Trendsetting: Key Developments In ESG For The Fashion Sector

Major fashion brands are increasingly making efforts to capitalise on growing ESG consciousness by consumers. At the same time however, brands are also aware of activity by regulators and campaigners that seeks to hold businesses accountable for "greenwashing" and human rights risks present in their value chain. In response to these pressures, we are now beginning to see certain brands coming up with new strategies to navigate these divergent pathways.

We have previously highlighted (in a briefing on the direction of ESG litigation in the UK) that businesses need to manage carefully their ESG-related risk in light of novel attempts to extend the tort of negligence. In this article we take an in-depth look at the fashion sector, which is potentially particularly susceptible (legally, commercially and reputationally) to these novel tortious claims and to increased attention from regulators in relation to ESG compliance.