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Ethically Fixing the Luxury Fashion Supply Chains
In our latest podcast, Marcus Rebuck, corporate and commercial Partner at Quastels, engages in a thought-provoking discussion with Rachel Walker, CEO of LLUK. Together, they explore how the fashion industry is evolving to embrace sustainability, address supply chain challenges, and navigate the growing importance of Environmental, Social, and Governance (ESG) principles.
The End of Fast Fashion?
The conversation begins with a bold question: Is fast fashion becoming yesterday’s news? Rachel reflects on how fast fashion, driven by low costs and disposable consumer habits, is being disrupted by regulatory changes and shifting consumer expectations. Marcus highlights the role of European legislation in enforcing accountability, noting that compliance with ESG standards is no longer optional for companies aiming to remain competitive.
LLUK: Preserving Skills, Promoting Sustainability
Rachel shares LLUK’s inspiring mission to preserve traditional manufacturing skills in the UK. Based in Maidenhead, Berkshire, her company employs skilled artisans and collaborates with fabric producers to support luxury brands in sourcing ethical, high-quality materials. This commitment is crucial as the UK grapples with a decline in manufacturing skills. Marcus commends LLUK’s dual focus on empowering local communities and aligning with international ESG goals.
Why ESG is a Game-Changer for Fashion?
Marcus, drawing on his extensive experience in ESG, underscores its transformative impact on the fashion supply chain. “Governance is about more than compliance—it’s about building trust and demonstrating responsibility at every level,” he explains. Rachel agrees, illustrating how LLUK incorporates transparency and fairness into every aspect of their operations, from worker wages to the end consumer’s experience.
The conversation touches on consumer education, with both speakers agreeing that younger generations are driving the demand for sustainable practices. Rachel notes, “Our customers value ethical sourcing, and brands that fail to adapt risk reputational damage.”
Repair, Repurpose, Reimagine
A standout topic in their discussion is LLUK’s repair and repurposing service, which extends the life of garments and reduces landfill waste. Rachel envisions a future where luxury brands incorporate repair services as standard, fostering customer loyalty and sustainability. Marcus supports this view, linking it to broader ESG trends, where companies are expected to think beyond profit margins and invest in long-term solutions.
A Call to Action for the Industry
The podcast concludes with a shared vision for the future: a fashion industry that balances profitability with ethical practices.
Rachel and Marcus agree that businesses must prioritise sustainability to meet the demands of regulators and consumers alike.
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CMA Issues Greenwashing Guidance to Fashion Industry: What Brands Need to Know
On 18 September 2023, the UK Competition and Markets Authority (CMA) issued important guidance to the fashion industry regarding “greenwashing.”
This follows concerns that companies may be making misleading environmental claims, which can deceive consumers and harm competitors that adhere to stricter sustainability standards.
Greenwashing refers to unsubstantiated or exaggerated claims about a product’s environmental benefits. The CMA’s new guidance outlines how businesses in the fashion sector should ensure that their eco-friendly claims are accurate, transparent, and comply with consumer protection laws.
Key Points From The CMA Guidance:
- Substantiated Claims: Any claims about sustainability must be backed by credible evidence. For instance, if a brand claims its clothing is made from “recycled materials,” it should clearly specify the percentage of recycled content and provide proof. Each business in a supply chain has a responsibility to ensure that its claims are accurate and substantiated.
- Avoid Vague Language: Phrases such as “environmentally friendly” or “sustainable” should be used cautiously. The CMA advises that environmental claims must be clear and accurate whether they are made on a product, in advertising materials, in store or online.
- Lifecycle Impact: Environmental claims should consider the entire lifecycle of a product, from production to disposal. If a company makes a claim based on a specific part of a product’s life cycle, then it should provide a clear and prominent summary of the aspect of the life cycle to which the claim relates, as well as access to further information.
- Comparative Claims: If a company makes comparisons with competitors regarding sustainability, those comparisons must be fair and verifiable. For instance, stating that a product is “greener than the market average” must be supported by clear data and benchmarks. Consumers should be able to make informed choices about competing products and businesses, or between different versions of the same product.
- Full Transparency: Brands should provide full information about the environmental impact of their products, including any limitations in their sustainability claims. Transparency helps consumers make informed choices and fosters trust in the brand.
Implications for the Fashion Industry
The CMA’s guidance signals an increased focus on consumer rights in relation to environmental claims. Businesses found in breach of these principles may face enforcement actions, including fines or legal action under the UK’s consumer protection laws.
Fashion brands should review their current marketing practices and ensure that all environmental claims are truthful, specific, and supported by evidence. It is vital to communicate any green credentials clearly and to avoid misleading consumers, as regulators and consumers alike are placing greater scrutiny on sustainability efforts.
To discuss any of the points raised in this article, please contact Ann-Maree Blake or fill in the form below.