Washington is the latest state to propose a fashion-specific bill that would require large fashion manufacturers and retailers to establish, track, and disclose progress towards due diligence and environmental performance targets. The bill – which was introduced to the Washington State House this month by Representatives Mena, Doglio, Berry, Reed, Ramel, Macri, Berg, Duerr, Slatter, and Street – asserts that that the legislature finds that “the fashion industry has many negative environmental impacts, including high levels of water use, run-off pollution from the use of agrochemicals and dyes, carbon emissions, industry waste, and hazardous work.” The legislature also “recognizes that some companies have committed to mitigation measures, such as the use of the science-based targets initiative, a tool for reducing carbon emissions.” And still yet, the drafters note in the bill that “legislation regarding due diligence is being considered in New York and the European Union, and Germany, France, Britain, and Australia have laws requiring due diligence when it comes to human rights and slavery.”
Against that background, House Bill 2068 states that the Washington state legislature “intends to address the negative environmental impacts of the fashion industry, by requiring companies to map a minimum of 50 percent of their supply chain, disclose where in that chain they have the greatest environmental impact when it comes to low wages, energy, greenhouse gas emissions, water, and chemical management, and make plans to reduce those numbers.”
First: “Every fashion retail seller or fashion manufacturer doing business in the state that has an annual worldwide gross income of the business that exceeds $100,000,000 must disclose its environmental due diligence policies, processes, and outcomes, including significant real or potential adverse environmental impacts and disclose targets for prevention and improvement.” These disclosures include …
> Supply chain mapping, including: Taking a risk-based approach, using good faith efforts to map suppliers across all tiers of production, from raw material to final production. A minimum of 50 percent of suppliers by volume across all tiers of production must be mapped; and
> Impact due diligence, including an environmental sustainability report, to include externally relevant information on due diligence policies, processes, and activities conducted to identify, prevent, mitigate, and account for potential adverse impacts, including the findings and outcomes of those activities.
Such disclosures “must be published on the fashion retail seller’s or fashion manufacturer’s website with a clear and easily understood link to the required information placed on the fashion retail seller’s or fashion manufacturer’s homepage by July 1, 2025.”
Second: Beginning January 1, 2027, fashion retail sellers and fashion manufacturers must establish, track, and disclose progress towards performance targets established in this section. Disclosure of progress towards performance targets must be done in a manner consistent with disclosures required in section 3 of this act. The requirements of this section include the establishment, tracking, and disclosure of:
(a) A quantitative baseline and reduction targets on energy and greenhouse gas emissions, water, and chemical management.
(b) Annual volume of material produced, including breakdown by material type, which must be independently verified;
(c) How much production has been displaced with recycled materials as compared to growth targets, which must be independently verified; and
(d) What targets fashion retail sellers and fashion manufacturers have for impact reductions, and for tracking due diligence implementation and results including, where possible, estimated timelines and benchmarks for improvement.
Beginning on April 1, 2028, and each April 1st thereafter, each fashion retail seller or fashion manufacturer must submit an annual report to the department in a format prescribed by the department that allows the department to determine whether the fashion retail seller or fashion manufacturer achieved the performance targets established in this section.
Applicability: Aside from specifying that the bill would apply to large companies (i.e., those with an annual worldwide gross income that exceeds $100,000,000), the bill defines relevant entities as including …
“Fashion manufacturer” means a business entity that lists manufacturing as its principal business activity in the state of Washington, as reported on the entity’s state business and occupation tax return, and manufactures articles of wearing apparel or footwear.
“Fashion retail seller” means a business entity that lists retail trade as its principal business activity in the state of Washington, as reported on the entity’s state business and occupation tax return, and sells articles of wearing apparel or footwear.
Penalties: A fashion retail seller or fashion manufacturer that violates a disclosure, performance target achievement, or reporting requirement of this chapter is subject to a civil penalty not to exceed $5,000 for each violation in the case of a first offense. Repeat violators are subject to a civil penalty not to exceed $10,000 for each repeat offense.
Civil causes of action: The bill also provides that any person may commence a civil action against any fashion retail seller or fashion manufacturer who is alleged to have violated or to be in violation of this chapter. Additionally, any person may commence a civil action to compel the department to investigate an entity’s compliance [with the bill], to enforce compliance with [the bill], or to apply the prohibitions set forth in [the bill] to any fashion retail seller or fashion manufacturer operating within this state.
For a full list of fashion/retail legislation that we are currently watching, you can find that right here.