Driving Accountability: How Fashion Brands Can Master Sustainability Reporting and Transparency

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Introduction: The Imperative for Fashion Sustainability Reporting

In recent years, the global fashion industry has faced unprecedented scrutiny over its environmental and social impacts. With mounting regulatory pressure, stakeholders now demand greater transparency and standardized sustainability reporting at every stage of the value chain. For brands, adapting to this new reality is no longer optional-it’s central to maintaining market access, consumer trust, and competitive advantage. [4]

Understanding Regulatory Shifts: From Voluntary Disclosure to Legal Mandates

Historically, sustainability reporting in fashion was voluntary, guided by frameworks like the Global Reporting Initiative (GRI) . Today, regulatory bodies in the EU, US, and UK have transitioned to mandatory ESG disclosures -requiring brands to provide verifiable data on supply chains, product life cycles, and emissions. [4]

The Corporate Sustainability Reporting Directive (CSRD) in the EU is a game-changer, demanding that textile and fashion companies publish non-financial information under the European Sustainability Reporting Standards (ESRS) . Brands must now report on climate, water, pollution, biodiversity, circularity, and social impacts pertaining to workers and consumers. [1]

In the US, emerging regulations like the PFAS Reporting Rule and state-level proposals such as the Fashion Sustainability Accountability Act require detailed supply chain mapping and public disclosure of environmental due diligence policies. [5]

Key Reporting Standards: GRI and ESRS Explained

The GRI Sustainability Reporting Standards -one of the most widely adopted frameworks-enable consistent reporting across companies and industries. The new Textiles and Apparel Sector Standard exposure draft seeks to address critical impacts ranging from human rights to environmental stewardship. It focuses on improving traceability and transparency throughout global value chains. [2] [3]

Meanwhile, the ESRS divides reporting into four groups: Cross-cutting (general requirements and disclosures), Environment , Social , and Governance . These standards ensure that brands cover all relevant sustainability metrics, including emissions (Scope 1, 2, and 3), water use, pollution, and worker rights. [1]

Step-by-Step Guidance: Building a Robust Sustainability Reporting System

1. Assess Regulatory Applicability Begin by identifying which regulations and standards apply to your brand. Are you required to comply with the CSRD, US federal rules, or state-level mandates? Review sector-specific standards and timelines for implementation. For EU-focused brands, note that textile sector-specific ESRS standards will be published in 2026, but general CSRD obligations remain. [1]

2. Map Your Supply Chain Comprehensive supply chain mapping is essential. Document all tiers of production, from raw material suppliers to garment manufacturers. In the US, compliance may require mapping at least 50% of suppliers across all stages. [5]

3. Collect and Audit Data Gather structured, auditable data on sustainability metrics. This includes emissions data, water usage, waste generation, and social impacts. Avoid estimates-focus on verifiable figures. Implement software solutions or third-party platforms for data collection and validation.

4. Prepare Non-Financial Reports Draft reports in line with recognized standards (GRI, ESRS), clearly communicating your brand’s sustainability practices and impacts. Ensure disclosures are comprehensive, covering environmental, social, and governance factors. For EU compliance, publish reports in accordance with ESRS requirements. [1]

5. Public Disclosure and Traceability Make key data publicly accessible via your website or through recognized sustainability platforms. Transparency is a non-negotiable component-disclose due diligence policies, supply chain maps, and sustainability outcomes. [5]

Real-World Examples and Case Studies

Case Study: EU CSRD Implementation A mid-sized apparel brand operating in Europe began by mapping its supply chain and collecting emissions data across all production tiers. By publishing its non-financial report using ESRS guidance, the brand met regulatory requirements and improved investor confidence. [1]

Case Study: GRI Sector Standard Adoption A global footwear manufacturer adopted the GRI exposure draft for textiles and apparel, conducting a thorough stakeholder consultation and reporting on human rights impacts. This enhanced its reputation for accountability and transparency. [3]

Potential Challenges and Solutions

Challenge: Data Collection Across Complex Supply Chains Fashion supply chains are dispersed globally, making traceability difficult. Brands may struggle to obtain reliable data from upstream suppliers.

Solution: Invest in digital supply chain mapping tools, conduct supplier training, and establish contractual obligations for data sharing. Collaborate with industry consortia to share best practices and resources. [5]

Challenge: Navigating Multiple Standards Brands operating in multiple markets may face overlapping or conflicting reporting requirements.

Solution: Align reporting practices to the most comprehensive standard (such as GRI or ESRS) and seek expert guidance to harmonize disclosures across jurisdictions.

Alternative Pathways and Practical Advice

If direct compliance guidance or reporting platforms are not available, fashion brands can:

Contact national industry associations for sector-specific resources and workshops
Engage with sustainability consultants specializing in ESG for fashion
Search for recognized standards (“GRI Textiles Standard”, “ESRS for Apparel”) on official websites or through reputable portals
Monitor regulatory updates via official government agency sites (such as the European Commission or relevant US regulatory bodies)

For brands seeking to enhance sustainability reporting and transparency, consider joining public consultations (such as the GRI Sector Standard feedback period open until September 28, 2025) to contribute to future standards and ensure your reporting aligns with stakeholder expectations. [3]

Summary: Building Trust and Unlocking Opportunity

Fashion sustainability reporting and transparency are now central to regulatory compliance, stakeholder trust, and market competitiveness. By embracing global standards, investing in supply chain traceability, and publishing comprehensive non-financial reports, brands can not only meet legal obligations but also drive positive impact and unlock new business opportunities. Begin by assessing your regulatory landscape, mapping your supply chain, and engaging with recognized reporting standards to lay the foundation for sustainable growth.