Washington State Introduces New Bill to Regulate Fashion, Parley Launches Investment Arm for ‘Sustainable’ Material Start-Ups, How the UK's New ‘Side Hustle’ Tax Impacts Resellers, and More
Welcome to Week/End, your quick-hit guide to this week’s sustainability news at the intersection of fashion, ethics, sustainability, and business. Stay in the know with Week/End and discover the latest developments in the fashion industry's pursuit of sustainability.
Washington State Introduces New Bill to Enforce Environmental Accountability in the Fashion Industry
In a move to regulate the fashion industry, Washington State Rep. Scarlett Mena, D-Tacoma, introduced House Bill 2068 to enforce environmental accountability within the fashion industry. Targeting major fashion brands and manufacturers with over $100 million in global revenues, this legislation mandates comprehensive disclosure of environmental policies and impacts.
Key aspects of the bill include:
Mandatory Supply Chain Mapping: Companies must map at least 50% of their suppliers across all production levels, prioritizing those associated with significant risks.
Detailed Impact Due Diligence Reports: The legislation requires comprehensive environmental sustainability reports that align with international standards and principles. These reports will cover the companies' strategies and outcomes in mitigating adverse environmental impacts.
Performance Targets and Annual Reporting: Starting January 1, 2027, companies must set, track, and report on performance targets related to energy use, greenhouse gas emissions, water, chemical management, and incorporation of recycled materials. Beginning April 1, 2028, these reports will be submitted annually to the Department of Ecology for compliance verification.
Civil Penalties for Non-Compliance: The bill imposes civil penalties for non-compliance, with increased fines for repeated violations. These fines will support the Community Benefit Account to finance environmental projects benefiting marginalized communities.
UK's New "Side Hustle" Tax Impacts Resellers and Circular Fashion Economy
The UK's recently implemented tax law, aimed at 'side hustles' including online reselling, has raised concerns. Effective from January 1, the law mandates that individuals earning more than £1,000 annually from side activities like online selling, peer-to-peer rentals, and vacation rentals must register as self-employed and report their earnings to HM Revenue and Customs (HMRC). This new requirement is expected to primarily affect luxury resellers, upcyclers, and flippers.
Resale platforms are now obliged to report user earnings to HMRC by January 2025, leading to uncertainty among sellers about tracking their sales. The regulation is part of a global initiative by the Organisation for Economic Cooperation and Development (OECD) to address tax evasion and formalize the gig economy.
Industry observers express concern that this regulation could discourage participation in resale and rental activities, which are key to promoting a circular fashion economy. The situation is particularly relevant as the resale market is projected to grow substantially in the coming years. Critics argue that the tax could deter entrepreneurship and the adoption of sustainable, circular economy practices.
In response, platforms are focusing on educating their users about these new tax regulations and supporting them in adapting to the new requirements.
Parley Launches Investment Arm for ‘Sustainable’ Material Start-Ups
Environmental Organization Parley has announced the launch of its investment division. Known for working with brands like Adidas and Dior to repurpose plastic pollution into product components, this new arm aims to provide long-term financial support to emerging start-ups focused on solving plastic-related environmental and social issues.
Cyrill Gutsch, the founder and CEO of Parley, highlighted the organization's intention to use its expertise in fashion supply chains and its network of designers to assist in bringing new materials to market. The company's first investment is in Bananatex, a five-year-old company specializing in a material made from banana plants.
Chanel Takes on Luxury Reseller What Goes Around Comes Around in Trademark Showdown
A high-profile legal battle is set to unfold in the New York federal court between luxury fashion house Chanel and luxury resale company What Goes Around Comes Around (WGACA). This trademark-centric trial, scheduled to begin in January, follows nearly five years of legal disputes between the two entities.
Chanel's allegations hinge on WGACA's purported misrepresentation, suggesting an association or endorsement by Chanel, especially in the sale of Chanel's pre-owned items. Chanel asserts that WGACA's marketing tactics, including the use of specific hashtags like #WGACACHANEL, falsely imply a connection, thereby exploiting Chanel's renowned brand reputation.
WGACA, established in 1993 and recognized for selling authentic, secondhand luxury items, denies any allegations of affiliation or endorsement by Chanel. The company argues that its use of Chanel trademarks is merely for the purpose of product identification and does not imply any partnership or collaboration.
This trial underscores the complex relationship between luxury brands and the burgeoning luxury resale market, highlighting issues of brand protection, consumer perception, and the legitimacy of reselling branded products.
Coach Debuts 'The Road to Circularity' Docuseries
Coachtopia, the sub-brand of the luxury label Coach, launched a new docuseries titled “The Road to Circularity.” The series delves into the challenges and possibilities of circular fashion, going behind the scenes to explore how Coachtopia products are made.
The first episode of the series, “Making with Waste,” is hosted by Aditi Mayer, visual storyteller, advocate for sustainable fashion, and Coach ambassador. In this episode, Mayer visits KH Exports in Chennai, India, a family-operated leather manufacturing firm that has partnered with Coach since 1987. The focus of this visit is to explore how the company innovates using Coach's leather leftovers for the Coachtopia line. The first episode is available on Coachtopia’s social media channels, with new episodes to follow later this year.
MycoWorks Harvests First Batch of Mycelium Leather Alternative in South Carolina
Biotechnology company MycoWorks announced the successful harvest of the first 1,000 sheets of its fine mycelium-based leather alternative from its commercial-scale plant in South Carolina, USA. These sheets are now en route to partner tanneries in Europe to be transformed into various products, including the company’s flagship material, Reishi. Reishi is touted as a customizable, low-carbon biomaterial that rivals the quality of natural leather in terms of strength, texture, and durability.
MycoWorks highlighted that the quality of the mycelium sheets produced at the South Carolina facility has surpassed those previously grown at its California pilot plant. This improvement is attributed to the implementation of lessons learned during years of research and development at the pilot plant, leading to quicker scalability and efficiency in production.
The company's proprietary tray-based process, which has been refined and scaled up, has allowed for producing high-quality biomaterial at a lower cost and ahead of schedule. The success at this facility represents a significant step in MycoWorks' efforts to provide sustainable and scalable alternatives to traditional leather.
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