Cascale Publishes Q3 2024 Global Legislative Update

Cascale, the global nonprofit alliance formerly known as the Sustainable Apparel Coalition, has published its third Global Legislative Update for its members. The comprehensive quarterly report offers a thorough overview of legislative actions from July to September 2024 affecting the textile and apparel industry across the EU, U.S., Asia, and other key markets. With over 300 leading organizations, Cascale recognizes the importance of staying informed on policy shifts to support sustainable practices and navigate evolving regulations.

The latest update highlights significant regulatory advancements focused on worker protections, environmental sustainability, and climate-related disclosures, with key developments in regions like the U.S., EU, and Asia. These updates emphasize stricter compliance requirements across the industry, particularly in addressing climate change and promoting responsible supply chains.

Below is a summary of key insights from the Q3 Global Legislative Update, offering a glimpse of the full report. The full report is available exclusively to Cascale members on our members-only platform, Cascale Connect. Cascale members are encouraged to log in to access the latest Global Legislative Update.

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Key Developments

Several regulatory developments designed to protect workers came into play. For example, the United States proposed its first-ever rule to protect workers from extreme heat, while Indonesia passed a new law strengthening the rights of working mothers.

Environmentally and socially responsible supply chains gained momentum around the globe. Mainland China, India, and the United States have made strides toward adopting measures that promote more sustainable product practices. In the EU, the Ecodesign for Sustainable Products Regulation (ESPR) and the Corporate Sustainability Due Diligence Directive (CS3D) entered into force – on July 18 and July 25, respectively.

In the EU, newly re-elected European Commission President Ursula von der Leyen presented a set of ‘Political Guidelines’ for her second term of office. The guidelines include a commitment to staying the course on the goals set out in the European Green Deal. The guidelines will inform the Commission’s legislative agenda over the next five years.

In the United States, California passed an amendment granting a six-month extension to the California Air Resources Board (CARB) to finish its rulemaking and adopt regulations for reporting entities’ annual greenhouse gas (GHG) emissions disclosures under the state’s 2023 climate disclosure laws. The amendment does not alter the compliance deadline, which starts in 2026 for large private and public companies doing business in the state. California also signed into law the Responsible Textile Recovery Act (SB 707), introducing an extended producer responsibility (EPR) program for waste apparel and textile articles from 2028.

The United Nations Climate Change Conference, or Conference of Parties (COP) presidency, currently held by Azerbaijan, announced plans for what it hopes to achieve at the COP29 in Baku this November. A key agenda priority is the creation of a climate fund, capitalized with voluntary contributions from fossil fuel-producing countries and companies. Global climate adaptation finance remains insufficient.

Key Implications

Recent worker-related regulatory developments worldwide signify an overall strengthening of protection of employee wellbeing and introduce additional compliance requirements for companies across industries. For example, employers may need to designate a ‘heat safety officer.’

The EU’s ESPR aims to reduce the negative impact of products throughout their lifecycle. The use of life cycle assessment (LCA) data is central to ecodesign and the ESPR. Product-related sustainability data will be registered in the Digital Product Passport (DPP), a key component of ESPR. This includes data on its materials, manufacturing processes, end-of-life options, and environmental impact. The textile, apparel, footwear, and consumer goods sectors, with their often complex and lengthy supply chains, are expected to be significantly affected by ESPR. Complementary to the Regulation itself, a Delegated Act for Textiles is currently being developed, which will lay down the detailed components of how the regulation is to be implemented for the apparel and textiles sector.

The European Commission's 'Political Guidelines' introduce new initiatives, such as the Circular Economy Act and Clean Industrial Deal, which could be relevant to Cascale's impact pillar 'combating climate change.' Other initiatives, including a European Water Resilience Strategy, a chemicals industry package, and a Vision for Agriculture and Food, may have indirect impacts on environmental sustainability and resource efficiency.

California’s two climate disclosure laws go beyond the U.S. Securities and Exchange Commission (SEC)’s draft climate disclosure rule (currently on hold pending court challenges) and most public companies’ current practices, particularly in reporting Scope 3 emissions. Given the size of California’s market, the state often acts as a ‘de facto’ national regulator. Harmonized legislative frameworks would be preferable for many companies and are also a key policy priority for Cascale members.

Looking Ahead

Demands for better protection for workers in the context of climate change will increase, especially in light of the International Labour Organization’s (ILO) recent warning that over 70% of the global workforce is at risk of extreme heat. Industries reliant on manual labor are at the highest risk.

As climate’s overall impact on health comes into greater focus, governments will likely seek to offload some of the economic cost onto the private sector.

In the EU, while the new Commissioner has indicated a continuation of climate policy, climate change could become less of a priority following the European Parliament’s shift to the right in the June elections. Climate action will increasingly be framed in the context of industrial competitiveness.

The outcome of the U.S. presidential election in November could significantly influence the pace of the country's — and the world's — green energy transition. Vice President and Democratic nominee Kamala Harris’ energy policy position includes support for the energy transition and international agreements on climate change, coupled with increased environmental regulation. The energy policies of former President and Republican nominee Donald Trump would focus on the deregulation of the fossil fuels sector.

A Harris administration could potentially strengthen the U.S.'s commitment to international climate agreements, such as the Paris Agreement, which would have significant implications for fashion's carbon footprint. A re-election of Trump to the presidency would likely lead to U.S. disengagement from climate negotiations, potentially hampering global efforts to mitigate climate change.

Cascale’s Public Affairs team is committed to keeping members updated on critical legislative developments and their potential impacts. These updates align with Cascale’s strategic plan and policy priorities and are designed to address the most pressing needs of our members. For more detailed insights and resources, Cascale members can access exclusive content via Cascale Connect here.

Stay informed

Cascale will host a Brand & Retail Forum in Brussels, Belgium, on December 4-5, 2024. The event offers a dynamic mix of policy-focused discussions and broader industry insights, all designed to empower Cascale members and stakeholders in the consumer goods sectors. Learn more and register today.

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