EU Approves Diluted Corporate Sustainability Directive, France Proposes €10 Ultra-Fast Fashion Fine, Walmart and Unspun Pilot 3D-Weaved Eco Workwear, Renewcell Seeks Rescue Through Asset Sale
Welcome to Week/End, your quick-hit guide to this week’s sustainability news at the intersection of fashion, ethics, sustainability, and business.
EU Passes Watered-Down Corporate Sustainability Due Diligence Law
After weeks of delays, the European Commission has approved the Corporate Sustainability Due Diligence Directive (CSDDD), also called the CS3D, marking a significant step toward establishing legal liability for companies regarding environmental and human rights violations in their supply chains. However, the final CSDDD is notably diluted from the initial proposal, sparking frustration among some sustainability advocates who argue that the changes compromise the directive's ability to effectively hold corporations accountable.
Key aspects that have been scaled back include:
Thresholds for Applicability: The CSDDD initially targeted companies with 500 employees and a turnover of €150 million. However, these thresholds were raised to 1,000 employees and a turnover of €450 million in the final version. This change significantly reduces the number of companies subject to the directive.
High-Risk Sector Approach: The initial proposal included a provision for a high-risk sector approach, which would have expanded the scope to include companies operating in industries prone to human rights or environmental conflicts, regardless of their size. However, this provision was removed from the final version, further limiting the directive's reach.
Phase-In Periods: The directive's implementation will be phased in over a longer period, with larger companies given more time to comply. For example, companies with 5,000 employees and €1,500 million turnover will be impacted in 3 years, while those with 1,000 employees and €450 million turnover will be impacted in 5 years.
After receiving approval from the EU Council, the bill moves forward to the European Parliament, where it will be reviewed by the JURI Committee on March 19. Subsequently, a plenary vote is scheduled for the week of April 25.
France Proposes Up to €10 Penalty Per Item in Bold Move Against Ultra-Fast Fashion
In a landmark decision, France's National Assembly has unanimously approved a bill imposing stringent measures on the ultra-fast fashion industry, spotlighting companies like Shein for their environmental impact. The proposed legislation, aimed at addressing the burgeoning issue of textile waste and unsustainable consumption, aims to introduce penalties up to €10 ($11) per item by 2030 as well as enforce a ban on advertising for such products.
The bill will now proceed to the senate for further deliberation before it can be enacted into law.
In a statement to Reuters, Shein asserts its business model reduces waste by aligning production with consumer demand and maintaining unsold inventory at a minimal level—a stark contrast to the larger waste generated by traditional retailers. The company also cautions that the proposed bill might negatively impact French consumers' spending power, particularly during the ongoing cost-of-living crisis.
Walmart and Unspun Pioneer Sustainable Apparel Production with 3D Weaving Technology
In a bid to revolutionize the apparel industry, Walmart has partnered with San Francisco Bay area startup Unspun to explore the potential of 3D weaving technology. The collaboration will initially focus on utilizing Unspun's innovative Vega 3D fabric weaving technology to manufacture men’s workwear chinos for the retail giant.
Unspun's technology promises to streamline apparel production by transitioning directly from yarn to garment, thereby reducing waste typically associated with traditional manufacturing methods. In traditional methods, yarn is first spun into fabric, which is then cut based on patterns and stitched together to form garments. This process often results in waste due to inefficiencies, such as excess fabric scraps from cutting and discarded inventory from overproduction.
On the other hand, Unspun's technology, enables the creation of garments directly from yarn, bypassing the need for fabric cutting and reducing the associated waste. By going from yarn to garment in a more streamlined manner, Unspun's process minimizes fabric loss, eliminates the need for excess inventory, and reduces overall waste generated during apparel production.
Still in the prototype stage, the collaboration between Walmart and Unspun involves exploring how Unspun's technology can supply pants to Walmart's stores. If successful, this collaboration could revolutionize apparel manufacturing on a large scale. Unspun envisions deploying 3D weaving micro-factories across the United States, with a goal of having 350 machines operational by 2030, to create skilled jobs in the US, meet consumer preferences for locally-made garments, and enhance transparency and sustainability in the apparel supply chain.
Renewcell Extends Bid Deadline, Seeks Buyers Amid Financial Strain
Renewcell, the Swedish textile recycler renowned for its innovative CIRCULOSE® material made from 100% recycled textiles, faces a critical juncture. Despite its pioneering efforts and the distinction of being one of the world’s first commercial-scale textile-to-textile recycling factories, Renewcell filed for bankruptcy due to persistent slow sales and challenges in securing long-term funding.
Now, in a recent development, the Stockholm District Court has granted Renewcell a temporary extension until March 28th, allowing it to solicit bids for its assets, providing a glimmer of hope amidst financial turmoil.
During this time, Renewcell will receive offers for either the entire company or parts of its assets. This means potential buyers could acquire the entire company or specific assets like machinery, technology, or intellectual property.
After the deadline, Renewcell will evaluate the received bids. If there are viable offers, the company may proceed with negotiations and potentially finalize the sale to one or more buyers. The specific details of the sale, such as which assets are sold and to whom, will depend on the bids received and negotiations between Renewcell and interested parties.
Depending on the bids received, there are a few potential outcomes:
If a buyer is interested in acquiring the entire company, they may take over Renewcell's operations, including its facilities, employees, and existing contracts.
If bids are for specific assets, Renewcell may sell off parts of its business, potentially leading to the company being dissolved or significantly downsized.
In some cases, if there are no viable bids or if the bids are not satisfactory, Renewcell may face liquidation or bankruptcy proceedings.
The extension provides Renewcell with additional time to explore potential options for its future, whether through the sale of the entire company or its assets. The outcome will depend on the offers received and subsequent negotiations.
Newly Added Jobs on the SFF Job Board
Victoria’s Secret & Co., Manager of Traceability → Learn More & Apply
Hermès, Corporate Social Responsibility Manager → Learn More & Apply
lululemon, Senior Manager, Climate Action → Learn More & Apply
lululemon, Product Sustainability Lead → Learn More & Apply
Brooks Running, Sustainability Analyst → Learn More & Apply
Aritzia / Sustainability, Director, Environmental Impact → Learn More & Apply
Ralph Lauren, Sustainability Manager, Product & Materials → Learn More & Apply
Uniqlo, Sustainability and Disclosure Lead EU → Learn More & Apply
Asos.com, Human Rights Partner- Reporting (Fixed Term Contract) → Learn More & Apply
Marks and Spencer, Sustainability Coordinator → Learn More & Apply
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