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JAAF Insights

Sustainability In Sri Lanka

Key Changes Affecting the Fashion Industry

Ban on Destroying Unsold Goods: Under the Ecodesign for Sustainable Products Regulation (ESPR), the EU has adopted a ban on the destruction of unsold apparel, clothing accessories, and footwear. This applies to large companies starting 19 July 2026, with medium-sized firms following in 2030. Companies must also disclose the volumes of unsold products they discard in a standardised format starting February 2027.

Digital Product Passports (DPP): The ESPR will mandate DPPs by 2027, requiring brands to provide structured, interoperable data about a product's sustainability and circularity. This moves compliance away from simple reporting toward a requirement for verified fabric-level and production-level data directly from sourcing partners.

Stringent "Forever Chemical" (PFAS) Regulations: The UK is ramping up testing for PFAS, which are commonly used in textiles for their waterproof and oil-resistant properties. By 2029, the UK aims to align with EU regulations intended to prohibit all non-essential uses of these persistent chemicals.

Formalisation of the Informal Economy: The EU Corporate Sustainability Due Diligence Directive (CSDDD) is pressuring brands to look beyond top-tier suppliers to ensure fair wages and safety for home-based and subcontracted workers. This requires better auditing of the "hidden" parts of the supply chain that have historically been unprotected.

Evolving Sustainability Reporting (CSRD/ESRS): The EU's Omnibus I initiative has significantly revised reporting standards to reduce the administrative burden on companies. While this reduces mandatory data points by 61-70%, it also increases the need for brands to perform a double materiality analysis—reporting both how sustainability issues affect their finances and how their operations impact the environment

Key Challenges for Brands and Manufacturers

Supply Chain Complexity and Traceability: Mapping complex global supply chains is a "major challenge," particularly for smaller brands with limited leverage. For example, a single insulating jacket can have 120 components, and ensuring it is PFAS-free requires cleaning the entire production line.

Data Fragmentation: Digital Product Passports cannot scale without structured data from suppliers. Currently, data is often fragmented in "reactive cycles" of emails and PDFs, making it difficult for brands to access the verified data needed for legal compliance.

Technical Difficulty of Alternatives: Replacing versatile chemicals like PFAS is technically difficult; some designers have spent seven years developing toxic-free alternatives that maintain performance.

Greenwashing and Litigation Risks: Brands face mounting exposure to greenwashing claims if their sustainability statements are overstated or lack actionable plans. UK regulators have already secured undertakings from major retailers like ASOS and Boohoo to improve the accuracy of their environmental claims. Furthermore, the UK's "Failure to Prevent Fraud" offence (Sept 2025) holds large companies criminally liable for fraudulent green claims made by employees or suppliers.

Parent Company Liability: English courts are increasingly permitting claims against parent companies for labour rights violations occurring at overseas supplier facilities.

Regulatory Divergence: Companies must navigate a "patchwork" of conflicting state-level mandates in the US (such as California's climate disclosure laws) alongside tightening international standards, which increases operational and legal risk.

Policy Gaps for Raw Materials: There is currently a lack of explicit recognition in EU policy for sustainably-sourced renewable materials (SSRM) like organic cotton or regenerative wool, as current frameworks prioritise recycled content over responsibly sourced natural fibres

India budget targets eco boost for textiles - This time, Budget 2026 put textiles and small businesses right in the spotlight. Finance Minister Nirmala Sitharaman introduced a clutch of measures aimed at jobs, exports, and making what we produce here worth more globally. And yeah, the signal was pretty clear. Textiles are back on the priority list.

SKF India (Industrial) to build ‘Factory of the Future’ manufacturing facility in Pune with ₹653 crore investment - xpected to be ready by 2030, this facility earmarks a significant step in further strengthening the company’s advanced manufacturing footprint in India, reinforcing its long-term commitment to digitalization, sustainability, and resilient supply chains.

Texasia, Renowned Clothing Manufacturer, Introduces Scalable Production Model for Low MOQ and Mass Market Apparel Brands - Texasia International Fashion Co., Ltd., a Bangladesh-based clothing manufacturer, has introduced a new scalable production model designed to support both low-MOQ emerging fashion brands and high-volume apparel companies through a single, integrated manufacturing system.

What textile sustainability changes to expect in 2026, and the opportunities for Bangladeshi manufacturers - Moving further into 2026, the international textile sector has reached a decisive moment. Innovation and environmental responsibility, which were once secondary goals, have become the primary drivers transforming every stage of the industry, from manufacturing to global trade. For Bangladesh’s textile and ready-made garments export-heavy economy, this evolution presents a complex mix of demanding obstacles and high-potential prospects.

Washing water waste out of fashion - We have all had that perfect pair of jeans — the ones that fit just right, in the perfect color, and with a style that feels like it was made for us. But when you look a little closer, we might realize they are not as perfect as they seem. Why? Because it takes nearly 3,781 liters of water to make the average pair of jeans according to the World Economic Forum. That’s enough to fill around 50 baths.

Brands Have Modeled Emissions for 400,000 Products with Worldly’s Scope 3 Solution and Can Now Go Further with 260+ Consumer Goods Categories - With the expansion, the Product Impact Calculator now covers products in more than 260 product categories across consumer goods industries including sporting goods, home goods, furniture, hard goods, apparel, and footwear, making it easier for multi-category brands and retailers to measure and reduce product-level Scope 3 emissions using primary data, not estimates.

New digital tool simplifies HREDD compliance for fashion sector - TrusTrace and seven major retailers have come together to launch the Retailer Brand Due Diligence Questionnaire and One Retail Hub, aiming to simplify Human Rights and Environmental Due Diligence (HREDD) compliance within the apparel and footwear industry.