France Nature Environnement – a national federation of associations for the protection of nature and the environment in France – has prevailed in a greenwashing-centric case against SHEIN. Filed last May amid debates on France’s fast-fashion bill, the complaint targeted Shein ads that stated, “For a more sustainable fashion,” “Net zero emissions by 2050,” and “We are committed every day to improving our model.”
After an initial favorable opinion and a revision request by SHEIN, the Advertising Ethics Jury ruled that the campaign breached advertising rules, as it leaned on distant goals (2030/2050) while omitting current impacts – such as SHEIN’s CO₂ emissions reportedly doubling between 2022 and 2023 – and presented objectives (water reduction, recycling) that consumers could not contextualize or verify.
The Ethics Jury’s opinions are non-binding, but they tend to set the professional standard. Brands normally withdraw or change the campaigns to align with the ARPP/JDP guidance. At the same time, the matter sends a signal against greenwashing: brands must drop vague pledges and align communications with real practices.
Berenberg fired a shot across luxury’s bow, downgrading LVMH to hold and Kering to sell and warning that the sector’s decades-long tailwind may be fading. “Luxury is at an inflexion point,” the team led by Nick Anderson wrote in a note on Wednesday, cutting LVMH to hold from buy and Gucci-owner Kering SA to sell from hold. “We believe that the industry faces a structural demand problem, and that after three decades the luxury supercycle is over.”
The bank cites a cooler China, squeezed “aspirational” shoppers, and shifting Gen-Z habits, and now models mid-term demand growth of ~2–3% versus a ~6% historical pace. The call lands just as LVMH shares spiked on a surprise return to sales growth – and as UBS moved the stock to buy – underscoring a split between cyclical relief and tougher structural math. Berenberg’s stance: favor “absolute” luxury and sporting goods, avoid names most reliant on entry-tier customers. Valuations look full after a sharp sector rebound, and while U.S. spending could cushion China weakness, the near-term setup remains complicated.
Meanwhile, Morgan Stanley published a note this week arguing that a new wave of creative directors at top luxury houses is reigniting optimism – both on the runway and in the market. Debut collections in Milan and Paris are nudging the “fashion pendulum” away from quiet minimalism toward bolder maximalism, a shift that could lift unit volumes as consumers refresh wardrobes more frequently. As analyst Edouard Aubin puts it, the key investor question is whether “supply can create its own demand.”
Industry feedback is upbeat, with buyers and editors warming to the newcomers’ work, including that of Jonathan Anderson at Dior and Matthieu Blazy at Chanel but the bank still models sub-trend growth through 2026 given soft China demand, a squeeze on middle-income shoppers, and FX headwinds. Net-net: creativity is improving the bull case – especially if U.S. wealth effects hold and China’s markets stay firm – but any recovery is likely to build gradually rather than snap back.
Parliament’s Legal Affairs Committee has backed an overhaul that narrows mandatory sustainability reporting to companies with greater than 1,000 employees and more than €450m turnover, makes sector-specific disclosures voluntary, and bars large firms from offloading bespoke ESG data demands onto smaller suppliers.
> Who reports: Mandatory sustainability reporting only for companies with >1,000 employees and €450m+ turnover; others move to voluntary reporting (incl. taxonomy).
> What to report: Sector-specific disclosures become voluntary; standards simplified with a focus on quantitative metrics and lower admin burden.
> Protecting SMEs: Large firms can’t push bespoke ESG requests onto out-of-scope suppliers beyond voluntary standards.
> Due diligence scope: Obligations limited to very large firms (EU: 5,000+ employees & €1.5b+ turnover; non-EU with same EU turnover), using a risk-based approach and keeping a Paris-aligned transition plan.
> Enforcement: No EU-level civil liability; national enforcement with fines up to 5% of global turnover, guided by Commission/member-state advice.
With the mandate approved (17–6, 2 abstentions), Parliament is set to open talks with EU governments on October 24.
Finally, thank you to everyone who attended our inaugural BRAND FORWARD conference here in New York this past week. Our small team put so much time and effort into planning the conference, and getting to delve into many pressing legal and business topics with you was a privilege. The response has been overwhelming! We are already planning and look forward to hosting more events in the not too distant future. If you have thoughts/feedback or want to collaborate on a virtual or physical event, please send me a note.