Tag: due diligence

Recording: Due Diligence Education for Gen Z: Preparing Future Fashion Leaders for Sustainable and Socially Responsible Apparel Sourcing (2025 OECD Forum Side Session)

About the Event

As the fashion industry grapples with increasing demands for sustainability, transparency, and social responsibility, the next generation of industry professionals—Generation Z—will play a crucial role in shaping the future of apparel sourcing and social responsibility practices in the industry.

This session explores how US college fashion programs equip Gen Z with critical knowledge in due diligence, sustainable sourcing, and supply chain transparency. Including voices from educators, Gen Z students (future professionals), and industry partners, the session will share best education practices, identify educational gaps, and present valuable Gen Z’s vision for improving due diligence and social responsibility in the garment industry. Additionally, the session will emphasize the increasing importance of industry-academic partnerships in curriculum development and talent preparation, illustrating the long-term benefits of such collaboration.

This session is highly relevant to industry professionals, educators, students, international organizations, and policymakers interested in supporting the next generation of fashion leaders and fostering a more socially responsible and sustainable fashion industry.

Panelists (Bios here)

  • Matthias Knappe, Head of Fibres, Textiles and Clothing Unit, International Trade Center
  • Laurie Rando, Senior Director of Sustainable Product and Human Rights, Macy’s
  • Julia Hughes, President, United States Fashion Industry Association
  • Megan Dawson-Elli, Manager of Product Sustainability, Tapestry
  • Sheng Lu, Professor & Graduate Director, Fashion and Apparel Studies, University of Delaware
  • Emilie Delaye, Master’s Student, Fashion and Apparel Studies, University of Delaware

This event is an official side session of the 2025 OECD Forum on Due Diligence in the Garment and Footwear Sector.

New OECD Study: The Role of Sustainability Certifications In Due Diligence In The Garment And Footwear Sector (February 2025)

The study was based on a content analysis of major fashion brands and retailers’ sustainability reports and a survey of stakeholders in the garment and footwear sector from August to October 2023, including 32 brands and retailers, 37 suppliers, and a few non-business respondents.  The full report is HERE.

Key findings:

Rise in sustainability certification in the garment and footwear industry

  • Certifications like GOTS (Global Organic Textile Standard) and LWG (Leather Working Group) have seen significant growth (e.g., GOTS-certified facilities increased by 154% from 2018–2023).
  • Certified textile materials still constitute a minority of global production (e.g., 27% for cotton, 39% for leather)

Sustainability certification requirements and motivations

  • Over 80% of surveyed garment and footwear brands/retailers require certifications from suppliers, driven by risk identification (92%), product tracing (81%), and compliance with regulations (72%). In general, larger brands/retailers (91% of those with >€50M turnover) are more likely to mandate certifications than smaller ones (60% of small and medium-sized enterprises, SME).
  • In contrast to brands and retailers, most surveyed garment and footwear suppliers selected market access (84%) as a key motivation for obtaining certifications, followed by reputational reasons (83%) and risk identification (68%)

Types of sustainability certification in the garment and footwear industry

The paper divides sustainability certification in the garment and footwear industry into three major categories:

  • Due diligence certification to attest that a company (e.g. brand, manufacturer) implements the 6-step risk-based due diligence framework as outlined in the OECD Due Diligence Guidance (e.g., Green Button, Oeko-Tex Responsible Business).
  • Targeted risk certifications to verify outcomes on labor, environmental, or animal welfare risks in the supply chain (e.g., Better Cotton Initiative, Cradle to Cradle, Fairtrade Cotton, Fairtrade Textiles, FSC Forest Management, Global Recycled Standard (GRS), GoodWeave, GOTS, LWG, Oekotex SteP, SA8000, Worldwide Responsible Accredited Production)
  • Certificates of origin and chain of custody to trace raw materials (e.g., cotton, wool) to specific regions or facilities (e.g., Better Cotton Traceability, GOTS transaction certificates)

Role of sustainability certification in trade and market access

  • Certifications standardize compliance, enabling suppliers to meet buyer/regulatory demands (e.g., EU due diligence laws).
  • Brands use certifications to exclude high-risk regions (e.g., cotton from areas with forced labor) and validate ethical claims (e.g., recycled content).

Challenges related to sustainability certification in the garment and footwear sector

  • As the report noted, suppliers typically bear certification costs (e.g., audits, improvements), with limited buyer support.
  • SMEs and informal suppliers struggle with eligibility criteria and costs, risking exclusion from global supply chains.
  • The paper argues that certifications are not a “safe harbor.” Instead, apparel and footwear brands and retailers must complement certification with direct assessments, grievance mechanisms, and stakeholder engagement (e.g., worker interviews). Likewise, mandatory due diligence laws (e.g., EU CSDDD) will increase certification demand, but companies must balance compliance with holistic risk management.
  • The paper emphasizes the need for further research to understand how fashion brands and retailers use sustainability certification in practice. Policymakers should also consider new guidelines that clarify how companies should communicate publicly about the elements of due diligence for which they utilize sustainability certifications.