What: Multiple sustainability reporting systems and regulations are overwhelming fashion retailers and suppliers, prompting industry-wide efforts to streamline requirements.

Why it is important: The industry's struggle with multiple reporting requirements highlights the urgent need for harmonised standards, as fragmented systems risk undermining both environmental goals and supplier relationships.

The fashion industry faces mounting challenges as it grapples with an increasingly complex web of sustainability reporting requirements. Brands are developing individual approaches to comply with various regulations and standards, creating a burden for suppliers who must navigate multiple systems and input similar data repeatedly. This fragmentation is particularly challenging for manufacturers like Denim Expert Limited, whose owner highlights the inefficiency of dealing with different certification programmes and data requirements from various clients. The situation is further complicated by the cost implications, as companies invest in training, staffing, and multiple IT systems without seeing proportional returns or efficiency gains. Recent initiatives, including the UNECE's effort to develop core sustainability metrics and the Apparel Alliance's 'Supply Chain Taxonomy', demonstrate industry-wide attempts to simplify and standardise reporting. However, the challenge remains in balancing thorough oversight with practical implementation, particularly as new regulations like the EU's Omnibus Simplification Package emerge.

IADS Notes: Recent developments in retail supply chain reporting reflect an industry grappling with unprecedented regulatory complexity. As of February 2025, the EU's implementation of stricter customs reforms has intensified pressure on retailers to enhance their reporting systems. This aligns with findings from November 2024 highlighting how suppliers, especially in the Global South, struggle with multiple reporting requirements. The cost implications became evident in January 2025 when major retailers like Shein implemented new sourcing requirements, demonstrating the financial burden of compliance. However, collaborative efforts are emerging to address these challenges, as seen in December 2024 with the Apparel Alliance's 'Supply Chain Taxonomy' initiative, which aims to standardise industry terminology. The integration of technology offers some hope, with October 2024's launch of Textile Exchange's multi-party traceability system showing how digital solutions might help streamline the complex reporting landscape.

Confused by supply chain reporting rules? You’re not the only one