Fashion Transparency Index 2023 and Its Impacts

Fashion Transparency Index 2023 Overview

• The fashion industry is grappling with significant challenges related to global inequality and climate change.
• The latest Index reveals only 2 out of 250 brands scored 80% or higher; a notable mark as it's the first occurrence since 2017.
• Major brands often neglect responsibilities around tax and purchasing practices, exacerbating inequalities within the industry.

Key Statistics and Findings

• The pay gap between fashion CEOs and garment workers continues to widen. Only 18% of brands disclose the link between executive compensation and sustainability targets.
• A staggering 94% of major brands do not disclose the type of fuel used in clothing manufacturing, heightening concerns over the climate crisis.
• 99% of brands fail to disclose how many workers receive a living wage, underlining ongoing exploitation within the supply chain.

Progress in Transparency

• The overall average score for major fashion brands in the Index is just 26%, up by 2% from last year.
• 52% of brands now disclose first-tier supplier lists, a significant increase from 32% in the Index's inaugural release.
• Italian luxury brand Gucci has notably improved, ranking second with an 80% score, marking a 21 percentage-point increase.

Challenges and Areas Lacking Transparency

• Annual production volumes are not disclosed by 88% of brands, highlighting a lack of accountability regarding overproduction.
• Only 23% share their methodology for identifying risks related to water consumption and chemical use. Even fewer, 7%, provide wastewater test results.
• In the context of living wage legislation, Fashion Revolution is gathering citizen support to pressure the EU for change by July 19, 2023.

Social Responsibility and Environmental Impact

• The industry struggles with tax and purchasing models that place undue pressure on suppliers and workers.
• Direct-to-consumer models often lead to minimal upfront orders, worsening conditions for workers.
• Transparency regarding deforestation and environmental commitments is alarmingly low. Only 12% of brands publish commitments to zero deforestation initiatives.

Human Rights and Environmental Due Diligence

• There is an increase in disclosure relating to human rights and environmental due diligence, likely influenced by upcoming legislation in the EU and elsewhere.
• 37% of brands now disclose how they consult affected stakeholders, a significant improvement compared to last year.

Top and Lowest Scoring Brands

• For the first time, two brands scored 80% or higher: OVS (83%) and Gucci (80%).
• On a troubling note, 18 brands received a 0% rating this year, including notable names like ANTA, Fashion Nova, and Savage x Fenty.

Fashion Revolution's Role

• Fashion Revolution is leading efforts on education and advocacy for a more sustainable and equitable fashion industry.
• With activities spanning 75 countries, the organization emphasizes the necessity of transparency in achieving sustainability.

Conclusion

• Stronger transparency measures are essential to facilitate change in the fashion industry, hold brands accountable, and promote better practices worldwide.