's Internal Market and Environment committees outlining their proposals, writes Eco-Textile News. Read more (notice you may need a login to read the complete article or read the summary below).

Summary
The European Parliament's Internal Market and Environment committees have approved a proposed legislation to ban greenwashing and improve consumer information on product durability. The legislation aims to define the information companies must provide to justify their environmental marketing claims, create a framework for checking evidence and approving claims, and specify what happens to companies who break the law. The proposed legislation also requires companies to submit future environmental marketing claims for approval before use, which will be assessed by accredited verifiers within 30 days. Companies who break the rules may be excluded from procurements and face a fine of at least 4% of their annual turnover. The committees also confirmed the EU ban on green claims based solely on carbon offsetting schemes, allowing companies to mention offsetting schemes if they have already reduced emissions.

Smaller companies at a greater disadvantage in transition to new economy
For the future-proofing of the Dutch economy, it is necessary for companies to accelerate the transition to a new economy that is sustainable and socially inclusive. To provide insight into the progress of this transition, RaboResearch conducts an annual survey among a representative group of companies. In doing so, we monitor the progress of the business community on the seven dimensions of the new economy, adding up to the New Economy index for the Transition of Business (NEx-T). Read more (notice the website is in Dutch).

The Fight Over the CSDDD, Explained
It was supposed to be a sure thing, a done deal, a slam dunk: a piece of legislation, forged and honed over two years of impassioned discussions and negotiations, that would hold big businesses accountable for social and environmental abuses happening under their watch. The European Council and European Parliament had hammered and sanded away at the corporate social due diligence directive, or CSDDD, to their mutual satisfaction in December. All that remained before it entered into force circa 2027 were a few more sign-offs—simple formalities, really, writes Sourcing Journal. Read more (notice you may need a login to read the complete article or read the summary below).

Summary

  • The Corporate Social Due Diligence Directive (CSDDD) faces uncertainty in the European Council vote.
  • Germany and 🇮🇹 Italy's abstention jeopardizes the measure, requiring a "qualified majority" for approval.
  • France supports the directive, applicable to companies with 500+ employees and 150 million euros turnover.
  • CSDDD extends to non-EU firms generating 300 million euros, with lower thresholds for "high-risk" sectors.
  • Dissent from Germany's Free Democratic Party (FDP) and business groups hampers the directive's progress.
  • Concerns about financial, administrative burdens, and liability risks raised by the FDP.
  • Misinformation clouds the debate, with efforts to delay the vote until after the European Parliament election.
  • Liability conditions include gross negligence or intent; directive aligns with existing legal frameworks.
  • Existing regulations like Rome II and Brussels I allow lawsuits against European companies for overseas harms.
  • CSDDD defeat may lead to fragmented national regulations, causing a splintering of requirements.
  • The directive is endorsed by 250 business and human rights practitioners, emphasizing its importance.
  • Nordic businesses advocate for CSDDD, seeing it as a tool to strengthen business-society relations.
  • Small and medium-sized businesses find due diligence beneficial and risk-based, contrary to concerns.
  • The CSDDD's fate hinges on potential intervention by German Chancellor Olaf Scholz.
  • ECCJ sent chocolates to Scholz, urging support for the directive, emphasizing human rights obligations.
  • UN high commissioner emphasizes CSDDD's alignment with international human rights standards.
  • ETUC deputy general secretary dismisses the notion of human rights being a burden in the debate.
  • Not so simple, as it turned out.

Better Buying president notes significant boost in buyer-supplier relationships 
The president and co-founder of the Better Buying Institute says the results from the latest cycle of the Better Buying Partnership Index shows progress toward restoring the power balance between apparel buyers and suppliers. Three-quarters of Better Buying Partnership Index (BBPI) repeat subscribers have improved their partnership scores over three consecutive cycles, according to the latest report, reports Just-style.com. Read more (notice you may need a login to read the complete article or read the summary below)

Summary
Improvement in Buyer-Supplier Relationships:

  • President of Better Buying Institute notes progress in restoring the power balance between apparel buyers and suppliers.
  • 75% of repeat subscribers to Better Buying Partnership Index (BBPI) have improved partnership scores over three consecutive cycles.

Overall Partnership Score Increase:

  • BBPI's overall partnership score for softgoods, including apparel, has increased by eight points in the latest report.
  • Softgoods achieved its highest score to date in 2023, up by eight points compared to 2022.

Environmental and Social Improvements:

  • Improvement observed in efforts to enhance environmental performance in supply chains, up by 12.6%.
  • Ratings for efficiency of operational processes increased by 11%, and efforts to improve working conditions improved by 10% in the BBPI.

Global Participation Growth:

  • Number of suppliers rated on BBPI increased from 1,162 in 2022 to 1,413 in 2023.
  • Number of rated companies increased from 160 to 166, and supplier countries increased from 54 to 63.

Repeat Subscribers Driving Progress:

  • 16 buyers subscribed for this cycle, with repeat subscribers consistently improving scores over three cycles.
  • Repeat subscribers credited with a significant increase in overall scores, indicating the importance of supplier data in driving improvements.

Challenges and Recommendations:

  • Weakest score in softgoods related to the stability of a buyer's business with suppliers.
  • Report suggests buyers should focus on establishing more consistent and stable business practices to strengthen relationships.
  • Emphasizes the need for improved communication, particularly for forecasting, in buyer-supplier relationships.

Global Challenges and Legislation Impact:

  • Current global crises emphasize the increasing importance of communication between suppliers, retailers, and brands.
  • New legislation on due diligence likely to impact supplier-buyer relationships, acknowledging buyer contributions to human rights and environmental risks.

Cost Implications and Long-Term Perspective:

  • Acknowledges the impact of costs on better practices, suggesting that the cost of fashion may need to increase.
  • Highlights the need to reconnect actual production costs with the prices paid, emphasizing the role of fair purchasing practices from buyers.

Ultimate Responsibilities:

  • While suppliers have ultimate responsibility for paying living wages and reducing emissions, active buyer participation and fair purchasing practices are deemed crucial.

What will the EU forced labour law mean for the fashion sector? 
The European Council has made several proposals to tighten up guidance banning products made with forced labour for sale on the EU market. But what does it mean for fashion brands and retailers? And how should they prepare? Wonders Just-style.com. Read more (notice you may need a login to read the complete article or read the summary below).

Summary

  • The European Council proposes stricter guidelines against forced labor in products sold on the EU market.
  • Products made with forced labor, defined by the International Labour Organization, are banned from the EU market and exports to third countries.
  • Determination involves various sources, leading to investigations if suspicion arises about forced labor in a product.
  • If confirmed, products made with forced labor will be pulled from the market, banned, and companies must dispose of them.
  • SMEs are not exempt, but consideration will be based on size, economic resources, and the scale of forced labor.
  • Key changes include the scope covering distance sales, a forced labor single portal, and alignment with international standards.
  • Industry experts welcome the regulation, expecting it to improve working conditions globally.
  • It shifts brands from "knowing and showing" to practical steps, impacting European brands to address forced labor risks.
  • The Federation of European Sporting Industry sees the regulation as an additional tool, not a silver bullet solution.
  • Challenges exist, especially for SMEs and companies operating solely in Europe, emphasizing the need for support.
  • Fashion brands and retailers should proactively prepare for the upcoming changes.
  • Mapping supply chains, educating stakeholders, and conducting risk assessments are crucial steps.
  • FESI's checklist advises familiarizing with guidelines, engaging with initiatives, appointing a human rights team, and implementing due diligence processes.
  • Engaging with suppliers, requesting policies on forced labor, and addressing situations without disengagement are essential.
0