Trends in Ethical Sourcing for Retailers

Recent years have seen a remarkable shift in consumer awareness regarding the fashion industry's social and environmental impact. And as consumers and regulators demand more eco-conscious practices, fashion brands are adapting.   But in order to make a real difference, sustainability efforts must extend beyond individual brands. They should encompass the entire supply chain, fostering systemic change and engaging the public in the sustainable fashion journey. Traceability is at the heart of a sustainable fashion supply chain. It ensures transparency, ethical labor practices, and adherence to sustainability standards. It empowers consumers to make informed choices and trust brands that align with their values. U.S. Cotton Trust Protocol offers a traceability solution for cotton. This blockchain-based system tracks cotton from ginning, assigning unique identifiers to each bale and minting digital tokens. It's a game-changer for sustainable sourcing. And with the new timeline allowing immediate cotton verification, brands and retailers can plan their sustainable cotton sourcing better than ever before. The future of the fashion industry is clear: sustainability is non-negotiable. Brands and retailers face increasing scrutiny, and scalable solutions are essential to mitigate environmental impact effectively. Programs like the Trust Protocol are paving the way for a brighter, more ethical future. By working collectively toward sustainable practices and prioritizing scalability, the fashion industry has the potential to make a profound impact on our world. #Sustainability #TextileIndustry #Traceability #SupplyChain #Innovation #EthicalFashion https://lnkd.in/edU-Upix

In our Global Supply Chain class last night, we discussed the lack of transparency and traceability in many supply chains. While the issue is complex and the causes are many, students insightfully identified company culture and lack of accountability/repercussions as two of the root causes. Historically, low levels of accountability were normal; however, the tides are changing. This partial list demonstrates the trend towards greater accountability. **As the below article details, the Justice Department's penalty of $41.675 M is the "largest-ever monetary criminal penalty in a food safety case." **The FDA's Food Traceability Final Rule goes into enforcement in 2026, expanding companies' traceability requirements. **The German Supply Chain Due Diligence Act has a potential penalty of up to EUR 8 million. **The recent rules from the EU Green Claims Directive are designed to address greenwashing. Per the European Parliament's 2/14/24 Press Release on the directive, penalties may "include exclusion from procurements, confiscation of revenues and a fine of 4% of the annual turnover." **The "Why" behind why consumers buy is changing. Consumers increasingly believe ethically sourced and sustainable products are important, and employees want to work for companies that produce such products. So...have you mapped out your supply chain? How are you gaining (and giving) transparency and traceability? How can new technologies support your efforts? Visibility is currently a financial, managerial, and reputational advantage, but at some point...it will be table stakes. #supplychainmanagement #georgetownscs #sustainability https://lnkd.in/dNwU-qSN

Increasing the sustainable product options for consumers requires partnership with brands. More retailers are partnering with their brands to help them on their sustainability journey and achieve more audacious goals. We’ve seen everything from goals to remove harmful ingredients from products, to becoming vegan, or using more sustainable packaging components. I’ve been inspired to see more retailers invest in resources for their brands instead of playing “auditor”. Things like helping their brand partners see exactly where they stand against their goals, the potential impacts to revenue and customer engagement if they prioritized certain goals, understanding the specific changes to make (and which ones are a lower lift), and finding alternative materials so they can more quickly achieve those goals. These resources take work and cost money, but the investment is small given the outcomes. The collective progress from these brands is a huge step forward for consumers and our planet. And the ROI for retailers is quite incredible given the revenue these sustainable product options are driving. #sustainability #sustainablepackaging #sustainableproducts