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What are some of the reasons for and against making fashion industry supply chains more sustainable and ethically driven? What happened to the New York

  1. What are some of the reasons for and against making fashion industry supply chains more sustainable and ethically driven?
  2. What happened to the New York Act as of Fall 2022? What happens next in New York? Do you expect the appeals to regulate climate emissions and labor conditions in the fashion industry will continue worldwide?
  3. Study the Fashion Transparency Index (https://www.fashionrevolution.org/about/transparency/ Links to an external site.) or download Here Download Here. Which brands do you shop at and where do the rank [rankings begin on page 38]? What are your thoughts on your ranking?
  4. Complet''''''''''e an ad hoc survey with 5 people (friends, colleagues, relatives, etc). Where do their shopping habits fit in the index? What are their thoughts on their rankings?

Abstract If passed, New York's recently proposed Fashion Sustainability and Social Accountability Act is poised to be the first regulation of its kind in making the fashion industry's supply chains more sustainable. New York joins an increasing number of initiatives, including similar legislation being considered in the European Union, aimed at curbing fashion's impact on climate change and could potentially impact the global supply chain strategies of major fashion purveyors, particularly popular fast-fashion brands that depend on low-wage labor and large carbon footprints. Students are asked to discuss the urgency behind the proposed legislation and to project its potential impact on the industry at large. Case Learning Outcomes Students should apply their learning in supply chains, strategy, and sustainability to forecast how New York's proposed Fashion Sustainability and Social Accountability Act could, if passed, impact the fashion and retail industries. SAGE Kelsey Lawrence 2022 Business Cases Page 3 of 5 The Future of Fast Fashion: How New York's Proposed Fashion Sustainability Legislation Could Change the Industry

Figure 1. Activists in Amsterdam hold a banner against consumerism during a demonstration to bring attention to the fast fashion industry's exploitative, profit-oriented, and greenwashing practices. New York state's recently proposed Fashion Sustainability and Social Accountability Act hopes to regulate the fashion industry. Source: Photo by Ana Fernandez/SOPA Images/LightRocket via Getty Images The Issue In an ambitious move for the state government, New York has become the first state to introduce legislation proposing to regulate the fashion industry to encourage more sustainable practices. On January 7, 2022, the Fashion Sustainability and Social Accountability Act was introduced. If passed into law, the bill would require fashion companies to track a minimum of 50% of their supply chain, beginning with farms where the raw materials originate to the end stage of shipping. Companies would also have to disclose environmental impacts such as carbon emissions and water and chemical management, and social impacts such as fair wages. As New York Times fashion critic Vanessa Friedman notes, this bill would "effectively hold the biggest brands in fashion to account for their role in climate change." The bill is sponsored by State Senator Alessandra Biaggi and Assemblywoman Anna R. Kelles, and it's backed by an influential coalition of fashion and sustainability nonprofits including designer Stella McCartney, the New Standard Institute, the Natural Resources Defense Council, and the New York City Environmental Justice Alliance. The proposed bill will apply to any apparel company making at least USD 100 million in sales, which includes luxury giants such as LVMH and Kering, as well as fast-fashion purveyors like H&M and Shein. In a news release, Senator Biaggi called the law a "groundbreaking piece of legislation that will make New York the global leader" in making sure the fashion industry is held accountable for its social and environmental SAGE Kelsey Lawrence 2022 Business Cases Page 4 of 5 The Future of Fast Fashion: How New York's Proposed Fashion Sustainability Legislation Could Change the Industry

impacts. "The fashion industry is responsible for a staggering 4-8.6% of global greenhouse gas emissions and has been permitted to operate unchecked by regulations that would curb pollution and the use of exploited, forced, and child labor," said Assemblymember Dr. Anna Kelles (D-125), Prime Assembly Sponsor of the bill. Why Is It News? If the bill is passed, companies will have 12 months to comply with the proposed transparency guidelines and, if found in violation, will be fined up to 2% of their annual revenues. Those fines would go to a new fund created by New York's Department of Environmental Conservation to be used for environmental justice projects. A list would also be published by the New York attorney general detailing companies found to be noncompliant. So far, the fashion companies that would potentially be affected haven't expressed public contention with the bill. "Often there is a knee-jerk reaction by businesses against the idea of regulation," Maxine Bdat, founder of the New Standard Institute, told The New York Times. Comparing the Fashion Act with auto industry regulations, Bdat said, "even the auto industry, which initially rebelled against fuel efficiency standards, has now embraced them." Fast-fashion giant H&M, which might appear to be one of the industry's biggest offenders, is at the top of Fashion Revolution's Transparency Index, "which indicates the level of engagement as they lead and invest in many sustainability initiatives for the fashion industry nationally and globally," Catarina Midby, head of Stockholm Fashion Week, told Forbes. While no country has enacted general legislation regulating the social and environmental responsibilities of the fashion industry, similar legislation to the Fashion Act is currently being proposed in the European Union. New York's bill would undoubtedly be pioneering in its impact, but some advocates wish it would go further. Critics feel that it needs stronger labor provisions and to be more inclusive in involving garment workers and communities affected by different aspects of the supply chain. "I think this is a good starting place," Ngozi Okaro, executive director of workforce development nonprofit Custom Collaborative, told Vogue Business. "I'm glad it's on the table for 2022, and I hope that we can all work together to make this the legislation it needs to be to protect Black and brown communities and workers, whether they be in New York or overseas." https://dx.doi.org/10.4135/9781529605280 SAGE Kelsey Lawrence 2022 Business Cases Page 5 of 5 The Future of Fast Fashion: How New York's Proposed Fashion

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