What: As 2025 climate commitments approach, the fashion industry faces pressure to improve its supply chains amidst various challenges.

Why it is important: In 2024, the industry should focus on how suppliers and workers can drive conversations forward, moving away from brand-centric narratives to a collective approach that empowers communities and suppliers. The power dynamics are shifting, and the industry needs to listen to these voices for meaningful change.

Key trends for 2024 include greater industry collaboration, a deeper understanding of the need for primary data at the product level, and the adoption of digital product labeling. New legislation in the EU and the US, such as the Corporate Sustainability Reporting Directive and the Uyghur Forced Labour Protection Act, is expected to significantly impact the industry, with mandatory reporting requirements and increased enforcement budgets.

Despite these regulations, many major brands still resist disclosing basic information like production volumes, which is crucial for accurate projections about carbon reduction strategies. The pandemic has highlighted the unfair practices and power imbalances in global supply chains, prompting a need for more resilient and transparent supply chains with stronger partnerships.

The luxury sector is beginning to adjust to new realities, with some suppliers boycotting brands that don't respect their terms. Suppliers are also prioritizing brand partners that provide consistent orders and investment. Compliance requirements in 2024 will impact suppliers, with larger organizations likely dominating smaller ones unless they have a unique niche.

Technology adoption in supply chains is lagging, but the long-term benefits outweigh the costs. AI is enabling businesses to collect and analyze data more effectively. Investments in supplier compliance platforms are increasing visibility of risks and enabling proactive responses to regulatory concerns.

Legislation is coming for fashion’s supply chain