The fashion industry is responsible for 4-8% of global carbon emissions. In fact, according to research by McKinsey & Company, the fashion industry was responsible for 2.1 billion metric tons of greenhouse-gas emissions in 2018, which is about the same as the entire economies of France, Germany, and the United Kingdom combined.
As the climate crisis worsens and the impact of the fashion industry on the climate becomes more salient, calls for oversight in the fashion sector have increased. To combat both the adverse climate effects and human rights violations in the fashion sector, governments around the world are proposing and passing legislation aimed at regulating clothing manufacturers and brands.
Of particular interest is a recently proposed federal bill in the United States that might impact clothing brands and manufacturers in 2023 and beyond, the Fashioning Accountability and Building Real Institutional Change Act (“FABRIC Act”).
The FABRIC Act (S. 4213) was proposed in May 2022 by U.S. Senator Kirsten Gillibrand. It is currently being reviewed in the U.S. Senate. If passed, the Act will be the first robust federal law regulating fashion brands and retailers. The aim of the Act is to enforce minimum wage standards and bring garment factories back into the U.S. economy.
At a glance, the FABRIC Act aims to:
- Increase brand and manufacturer accountability for workplace standards including setting an hourly pay rate and establishing penalties for labor law violations.
- Incentivize production in the U.S. with corporate tax credits.
- Create a $40 million domestic garment manufacturing grant program aimed at revitalizing the industry.
The exact form the FABRIC Act may ultimately take remains to be seen, but it’s apparent that sustainable and ethical fashion is top-of mind for both consumers and regulatory bodies – green is clearly in.
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1 https://www.mckinsey.com/industries/retail/our-insights/fashion-on-climate
