The Fashion Sustainability and Social Accountability Act

10 Jan, 2022

Responsible Procurement News: A great example of upcoming legislation in sustainability, the Fashion Sustainability and Social Accountability Act.

New York is showing how environmental and social reports should become the top priority for companies in 2022 with new legislation in sustainability regulations.

The new Fashion Sustainability and Social Accountability Act makes New York the first place to hold major brands and companies in fashion accountable for their role in climate change.

Any violation of the law and companies ‘would be fined up to 2% of their annual revenue’ and the state Attorney General will annually publish the list of non-compliant companies.

The new bill requires companies to:

  • ‘map a minimum of 50% of their supply chain, starting with the farms where the raw materials originate through factories and shipping’
  • ‘disclose where in the chain they have the greatest social and environmental impact’
  • ‘make plans to reduce those numbers’
  • ‘disclose their raw material production volumes’ in for example, cotton, leather or polyester

The state gives companies 12 months to comply. Meaning multinationals have one year to collect, analyze and report their direct (scope 1) and indirect (scope 2 & 3) environmental footprint and take according measures.

While legislation should not be the main incentive for companies to take action, now is the time to do so.

Sourcing Champions delivers responsible procurement consultancy. Our sustainability program turns your environmental evidence-based data into actionable sustainable initiatives.

Contact us and take action now.

Read more about the new legislation:

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