The Urgent Need for Transparency in the Fashion Industry :
Findings from the Fashion Transparency Index
15-May-2023
This report presents the findings of the Fashion Transparency Index, which is an annual review of the world’s largest fashion brands and retailers. It ranks them based on their public disclosure on human rights and environmental policies, practices, and impacts on their own operations and supply chains. The index focuses on big and profitable brands that have the greatest responsibility to change.
Transparency is fundamental to achieving systemic change in the fashion industry, and the index reviews brands’ public disclosure across several indicators in five key areas. These areas include policies, governance, supply chain traceability, know, show and fix, and spotlight issues such as decent work, gender and racial equality, sustainable sourcing, waste, circularity, water and chemicals, climate change, and biodiversity. Transparency is not the same as sustainability, but it is a necessary first step towards achieving a sustainable, accountable, and fair fashion industry.
The report shows that progress towards transparency in the global fashion industry is still slow among 250 of the world’s largest brands and retailers, with an overall average score of just 24%, up 1% from last year. In total, 81/250 brands scored in the 0-10% range, which represents almost a third of the world’s largest brands and retailers.
The report also found that even the highest-scoring brands lack disclosure on critical issues such as social auditing, living wages, purchasing practices, unionisation, gender and racial equity, production and waste volumes, circularity, chemical use, deforestation, and carbon emissions in the supply chain. Brands need to be more transparent about these issues if they are serious about tackling global inequality and the climate crisis. The average score for the Policies’ section is 51%, which is less than last year’s average of 53%. The average has decreased from last year as the scoring criteria have been reassessed, and the wording in policies has been scrutinised.
AVERAGE
SCORE
IN EACH SECTION
Top 05
scores in 2022
lowest 05
scores in 2022
More major brands than ever, 48%, are now disclosing their first-tier manufacturers, where the final stage of production occurs, such as cutting, sewing, finishing products and packing them for shipment. This is a significant improvement compared to previous years when brands resisted disclosing their supplier lists. Ten brands that were reviewed in last year’s Index have since disclosed their first-tier manufacturers for the first time, including Bally, Calzedonia Group (Calzedonia, Intimissimi, Tezenis brands), Chloé, GUESS, Paris, Oliver, and Woolworths South Africa.
The fashion industry is a major contributor to water pollution and one of the most water-intensive industries in the world, yet many fashion brands do not disclose where or how their fibers are grown. Only 11% of brands publish their wastewater test results, and only 25% of brands disclose the process of conducting water-related risk assessments in their supply chain. Transparency on wastewater test results is key to ensuring that brands are held accountable for their potentially devastating impacts on local biodiversity, garment workers and their communities.
Additionally, textiles are the largest source of microplastics in the ocean, and synthetic fibers like polyester and acrylic are the biggest contributors. Yet, only 24% of brands disclose how they minimize the impact of microfibers. Even natural fibers go through intensive manufacturing processes involving toxic chemicals that can harm the environment.
The vast majority of major brands and retailers, 94%, do not disclose the number of workers in their supply chains who are paying recruitment fees, which may put them in debt bondage and at risk of forced labor. When laid off or dismissed from work, workers still owe recruitment fees, which they often pay in cash, leaving no receipts. Without transparency on the number of workers impacted by recruitment fees, brands are unclear on the risks of forced labor, and workers become vulnerable to exploitation and further debt. This perpetuates low wages and poor working conditions, making it difficult for workers to assert their rights.
Source: fashion revolution
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