Due Diligence

Between 2015 and 2023 federal labour inspections in Mexico fell by close to 70 per cent, and barely one in a hundred reached the textile industry. A recent study shows the shortfall is not merely a matter of scarce resources but of design, with a statutory limit and a jurisdictional dispute together leaving four-fifths of the garment sector unreachable.

In most global supply chains, accountability has a floor — and it sits at Tier 1. The factories below, producing fabrics and raw materials, operate largely beyond the reach of formal due diligence. A coalition of brands, a software provider, and two NGOs tested whether that could change across nine Tier 2 factories in southern Viet Nam. A report from a side session at February's OECD Forum on Due Diligence in the Garment and Footwear Sector.

A new OECD assessment raises concerns about the effectiveness of the Global Organic Textile Standard (GOTS) Version 7.0 in addressing supply chain risks. Despite covering key due diligence areas, the standard falls short of full alignment with OECD expectations, exposing gaps in grievance mechanisms, purchasing practices, and the consistency of its guidance documents.

Nonprofit Global Standard has launched a landmark resource—the GOTS Due Diligence Handbook for Auditors—a critical step in promoting sustainable practices, human rights and ethical business conduct across the textile sector and in line with evolving regulatory requirements around the world.

A new handbook guides companies on how to use the OECD due diligence framework for achieving living incomes and living wages in global supply chains. It builds on existing OECD standards and focuses on the agriculture, garment and footwear sectors where inadequate incomes and wages have been identified as prevalent risks.

Most environmental issues in the cotton industry are being discussed and addressed, but the question remains: is enough being done? Award-winning innovation and sustainability leader, Michela Puddu, touches on a diverse range of subjects, from the cotton production and recycling landscape to its huge and fragmented supply chain, the role of standards & certifications, traceability, impact of global climate change, water challenges, livelihoods and more.

The road to widespread adoption of conflict-free cotton won’t be easy, but it’s a path being paved by a mix of legislative action, corporate responsibility, and consumer demand. While much remains to be done, the progress made so far is promising. Continued collaboration between governments, corporations, and consumers is imperative to ensure conflict-free cotton becomes a reality.

Leading apparel and footwear brands have scored the lowest when it comes to Purchasing Practices (12/100) and Remedy (7/100), in the latest annual KnowTheChain rankings.

The European Parliament and the Council on the Corporate Sustainability Due Diligence Directive reached a landmark agreement Thursday which is expected to change how business is done in the European Union (EU) and elsewhere, but has left a big loophole in leaving the financial sector out of its ambit.

Fair Wear Foundation and the Sustainable Terms of Trade Initiative (STTI) have signed a Memorandum of Understanding (MoU), committing to further strengthening their collaboration on advancing systemic change in the garment and textiles industry.