One-third of UK fashion retailers do not publish ethical sourcing data.
Approximately 33% (five out of 15) of UK fashion retailers do not publish any ethical sourcing data in their Annual Report, their sustainability report, or elsewhere on their website.
Ethical sourcing practices are intended to ensure fashion retailers’ supply chains are not affected by issues such as modern slavery, unsafe working practices, and cotton cultivation damaging the environment through pesticides.
Consumer-facing businesses are increasingly expected by customers and investors to demonstrate the steps they are taking to responsibly source and produce goods.
Businesses that fail to communicate their commitments to responsible sourcing risk losing customers to rivals that are more proactive.
According to research by supply chain specialists INVERTO, retailers are keen to show their future commitments to ethical sourcing with 80% setting clear numerical targets relating to sourcing material from suppliers in the coming years.
However, 13.3% of retailers do not demonstrate either targets for the future or a clear policy on ethical sourcing.
“The sector has really embraced sustainability. However, some fashion retailers still have a way to go towards turning their commitment into concrete, actionable plans,” says spokeswoman Katharina Erfort.
Several fashion retailers have set up or collaborated with far-reaching ethical sourcing initiatives, such as New Look’s ‘Reel Cotton’ and Matalan’s ‘Better Cotton’ programme.
These initiatives allow the retailers to work with their suppliers to implement sustainable and ethical practices. The Reel Cotton initiative, for example, provides farmers with training on sustainable cotton farming practices.
Showcasing commitment
Ethical sourcing remains a key area of focus for retailers, as they demonstrate their progress towards their targets. 73% of the UK’s largest fashion retailers have published an ethical sourcing policy, which outlines retailers’ requirements for their supply chain.
This comes as France and New York State debate introducing legislation affecting ‘fast fashion’ brands that operate unsustainably. The proposed French legislation would introduce fines and prohibit advertising for fashion retailers deemed unsustainable, while a New York state bill would require fashion retailer to publicly map their global supply chains.
Varied reporting standards
However, some commitments to ethical sourcing have not yet fully translated into action. Only 67% of retailers currently undertake audits of their suppliers to ensure materials are sourced responsibly.
Katharina adds, “Whilst retailers are keen to show to consumers they take ethical sourcing seriously, companies need to clearly demonstrate the progress they’re making year-on-year to truly inspire confidence.”
“Clothing supply chains are very complex and straddle multiple geographies. Being a successful clothing retailer requires accurate data, clear policies, and continued efforts to align with their sustainability goals.”
“It is also vital to have close collaboration with suppliers to meet these goals. Some firms offer in-house clothing lines, and others stock third party brands who also might outsource their manufacturing, which adds to the complexity of ensuring products are sourced ethically.”
