Threads of responsibility

Amid growing consumer, regulatory and investor scrutiny, the fashion industry has made gradual progress in responsible supply chain management. The “KnowTheChain” benchmarks from 2018 to 2023 indicate improvements in addressing forced labor, transparency and worker rights, as seen below. However, challenges persist, particularly in mitigating forced labor risks in lower tiers of the supply chain. According to RepRisk, the number of high-risk controversies related to labor rights in fashion surged from 60 in 2018 to 130 in 2023, underscoring ongoing issues in the industry. Investor influence plays a pivotal role in driving change: the non-profit As You Sow reported over 30 shareholder resolutions in 2022 across various industries, including apparel, focusing on responsible supply chain management. Acknowledging and leveraging the key role of investors through effective engagement will be crucial for advancing robust labor standards and ensuring long-term business success.