What:  Vogue Business looks at the new EU sustainability policies, and how it is affecting the fashion world.

Why it is important:  The fashion world will be dealing with a whole new set of regulation that could come with serious implications for an industry unaccustomed to navigating policy.

For over a decade the EU has been focusing on aligning economic activities with the urgent need to address climate change and other environmental and social issues. Numerous initiatives have been launched targeting various aspects of planetary health, but the fashion industry has largely been overlooked until recently. Fashion has not been a priority on policymakers' agendas, nor has it actively sought inclusion. However, as new regulations are introduced, many of which will impact fashion operations, the industry faces challenges in complying due to a lack of guidance.

Several significant bills are already on the radar of fashion brands and retailers, including bans on forced labor, directives on waste management, and corporate sustainability due diligence. However, there are additional regulations addressing issues such as deforestation and carbon footprint, which will also significantly affect the fashion industry.

The regulatory landscape is undergoing profound changes, signaling that the fashion industry cannot continue operating as it does currently. The lack of close monitoring of legislative developments by the fashion sector, combined with insufficient involvement from policymakers, has created a situation where many businesses may struggle to comply. It's predicted that up to 75% of existing fashion industry players could disappear within the next three to five years due to an inability to meet regulatory requirements.

While some predict a dramatic impact on the fashion industry due to upcoming regulations, others believe the situation might not be as severe, although there is widespread agreement on the significant shift and unprecedented stakes involved.

The EU’s policy wheels are in motion, and fashion has a lot of catching up to do