{ "docId": "019dd923-5ca1-7489-b638-a36c9aff2eaf", "docSlug": "2be50a4d610e63fc", "documentTitle": "The State of Fashion 2024", "authorId": "McKinsey", "authorName": "McKinsey", "documentKindSlug": "consulting-deck", "documentKindLabel": "Consulting deck", "sourceTypeSlug": "strategy_consulting", "sourceTypeLabel": "Strategy consulting", "presentationDate": null, "orientation": "portrait", "aspectRatio": 0.75, "pageNumber": 46, "pageCount": 65, "prevPage": 45, "nextPage": 47, "slideType": "industry_trends", "function": "summarize", "density": "overcrowded", "nDataPoints": 3, "notes": "This is a two-page spread from a report. The content focuses on the impact of new EU regulations on the fashion industry.", "elementsJson": [ "headline_text", "paragraph", "bullet_list" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-5ca1-7489-b638-a36c9aff2eaf/46", "deckHref": "/decks/019dd923-5ca1-7489-b638-a36c9aff2eaf", "deckJsonHref": "/decks/019dd923-5ca1-7489-b638-a36c9aff2eaf.json", "deckAnchorHref": "/decks/019dd923-5ca1-7489-b638-a36c9aff2eaf#slide-46", "components": [ { "bbox": null, "kind": "callout", "text": "The era of the fashion industry self-regulating sustainability is drawing to a close around the world.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd951-cded-738a-abbf-f6d19659caad", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.215, "w": 0.451, "x": 0.036, "y": 0.701 }, "kind": "list", "text": "As many as 16 pieces of legislation relating to fashion and textiles were under discussion in late 2023 in the EU alone, with the first coming to force in 2024. The regulations span the entire fashion value chain, from product design to marketing, and will impact consumers and companies globally. Regulatory competence cannot be limited to a brand’s sustainability team, but rather should be embraced throughout the C-suite and integrated across functions.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a6d2d9a5-88ac-43e3-beb4-209531e38829", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.255, "w": 0.215, "x": 0.548, "y": 0.375 }, "kind": "paragraph", "text": "With the industry struggling to move forward, regulators are stepping in. Leading the charge is the EU as it pursues a vision for a climate-neutral, circular economy, with growth decoupled from the consumption of finite resources. The EU’s textiles vision is encapsulated in its Strategy for Sustainable and Circular Textiles, passed in June 2023, which envisages an industry defined by products made with respect for the environment and social rights. As many as 16 pieces of legislation are currently under discussion, with the first coming to force in 2024. The window for brands to prepare to comply is narrowing quickly.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "02bae9c3-7b18-4688-860a-568d61df48dc", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.255, "w": 0.215, "x": 0.775, "y": 0.515 }, "kind": "paragraph", "text": "Reporting: Despite huge volumes of corporate environment,socialandgovernance(ESG)disclosure, companies still struggle to secure sufficient data and performance metrics or define economic activities that can be considered sustainable. A lack of comparability across brands inhibits effective decision making among investors and consumers. The upcoming Corporate Sustainability Reporting Directive (CSRD) requires companies to report on ESG activities via a standardised framework. Meanwhile, the Corporate Sustainability Due Diligence Directive mandates environmental and human rights diligence and action plans across the value chain.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2a7e54af-bfc3-48c5-962c-2d75f2835149", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.115, "w": 0.215, "x": 0.548, "y": 0.068 }, "kind": "paragraph", "text": "The fashion industry is heading for a reality check. By the end of 2024, self-regulation of sustainability may no longer be an option. Many new rules around the world are set to mandate action on everything from textiles production and chemicals use to recycling and waste.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "52afb659-272c-4108-884a-55589a728924", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.255, "w": 0.215, "x": 0.775, "y": 0.251 }, "kind": "paragraph", "text": "Waste management: Less than 1 percent of fashion textiles are recycled and a truckload of products are sent to landfill or incinerated somewhere in the world every second. An amendment to the Waste Framework Directive is calling for Extended Producer Responsibility, which already exists in France, and which requires companies to finance the collection, sorting and recycling of textile waste. Fees are expected to vary based on production output and pollution levels caused, a principle known as “eco-modulation.” All EU countries will be required to launch textile collection programmes by 2025 and the destruction of unsold goods is expected to be banned.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "59f9f9ed-45e1-4080-92c5-ca6c27852c90", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.135, "w": 0.215, "x": 0.775, "y": 0.778 }, "kind": "paragraph", "text": "Notably, the requirement for standardised, comprehensive public disclosures has become a lightning rod of debate in the fashion industry, with some executives concerned about the amount of data and analysis required. At a recent conference, the head of sustainability at Puma said that the brand had been publishing reports for 20 years but was “nowhere near being able to fulfil the requirements of CSRD.” The impact of the EU’s new rules are expected", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "70390d66-f866-4188-b01d-1d3b1dacfa6c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.155, "w": 0.451, "x": 0.036, "y": 0.331 }, "kind": "paragraph", "text": "The era of the fashion industry self-regulating sustainability is drawing to a close around the world. Across jurisdictions, new rules could have a widespread impact on both consumers and fashion players. Brands and manufacturers need to revamp business models to align with the changes ahead.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7f752458-46ac-417f-84a8-46da6704d830", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.175, "w": 0.215, "x": 0.548, "y": 0.191 }, "kind": "paragraph", "text": "While some industry progress is evident, the pace of transformation falls short of what is needed to prepare for impending regulations. Across the industry, the polluting use of fossil fuels continues to dominate production while circular business models are still in their infancy. If progress continue at the current pace, clothing and footwear consumption is expected to increase by over 60 percent, from 62 million tonnes in 2022 to 102 million tonnes in 2023.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "87e642ff-bfae-4d46-9a56-43925171ef19", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.175, "w": 0.215, "x": 0.775, "y": 0.068 }, "kind": "paragraph", "text": "Marketing: Greenwashing is high on consumer and regulatory agendas, with the claims of many companies seen as vague or misleading. The new EU Green Claims Directive curbs greenwashing by requiring sustainability-related declarations and statements to be specific, backed by evidence, verified by independent bodies and communicated clearly. France has already taken the first step, requiring large companies to put carbon labels on all clothing sold in the country.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8f3ca349-934b-4f16-ae57-615dfd57abe9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.255, "w": 0.215, "x": 0.548, "y": 0.655 }, "kind": "paragraph", "text": "Product design: Up to 80 percent of a product’s environmental impact is determined in the design phase and is baked into materials and dyes. The EU’s flagship Ecodesign for Sustainable Products Regulation (ESPR), set to come into full effect by 2025, sets minimum design standards for all individual products sold within the EU. This includes requirements around recyclability, durability, reusability, repairability and use of hazardous substances. Digital product passports that collect and share this information with consumers are expected to become required by law.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f299fee3-fa3e-4781-9d70-67e17d6dce72", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.282, "w": 0.337, "x": 0.036, "y": 0.085 }, "kind": "title", "text": "09. Sustainability Rules", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1041eddd-6338-47ab-9bd5-b158f4cbd1a3", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 65, "from": 31, "beatId": "82ce288e-4997-4d2d-8514-cae101b21056", "arcName": "The Sparkline", "arcSlug": "sparkline", "beatName": "Opportunities and Solutions", "beatSlug": "sparkline-new-bliss", "evidence": "The document concludes by highlighting opportunities for growth and innovation, as well as potential solutions for fashion companies.", "position": 2, "confidence": 0.8, "parentBeatName": "Resolution", "parentBeatSlug": "resolution" } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }