Transparency & traceability

In fashion, where supply chains are complex and globalized, achieving full visibility is challenging. However, this visibility is essential for ensuring ethical practices, achieving circularity, and building consumer trust. Traceability—the process of tracking a product's journey from sourcing through processing, production, transportation, and distribution—enables consumers to make informed choices based on the origins and journey of their garments.

Regulatory compliance is a significant driver for improving traceability. Governments and regulatory bodies are enforcing stricter regulations on non-financial information disclosure. The EU's Corporate Sustainability Due Diligence Directive (CSDDD) requires companies to address adverse human rights and environmental impacts throughout their value chains. The Digital Product Passport (DPP) demands detailed data on each product’s sustainability characteristics. Additionally, the EU's deforestation-free product regulation mandates that goods such as timber, leather, and rubber must not come from deforested or degraded areas. To avoid legal sanctions, reputational damage, and financial losses, ensure thorough due diligence. Ethical and sustainable practices are increasingly important to consumers, who are more likely to trust and remain loyal to brands that demonstrate transparency and responsible sourcing.