Week in review: Should the CSDDD conversation be a global one?

The EU's Corporate Sustainability Due Diligence Directive (CSDDD) conversation has reached a critical crossroads. But should the conversation be expanded to become a global one?

Laura Husband February 12 2024

The EU Council has pushed back its vote on the Corporate Sustainability Due Diligence Directive (CSDDD), which was due to take place on Friday (9 February), following Germany’s abstention and the need for further discussions among EU Member States.

The vote is now expected to be announced on Wednesday with Fair Wear Foundation's Alexander Kohnstamm calling on all involved to ensure it passes swiftly.

Of course, a fashion sustainability directive is essential and there is no doubt the EU has paved the way.

A sensible delay?

But, as we reach this so-called critical stage of the legislation, it begs the question of whether it makes more sense to revisit the idea of a global directive rather than an EU-specific one. Perhaps this is the way to shift the needle on corporate sustainability due diligence once and for all? It certainly would result in less duplication and contradicting of rules.

Last month we heard from the Bangladesh apparel sector trade body which bravely spoke out to call for more “universal” due diligence laws.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA)'s president said what many fashion manufacturing countries are likely thinking: "The goal we want to achieve through implementing due diligence law is universal and desired by all. So, the legislation should be truly global and accepted in all places which is not what we are seeing.”

He urged for greater collaboration to effectively implement due diligence laws and explained this was not “one man’s game” but rather something that needs the “support and assistance from all ends to make it successful.”

Across the pond, the US is some way away from a national sustainability legislation but New York and California are both on board.

There was a delay to California's Responsible Textile Recovery Act of 2023 being passed last year, but delays to legislation are not always a bad thing if they lead to a more effective outcome.

The American Apparel & Footwear Association said at the time of the delay that it meant all stakeholders would be able to consider what it described as the US' first textile Extended Producer Responsibility (EPR) programme.

Would a sensible delay make more sense for this directive so all countries around the world can agree a set of standards around corporate sustainability due diligence that all manufacturers and brands can follow?

Surely the goal here is to make fashion more sustainable for all and not to complicate an already complex supply chain with one set of rules for the EU and another for everyone else?

But if the ship has sailed for a global discussion on corporate sustainability legislation, one can only hope the incoming EU CSDDD forms the template for others to follow in a bid to level the playing field.

Top stories on Just Style last week

EU due diligence law could fail on Germany vote ‘abstention’

Reports have surfaced suggesting apprehension in the German government on voting in favour of the Corporate Sustainability Due Diligence Directive (CSDDD) which may delay its introduction.

Boohoo accused of ‘face-saving’ changes post-Panorama scandal

UK-based fashion retail group Boohoo has been accused of making ‘surface deep’ changes in response a BBC Panorama documentary alleging poor purchasing practices and concern over worker conditions in its supply chain.

Co-founder Dunkerton weighs repurchase of struggling Superdry

As Superdry suffers ‘dwindling sales and shrinking share price’, a GlobalData analyst tells Just Style the brand should ‘look to the likes of Hollister and Abercrombie’ for a turnaround.

Guess, Interloop partner on sustainable denim made from banana fibre

US fashion brand Guess is adopting sustainable textile solution company Interloop's low-impact fibres in its new denim collection.

Authentic severs ties with AARC in surprise move, weighs Ted Baker CVA

Authentic Brands Group (ABG) has reportedly ended its dealings with AARC, a Dutch company that had been running its Ted Baker stores and e-commerce business in Europe.

Red Sea disruption affects 79% of Europe apparel imports from Asia

Software company Altana, which uses AI to provide the UK government with a dynamic and intelligent global supply chain map, has revealed Europe depends on Asia for almost four fifths of its apparel imports which transit via the Red Sea during normal times.

VF Corp swings to loss in Q3, weighs portfolio revamp

Following a lacklustre second quarter, global apparel giant VF Corporation swung to loss in the third quarter of fiscal 2024 marked by a 16% decline in total revenues, prompting the brand to consider a strategic review of its portfolio of brands.

How AI, RFID is connecting retailers with shoppers like never before

In an exclusive chat with Just Style, Matthew Cyr, the CEO of connected fitting room platform Crave Retail explains how the fashion retail sector is only just touching the surface of what AI and RFID can achieve in terms of sales, reducing excess inventory and improving sustainability in future.

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