2023 Edition A review of 60 of the largest fashion brands and retailers in the Brazilian market, ranked according to their level of public disclosure on human rights and environmental policies, practices and impacts.
CONTENTS 3 EXECUTIVE SUMMARY
4 4 5 6 7 18
About Fashion Revolution About the Fashion Transparency Index Introduction How the Index has changed this year Key Findings KEY RESULTS
25 ABOUT THIS INDEX 26 29 30 31 33 34
The changes we want to see The role of transparency in achieving change The role & aims of the Fashion Transparency Index How the Fashion Transparency Index drives change Case study: Why transparency is needed for the leather industry Case study: Water risks and opportunities in apparel and textile clusters
35 METHODOLOGY & SCOPE OF THE RESEARCH 36 37 38 39 40 41 42 43 43 44 44 45 46
How brands and retailers are selected What does brand participation mean? The 60 brands selected The scope or our research About the research process About the methodology Methodology advisory committee About the annual review of the Index Adapting the methodology to the Brazilian context Limitations of the research How we calculate the findings Weighting of the scores A guide to the final scoring
48 FULL RESULTS 49 50
The final scores Average scores across the sections
51 POLICIES & COMMITMENTS 61
Quote: Renata Scarellis, Mercy for Animals
69 SUPPLY CHAIN TRACEABILITY 79 82
Quote: Natalie Grillon, Open Supply Hub Viewpoint: Jessica Pedreira, Instituto Sociedade, População e Natureza (ISPN)
83 KNOW, SHOW, FIX 93 SPOTLIGHT ISSUES 96 DECENT WORK & PURCHASING PRACTICES 99 104 105
Viewpoint: Glaucia Terreo, ESG Materiality and Sustainability Consultant Quote: Natalie Swan, Business and Human Rights Resource Centre Interview: Dilma Chilaca, Centro da Mulher Imigrante e Refugiada (CEMIR)
106 GENDER AND RACIAL EQUALITY 109 110
Viewpoint: Gabriela Antonia, SOS Amazônia Viewpoint: Caroline Rodrigues Silva, Instituto Brasileiro da Diversidade
111 SUSTAINABLE SOURCING & MATERIALS 115
Viewpoint: Leonidia Insfran de Oliveira Carvalho, Quilombo Dona Bilina
116 OVERCONSUMPTION, WASTE & CIRCULARITY 120
Viewpoint: Alice Beyer Schuch, specialist in circular fashion and Gabriela Machado, journalist specialised in research for sustainability and innovation
121 WATER & CHEMICALS 123 CLIMATE AND BIODIVERSITY 126 131 132
Quote: Rita Huni Kuin, Visual artist Quote: Samara Borari, Climate activist Viewpoint: Natalie Unterstell, Instituto Talanoa
133 FINAL RECOMMENDATIONS 134 136 137 143 144
Take action on transparency Thank You References Disclaimer Supporters
62 GOVERNANCE 68
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Viewpoint: Valeria Café, Instituto Brasileiro de Governança Corporativa (IBGC)
FASHION TRANPARENCY INDEX BRASIL 2023
FASHION REVOLUTION
EXECUTIVE SUMMARY
ABOUT FASHION REVOLUTION
THE FASHION TRANSPARENCY INDEX
Fashion Revolution is the largest fashion activism movement in the world and works towards a vision of a fashion industry that conserves and restores the environment and values people over growth and profit. The Rana Plaza disaster in Bangladesh instigated the creation of Fashion Revolution and spurred millions to join our call for greater transparency and accountability in the fashion industry.
The Fashion Transparency Index Brazil is an annual review of the largest Brazilian fashion brands and retailers ranked according to their level of public disclosure on human rights and environmental policies, practices and impacts in their own operations and in their supply chains.
The issues in the fashion industry never fall on any single person, brand, or company. That’s why we focus on using our voices to transform the entire system. With systemic and structural change, the fashion industry can lift millions of people out of poverty and provide them with decent and dignified livelihoods. It can conserve and restore our living planet. It can bring people together and be a great source of creativity and expression for individuals and communities. In Brazil, since 2014, there have been actions to develop projects, carry out activities and foster the creation of a network of people, initiatives, and organisations in the sector. In 2018, this network of activities became the Instituto Fashion Revolution Brasil, a civil society organisation.
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The Fashion Transparency Index Brazil reviews brands’ public disclosure across 263 indicators in 5 key areas:
We focus on the biggest and most profitable brands and retailers because they have the biggest negative impacts on workers and the environment and therefore have the greatest responsibility to change.
1. Policy & Commitments
Transparency is foundational to achieving systemic change in the global fashion industry, which is why we have been campaigning for it since 2014 and why we created this tool. Transparency underpins transformative change but unfortunately, much of the fashion value chain remains opaque while exploitation thrives with impunity.
4. Know, Show & Fix •
Decent work, covering forced and bonded labour, living wages, purchasing practices, unionisation and collective bargaining
Transparency is not to be confused with sustainability. Transparency is a first step; it is not radical, but it is necessary. However, without transparency, achieving a sustainable, accountable and fair fashion industry will be impossible.
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Gender and racial equality
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Sustainable sourcing and materials
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Overconsumption, waste and circularity
For a deeper dive into how this Index works, why transparency matters and the methodology, please see the two chapters below: About this Index; Methodology & Scope of Research.
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Water and chemicals
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Climate change & biodiversity
EXECUTIVE SUMMARY
2. Governance 3. Traceability 5. Spotlight Issues, which this year covers:
FASHION REVOLUTION
INTRODUCTION For another year, the progress on transparency for most of the largest fashion brands and retailers operating in Brazil remains slow. On the other hand, the climate crisis, social inequality and precariousness of jobs are intensifying rapidly. The effects of the environmental collapse are already being felt from North to South in our country. The Amazon region is facing an extreme drought that has led the Negro River, one of the largest in the region, to reach its lowest level in 120 years. Meanwhile, the population of Manaus was trapped by smoke from fires that made the air quality one of the worst in the world. In February this year, the north coast of São Paulo was hit by the most intense storm ever recorded in the country, leading to one of the largest environmental tragedies in the state. In addition, the federal government’s “Dirty List of Forced Labour” with the names of employers who subjected workers to conditions of forced labour had its biggest update since its creation in 2003. All these facts show that we are reaching crises never before experienced. Fashion as part of a global industry worth more than a trillion dollars cannot continue to be indebted to the environment and the people who make our clothes.
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Transparency is the first step towards a systemic change in fashion. However, for many brands, this journey has not yet begun. For almost a decade, we have been raising the flag for transparency throughout the fashion value chain as we understand that it is essential to reveal and understand the structures in place in order to change them. Transparency leads to responsibility and accountability, which then leads to changes in practice. The Fashion Transparency Index Brazil has been a valuable tool for opening dialogue not only with some of the major brands and retailers in the country but also with other civil society organisations, researchers, journalists and citizens. We hope that being included in the Fashion Transparency Index can serve as a wake-up call for brands and leads to concrete actions to improve their impacts. We also hope that the data from this research shows that fashion must be considered on the political agenda, thereby leading to the creation of regulations that pressure brands for greater social and environmental responsibility since the selfregulation of companies has proven to be inefficient. We will not be able to move towards a more ethical future in fashion without putting the rights of Nature and the people who make our clothes - from farmers and seamstresses to salespeople and those in charge of waste disposal - at the centre of the discussions.
Photo: Fórum Fashion Revolution 2023
The time to reverse the current crises is running out and we need to come together as a sector to act more quickly and effectively. We invite you to take the first step: Read and reflect on the results presented in this report. We hope that this material encourages you to take action, regardless of the role you play within this system - designer, journalist, researcher, consumer, fashion lover or citizen of the world. May this report, prepared by several hands, awaken and fuel the activist in you! Isabella Luglio Fashion Transparency Index Brazil Coordinator
EXECUTIVE SUMMARY
FASHION REVOLUTION
HOW THE INDEX HAS CHANGED THIS YEAR Over the past few years, we have conducted a detailed review of the Index globally and in Brazil through stakeholder interviews, media analysis and surveys. As a result, we have taken a range of steps to strengthen the methodology as well as to push brands and retailers to go above and beyond policies and commitments, including moving towards more public disclosure on the implementation and outcomes of their efforts. This year, in line with Fashion Revolution’s campaign strategies at a global level, we added indicators on the payment of living wage. These new indicators seek transparency on topics such as the monthly take-home wage of workers in the supply chain and the percentage of these workers paid per piece produced. We also added indicators related to the climate crisis, such as energy consumption per supplier facility, the proportion of production still powered by coal, commitments and investments in decarbonisation as well as verified Science-Based Targets. Other indicators added refer to issues such as the length of relationship with suppliers, actions to avoid cases of racism in shops, commitment to degrowth, professional development for workers insupply chains - aiming to prepare them for a transition to the circular economy - and water consumption by suppliers.
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For now, some of these new indicators have been added without us assigning them any scores. This decision was made because, before assigning points, we would like to understand the national scenario concerning the disclosure of this type of information. In addition, as of this year, we have not accepted lists of suppliers from brands that do not have a significant proportion of at least 60% of first-tier suppliers and manufacturing and processing facilities. More details on the changes made this year can be found throughout the chapters of this report. We continue to publish Communications Guidelines for the brands and retailers reviewed in order to avoid this Index being misunderstood or misused by brands, such as for greenwashing purposes or other types of misinterpretations. We are committed to drawing attention to misuses of the Index and we will seek to request corrections of any misleading communications we discover. If you identify anything of concern being shared about the Index or its content, please let us know. You can read our Communication Guidelines here.
LICENCES CREATIVE COMMONS The Fashion Transparency Index Brazil is licensed under a Creative Commons Attribution-NonCommercial 4.0 International (CC BY-NC 4.0). It is not a Free Culture Licence. Please see this link for more information. We do not grant any licence to use the raw data that we compiled to produce this Index and that we make available in the dataset file. You are only permitted to view the Raw Data File. You are free to copy and redistribute the Fashion Transparency Index Brazil in any medium or format provided that you give Fashion Revolution CIC and Fashion Revolution Brazil credit for creating it. This licence does not give you the right to alter, remix, transform, translate or otherwise modify the content in any way. This includes providing it as part of a paid service, nor as part of a consultancy or other service offering. You must contact Fashion Revolution transparency@fashionrevolution.org at to obtain a licence if you want to commercialise the whole or any part of this Index.
WELCOMING YOUR FEEDBACK We recognise that the Index can always be improved. Any comments or questions are welcome. Write to isabella@fashionrevolution.org.
EXECUTIVE SUMMARY
FASHION REVOLUTION
KEY FINDINGS The Fashion Transparency Index Brazil 2023 shows significant increases in disclosure by some brands, but the vast majority are still not transparent about their social and environmental impacts. The year 2023 marks the sixth edition of the Fashion Transparency Index Brazil and we can see progress by some of the brands reviewed towards greater transparency of their policies, practices and social and environmental impacts throughout the value chain. For the first time since the first edition of the report in 2018, six brands scored above 60%. They were: C&A, with 70%; Malwee, with 68%; Dafiti, with 67%; Renner and Youcom, both with 65%; and Havaianas, with 62%. In previous editions, only one or two brands were ranked in this range. In addition, we observed the highest overall average ever achieved over the years: 22% of the total available points. This progress is also reflected when we analyse the overall average score in each of the five sections of the questionnaire that presented their record scores.
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For the first time since the first edition of the report in 2018, six brands scored above 60%.
Despite this progress, almost half of the brands reviewed (48%) still have very little transparency or are not transparent at all, scoring less than 10%. Among these, 16 brands scored zero: Besni, Brooksfield, Carmen Steffens, Cia. Marítima, Colcci, Di Santinni, Dumond, Fórum, Havan, Leader, Lojas Avenida, Lojas Pompéia, Marisol, Moleca, Sawary, and TNG. It is worth mentioning that most of these brands have remained stagnant since their inclusion in the Fashion Transparency Index Brazil.
As in previous editions, brands tend to disclose more information about their policies and commitments and less detailed data on their social and environmental impacts. Thus, the section with the highest score continues to be the first, Policies and Commitments, with 36%, and the section with the lowest score also continues to be the Spotlight Issues section, with 16%. Even brands with higher scores on the Index lack transparency on important issues such as the payment of a living wage to workers in the supply chain, purchasing practices, gender and racial equality, overproduction, waste, circularity, water and chemical use, deforestation and carbon emissions in the supply chain. Without greater transparency from brands on the full range of indicators included in the Index, we cannot have visibility or be sure as to whether they are significantly tackling global inequality and the climate crisis. Transparency is key for civil society and other stakeholders to hold the fashion industry accountable and demand actions with a concrete positive impact.
This year, we saw a record number of brands publishing lists with a selection of their raw material suppliers. This year’s results show that 38% of the 60 brands reviewed disclose a list with at least 60% of their first-tier suppliers, that is, those responsible for the cutting, sewing and finishing of garments. Although this result represents a subtle increase compared to the 2022 results, in which 33% of companies disclosed this data, transparency at this level is still below that found by the Global Index. In the global research conducted among the 250 largest fashion brands and retailers worldwide, it was identified that 53% of them disclose their lists of direct suppliers. Regarding the transparency on the suppliers responsible for the processing stages of production, we noted that the average score found among the brands reviewed by the Brazilian Index is similar to the overall average at global level, with 35% and 36%, respectively.
Despite this progress, 16 brands scored zero
EXECUTIVE SUMMARY
FASHION REVOLUTION
However, surprisingly, we identified a significant increase when examining the disclosure of lists of raw material suppliers by the brands. While last year, only 8% of companies disclosed lists with a selection of suppliers of the main raw materials used, this year the result increased to 25%. This result is higher than the 12% found in the Global Index. While we applaud the improvement in this section, especially about raw material suppliers, a meaningful social and environmental due diligence requires the existence of complete traceable data on the fashion sector’s supply chain. In this sense, the fact that more than half of the brands (57%) do not disclose any information about the Traceability section is worrying. This means we have no information on where many of the largest and most profitable nationally operating brands make their clothes. By not disclosing the facilities in which their products are made, brands make it difficult to be held accountable for their impacts on human rights and the environment. In a world increasingly impacted by the climate crisis and job insecurity, there should not be any room for brands to remain opaque about their supply chains.
Among the five brands with the biggest performance increases this year, four are from the underwear sector. The five biggest movers this year were DeMillus, Hope, Lupo, Nike and Trifil. Looking at lingerie brands, one of the main factors that drove the increase in their scores was the disclosure of supplier lists at all three levels, from direct facilities to their main raw material suppliers. This improvement is significant, as it demonstrates the progress in transparency practices in a segment that, in addition to having its own stores, also is a supplier of finished underwear products to several fashion retailers, many of which are reviewed by this Index.
Illustration: Daniella Gonçalves - Fórum Fashion Revolution 2022 “WHAT DO YOU DRESS UP AS?”
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EXECUTIVE SUMMARY
FASHION REVOLUTION
More than half of brands (55%) disclose a supplier policy to combat modern slavery, but only 27% disclose how they identify and prioritise risks, impacts and human rights violations in their supply chain. This year marked a record for rescuing victims of slave-like labour in the brazilian countryside, and the ‘Dirty List’ of modern slavery had its biggest update in history, with 204 new names. This news proves that forced labour is still used in several sectors, and the fashion industry, unfortunately, is not immune to these practices. It is positive that more than half of the brands reviewed (55%) have a policy for their suppliers against the use of contemporary slave labour. On the other hand, it is worrying to compare this figure with the number of companies that disclose their approach to conducting human rights due diligence (27%) and those that disclose the main risks, impacts and human rights violations identified through this process (25%). The percentage further decreases to 20% when we look for data on the prevalence of modern slavery-related violations or the existence of risk factors such as excessive and forced overtime, restricted freedom of movement, retention of workers’ passports or other personal documents as well as debt bondage.
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This difference in disclosure raises the following questions: What is really being monitored? Do brands have robust internal due diligence processes? Is the existence of a policy sufficient to curb precarious work? Another point to highlight based on this research is related to foreign and migrant labour, commonly used by the clothing manufacturing industry in Brazil and worldwide. While 32% of brands disclose their policies on foreign and migrant labour, only 13% publish their actions related to the regularisation of these workers in their supply chain. In this sense, it is necessary to remember that migrant workers are more susceptible to human trafficking and modern slavery. Debt bondage, false promises, document retention and threats of violence and deportation are all common problems that they face in the fashion industry. The results of this year’s Index reinforce that, in addition to an established worker protection policy, brands must conduct robust human rights due diligence processes. Through these processes, they can publicly disclose their approaches and main risks and violations identified as well as the actions taken to prevent them with their respective results.
Despite the increase in deforestation and the subsequent loss of biodiversity in Brazil, brands disclose more information about their biodiversity protection policies than about effective actions to regenerate and combat deforestation.
For example, 28% disclose how they identify and prioritise environmental risks, impacts and violations in their supply chain. The numbers are even lower when we look for disclosures on regenerative agricultural practices and commitments to zero deforestation: only 8% of companies disclose how they implement regenerative agricultural practices in one or more raw material sources and only 10% disclose a measurable and time-bound commitment to zero deforestation.
Of the brands reviewed, 43% publish biodiversity and conservation policies for their own operations and 35% for their supply chain. As we look for more detailed data on the disclosure of what actions brands take to protect biodiversity, we can see that transparency decreases.
Although there has been important progress in relation to the 2022 result, in which no brand disclosed a commitment against deforestation, this number is still very low considering the accelerated loss of diversity that we are facing globally. A WWF report shows that, in the last 50 years, the monitored wildlife populations in Latin America have declined in abundance by 94%.
Only 8% of companies disclose how they implement regenerative agricultural practices.
EXECUTIVE SUMMARY
FASHION REVOLUTION
Only 10% disclose a measurable and time-bound commitment to zero deforestation. Deforestation is one of the direct causes of biodiversity loss, and the biomes from Brazil remain threatened. Fashion is intrinsically related to deforestation since the production chains of raw materials are often associated with this practice. Two examples of this would be the deforestation of the Amazon rainforest linked toleather production and the devastation of the Cerrado to plant cotton in transgenic monoculture.
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To make matters worse, Brazil’s indigenous population - which plays a crucial role in protecting biodiversity - is struggling to preserve its existence. An example of this is the mobilisation against the approval of the Marco Temporal (Temporal Framework): a bill that seeks to change the policy of demarcating indigenous lands in Brazil. If approved, 14% of the Brazilian territory and the biodiversity that lives within that territory could be vulnerable to the expansion of illegal commodity production, land grabbing, illegal mining and deforestation. We expect brands to recognise the negative impacts they have on the environment and make more ambitious commitments to protect biodiversity and prohibit deforestation. An effective way to prove this commitment is through public targets or commitments, but mainly through the disclosure of effective actions taken based on these policies.
EXECUTIVE SUMMARY
FASHION REVOLUTION
Due to greater pressure from civil society on companies’ carbon footprint, there has been an increase in the number of brands publishing data on their greenhouse gas emissions. However, the disclosure of timebound decarbonisation targets is still minimal in the sector. This year, we have seen an increase in the number of brands disclosing their carbon footprint. Almost half of the companies (45%) disclose the emissions from their own facilities and 40% disclose the emissions related to their supply chain, that is, where the goods and services are produced or purchased. This data represents an increase of 12 percentage points compared to the 2022 results.
Only 8% publish what proportion of their production is powered by coal.
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Although the increase in the disclosure of the carbon footprint is positive, the other indicators related to the climate crisis show little progress and remain low. Only 15% of brands publish a measurable and time-bound decarbonisation commitment that is verified by the Science Based Targets Initiative and only 2% publish near (5-10 years) and long-term (by 2040 or 2050) Science-Based Targets. The targets describe the path to be taken by a company to reduce its emissions, and without visibility into this strategy, it is difficult to hold companies accountable for their decarbonisation commitment. In addition, for the decarbonisation of fashion, it is essential that the fashion sector drastically reduces its dependence on fossil fuels - exemplified by the use in the production of synthetic fibres and as an energy source along global supply chains. Among the brands reviewed, 22% publish measurable and time-bound targets to reduce textile products derived from virgin petroleum and only 8% publish what proportion of their production is powered by coal.
22% publish measurable and time-bound targets to reduce textile products derived from virgin petroleum. Transparency on the industry’s reliance on fossil fuels in supply chains is critical. In this sense, brands must take appropriate measures to support their suppliers in a transition to a green production model and advocate that the governments of the garment producing countries increase the accessibility to renewable energy. The phasing out of coal, for example, involves significant costs that can be prohibitive for factories operating on narrow margins. For this reason, brands should co-finance the decarbonisation of their supply chains rather than shifting costs to their suppliers.
EXECUTIVE SUMMARY
Transparency on gender issues in suppliers remains low, which raises questions about the inclusion of women in key conversations to improve the sector. Women represent a large proportion of the workforce in global fashion supply chains. Despite this, this year’s results show a stagnation on gender-related indicators at supplier level, which makes us question how women are treated and heard throughout the supply chain. Less than a third of the brands (30%) disclose the gender breakdown of workers in each direct supplier facility. This number is even lower as we distance ourselves along the supply chain, with 20% disclosing this information on processing facilities and only 2% on raw materials suppliers. It is noteworthy that these data have remained stable since the 2021 Index.
FASHION REVOLUTION
This stagnation in low transparency levels can also be found in other genderrelated indicators. Only 3% of companies disclose how female workers, women’s organisations, women’s human rights advocates and gender experts are involved in all stages of the human rights due diligence process. This lack of transparency is worrying as all affected stakeholders must be heard for an effective due diligence process. In addition, only 10% of companies annually disclose the gender pay gap at their suppliers’ facilities, and 7% publish data on the prevalence of gender-related labour violations at these facilities - despite violence and sexual harassment remaining endemic in the sector. Brands urgently need to be transparent about how women - without whom the fashion industry would not exist - are heard at all levels of the industry and how a gender perspective is ensured in all actions taken by brands.
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For another year, brands show a lack of transparency on racial equality indicators. The data is even lower when we search for information related to supply chain workers. Similarly to the gender indicators, little progress was made on indicators relating to racial equality. This shows little to no progress on how the sector publicly communicates about this key topic which is intrinsically linked to the sustainability of the fashion sector, as more than half of the Brazilian population (56%) selfidentifies as black. Of the brands reviewed, 18% disclose information on the race and ethnic breakdown of their employees, considering data from different hierarchical levels, and only 13% publish information about career development programmes aimed at promoting opportunities for these employees.
When we analyse the data disclosed about supply chains, the transparency is even lower: 12% of brands publish the breakdown by ethnicity for workers of the cutting, sewing and finishing facilities, as well as those of processing, and 2% publish this breakdown in their raw material suppliers facilities. In addition, only 3% of the companies publish their actions focusing on the promotion of racial and ethnic equality in supplier facilities.
Only 3% of the companies publish their actions focusing on the promotion of racial and ethnic equality in the supply facilities. A low level of transparency is also found in the fight against cases of racism at the points of sale of the brands. Only 7% of companies publish information on the measures taken to prevent racial discrimination in their stores, both by direct and outsourced employees.
EXECUTIVE SUMMARY
Only 7% of companies publish information on the measures taken to prevent racial discrimination in their stores, both by direct and outsourced employees. lack of transparency from brands on The indicators related to racial and gender equality shows that, even though these themes are essential for social wellbeing, companies are not in tune with the demands of civil society activist groups that advocate for speed and effectiveness in actions for greater equity. To illustrate this further, studies show that, if government policies do not tackle this and companies do not take more effective actions, opportunities between black and white people in the job market should only balance in 2190, 167 years from now, and, between men and women, only in 132 years.
FASHION REVOLUTION
Brands are more transparent about how many items they produce annually, but still disclose little information about the waste they generate. This year, 40% of brands disclosed their annual production volumes, representing an increase of 15 percentage points compared to the 2022 results, which was 25%. This result is also higher than that found by the Global Index, in which 12% of the 250 brands reviewed disclose their production volumes. The dissemination of these indicators allows us to gain a clearer picture of the extent of overproduction that permeates the fashion sector. We live on a planet where resources are finite, but the fashion industry continues to expand, and global clothing consumption could increase 63% by 2030 if growth continues as it is today.
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EXECUTIVE SUMMARY
40% of brands disclosed their annual production volumes, representing an increase of 15 percentage points compared to the 2022 results. The more clothes are produced, the more waste is generated. In recent years, several media outlets have reported on the immense amount of textile waste and clothing discarded around the world, from clothing-producing neighbourhoods in São Paulo, through the capital of Ghana, to the Atacama Desert. Despite the greater mainstream visibility on this issues, brands remain opaque about the amount of waste they generate. This year, 80% of the companies do not disclose the amount of pre-production waste (offcuts, scraps, yarn, end-of-roll fabrics) produced within a year and 83% do not publish the amount of post-production waste (overstock, samples, defective garments).
FASHION REVOLUTION
No brand discloses commitment to degrowth. It is impossible to talk about a more sustainable fashion industry without addressing the issue of overproduction, which is characteristic of the modus operandi of the fashion sector. Implementing take-back schemes for clothes, rental and other new business models will not be effective if the issues of overproduction and overconsumption are not addressed at their root. Therefore, for the first time, we look to identify whether companies disclose a commitment to degrowth.The degrowth movement prioritises social and ecological well-being instead of corporate profits, overproduction and excess consumption. It requires radical redistribution, reduction in the size of the global economy, and a shift in common values towards care, solidarity and autonomy. Importantly, this should be viewed primarily as the deliberate reduction of socially and environmentally damaging practices, like overproduction, excess consumption and usage of finite resources by the Global North.This means, among other things, a model of exit from the productivist cycle based on the decrease in the consumption of natural resources and energy to respond to the restrictions and the capacity to renew ecosystems.
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Of the 60 brands reviewed, none disclose a commitment to slowing their production, thereby indicating that companies are still committed to unlimited growth within a planet with limited resources. It is noteworthy that the same lack of commitment was also identified in the Global Index, in which only 1% of the 250 brands disclosed a commitment to degrowth. This comparison is necessary because, according to Genevieve Azam, in the book “Systemic Alternatives”, a call for degrowth may not make sense in underdeveloped or developing countries until it starts in developed countries, and must include a redistribution of accumulated wealth that provides a new global horizon. Therefore, we must not forget that any discussion of degrowth must address the inequality of power between countries and between people along value chains. It is necessary that the people who make our clothes - without whom fashion brands would not even exist - can have their voices and concerns heard and healed.
Circularity initiatives cannot be used as a silver bullet on overproduction levels, but, to minimise the impacts of the fashion industry, it is necessary to establish these practices. Despite this, the Index showed a lack of progress on indicators related to circularity. It is estimated that less than 1% of the material used to produce clothes is recycled into new clothes. Therefore, there is an urgent need to create and expand paths for recycling in the fashion sector, focusing mainly on those related to fabricto-fabric recycling. Of the 60 brands reviewed, 25% disclose information about how they invest in circular solutions, which go beyond reuse or downcycling - an increase of only 1 percentage point compared to last year’s result. The growth was also only 1 percentage point when it comes to disclosing the percentage of products designed to enable circularity - 7% in 2022 and 8% in 2023.
EXECUTIVE SUMMARY
Of the 60 brands reviewed, 25% disclose information about how they invest in circular solutions, which go beyond reuse or downcycling. When moving towards a circular production model, it is necessary for brands to prepare their suppliers for the new activities that will be required of them, such as repair, upcycling, recycling, etc. To monitor the progress of brand transparency in this regard, we have added a new indicator that seeks the disclosure of companies’ efforts to provide professional development for workers in their supply chain, aiming to prepare them for a just transition to a circular economy.
FASHION REVOLUTION
According to a study by Business for Social Research (BSR), while the perception of the environmental and commercial benefits of a circular production model is clear, the implications for people and society are still not well understood. The research raises the need for vulnerable workers - such as women, migrants and informal workers - to be consulted and their voices to be central in a transition to a circular economy model for the fashion industry. Otherwise, there is a risk that these groups will continue to face precarious work. In addition, the same research identified that companies’ efforts to develop new workers’ skills are still insufficient. In the Index, we identified the same pattern, since 93% of the brands reviewed do not publish any information about their efforts to prepare supply chain workers for a just transition to circularity. This lack of transparency does not make it clear as to whether workers’ needs are being addressed.
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Brands remain opaque about how they commercially relate with their suppliers, despite evidence on how unfair purchasing practices perpetuate precarious working conditions in the fashion sector. Income inequality in Brazil has reached its lowest level since 2012, but Brazil is still among the ten most unequal countries in the world. This level of inequality is reinforced by unequal power relations throughout society, and the fashion sector does not escape this reality. The fashion industry was built on an unequal relationship model, in which major brands hold power over their suppliers. A study by Human Rights Watch shows that poor purchasing practices can be a major cause of human rights abuses taking place in the fashion sector. Even with many brands demanding respect for workers and the work environment in their codes of conduct for suppliers, the way they commercially relate to them may actually encourage the opposite. This shows us that good purchasing practices are intrinsically linked to better working conditions.
Only 7% disclose the average number of days in which purchase orders are paid in full to suppliers after the delivery of orders.
Despite this, the transparency of brands on how they commercially relate to their suppliers remains low. For another year, this subsection was among those where brands scored the lowest. Results show that only 5% of companies publish a Responsible Purchasing Code of Conduct, and 7% disclose the average number of days in which purchase orders are paid in full to suppliers after the delivery of orders.
EXECUTIVE SUMMARY
Photo: Gabriel Santos - Unsplash
FASHION REVOLUTION
Most of the brands reviewed fail to disclose commitments and actions to ensure the payment of living wages. In addition to unfair purchasing practices, another factor that contributes to inequality in the fashion sector is the wage gap between fashion CEOs - usually men - and the people who make our clothes - usually women.
Only 18% of brands disclose how much executive pay is tied to sustainability goals. Corporate leadership must be held accountable for the impacts their businesses have on the environment and society, but this year’s results show that only 18% of brands disclose how much executive pay is tied to sustainability goals.
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Only 12% of brands disclose their approach to achieving a living wage, and none disclose how many of the supply chain workers already receive a living wage.
Regarding the workers at the other end of the value chain, only 12% of brands disclose their approach to achieving a living wage, and none disclose how many of the supply chain workers already receive a living wage. With the increasing costs of living worldwide, it is increasingly urgent that the people who make our clothes be paid an amount to live decently and be able to provide for themselves and their families.
Given the fashion industry’s reliance on and pollution of water and the need to address water stress in global supply chains, the continued lack of transparency from brands on this issue is alarming. A WWF study shows that water is an undervalued natural resource and that a water crisis can threaten the sustainability of ecosystems, food security and the economy. This crisis is entangled with the climate crisis and has already been felt in several places worldwide - such as in the Amazon, due to the extreme drought that has affected 62 cities. The results found in this year’s Index highlight that brands may not have an understanding of the importance of water resources, since 80% do not disclose the methodology used to conduct water-related risk assessments and only 7% publish their suppliers’ wastewater test results. In addition, 32% of brands disclose the water footprint of their own facilities, and this number is even lower along the supply chain, with only 13% publishing water use data from processing facilities and a measly 2% concerning raw material suppliers.
EXECUTIVE SUMMARY
Looking at the data on chemical use, the results are also alarming. It is estimated that more than 8,000 types of synthetic chemicals are used in the manufacturing process of our clothes and the impact of these products is felt throughout the entire fashion value chain - from plantation workers to consumers until the disposal phase. Despite this, 27% of the brands reviewed disclose their manufacturing restricted substances lists (MRSL), that is, lists that inform suppliers as to which substances are prohibited throughout the manufacturing processes, from raw materials down to the end product. The lack of transparency about the chemicals used in our clothes - which impact both the environment, workers and consumers - is reinforced by the lack of disclosure of a time-bound commitment to eliminate the use of hazardous chemicals by 88% of brands.
FASHION REVOLUTION
Transparency can be the antidote to greenwashing and social washing
Green and social washing are also detrimental to other companies since those who are genuinely trying to make positive changes may be harmed by those who make misleading claims.
With the increase in social and environmental crises, brands have been increasingly pressured to take a stand and act on behalf of nature and people. However, the lack of data on important issues, such as those highlighted in this executive summary and throughout this report helps us reflect on the marketing ploys used by the fashion sector and how reliable their claims are.
Therefore, transparency is a tool that can help brands which are committed to effective actions to mitigate their negative impacts as well as citizens to examine what is being done. We encourage brands to be transparent and accurate on all topics covered by the Index, disclosing reliable information without using vague terms or explanations. We also encourage the disclosure of measurable and time-bound targets as well as the publication of annual progress towards meeting these targets.
Communication on sustainability claims with little or no reliable data to back this information can be classified as greenwashing or social washing - when a company exaggerates their environmental and social sustainability credentials, respectively. These deceptive practices lead us to a false sense of security as they cover up the truth.
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FASHION TRANPARENCY INDEX BRASIL 2023
Information is power and, therefore, we hope this Index will be helpful in driving systemic transformation in fashion.
EXECUTIVE SUMMARY
“Fashion carries within its ambiguities. On the one hand, the morally negative sense of consumerism, and on the other, the creative and empowering sense. On one hand, the sense of the end, old, of the past, of “outdated”, and, on the other hand, the sense of the modern, of beginnings, of the future. On one hand, the sense of uselessness, and on the other, the sense of necessity. On the one hand, the sense of dream and imagination, and on the other, the sense of reality and materiality.”
Lilyan Berlin PhD in Social Sciences and Master in Environmental Sciences
FASHION REVOLUTION
KEY RESULTS AVERAGE SCORE
22% Overall average score across the 60 brands reviewed in 2023 POLICY & COMMITMENTS
36%
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FASHION TRANPARENCY INDEX BRASIL 2023
GOVERNANCE
TRACEABILITY
KNOW, SHOW & FIX
SPOTLIGHT ISSUES
26%
25%
17%
16%
EXECUTIVE SUMMARY
FASHION REVOLUTION
AVERAGE SCORE IMPROVEMENT
% of brands
Brands reviewed since 2018 Brands reviewed since 2019 Brands reviewed since 2020 Brands reviewed since 2021 Brands reviewed since 2022
Year
2018
19
2019
FASHION TRANPARENCY INDEX BRASIL 2023
2020
2021
2022
EXECUTIVE SUMMARY
2023
FASHION REVOLUTION
KEY RESULTS TOP 10 SCORING BRANDS
62% 57%
55% 55%
54%
Melissa
Aram
Ipanema
vaianas
65%
65%
Youcom
Renner
68%
67%
Malwee
Dafiti
70% C&A
Ha
is
Adidas
EXECUTIVE SUMMARY
ci
0% Mol
eca
TNG
0%
0%
Co
lc l riso Ma
d on m
Du Loja Pomp s éia
0%
L Av oja en s ida
er
0%
ad
um
0% r y
Le
0%
For
wa
o Br
s ok
fi
d el
0%
0%
Sa
FASHION TRANPARENCY INDEX BRASIL 2023
0%
0% Di San tinni
Carm Steff en e ns
i
0%
Havan 20
sn
0%
Be
Cia. a im Marít
0%
0%
0%
16 BRANDS HAD NO SCORE
FASHION REVOLUTION
AVERAGE SCORE 5 HIGHEST INCREASE IN % POINTS SINCE 2022
5 HIGHEST DECREASE IN % POINTS SINCE 2022
NON-MOVERS BRANDS SINCE WERE INCLUDED IN THE INDEX (0%) Brooksfield
-14
+42
Carmen Steffens
Osklen
Nike
Cia. Marítima Colcci
-5 +25
Amaro
Trifil
+24
Di Santinni
-3
DeMillus
Fórum
0
C&A
Leader Lojas Avenida
+23
-2
Hope
Marisol
Dumond
Moleca +18
2022 21
Lupo
2023
FASHION TRANPARENCY INDEX BRASIL 2023
Dakota Ellus Malwee Zara
-1
2022
2023 EXECUTIVE SUMMARY
Sawary TNG 2022
2023 FASHION REVOLUTION
% OF BRANDS PUBLISHING SUPPLIER LISTS
% of brands
First-tier manufactures Processing facilities Raw material suppliers*
50
* The significant decrease in 2021 was due to the fine-tuning of the research methodology compared to previous years. Since 2021, in addition to searching for a map or list that represents a significant proportion of suppliers, we started to reject lists that did not include fiber, leather or any other type of main material used in the products but rather only those materials used in processes such as chemicals.
43 40
40
38 33
33
33
35
33
30
28
28
25 25
25 20
20
17 15
10
88
Year
2018 20 brands 22
2019 30 brands
FASHION TRANPARENCY INDEX BRASIL 2023
2020 40 brands
2021 50 brands
2022 60 brands
EXECUTIVE SUMMARY
2023 60 brands FASHION REVOLUTION
KEY RESULTS SPOTLIGHT ISSUES DECENT WORK
20%
GENDER & RACIAL EQUALITY
Disclose data on the prevalence of modern slavery related violations and risk factors.
25%
Disclose gender pay gap in their own operations.
SUSTAINABLE SOURCING & MATERIALS
23
12%
Publish approach to living wages for supply chain workers.
13%
Publish actions related to the regularization of foreign migrant workers in the supply chain.
0%
No brands disclose the number of supply chain workers that are being paid a living wage.
FASHION TRANPARENCY INDEX BRASIL 2023
0%
Disclose ethnicity pay gap data in their own operations.
13%
Disclose information on career development programmes for black employees.
7%
Discloses actions focusing on the promotion of gender equality in supplier facilities.
32%
Describe how they define what they consider a “sustainable” material.
22%
Publish targets for the reduction of textiles deriving from virgin fossil fuels.
10%
Discloses what is doing to minimize the impact of microfibres.
EXECUTIVE SUMMARY
OVERCONSUMPTION & BUSINESS MODELS
40%
Disclose data on the quantity of products made annually.
22%
Offer new business models that support clothing longevity and slow down consumption of new clothing.
25%
Disclose evidence of developing circular solutions that enable textile to textile recycling.
FASHION REVOLUTION
WATER & CHEMICALS
24
CLIMATE CHANGE & BIODIVERSITY
12%
Disclose a commitment to eliminate use of hazardous chemicals.
15%
Publish a decarbonisation target verified by science based targets initiative.
45%
Disclose annual carbon footprint in their own operations.
2%
Publish annual water footprint at raw material level.
10%
Publish time-bound, measurable commitment to zero deforestation.
40%
Disclose annual value chain/scope 3 carbon footprint.
20%
Disclose methodology for conducting water-related risk assessments.
8%
Discloses evidence of implementing regenerative farming practices.
FASHION TRANPARENCY INDEX BRASIL 2023
EXECUTIVE SUMMARY
FASHION REVOLUTION
ABOUT THIS INDEX
THE CHANGES WE WANT TO SEE FOR A SYSTEMIC OVERHAUL OF THE GLOBAL FASHION INDUSTRY
OUR ROLE WITHIN AND UTSIDE THE INDUSTRY
At Fashion Revolution, we campaign for a fashion industry that conserves and restores the environment, valuing people and nature over growth and profit.
Fashion Revolution is uniquely positioned both ‘within’ and ‘outside’ the fashion industry. Therefore, we seek to effect changes both in culture and in the industry itself, while mobilising citizens so that these transformations become a reality.
MANIFESTO #8
For that, we are working towards an industry-wide culture of transparency and accountability across the value chain; a global fashion industry where brands take responsibility for their social and environmental impacts. The Fashion Transparency Index is one tool in achieving this vision, and is in line with the eighth point of the Fashion Revolution Manifesto.
FASHION IS TRANSPARENT AND ACCOUNTABLE. FASHION EMBRACES CLARITY AND DOES NOT HIDE BEHIND COMPLEXITY NOR RELY UPON TRADE SECRETS TO DERIVE VALUE. ANYONE, ANYWHERE CAN FIND OUT HOW, WHERE, BY WHOM AND UNDER WHAT CONDITIONS THEIR CLOTHING IS MADE.
Working ‘within’ the system means engaging in a system that is deeply unsustainable, extractive, and unjust. Engaging with a system we disagree with is not to condone it. In fact, it is the very opposite – an attempt to fundamentally dismantle the structures that uphold injustice and exploitation.
We engage within an unjust fashion system because doing so is effective in driving change, even though that change can be frustratingly slow and incremental. We are working for industry-wide transparency and accountability to become deeply embedded across the value chain. This can only be achieved by involving the biggest players in the industry, such as the brands reviewed in this Index, precisely because they have the biggest negative impacts and greatest responsibility to address the problems they perpetuate. Broadly speaking, we see industry change as work ‘within’ the system, and cultural and policy change as work ‘outside’ the system. Fashion Revolution simultaneously works ‘outside’ of the system, to educate and mobilise citizens as well as advocate for policy changes in government and legislation. Without transparency, all these changes are practically unreachable.
See our MANIFESTO for a Fashion Revolution, click HERE.
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FASHION TRANPARENCY INDEX BRASIL 2023
ABOUT THIS INDEX
FASHION REVOLUTION
WORK ‘OUTSIDE’ THE FASHION SYSTEM CULTURAL CHANGE
MOBILISING FOR CHANGE Through engagement and campaigns, we have been able to mobilise volunteers from all over the country to play a more active role in promoting social and environmental responsibility as well as demanding transformations in the fashion industry.
Raising public awareness and educating people about the social and environmental challenges facing the global fashion industry. Engaging people in Brazil and around the world to act collectively through actions that promote cultural transformations. Promoting the appreciation of fashion as a cultural force.
EXAMPLE
EXAMPLE
Promoting the continuous growth of Fashion Revolution Week, which has been gaining strength every year. In 2023 alone, we recorded 616 events held in 120 cities across the country.
Creating campaigns like #WhoMadeMyClothes #WhatsInAMyClothes and #TheColourOfWhoMadeMyClothes to promote a conversation about the impacts of our clothes.
Encouraging and supporting our network of representatives, who play a key role as activists, leading teams of volunteers in their respective locations to organise events and actions for the fashion revolution throughout Brazil.
Developing platforms, such as the Fashion Revolution Forum, which collaborate and unite popular and scientific knowledge in favour of a democratic, regenerative and revolutionary fashion system. Creating online and in-person courses, such as the School of Decolonial Fashion and Fashion Revolution in Cidade Tiradentes, in order to promote fashion education that is inclusive, critical and reaches various spaces and regions of the country.
Supporting and encouraging teachers and student ambassadors to promote the movement within education institutions. One result of this work is the influence on the curricular adaptation of more than 40 educational institutions that were inspired by the principles and materials of the Fashion Revolution..
Cultural change, by its very nature, is more visible. It is a work that engages and mobilises citizens to take collective action. The aim is to remove barriers between consumers and producers and inspire people to encourage the diversity of looks and voices, decolonize the system, to consume less, value quality, take better care of their clothes and use their voices to bring about change.
Mobilisation for Change is an ongoing process that demands campaigning and support from the movement throughout the year. At our Institute, we have a team dedicated exclusively to mobilisation in order to increasingly stimulate people’s engagement, providing them with the resources, education, and skills necessary to act effectively.
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FASHION TRANPARENCY INDEX BRASIL 2023
ABOUT THIS INDEX
FASHION REVOLUTION
WORK ‘INSIDE’ THE FASHION SYSTEM
INDUSTRY CHANGE Conducting research that shines a light on the social and environmental impacts of the global fashion industry and leverages brands’ competitive tendencies to drive faster change.
EXAMPLE Producing the Fashion Transparency Index Brazil and other reports to incentivise transparency and promote accountability across the supply chain. Having assertive communication through our actions in order to highlight where the industry is moving too slowly and push for faster change. Introducing and encouraging smaller brands and innovative designers through initiatives such as Creativity with Purpose. Creating tools, such as the Fashion Transparency Guide, in order to offer brands – especially smaller ones – the tools to better understand what transparency is, how important it is and how they can act to be more transparent.
Photo: Fashion Revolution at Cidade Tiradentes
Industry change engages with the current unjust system to transform it. Through the Fashion Transparency Index, we engage directly with some of the largest fashion brands in the world – those who have the biggest responsibility and furthest to go – to demand faster progress. We also champion smaller, more responsible brands.
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FASHION TRANPARENCY INDEX BRASIL 2023
To read more about how we work, click HERE.
ABOUT THIS INDEX
FASHION REVOLUTION
THE ROLE OF TRANSPARENCY IN ACHIEVING CHANGE
29
Transparency is fundamental to achieving all the changes that Fashion Revolution is working towards - in policy, in culture and in the industry.
Transparency is not to be confused with sustainability, but without transparency, achieving a sustainable, accountable, and fair fashion industry will be impossible.
The public disclosure of credible, comprehensive, and comparable information about fashion’s supply chains enables several agents, such as investors, lawmakers, journalists, NGOs, trade unions, workers, and their representatives, to hold brands and retailers accountable. This transparency enables such actors to:
We understand transparency as a tool for change, not the end goal. Transparency is not a silver bullet that will solve all of the complex and deeply systemic problems in the global fashion industry, but it does mean a baseline, without which we cannot meaningfully move towards real improvements. Shining a light on the places and conditions in which our clothes are being made allows for faster and more collaborative ways to solve these problems.
•
Scrutinise what companies claim to do to uphold human rights and to protect the environment.
•
Hold brands and retailers accountable for their policies and practices, which is especially important when things go wrong, like they did when Rana Plaza Building collapsed, in Bangladesh in 2013.
•
Collaborate to cease, mitigate, prevent and remedy environmental and human rights abuses.
•
Collaborate to share strategies and best practice on these issues.
FASHION TRANPARENCY INDEX BRASIL 2023
Fortunately, we are not alone in calling for transparency. We are one voice of many across civil society, including NGOs and trade unions representing supply chain workers, as shown in the letter published in April 2021 that was signed by 33 international NGOs. Fashion Revolution also signed this letter, calling for full supply chain transparency in the clothing sector:
ABOUT THIS INDEX
TRANSPARENCY SCRUTINY ACCOUNTABILITY CHANGE
“ The time for full supply chain transparency is now. As civil society organisations, we call upon all clothing brands and retailers to disclose all the facilities in their supply chain. We welcome the steps taken by those companies who are already disclosing part of their supply chain and encourage them to accelerate their progress towards full transparency. We ask regulators to provide for a level playing field, by setting harmonised legislation for such public disclosure and to ensure every clothing brand commits to the same level of transparency.”
FASHION REVOLUTION
THE ROLE & AIMS OF THE FASHION TRANSPARENCY INDEX We have heard from many people in our community who feel frustrated by the speed of change in the fashion industry. Given the climate emergency and persistence of human rights abuses in the industry, many people are crying out for urgent and systemic transformation now. We understand, and we share your frustrations. We have heard from many people in our community who feel frustrated by the speed of change in the fashion industry. Given the climate emergency and persistence of human rights abuses in the industry, many people are crying out for urgent and systemic transformation now. We understand, and we share your frustrations. For the time being, while so much of the global fashion industry remains opaque and abuses go unseen, driving transparency is absolutely necessary and we believe the Fashion Transparency Index has a pivotal role to play. We hope that in the near future, campaigning for transparency will no longer be needed as the industry moves beyond transparency to other crucial actions.
THE FASHION TRANSPARENCY INDEX WAS CREATED TO: Incentivise major brands and retailers to disclose a greater level of detailed and comparable data as well as information year-on-year progress. Analyse trends and compare the level of transparency on human rights and environmental issues among the world’s largest and most influential fashion brands and retailers. Create a tool that helps a wide set of stakeholders to better understand what data and information is being disclosed by the world’s largest brands and use the findings to take further action. Shape our ongoing efforts to raise public awareness and educate people about the social and environmental challenges facing the global fashion industry, using this research to inform society’s activism.
The aim of the Fashion Transparency Index is not transparency in and of itself. The aim is to incentivise disclosure of information to be used by individuals, activists, experts, worker representatives, environmental groups, policymakers, investors and even brands themselves. Transparency is not the end point, it’s the entryway to capacity building.
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FASHION TRANPARENCY INDEX BRASIL 2023
ABOUT THIS INDEX
FASHION REVOLUTION
HOW THE FASHION TRANSPARENCY INDEX DRIVES CHANGE The Fashion Transparency Index has driven change in large part is by helping to normalise the concept of transparency within the industry and make public disclosure of social and environmental efforts more commonplace. For brands that have been reviewed year-on-year since 2017, and in Brazil since 2018, we have seen their average scores progressively increase. When considering these 20 brands reviewed in 2018, we see that their average score has increased progressively over the years. In 2023, the overall average score of the group was 34%, against the average of 17% which they obtained in 2018 – representing a growth of 17 percentage points. Besides this, when we started conducting this research in Brazil back in 2018, very few brands published lists of first-tier manufacturers. They were only 25% (5 out of 20), while in 2023, this number grew to 38%, with 23 out of the 60 brands reviewed.
This demonstrates an important change in behaviour in the industry. Despite being a slow and gradual change, it is happening due to strong pressure for more transparency and because of the support provided by allied organisations.
When considering these 20 brands reviewed in 2018, we see that their average score has increased progressively over the years. We have also forged partnerships with various organisations. These partnerships not only help push harder for increased transparency, but they also enable the Index methodology and research to be used more widely, putting the findings into tangible action.
For example, our partnership with WikiRate enables the data we collect, both from the Global Index and from the Brazil Index, about brands to be freely accessible, easily comparable, machine readable and, above all, actionable for different stakeholders. This data was also added to FashionChecker. org, a Clean Clothes Campaign’s platform, which compares Brazilian and global brands’ claims about living wages. This is valuable to investors and civil society organisations, including trade unions that represent garment workers, which make use of transparency data. The Index findings have been integrated into the Business & Human Rights Resource Centre’s and platform Matter, both used by investors who increasingly incorporate Fashion Transparency Index data into their ESG scoring of investee companies. Parts of the methodology and research have been integrated into the Good On You app used by ethically-minded consumers.
Photo: Patchwork flag made at Centro Universitário FAESA - Vitória/ES
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FASHION TRANPARENCY INDEX BRASIL 2023
ABOUT THIS INDEX
FASHION REVOLUTION
HOW FINANCIAL ACTORS LEVERAGE THE FTI
“As a fund manager, we are interested in identifying companies that are leading their sector in managing environmental and social risks, and those making progress in reducing their negative impacts. The FTI provides a very valuable and detailed insight, comparing the performance of a large number of companies, with great data functionality, and an understanding of the key material risks for the sector. The fashion sector is a repeat offender when it comes to greenwashing, and data like the FTI helps strengthen transparency and accountability for investors and other key stakeholders.”
Fund Manager of a major investment firm managing £200 bn+ in assets
HOW RATING FIRMS LEVERAGE THE FTI
“The Fashion Transparency Index (FTI) is testimony to the power of persistency. It has mainstreamed what was once a peripheral notion, i.e., the disclosure of supplier lists, and in doing so, has changed industry perceptions. Previously regarded as commercially sensitive, this form of transparency is now widely accepted as good practice. The Index has also kept a laser focus on the drivers that sustain modern slavery. It has called attention to what meaningful disclosure actually looks like, for example prompt payment terms, collective bargaining coverage and identification of recruitment fees. At the same time it has called out the fluff and information overload of sustainability reporting. Whilst the road ahead can often feel uphill, we feel confident that initiatives like the FTI will bring this vision of fashion into reality.”
Anita Nagarajan Associate Director Morningstar Sustainalytics
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FASHION TRANPARENCY INDEX BRASIL 2023
ABOUT THIS INDEX
FASHION REVOLUTION
CASE STUDY WHY TRANSPARENCY IS NEEDED FOR THE LEATHER INDUSTRY From the birthing cattle farms to the shelves of brands and retailers, the leather supply chain is long and complex. Some of its biggest challenges are the lack of transparency and the links to deforestation, and this problem is particularly alarming in Brazil. The cattle industry is the largest driver of deforestation of the Amazon rainforest and it is estimated that, in 2021, areas dedicated to pasture accounted for about 90% of deforestation in the region. The Brazilian leather industry generates approximately USD $1.1 billion in revenue and 80% of its volume is exported to around 80 countries. For example, Italy, a country known for its leather goods, is the third largest importer of partly processed skins from cattle ranches in Brazil. Evidence also suggests that most deforestation in Brazil is conducted illegally. To investigate supply chain connections between companies in various countries to deforestation in the Amazon rainforest, the Stand.earth Research Group analysed and cross-referenced nearly 500,000 rows of customs data obtained from multiple source providers. So far, the research uncovered 400 individual connections between companies (leather tanneries in Brazil, leather processors in various countries, product manufacturers,
33
FASHION TRANPARENCY INDEX BRASIL 2023
and shoe/fashion brands around the world) to Amazon deforestation and these linkages connect to over 100 brands. Each individual connection is not an absolute proof that those brands use deforestation leather but it demonstrates that many are at very high risk of contributing to the destruction of the rainforest.
Transparency and traceability are fundamental for curbing deforestation: without it no company can guarantee that its supply chain is deforestation free. The ability to map and publicly disclose full lists of raw material suppliers is critical for conducting environmental and human rights due diligence. Transparency measures require collective actions and it serves as a tool to hold major brands and retailers accountable to reduce their environmental, social, and quality risks as well as enhance communication with society at large. If supply chains are transparent, there’s nowhere for deforestation to hide.
The lack of transparency and traceability is what makes it difficult to ascertain whether the leather in a particular handbag, shoe or clothing actually came from the Amazon. A study made by the Amazon Environmental Research Institute (IPAM) with the support of the European Union shows that transparency is one of the main challenges around the traceability of the leather supply chain. Public databases, for instance, lack transparency, standardisation and integration of documents to efficiently help traceability arrangements. Also, the engagement of the productive sector in transparency forums and initiatives is still limited and there is a weak integration of information between all facilities in the leather production chain.
Photo: Feliphe Schiarolli - Unsplash
ABOUT THIS INDEX
FASHION REVOLUTION
CASE STUDY WATER RISKS AND OPPORTUNITIES IN APPAREL AND TEXTILE CLUSTERS One of the most pressing issues in the fashion industry is the overconsumption of natural resources like water. Water is an essential resource for all life and must thus be shared, which poses complex challenges due to its scarcity, distribution, and interconnectivity with various issues like climate change and biodiversity. Understanding and addressing water risks collaboratively is crucial for the industry’s longterm sustainability and resilience, as water-related impacts can have profound social, economic, and environmental consequences.
In 2022, the World Wide Fund for Nature (WWF) published a report exploring the apparel and textiles industry’s exposure to water risks. By utilising spatial analysis, the WWF Water Risk Filter, combined with Open Supply Hub1 data, it was identified that apparel and textile clusters are typically concentrated in smaller regions, primarily major urban areas with a history of industrialization (e.g. Po Valley, Punjab, Greater São Paulo), and associated with large river deltas (e.g. Yangtze Delta, of the Mekong, the Ganges), rather than spread across countries. Through the organisation of clusters based on their most urgent water risks, environmental protection groups can facilitate opportunities for knowledge exchange around the most effective solutions to address these risks.
The identification of risks and opportunities here has enabled WWF to visualise a water stewardship strategy which they plan to present in the succeeding report. This work exemplifies how access to accurate and up-to-date information empowers stakeholders to make informed decisions, address potential risks, and uphold ethical practices. Transparency enables new opportunities for collaboration and through it, the industry can build trust, promote accountability, and work towards a sustainable and fair future for all involved.
For example, through supplier lists disclosed in OS Hub, WWF was able to pinpoint which brands were sourcing from the Ho Chi Minh City cluster in Vietnam. The identified brands have a common interest in local stability and resilience and should, therefore, collaborate with each other to address water risks in the region. These brands should not only support local suppliers, but also focus broader efforts on protecting the watershed. Clubbing together efforts means that resources can be shared, in the hopes of addressing issues more quickly and driving impact more widely.
Photo: Patrick Schneider - Unsplash
1 - Find more details about OSH on the Traceability section. 34
FASHION TRANPARENCY INDEX BRASIL 2023
ABOUT THIS INDEX
FASHION REVOLUTION
METHODOLOGY & SCOPE OF THE RESEARCH
BRAND PARTICIPATION HOW BRANDS ARE SELECTED
The Fashion Transparency Index Brazil 2023 reviewed and ranked 60 of the largest and most influential fashion brands and retailers operating in Brazil. Brands have been selected on the following basis: Annual turnover The customer awareness The diversity of market segments, including: retail, denim, casual, footwear, sportswear, beachwear, underwear, children and adults.
Fashion Revolution Brasil and ABC Associados jointly selected the brands1 to be reviewed based on the same 60 brands analysed by the Fashion Transparency Index Brazil in 2022. The decision to maintain these same brands aimed to achieve better analysis and comparability of data between one year and another.
When the information found related to a parent company that controls different brands, we selected the brand (or brands) within the group identified as the most significant in terms of turnover and brand recognition. We have purposely listed brands and not the controlling groups because the public will be most familiar with the brands.
HOW MANY BRANDS PARTICIPATED THIS YEAR?
We understand that the sample volume is not enough to represent the Brazilian fashion market as a whole. Therefore, we tried to select brands from different segments to address the diversity of the industry.
As the biggest and most powerful retailers operating in Brazil, the brands reviewed in this Index have the most significant negative human rights and environmental impacts and an outsized responsibility to make transformative change. These brands are large and profitable, and this means that they have both the resources and moral imperative to take meaningful action, not just on transparency, but on their impacts too. This includes improving the human rights and environmental impacts at the very heart of their business models.
Did not respond
Regarding turnover, we evaluated the information regarding the financial performance of the brands and retailers, publicly disclosed by the companies themselves or in third-party publications, widely available nationally and internationally.
50%
38%
Completed a questionnaire
12%
Declined the opportunity to participate 1 - We may only use the term “brands” to indicate brands and retailers. 36
FASHION TRANPARENCY INDEX BRASIL 2023
METHODOLOGY & SCOPE OF THE RESEARCH
FASHION REVOLUTION
WHAT DOES BRAND PARTICIPATION MEAN? Fashion Revolution contacts all brands each year at the beginning of the Fashion Transparency Index Brazil research cycle. At this stage, we inform them of the updates in the methodology and invite them to participate, asking them to reply with their interest or to decline. Participation means brands will review their pre-populated questionnaires to fill in any gaps that the Fashion Revolution research team may have missed in the initial review, as brands know their policies better than we do. Fashion Transparency Index researchers leave comments in the questionnaire template, asking brands questions like updated disclosures or clarity on what is meant by a particular disclosure. This querying acts as a capacity building exercise for the brands on how they can publish information regarding their policies and initiatives. When brands provide feedback and/or publish further information in line with the questionnaire, Fashion Transparency Index researchers then feed back to them on why a disclosure is or is not acceptable in line with our methodology. Subsequently, the questionnaires with these additional comments are sent to the brands, being considered by them one of the added values of participation in this project.
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FASHION TRANPARENCY INDEX BRASIL 2023
This year, half of the brands (50%) took part in the review process by reviewing and returning to us their completed questionnaires. It is important to note that we include brands in the Index regardless of whether they participate or not. We treat every brand the same regardless of whether they choose to participate or not. However, by engaging with our methodology, brands that participate typically receive higher scores because they can flag relevant disclosure that our researchers may have missed or they disclose additional information in the review period in order to improve their scores. When reviewing only the 30 brands that engaged in this year’s process, their overall average in the Index was 39%. The overall average of the 30 companies that declined or did not respond to us was 5%. Thus, we can conclude that participation allows brands to constantly review and plan their publications, meeting the indicators of the questionnaire and good market practices, thus increasing the transparency of their business.
“ The more transparency there is within the companies’ ESG environment and the more people are producing content and analysis on top of the companies’ sustainability reports, just as the FTI does, the more likely it will be that companies will hear the call to do ESG in the right way.”
Iara Vicente Founder and CEO Nossa Terra Firme
METHODOLOGY & SCOPE OF THE RESEARCH
FASHION REVOLUTION
•
THE 60 BRANDS SELECTED
Adidas (Adidas AG)
Decathlon (Association Familiale Mulliez)
Amaro
DeMillus
• •
Animale (Grupo Soma) Aramis
Arezzo (Arezzo&Co) Besni
•
•
Kyly (Grupo Kyly) Le Lis (Veste S.A. Estilo)
•
Penalty (Grupo Cambuci) Pernambucanas
Leader
Dumond (Grupo Paquetá)
Lojas Avenida (Grupo Avenida)
Renner (Lojas Renner S.A.)
Ellus (InBrands)
•
Lojas Pompéia (Grupo Lins Ferrão)
Reserva (Arezzo&Co)
Lupo (Grupo Lupo)
Riachuelo (Grupo Guararapes)
• • • •
Farm (Grupo Soma)
•
•
Puket
Brooksfield (Grupo Via Veneto) Caedu
Gabriela (Studio Z)
Marisa
Carmen Steffens (Grupo Carmen Steffens)
Havaianas (Alpargatas)
Marisol (Marisol S.A.)
Shoulder
C&A
Havan
Melissa (Grendene)
TNG
•
•
Malwee (Grupo Malwee)
•
•
Shein
•
Torra
Cia. Marítima (Grupo Rosset)
Hope (Grupo Hope)
Netshoes (Magazine Luiza)
Track & Field
Colcci (AMC Têxtil)
Ipanema (Grendene)
Nike (Fisia/Grupo SBF)
Trifil (Grupo Lupo)
•
Dakota (Universo Dakota)
FASHION TRANPARENCY INDEX BRASIL 2023
Klin
•
•
• •
Olympikus (Vulcabras)
Youcom (Lojas Renner S.A.)
Osklen
Zara (Inditex)
METHODOLOGY & SCOPE OF THE RESEARCH
•
•
Moleca (Calçados Beira Rio S. A.)
John John (Veste S.A. Estilo)
•
•
Sawary
Hering (Grupo Soma)
Dafiti (GFG LatAm)
•
Di Santinni
Fórum (AMC Têxtil)
Centauro (Grupo SBF)
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•
•
= brands that completed the questionnaire
•
FASHION REVOLUTION
THE SCOPE OF THE RESEARCH The Fashion Transparency Index measures what brands know and publicly share about their human rights and environmental impacts across their value chains. We award points only for information/data that has been publicly disclosed on the brand or parent company’s own website (or directly linked to it, see right). We have deliberately chosen to focus on transparency by means of public disclosure. If information and data disclosed by brands is publicly available, detailed and specific enough, it can be used by multiple stakeholders – including worker representatives, environmental groups, investors, consumers and brands themselves – to drive positive change on human rights and environmental issues. We believe that public disclosure drives public accountability, that is, from the moment information about a particular brand becomes public, the greater the pressure for it to be responsible and accountable to society.
On the other hand, if the information is disclosed only internally – or selectively, to specific stakeholders – it limits its transformative impact, capable of driving positive changes. For this reason, the Index purposely excludes everything that brands and retailers claim to be doing internally and behind the scenes across their companies and supply chains. This is also why we are looking for public disclosure not only on brands’ policies, procedures and governance, which are less risky to share, but also meaningful disclosure of results, progress, outcomes and impacts across the business and its value chain. It is important to highlight that the Fashion Transparency Index is not a shopping guide. We do not endorse any brand in the Index or suggest that consumers shop at specific brands based on their ranking. In addition, the verification of the claims made by the brands is beyond the scope of the research since the project measures the public disclosure of the information and not its impact or veracity. On the other hand, we encourage stakeholders to use our research and hold brands accountable for their claims.
INFORMATION/DATA MUST BE PUBLICLY AVAILABLE FROM ONE OF THE FOLLOWING PLACES: On the brand/retailer website; On parent company’s website (provided there is a direct web link to it from the main brand website); Investors relations or Sustainability/CSR websites (provided there is a direct web link to it from the main brand or parent company website); In annual reports or annual sustainability reports (only counted if dated January 2021 or later) published on the brand or parent company website; In any other documents which are publicly available and can be downloaded freely from the brands’ or parent company’s websites; Via external, third-party websites but only when there is a direct web link from the brand or parent company’s website to the third-party website (e.g. Bangladesh Accord, Better Work, CDP, FLA, ETI, BSCI/Amfori websites) where specific disclosures can be found.
WE DO NOT COUNT THE FOLLOWING INFORMATION SOURCES: Clothing labels and hang tags on products; In-store or at other physical locations; Smartphone apps; Social media channels; Third party websites or documents where there is no weblink from the brand’s own website, including press articles; Downloadable documents where the weblink cannot be found on the brand’s website.
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FASHION TRANPARENCY INDEX BRASIL 2023
METHODOLOGY & SCOPE OF THE RESEARCH
FASHION REVOLUTION
THE RESEARCH PROCESS TIMELINE OCTOBER-NOVEMBER 2022
FEBRUARY – MARCH 2023
APRIL-MAY 2023
JUNE 2023
Global methodology updates:
Brazilian methodology updates:
The industry research and stakeholder consultation process for the annual review of the methodology, including adjustments and new indicators, when needed, as well as the selection of new Spotlight Issues (section 5 of the questionnaire).
An annual review considering the adjustments made in the global methodology and the need for specific adaptations to the Brazilian context. During this period, we also research the financial situation of the participating companies to see if they continue to have a significant turnover to be reviewed by the Index.
Research and engagement with the selected brands and retailers:
Brands receive questionnaires to complete:
The research team reviews each brand and pre-populates the Index questionnaire based on the public information found. A review round is then carried out to verify the accuracy of the answers found. In parallel, two meetings are held with the brand representatives to present the initiative as well as detail the methodology and the process of analysis of the Index and promote the reflections on the importance of greater transparency for the sector.
Brands are invited to complete the questionnaires with the data that our research team might not have found and/or with more up-to-date public information.
JULY-AUGUST 2023
SEPTEMBER-NOVEMBER 2023
Final review of the questionnaires:
The data is compiled, the analysis is completed and the report is prepared:
After approximately one month, the brands return the completed questionnaires to us. Then, the research team reviews each answer to make sure that the new information presents enough evidence for what we are looking for. The Brazilian and global teams conduct several rounds of peer review quality assurance checks before finalising each questionnaire and the scoring.
40
FASHION TRANPARENCY INDEX BRASIL 2023
The data from each brand questionnaire is collated into one large complete dataset, which is used to analyse the final results, determine the year-on-year trends and progress as well as extract the interesting findings to then produce this final report.
LATE OF NOVEMBER 2023 FASHION TRANSPARENCY INDEX BRAZIL IS RELEASED.
Approximately one month before the report is published, the brands are notified of their final scores and overall progress, and they receive the final version of their questionnaires.
METHODOLOGY & SCOPE OF THE RESEARCH
FASHION REVOLUTION
ABOUT THE METHODOLOGY METHODOLOGY ADVISORY COMMITTEE
The Fashion Transparency Index Brazil reviews and benchmarks brands’ public disclosure on human rights and environmental issues across 5 key areas:
1. Policies & Commitments 2. Governance 3. Supply chain traceability 4. Know, Show & Fix 5. Spotlight Issues, covering the following topics:
41
•
Decent work, covering: forced labour, living wages, purchasing practices, unionisation, and collective bargaining
•
Gender and racial equality
•
Sustainable sourcing and materials
•
Overconsumption, waste and circularity
•
Water and chemicals
•
Climate change and biodiversity
FASHION TRANPARENCY INDEX BRASIL 2023
We have also strived to align the methodology, so far as possible, with existing international standards and frameworks such as Global Reporting Initiative (GRI), Open Data Standard, UN Guiding Principles, Sustainable Development Goals (SDGs), OECD Due Diligence Guidelines and the relevant International Labour Organization (ILO) conventions, as well as other industry initiatives including Act on Living Wages, Corporate Human Rights Benchmark, Know The Chain, Transparency Pledge, and several others. We also collaborated to share our research with other benchmarks through our partnership with the open research platform, Wikirate.
METHODOLOGY & SCOPE OF THE RESEARCH
The methodology was designed in 2017 through a four-month consultative process. We had contributions from a variety of industry experts and stakeholders from academia, the trade union movement, civil society organisations, socially responsible investment, business consulting and journalism. This year we have made updates in consultation with our global advisory committee, created to keep the methodology always up to date and which includes more than 20 experts and organisations, such as those listed next.
FASHION REVOLUTION
Dr. Mark Anner Associate Professor & Director Center for Global Workers’ Rights Penn State University Neil Brown Head of Equities GIB Asset Management Gary Cook Global Climate Campaigns Director Stand.earth Subindu Garkhel Cotton and Textiles Lead The Fairtrade Foundation Fiona Gooch Senior Private Sector Policy Advisor Traidcraft Exchange Christina Hajagos-Clausen Textile and Garment Industry Director IndustriALL Global Union Kristian Hardiman Head of Ratings Good On You David Hachfeld Clean Clothes Campaign Specialist Aruna Kashyap Associate Director of Corporate Responsibility Human Rights Watch
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FASHION TRANPARENCY INDEX BRASIL 2023
Kate Larsen Business & Human Rights Consultant Hester Le Roux Senior Economic Advisor, Policy & Advocacy CARE International Emily MacIntosh Policy Officer for Textiles European Environmental Bureau
Frank Michel Executive Director ZDHC
Rohan Preece Business & Human Rights Manager Traidcraft India
Klaas Nuttbohm Implementation Director ZDHC
Kratika Choubey Business & Human Rights Associate Manager Traidcraft India
Olivia Windham Stewart Business & Human Rights Specialist
Hidden Homeworkers Project
Maya Rommwat Fashion Climate Campaigner Stand.earth
Katie Shaw Chief Programming Officer Open Apparel Registry
Francois Souchet Make Fashion Circular Lead Ellen MacArthur Foundation
Pauline Op De Beeck Head of Sales, Europe – Apparel Sector Lead
Joe Sutcliffe Senior Advisor, Dignified Work CARE International
Laura Balmond Make Fashion Circular Lead Ellen Macarthur Foundation
Urksa Trunk Campaign advisor Changing Markets
Anna Bryhe Director of Advocacy Labour Behind the Label
Nusa Urbanic Campaigns Director Changing Markets
Chloe Rollscane Canopy Global Researcher
George Harding-Rolls Campaigns Manager Changing Markets Ben Vanpeperstraete Supply Chain Consultant
Louise Nicholls Managing Director Suseco Limited Kaarina Kolle Clean Energy Demand Programme Manager European Climate Foundation Joseph Zacune Consultant
Holly Syrett Global Fashion Agenda Alessandra Mezzadri Senior Lecturer in Development Studies SOAS University of London
METHODOLOGY & SCOPE OF THE RESEARCH
FASHION REVOLUTION
ABOUT ANNUAL REVIEW OF THE INDEX This year, 14 new indicators were added compared to last year. Just as we do every year, we have updated the wording in some indicators for clarity and to align with best practices. We have also added and improved search protocols that guided our researchers during the search for information disclosed by brands. If you download our questionnaire template, those changes are in red text. The weighting of the scores is designed to incentivise detailed, granular public disclosure. The intention is to put the greatest emphasis on results, outcomes, impacts and the most actionable data that can be used by external stakeholders to hold brands to account.
ADAPTING THE METHODOLOGY TO THE BRAZILIAN CONTEXT To implement the first edition of the Fashion Transparency Index Brazil in 2018, Fashion Revolution Brasil established a technical partnership with FGVces (Centre for Sustainability Studies at Getúlio Vargas), which adapted the methodology to the Brazilian context and conducted the research. Following this, after researching and consulting different experts from the Brazilian industry, we defined that it would be important to bring to the questionnaire more indicators about racial equality and the immigrant workers hired in the fashion production chain. In addition to these new specific indicators, there were a few other adjustments incorporated into the questionnaire for the preparation of its Brazilian version. This allowed the review procedures to be strictly followed with no prejudice to the comparison of results with the global methodology.
Thus, it is possible that there are differences in the final scores of the brands included in both Global Index and Brazil Index. These differences may occur due to the period of the year in which the survey was conducted for each report, the variation of indicators according to the local context, the updates of the published information as well as the fact that global brands are controlled by different groups in Brazil and worldwide. In addition, in the Brazilian Index, we do not consider disclosures about actions focused on other countries that are not related to the brand’s operation in Brazil. For example, if a brand has a diversity and inclusion practice only for European office employees, the score will not be awarded. Each review used the latest available information at the time the survey was performed.
THE 2023 INDEX METHODOLOGY:
263 individual indicators 60 brands 15.780 data points FOR MORE DETAILS, VISIT THIS LINK TO VIEW THE 2023 BRAND QUESTIONNAIRE TEMPLATE SENT TO COMPANIES IN BRAZIL.
Since 2019, we carried on reviewing the questionnaire’s content and structure with the same technical partner team, which now operates by ABC Associados consultancy. Similarly to 2018, this team has also supported us in the stages of identifying and reviewing the brands presented in this Index.
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FASHION TRANPARENCY INDEX BRASIL 2023
METHODOLOGY & SCOPE OF THE RESEARCH
FASHION REVOLUTION
LIMITATIONS OF THE RESEARCH
HOW WE CALCULATE THE FINDINGS
The survey captures information available only within the time frame of the process steps, and brands and retailers may withdraw or disclose new information at any time. Changes to the methodology in 2023 may affect year-on-year comparability of the results. Please take this into consideration when making annual comparisons. On document-based research, human error is a possibility. Although our team is committed to conducting the review in the most complete, accurate, and impartial manner possible, at different stages, there is the possibility of errors. Verification of brands’ claims are beyond the scope of this research. The Fashion Transparency Index does not provide a detailed review of content, quality, or precision of brands’ policies, procedures, performance, and progress in any particular area. Therefore, we encourage other stakeholders and experts to access and evaluate the information found.
We are confident that the methodology is comprehensive and robust when it comes to the public disclosure of information by major brands, although we acknowledge that it can always be improved. Feedback and suggestions are always welcome and, for that, you can email us at isabella@fashionrevolution.org.
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FASHION TRANPARENCY INDEX BRASIL 2023
All scores have been calculated to two decimal places (in the complete data set) and then rounded to the nearest whole percentage point for this report. The questionnaire awards a total of 250 points. To calculate the total score for each brand, we add the score awarded to the brand for the 5 different sections. Each section has a different weight as some sections are worth more points than others:
•
Section 1 is worth 33 points
•
Section 2 is worth 10 points
•
Section 3 is worth 73 points
•
Section 4 is worth 47 points
•
Section 5 is worth 87 points
The overall average score across all 60 brands is calculated by taking the average of all brands’ individual final scores.
METHODOLOGY & SCOPE OF THE RESEARCH
For the most part, year-on-year differences in scores are described as the change in percentage points, which means the actual amount of change, rather than the percent, which means the rate of change (unless explicitly stated otherwise). For instance, if a brand scored 30% in one year and 45% in the next, we are usually reporting that the brand increased by 15 percentage points (45-30=15) rather than saying the brand increased by 50% its performance (45/30=1.5). Where a score may have been rounded to the nearest percentage point in previous editions, we are calculating the year-onyear difference according to the rounded figures rather than to the exact decimal points. For example, where the average score in a particular section is 17.74%, we have rounded this up to 18%. If in a previous year’s report, the average score in that section was 12.41%, we rounded it down to 12% in the report. Therefore, the year-on-year difference is technically 5.33 percentage points (17.74 - 12.41), in this case, we chose to consider the nearest rounded figures. That is, it will appear as 6 percentage points (18 - 12).
FASHION REVOLUTION
WEIGHTING OF THE SCORES
13,2% Policy & Commitments This section explores brands’ human rights and environmental policies for both their own employees and workers in their supply chain, how these policies are implemented, if brands have relevant goals and targets in place and if brands are reporting annual progress against these targets. Since 2021, available points in this section have been halved to place more emphasis on outcomes and impacts. This section had no change in indicators this year, only the implementation of some more in-depth search protocols.
34,8% Spotlight Issues In this final section, we look at what brands are doing to deal with urgent issues such as combating forced and bonded labour, promoting gender and race equality, living wages, purchasing practices, unionisation, overproduction, waste and circularity, sustainable materials, water and chemical usage, deforestation and climate change. Since 2021, we have increased the weighting significantly compared to previous editions (up from 19.6% in 2020) in an effort to push harder for disclosure of information on the most urgent and difficult problems faced in the industry.
4% Governance Here we look at who on the executive board has responsibility for human rights and environmental issues, how this is implemented, whether the relevant department can be easily contacted by the public, and how human rights and environmental improvements are linked to employee, CEO and executive level, and supplier performance. We also looked to see whether there is worker representation on the company’s board of directors and the amount spent on corporate responsibility and sustainability.
18,8% Know, Show & Fix In Know, Show & Fix we review what brands disclose about their human rights and environmental due diligence processes. We also research how they assess suppliers against their policies, what are the results of these audits and assessments, what brands do when problems are found, how workers can file complaints and how these are addressed.
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FASHION TRANPARENCY INDEX BRASIL 2023
29,2% Traceability In this section we expect brands to publish supplier lists at three levels: manufacturing, processing facilities and mills, and raw materials. We also look for extra details in these lists such as supplier addresses, number of workers on site, gender and race breakdown, number of migrant workers, union representation, and when the list was last updated. We also checked whether or not brands are active contributors to the Open Supply Hub to enable collaboration and efficient access of data for impacted stakeholders. For the first time this year, we included indicators on energy and water consumption at Tier 1 and processing level.
METHODOLOGY & SCOPE OF THE RESEARCH
FASHION REVOLUTION
A GUIDE TO THE FINAL SCORING We have intentionally grouped brands in percentage ranges so readers can focus on the emerging patterns and trends for disclosing information by the companies rather than focusing on their individual scores. True transparency and a score of 100% would facilitate the investigative work of civil society organisations and experts, e.g. trade unions representing garment workers, thereby allowing them to focus on mitigating problems and promoting improvements rather than directing efforts in the search for data to support their work. A commitment to transparency is a commitment to a continuous process of improvement. It is not a mere quiz-filling exercise. Human rights and environmental risks in fashion are constantly changing and, therefore, in order to maintain transparency, disclosure needs to be ongoing and up to date.
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Brands scoring between 0-5% are disclosing nothing at all or a very limited number of policies, which are often related to the brand’s hiring practices, local community engagement activities, or water or energy reduction initiatives.
Brands scoring between 6-10% are likely to be publishing some policies for both their employees and suppliers. Those closer to 10% are more likely to be publishing a basic supplier code of conduct, some information about their procedures and limited information about their practices and grievance channels.
Brands scoring between 11-20% are likely to be publishing policies for both employees and suppliers and information about their practices. These brands often disclose some information about their governance and supplier assessment and remediation processes. In the Spotlight Issues section, these companies tend to disclose specific data about their carbon footprint and use of sustainable materials.
Brands scoring between 21-30% are likely to be publishing much more detailed information about their policies, procedures, governance, social and environmental goals and supplier assessment and remediation processes. These brands may be publishing their list of suppliers, mainly production manufacturers, information about governance and grievance channels related to human rights and environmental issues. These brands are usually not disclosing extensive information about Spotlight Issues.
Brands scoring between 31-40% are typically disclosing information about their governance practices, as well as more detailed data about their policies, procedures, social and environmental goals, supplier assessment, and remediation processes. These brands are also more likely to disclose their due diligence processes and address some of the Spotlight Topics, such as combating modern slavery, using sustainable materials, and data on decarbonisation, carbon footprint, and energy use.
Brands scoring 41-50% are likely to be publishing more detailed supplier lists as well as some information on supplier assessment findings. In addition, they are usually disclosing their policies, procedures, social and environmental goals, governance, due diligence and remediation processes. These brands are also likely to be addressing some of the Spotlight Issues, such as combating modern slavery, information on gender and racial equality, the use of sustainable materials, solutions to deal with textile waste, and data on decarbonisation and carbon footprint.
0 – 5%
6 – 10%
11% – 20%
21% – 30%
31% – 40%
41% – 50%
FASHION TRANPARENCY INDEX BRASIL 2023
METHODOLOGY & SCOPE OF THE RESEARCH
FASHION REVOLUTION
To access the complete dataset, CLICK HERE.
47
Brands scoring 51-60% are disclosing all the information already described in the other ranges as well as more detailed supplier lists and more complete data about their governance practices. These brands are likely to be publishing findings of their supplier assessments, describing their due diligence processes, and addressing many of the Spotlight Issues, such as combating modern slavery, gender and racial equality, unionisation and collective bargaining, promoting gender and racial equality, sustainable materials, waste and circularity, water and chemicals, carbon footprint, and renewable energy.
Brands scoring 61-70% are disclosing all of the information already described in the other ranges and will be publishing detailed supplier lists, which include manufacturers, processing facilities and some suppliers of raw materials. These brands will also be addressing relatively more information on much of the topics related to the Spotlight Issues section.
No brands scored above 70%, but if any had done so, they would be disclosing all the information already described before as well as detailed information on their due diligence processes, and complete lists for at least 95% of all suppliers, from tier 1 to manufacturing and processing facilities. In addition, they disclose extensive data on the themes of Spotlight Issues, but there is still a lack of significant disclosures on results and impacts. In 2022, no brand were in this score range either.
51% – 60%
61% – 70%
71% – 80%
FASHION TRANPARENCY INDEX BRASIL 2023
If any brand had scored between 81% and 90%, they would be disclosing all the information already described above, as well as more comprehensive findings from their supplier assessments, the remediation results for specific facilities, and complete lists for at least 95% of all suppliers, from manufacturing right down to raw materials. It would also share more comprehensive data on the use of sustainable materials, issues related to gender and race in their supply chains, their approach to purchasing practices, as well as their approach to, and progress towards, paying living wages for supply chain workers. In addition, it would disclose the carbon emissions, renewable energy use and water footprint from its own operations and in its supply chains - down to the raw material level.
A score of 100% would mean that a brand is disclosing detailed information on all human rights, corporate governance and environmental indicators reviewed in the Index. However, this would not mean the end of the journey, but rather an excellent starting point towards public accountability and the mitigation of its negative impacts, driving changes for the sector.
81% – 90%
91% – 100%
METHODOLOGY & SCOPE OF THE RESEARCH
FASHION REVOLUTION
FULL RESULTS
No. of brands
THE FINAL SCORES
16 brands scored 0%
QUICK OVERALL FINDINGS
30
25
20
15
10
5
Kyly
4
Ellus
3
Klin
3
Caedu
1
Dakota
1
Penalty
1
Puket
1
Studio Z
1
80% of brands scored less than half the available points
Torra
1
Besni
0
Brooksfield
0
Carmen Steffens
0
Cia. Marítima
0
Colcci
0
Di Santinni
0
Dumond
0
Fórum
0
Animale
Havan
0
Marisa
29
Leader
0
Farm
28
Lojas Avenida
0
Lupo
27
Pernambucanas 50
C&A
70
Lojas Pompéia
0
DeMillus
26
Hering
49
Aramis
57
Malwee
68
Marisol
0
Centauro
9
Shein
16
Hope
26
Zara
47
Ipanema
55
Dafiti
67
Moleca
0
Shoulder
9
Osklen
15
Trifil
25
Arezzo
42
Melissa
55
Renner
65
Sawary
0
Netshoes
7
Track&Field
15
Le Lis Blanc
23
Nike
42
Adidas
54
Youcom
65
TNG
0
Olympikus
7
Amaro
13
John John
22
Reserva
41
Riachuelo
52
Havaianas
62
0 – 5%
The average score was 55 out of 250 points (22%) 6 brands scored in the 61% - 70% range
6 – 10%
11% – 20%
21% – 30%
29
Decathlon
31% – 40%
31
41% – 50%
51% – 60%
61% – 70%
Not a single brand scored above 70%
Score range
71% – 80%
81% – 90%
91% – 100%
* The brands are ranked in numerical order out of a score of 250, but they are shown here as a rounded-up percentage. If any brands have the same score, they are listed in alphabetical order. 49
FASHION TRANPARENCY INDEX BRASIL 2023
FULL RESULTS
FASHION REVOLUTION
AVERAGE SCORES ACROSS THE SECTIONS POLICIES & COMMITMENTS
GOVERNANCE
TRACEABILITY
KNOW, SHOW & FIX
SPOTLIGHT ISSUES
36%
26%
25%
17%
16%
Brands are once again most transparent about their policies and commitments than other sections of this report. C&A scored highest in this section at 97%, followed by Adidas at 93%, and Malwee at 91%. We can see a growing year-on-year increase in brands scoring in the highest ranges above 70% - in this section: 18 brands in 2023, 12 in 2022, and 7 in 2021.
Adidas and Malwee scored highest in this section, reaching 100% of the available points, followed by Aramis at 90%.
The highest scores in this section were Havaianas at 96% and Dafiti at 86%. Next, we have Aramis, C&A, Renner and Youcom scoring at 85%.
Despite an improvement when compared to last year’s results, over half (55%) scored at the lowest range (0-10%), with 27 brands scoring zero. This indicates that most brands reviewed still do not disclose any information on their governance practices. Examples of information that is not being disclosed would be direct contacts details for a relevant department responsible for environmental and human rights issues, data on the member or committee of the board of directors responsible for these issues, or the amount invested by the company in sustainability and corporate responsibility actions.
Over half of the brands reviewed (57%) scored 0, disclosing no information on their supplier lists. Despite this, this section had the biggest increase from the overall average observed last year, from 18% in 2022 to 25% in 2023. In addition, this is the only section where the Brazilian Index scores slightly above the Global Index at 23% this year.
The highest scores in this section were Dafiti at 62% and Malwee at 57%, followed by Ipanema, Melissa and Zara at 55%. The rest of the brands (92%) scored less than 50% of the available points in this section. This means that most brands reviewed disclose little or no information on how their human rights and environmental policies - scored in section 1 - are tracked along the supply chain. The followup in this case would be through the due diligence processes, with their respective audit steps and remediation of the identified problems.
In this section, we had the lowest average Index score for the fifth year in a row. The brands that stood out the most were C&A at 60%, Malwee at 59% and Zara at 52%. The rest (95%) reached less than half the available points, with 38% of brands scoring 0.
Over a third of the brands (37%) scored in the lowest range - from 0 to 10% - in this section, with 15 brands scoring zero. Despite this number of brands with little or no public disclosure about their policies and commitments, we can see an improvement compared to the 2022 results, in which 48% of brands were in this range. This means that every year brands disclose more information on their company policies and their supplier policies, as well as their practices, goals and progress towards improving human rights conditions and reducing environmental impacts.
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FASHION TRANPARENCY INDEX BRASIL 2023
FULL RESULTS
These results show there is a widespread lack of transparency among the majority of major brands across a range of critically important and increasingly urgent social and environmental issues, such as fighting forced and bonded labour, purchasing practices, living wages, unionisation, gender and race equality, use of sustainable materials, waste and circularity, water and chemicals, climate change and deforestation.
FASHION REVOLUTION
POLICIES & COMMITMENTS
APPROACH WHAT HUMAN RIGHTS AND ENVIRONMENTAL POLICIES & PROCEDURES DO MAJOR BRANDS AND RETAILERS PUBLICLY DISCLOSE? In this section, we reviewed what policies and procedures brands disclose both at company level (as related to the company’s own operations in head offices, stores, warehouses, and owned production facilities) and at supplier level (Code of Conduct or supplier guidance document for their supply chain). The research guidelines in this section provide contextual information for researchers and brands to understand what information we will and will not accept. It is important to note that, to score, all the topics reviewed must be explicitly stated in the policies. For example, for Equal Pay, we only accept disclosure that explicitly states “compensation/remuneration/payment” or equivalent. We will not accept disclosure which shares a general statement about equal opportunity employment decisions or conditions to all genders. In addition, we have not awarded points where brands’ policies “encourage” or “suggest” that a supplier does something. The disclosure must be a supplier’s requirement. Language, when ambiguous, can be used as a way to deflect responsibility and our aim was to more closely scrutinise language used.
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Regarding the disclosure of management procedures – what brands are doing to ensure their human rights and environmental policies are upheld and put into action - we look for actions that go beyond just conducting compliance audits. Most of the indicators presented in the table on this page are reviewed both in relation to the brand’s own operation and to its suppliers. However, these topics are reviewed only regarding supplier policies: living conditions/dormitories, contracts and terms of employment, water effluents and treatment, restricted substance lists in production, foreign and migrant labour, overtime pay, subcontracting, homeworking, modern slavery and child labour. The topics related to animal welfare, diversity and inclusion, restricted substance list, and mental health and wellbeing have been reviewed only regarding policies applied to the brands’ own internal processes and/or direct employees.
Human rights and environmental goals In this section, we have also looked at whether brands and retailers publish strategic goals or roadmaps for improving social and environmental impacts across the value chain. We specifically looked for clear, measurable, long-term, time-bound targets. We also awarded points if brands are reporting on annual progress towards achieving these targets. And finally, we checked to see if the annual report for sustainability or corporate social responsibility was audited by an independent third party.
“ Value chains are sometimes interspersed with other sectors; and understanding and managing risks and impacts on human rights in this context is not a simple task. However, this difficulty cannot exempt companies from doing so. Today there is no way for companies to ignore that their activities and commercial relationships can adversely impact human rights, especially throughout value chains, and that they need to do better about it.”
FGV Business Human Rights Center (FGV - CeDHE)
POLICIES & COMMITMENTS
FASHION REVOLUTION
WE LOOKED AT THE FOLLOWING ISSUES:
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•
Anti-bribery, Corruption & Presentation of False Information
•
Freedom of Association, Right to Organise & Collective Bargaining
•
Harassment & Violence
•
Restricted Substances List (RSL)
•
Animal Welfare
•
Manufacturing Restricted Substances List (MRSL)
•
Biodiversity & Conservation
•
Foreign & Migrant Labour
•
Living Conditions / Dormitories
•
Overtime Pay
•
Contracts & Terms of Employment (including notice period, dismissal & disciplinary action)
•
Waste & Recycling (Packaging/ Office/Retail)
•
Waste & Recycling (Product/Textiles)
•
Maternity Rights and Parental Leave
•
Wages & Benefits (bonuses, insurance, social security, pensions)
•
Discrimination
•
Health & Safety
•
Diversity & Inclusion
•
Mental Health & Wellbeing
•
Water Effluents & Treatment
•
Subcontracting
•
Energy & Greenhouse Gas Emissions
•
Homeworking
•
Community Engagement
•
Forced & Bonded Labour
•
Equal Pay
•
Child Labour
•
Annual Leave & Public Holidays
•
Water Usage
•
Working Hours & Rest Breaks
FASHION TRANPARENCY INDEX BRASIL 2023
POLICIES & COMMITMENTS
FASHION REVOLUTION
Nº of brands
RESULTS AVERAGE SCORE PER BRAND
30
25
20
15
Dakota
5
Torra
5
Lojas Pompéia
2
Puket
2
Studio Z
2
Besni
0
Brooksfield
0
Carmen Steffens 0
10
5
Cia. Marítima
0
Colcci
0
Di Santinni
0
Dumond
0
Riachuelo
78
Fórum
0
Decathlon
77
Havan
0
Ipanema
77
Leader
0
Melissa
77
Dafiti
90
Lojas Avenida
0
Trifil
29
John John
47
Aramis
74
Zara
89
Marisol
0
Olympikus
20
DeMillus
27
Hope
37
Le Lis Blanc
47
Animale
73
Renner
85
Moleca
0
Netshoes
14
Nike
26
Amaro
35
Lupo
45
Arezzo
73
Youcom
85
C&A
97
Sawary
0
Caedu
8
Kyly
13
Centauro
24
Shoulder
34
Shein
45
Farm
73
Havaianas
82
Adidas
93
TNG
0
Penalty
7
Klin
11
Ellus
24
Track&Field
34
Marisa
44
Reserva
73
Hering
82
Malwee
91
0 – 5%
6 – 10%
11% – 20%
21% – 30%
31% – 40%
41% – 50%
Osklen
51% – 60%
56
Pernambucanas 66
61% – 70%
71% – 80%
81% – 90%
91% – 100% Score range
* The brands are ranked in numerical order out of a score of 33, but they are shown here as a rounded-up percentage. If any brands have the same score, they are listed in alphabetical order. 54
FASHION TRANPARENCY INDEX BRASIL 2023
POLICIES & COMMITMENTS
FASHION REVOLUTION
FINDINGS HOW MANY BRANDS DISCLOSE THEIR POLICIES AND PROCEDURES FOR EACH TOPIC?
Anti-bribery, Corruption & Presentation of False Information Discrimination Harassment & Violence Freedom of Association, Right to Organise & Collective Bargaining Health & Safety Wages & Financial Benefits (e.g. bonuses, insurance, social security, pensions) Waste & Recycling (Packaging/Office/Retail) Community Engagement Biodiversity & Conservation Water Effluents & Treatment Energy & Greenhouse Gas Emissions Working Hours & Rest Breaks Water Consumption Maternity Rights & Parental Leave Annual Leave & Public Holidays Restricted Substance List (RSL) Waste & Recycling (Product/Textiles) Animal Welfare Equal Pay Mental Health & Wellbeing Living Conditions/Dormitories Contracts & Terms of Employment (including notice period, dismissal & disciplinary action) Diversity & Inclusion Manufacturing Restricted Substances List (MRSL) Foreign & Migrant Labour Overtime Pay
Company policies Supplier policies Procedures
55
FASHION TRANPARENCY INDEX BRASIL 2023
Subcontracting Homeworking Forced & Bonded Labour no. of brands
Child Labour
POLICIES & COMMITMENTS
FASHION REVOLUTION
IMPLEMENTATION OF POLICIES FORCED & BONDED LABOUR
HARASSMENT & VIOLENCE
55%
Publish supplier policies.
57%
Publish supplier policies.
50%
Publish supplier policies.
23%
Disclose how policies are implemented.
32%
Disclose how policies are implemented.
45%
Disclose how policies are implemented.
MATERNITY RIGHTS AND PARENTAL LEAVE
56
CHILD LABOUR
SUBCONTRACTING
COMMUNITY ENGAGEMENT
37%
Publish company policies.
40%
Publish supplier policies.
52%
Publish company policies.
27%
Publish supplier policies.
25%
Disclose how policies are implemented.
33%
Publish supplier policies.
FASHION TRANPARENCY INDEX BRASIL 2023
POLICIES & COMMITMENTS
FASHION REVOLUTION
ANIMAL WELFARE
ENERGY & GREENHOUSE GAS EMISSIONS
23%
Publish company policies.
43%
Publish company policies.
40%
Publish company policies.
18%
Disclose how policies are implemented.
35%
Publish supplier policy.
35%
Publish supplier policies.
RESTRICTED SUBSTANCES LISTS
57
BIODIVERSITY & CONSERVATION
WATER USAGE
WASTE AND RECYCLING
25%
Publish Restricted Substances List (RSL)
37%
Publish company policies.
43%
Publish company policies on packaging/office/retail waste.
27%
Publish Manufacturing Restricted Substances List (MRSL).
33%
Publish supplier policies.
30%
Publish company policies on product/textile waste.
FASHION TRANPARENCY INDEX BRASIL 2023
POLICIES & COMMITMENTS
FASHION REVOLUTION
ANNUAL PROGRESS
MENTAL HEALTH & WELLBEING
EQUAL PAY
DIVERSITY & INCLUSION
ENERGY & GREENHOUSE GAS EMISSIONS
COMMUNITY ENGAGEMENT
FOREIGN & MIGRANT LABOUR
60 53
52 48
47
37
35
32
20
2023
2022
% of brands disclose procedures for this topic
58
2023
23
22
2022
% of brands disclose procedures for this topic
FASHION TRANPARENCY INDEX BRASIL 2023
32
2023
2022
% of brands publish company policies
2023
2022
% of brands disclose procedures for this topic
POLICIES & COMMITMENTS
2023
2022
% of brands publish company policies
2023
2022
% of brands publish supplier policies
FASHION REVOLUTION
ANALYSIS Brands continue to be more transparent about their policies and commitments than their results and impacts. This year, the overall average score of the Policies and Commitments section was 36%, which is equivalent to an increase of 5 percentage points compared to 2022. This score is the highest ever presented in a section of the Fashion Transparency Index Brazil since the project started. This means that the largest fashion brands and retailers operating in the Brazilian market are increasingly more transparent on how they formalise important issues on the human rights and environmental agenda through their policies. It also shows how these companies are putting these policies into practice. Despite this, the challenge remains that the progress identified in section 1 of the Index must also be seen in other sections, such as governance as well as supply chain traceability, and urgent issues for the sector, such as fair wage payment, gender and racial equality, and decarbonisation, among others. Transparency about policies, practices and commitments is key, but companies also need to be transparent about their impacts and outcomes.
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FASHION TRANPARENCY INDEX BRASIL 2023
It is important to note that, despite the advances, this section still presents the greatest disparity between the overall average score of the brands reviewed in the Brazilian Index and in the Global Index. The average score of the 250 brands reviewed globally was 53%, which is a 17-percentagepoint difference to the Brazilian result. The most disclosed company policies for direct employees and their own operations this year were those related to fighting discrimination (65%), preventing harassment and violence (62%) as well as anti-bribery, corruption and presentation of false information (58%). The least disclosed topics were those on animal welfare (23%), equal pay (14%) and restricted substance lists (RSL) (25%). Regarding supply chain policies, the most disclosed topics related to anti-bribery, corruption and presentation of false information (57%), fighting child labour (57%) and modern slavery (55%). The least disclosed policies were those related to homeworking guidelines (15%) - referring to workers in the supply chain who work from home and not to their own professionals on a home-office basis -, overtime payment (13%) and the right to annual leave and public holidays (25%).
Transparency about policies, practices and commitments is key, but companies also need to be transparent about their impacts and outcomes.
Regarding information on how human rights and environment policies are implemented, the most popular procedures were those related to waste management and/or recycling of packaging and office/ retail products, waste management and/or recycling of textile materials and products as well as energy and greenhouse gas emissions management, all with 60%.
Half of the brands reviewed report that their supplier policies are part of the purchase contracts or that the supplier’s signature on the Code of Conduct is required. In addition, 38% of the brands report that their supplier policies are based on respected international standards - such as UN and ILO conventions, Global Compact principles or OECD Guidelines - and 23% report that their supplier policies are translated into the local languages of producing/supplying countries.
POLICIES & COMMITMENTS
FASHION REVOLUTION
Most brands still fail to disclose their procedures for migrant workers and for homeworkers. The least disclosed topics are the same as last year, showing brands’ reluctance to disclose their procedures on homeworking (2%), living conditions/dormitories (13%) and foreign and migrant work (15%). Considering that migrant work is prevalent in the domestic apparel industry and that about 8% of global workers were working from home in 2019, the low transparency of brands on topics related to the human rights in their supply chains is a relevant concern. According to the Homeworkers Worldwide initiative, work-from-home in fashion supply chains is more prevalent than many brands realise. As these workers are usually women who work informally, they end up being left out of the scope of the company audit procedures. This lack of visibility is an obstacle for companies to address issues related to homeworking. However, the difficulty of monitoring does not exempt brands from their responsibility to solve this problem. A first step towards greater transparency on the topic would be to recognise the existence of homeworking rather than simply trying to ban it in their suppliers’ codes of conduct. Clear policies for homeworkers, accompanied by a
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FASHION TRANPARENCY INDEX BRASIL 2023
commitment to monitor and improve their working conditions, are an essential step towards better management practices in the fashion sector.
Brands disclose more goals related to the environment than to human rights.
A final point noted in this section is the fact that only 25% of brands publish an annual sustainability or corporate social responsibility report audited by an independent third party. In terms of transparency, an independent verification mechanism is key for companies to increase the credibility of the information presented in their reports.
This year, 42% of the brands published time-bound, measurable commitments, targets or objectives to reduce their environmental impacts, while 27% did so regarding human rights improvements. Regarding information on the annual progress of these targets, 33% disclose evidence related to environmental objectives and 23% to human rights objectives. The difference between the number of brands that disclose their goals to those that disclose their year-on-year progress is noteworthy. Ideally, such numbers would be the same, showing that all brands that disclose their strategic plans also disclose the path followed to achieve them. Failure to publicly report on what is being done towards targets makes it difficult for stakeholders to observe and push brands towards greater accountability, especially in cases where targets are far from being met.
POLICIES & COMMITMENTS
Illustration: Luana Fernandes Fórum Fashion Revolution 2023
FASHION REVOLUTION
“ The use of animals in production chains significantly contributes to the crisis linked to planetary boundaries we are currently facing, with the worsening of climate change, loss of biodiversity, pollution and the risks of health emergencies due to zoonotic diseases. It’s becoming increasingly common for new generations to seek brands committed to collaborating to solve social and environmental problems, and this includes avoiding the suffering of billions of animals in segments such as food and fashion, and the consequences that this brings. In the food segment, for example, there are already more than 2,500 companies around the world with animal welfare commitments. We understand that the fashion industry has great potential to work with innovations that eliminate the use of animals and with the creation of ethical and sustainable products which can even serve as an example for other areas. As we move in this direction, it is imperative that companies include clear and transparent policies in their ESG agenda regarding their initiatives to help promote a more sustainable and fair system with all beings.”
Renata Scarellis Senior Director Corporate Policy Mercy for Animals
61
FASHION TRANPARENCY INDEX BRASIL 2023
POLICIES & COMMITMENTS
FASHION REVOLUTION
GOVERNANCE
APPROACH WHO IN THE COMPANY IS RESPONSIBLE FOR THE SOCIAL AND ENVIRONMENTAL IMPACTS? In this section, we try to understand who in the company is accountable for social and environmental performance and impacts and whether there are mechanisms in place to encourage employee engagement, such as linking variable compensation to sustainability goals. We also looked for the name or contact details of a board member who is responsible for social and environmental issues and how this oversight is implemented. In addition, we looked for the representation of workers on the company’s board and the disclosure of the percentage of executive pay linked to environmental and social targets.
Transparency
We looked to see if brands are disclosing how their employees, beyond the sustainability team, (e.g. designers, buyers, sourcing managers and so on) are incentivised (via performance reviews or bonuses) to achieve improvements on social and environmental impacts. We looked for the same information to be shared linking CEO and executive level pay and incentives to social and environmental impacts. Finally, we also looked to see if suppliers’ incentives are linked to improvements in human rights impacts and environmental management. The types of incentives we were looking for included brands committing to long-term contracts, increased order size, price premiums and reducing the number of audits.
Fair trade
Well-being
Empowerment
Good working conditions
Business accountability
Gender Equality Racial Equality
Sustainable livelihoods Environmental sustainability Living wages
A clean, safe & fair fashion industry
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FASHION TRANPARENCY INDEX BRASIL 2023
GOVERNANCE
FASHION REVOLUTION
Nº of brands
RESULTS AVERAGE SCORE PER BRAND
30
25
Besni
0
Brooksfield
0
Caedu
0
Carmen Steffens 0
20
15
10
5
Cia. Marítima
0
Colcci
0
Dakota
0
DeMillus
0
Di Santinni
0
Dumond
0
Ellus
0
Fórum
0
Havan
0
Hope
0
Klin
0
Kyly
0
Leader
0
Lojas Avenida
0
Lojas Pompéia
0
Marisol
0
Moleca
0
Penalty
0
Amaro
10
John John
30
Puket
0
Centauro
10
Le Lis Blanc
30
Arezzo
60
Animale
80
Sawary
0
Lupo
10
Marisa
30
Dafiti
60
Farm
80
Studio Z
0
Netshoes
10
Ipanema
20
Nike
30
60
Renner
80
TNG
0
Shoulder
10
Melissa
20
Osklen
30
Youcom
80
Torra
0
Trifil
10
Olympikus
20
Track&Field
30
Zara
80
0 – 5%
6 – 10%
11% – 20%
21% – 30%
Shein
31% – 40%
40
Decathlon
50
Hering
Havaianas
50
Pernambucanas 60
Riachuelo
50
Reserva
41% – 50%
51% – 60%
60
C&A
61% – 70%
70
71% – 80%
Aramis
90
81% – 90%
Adidas
100
Malwee
100
91% – 100% Score range
* The brands are ranked in numerical order out of a score of 10, but they are shown here as a rounded-up percentage. If any brands have the same score, they are listed in alphabetical order. 64
FASHION TRANPARENCY INDEX BRASIL 2023
GOVERNANCE
FASHION REVOLUTION
FINDINGS PERFORMANCE IMPROVEMENT INCENTIVES
23%
Disclose employee incentives linked to human rights and environmental improvements.
32%
Disclose executive incentives linked to human rights and environmental improvements.
BOARD LEVEL ACCOUNTABILITY
HOW EASY IS IT TO CONTACT THE BRANDS?
53%
65
Publish direct contact details for the sustainability department.
FASHION TRANPARENCY INDEX BRASIL 2023
32%
Publish board member responsible for human rights and environmental issues.
35%
Publish how board accountability is implemented.
18%
Disclose the percentage of the variable compensation of executives linked to social and environmental targets.
3%
Publish worker representation on the corporate board of directors.
22%
Disclose suppliers’ incentives linked to good working and environmental practices.
HOW MUCH DOES THE BRAND SPEND ON SUSTAINABILITY?
18%
Disclose amount spent on corporate responsibility and sustainability efforts as a percentage of overall budget.
GOVERNANCE
FASHION REVOLUTION
ANALYSIS Corporate governance applies to companies of all sizes, helping to improve transparency and accountability internally and externally, reduce risks, attract and retain investors, customers and employees, and so on. Even small and mediumsized companies can benefit from a governance system. A successful governance system must be tailored to the specific needs of the company and must be implemented and maintained consistently. In recent years, there has been an increase in regulations aimed at the social and environmental responsibility of companies, such as Brazil’s Central Bank (Bacen) regulations and the new Securities Exchange Commission (CMV) rules for sustainability issues in the Reference Form. Even so, we have seen little progress in the transparency of the largest fashion brands and retailers on issues related to their governance.
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FASHION TRANPARENCY INDEX BRASIL 2023
Despite stakeholders’ activism - including investors, trade unions and consumers - pushing for greater transparency and accountability on social and environmental impacts at the board level of major brands, the results of the Index suggest that companies in the Brazilian fashion sector still have a long way to go to improve their transparency. One of the issues that needs attention is transparency on the accountability of sustainability policies and practices at board level. This includes disclosing how the company has ensured that the board is held accountable on social and environmental matters and how they supervise progress on these matters; the name or names of the board members responsible for sustainability issues and how they use social and environmental data to improve its strategy and operation.
Another challenge is transparency on the participation of employees on the board, which is a practice disclosed by very few companies, considering that only 3% of participants report having employee representation on the corporate board of directors. This percentage is the same compared to last year, which indicates that this issue remains stagnant. Employee representation in strategic instances can help ensure that the sustainability policies and practices are aligned with workers’ interests and help improve corporate accountability. In addition, only 18% of brands disclose information on the amounts spent on corporate responsibility and sustainability in relation to the amounts foreseen in their overall budgets. Either way, this represents a significant improvement compared to 2022, when only 7% of brands published this information. Transparency about these types of expenses is important for the management of companies and for stakeholders to assess their commitments to corporate responsibility and sustainability. Without this information, it is difficult to know if companies are actually investing in improving their practices. The disclosure of amounts spent as a percentage of the overall budget is a way to make this information more comparable among companies. In addition, transparency on the amounts spent on sustainability can help ensure
GOVERNANCE
that companies are using their resources efficiently and effectively. By disclosing this information, companies can demonstrate that they are also being transparent and accountable with their financial resources. Board-level accountability is crucial to ensure that human rights and environmental risks are addressed at the highest decision-making level. Board members have a fiduciary duty to act in the best interests of the company, which includes a holistic approach to risks including the protection of workers’ rights and the environment. Public disclosure of direct contact details for relevant departments helps consumers and stakeholders push for more information from major brands and retailers to keep them accountable and demand they publish evidence to back up their claims.
FASHION REVOLUTION
CORPORATE GOVERNANCE IN BRAZIL Fashion executives are some of the richest individuals on the planet and should be held accountable for the human rights and environmental impacts of their brands. Despite this, only 18% of brands disclose the percentage of executives’ bonuses linked to sustainability targets. Brazil is one of the countries with the highest concentration of income in the world. According to the Study of the World Inequality Lab at the Paris School of Economics, the country remains one of the countries with the greatest social and income inequality. Parallel to this, CEO pay is skyrocketing. A survey carried out by Capital Reset with the 25 companies with the highest weight in the São Paulo Stock Exchange (Bovespa) index shows that the greatest disparity is 1,100 times the median of employees, which is the central value for distribution. This wage gap is a reflection of the inequality that exists in Brazilian society, but it is also a result of the lack of transparency and the excessive focus on profits at any cost. The pay gap between fashion CEOs and the people who make our clothes is a reflection of the exploitation that takes place in the fashion industry. It is possible that people at the basis of the
67
FASHION TRANPARENCY INDEX BRASIL 2023
fashion production chain in Brazil and other countries work in precarious conditions, often with wages below the legal minimum wage and who are exposed to risks such as accidents and diseases. Thus, it is important to establish mechanisms that link the variable compensation of executives to sustainability targets. Although this is not a definitive solution, it is an effective measure to hold senior leadership accountable and consequently improve performance on human rights and environmental issues. In this edition of the Fashion Transparency Index Brazil, 32% of companies publish whether their incentive programmes and executive pay (CEO, CFO and other directors) are tied to human rights and environmental management targets and improvements (e.g. annual bonuses and performance evaluation). This figure drops to 18% when we look for the disclosure of the percentage of bonuses or executive pay linked to environmental and social targets.
In relation to suppliers, 22% of brands disclose how the incentives offered are linked to human rights and environmental impacts. This percentage represents a considerable increase compared to the 12% found in the last Index, but still a challenge compared to the 31% indicated in the Global Index. Instituting such incentives can help motivate and engage workers and suppliers in sustainable practices, who, knowing that their performance in these practices impacts their salary or revenue, are more likely to take steps to improve the company’s sustainability.
When we looked at whether the reviewed brands have incentives, performance evaluations or variable compensation programmes linked to these topics for their other employees, we found evidence in 23% of them. This percentage is 5 points higher than the 2022 Index and even higher than the Global Index, in which only 17% of companies published this information.
GOVERNANCE
Corporate governance in Brazil is a topic in slow but constant evolution. The Brazilian Corporation Act (LSA), enacted in 1976, was an important milestone in the promotion of corporate governance in the country, establishing minimum requirements for the companies listed on the stock exchange. However, it is only since the 1990s that corporate governance began to gain greater relevance in Brazil. The Brazilian Institute of Corporate Governance (IBGC), founded in 1995, was an important agent of this transformation, when it published the Brazilian Code of Corporate Governance, which is a reference for Brazilian companies. B3, which is the Brazilian stock exchange, has also played an important role in promoting corporate governance. In 2000, B3 launched Novo Mercado, a listing segment aimed at companies that adopt the best governance practices. In 2023, IBGC launched the 6th edition of the Brazilian Code of Corporate Governance, which included the principle of sustainability as one of the five fundamental principles of corporate governance. This principle establishes that companies must adopt practices that contribute to the sustainable development of society.
FASHION REVOLUTION
VIEWPOINT THE CORPORATE GOVERNANCE PATH TO ESG IMPROVEMENTS IN THE FASHION INDUSTRY
VALERIA CAFÉ
Director of v&i Brazilian Institute of Corporate Governance (IBGC)
Brazil produces about 9.04 billion pieces of clothing and home textiles annually. Our fashion, a world reference in beachwear, jeanswear, homewear and other segments, is the second largest generator of jobs in the manufacturing industry as well as the second sector in generating first jobs opportunities in the country. Its facilities in the value chain consists of 25,000 companies of different sizes, located in all states and employing 1.3 million people. It is recognised as the fifth largest industry in the world with an integrated production structure, from natural, synthetic and artificial fibres, through design, creation, modelling, weaving and accessories to manufacturing.
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FASHION TRANPARENCY INDEX BRASIL 2023
Data from the Brazilian Textile and Apparel Industry Association (Abit) shows the economic significance of fashion and, consequently, the importance for the sector to follow sustainability principles from a corporate, environmental and social perspective, given its impact on the country’s economy and society. The positive news is that the sector aims to expand clean production and provide decent employment and well-being to all of those who work in its various segments. This can be inferred from the analysis of the Textile Document 2030 (Abit/Senai Cetiqt/ ABDI) which contains the guidelines for the promotion of clean production and is aligned with the Sustainable Development Goals (SDGs). The Fashion Transparency Index Brazil 2023, which reviews and ranks 60 of the largest companies of the sector, highlighted some relevant progress in this field and this is fundamental for a true revolution in the fashion industry. However, it also highlights the need for more significant advances in accountability regarding the governance indicators in the Index, considering that the average score in the governance section is around 26% s.
In this sense, the effective application of the IBGC Code of Best Corporate Governance Practices, with its sixth edition being launched this year, is a strong ally for a more robust alignment of fashion to ESG principles. The Code pushes for five essential principles of governance, starting with Integrity. That is, to practise and promote the continuous improvement of values across the value chain, including how the entire network of suppliers and third parties treat their teams and communities. Transparency is also essential, providing stakeholders with accurate, clear and relevant information, positive or negative, and disclosing indicators such as financial results, sustainability actions and the climate agenda and stakeholder relationships. Equally relevant is the Equity principle, which states that each individual and group of people must be treated fairly, according to the demands of each one, with respect for diversity, inclusion and pluralism as well as equal rights and opportunities. Accountability, so that investors, directors and executive officers of companies perform their duties with diligence and independence, and Sustainability, so that organisations reduce their negative social and environmental externalities as well as complete the essential precepts of corporate governance.
GOVERNANCE
It is particularly important to apply these concepts in the fashion/textile sector whose demand has a vast reach, from luxury to affordable clothes. The increasing levels of production are fuelled by trends and the need to buy the latest fashionable item, with marketing strategies targeting billions of people across the world. One of the fashion sector’s responsibilities is to contribute to effective inclusion, putting into practice the concept that the purpose of companies transcends profit to focus on social wellbeing, including respect for the environment. The fashion sector’s agenda being pursued in the country and worldwide can find answers and solutions in corporate governance. It is a revolution that begins with the transparency of fashion companies and in the way they act as agents of change.
FASHION REVOLUTION
SUPPLY CHAIN TRACEABILITY
APPROACH ARE BRANDS DISCLOSING THEIR SUPPLIER LISTS? HOW DETAILED IS THIS INFORMATION? This section focuses on whether brands are publishing their supplier lists, from the manufacturing facilities to the raw materials level, and what level of detail brands are disclosing about this information.
•
Address of supplier’s facilities
•
Types of products/services at such facilities
•
Name of parent company for each facility
•
Approximate number of workers in each facility
•
Gender breakdown of workers
•
Race breakdown of workers
•
% of migrant or contract workers
•
Name of the facility’s trade union or independent worker committee
•
Certifications the facility holds, if any
Processing facilities, such as ginning and spinning yarn, weaving, dye-houses, laundries, wet processes, embroidery and printing of fabrics.
•
Average monthly take-home wage of entry-level workers
•
Length of time working with each supplier
•
Energy consumption at each facility
Suppliers of the main raw materials used in the products, such as fibres, hides, rubber, dyes, chemicals and metals.
•
Water consumption at each facility
•
If the list includes at least 95% of its supply chain
•
If the list was updated within the past six months
We also checked whether brands disclose information about tracing at least one raw material supply chain such as viscose, cotton, wool or leather.
•
If the list is in machine-readable format (csv, json, xls)
We looked for supplier lists at three different levels: 1.
2.
3.
70
WE WANT TO KNOW IF BRANDS SHARE DETAILED INFORMATION SUCH AS:
Where the clothes are made, in other words, the facilities with which brands have a direct relationship and typically do the cutting, sewing and final trims of products. These facilities are generally referred to as the first-tier or tier 1 manufacturers.
FASHION TRANPARENCY INDEX BRASIL 2023
SUPPLY CHAIN TRACEABILITY
FASHION REVOLUTION
This information is useful, as it allows stakeholders to know more about the supply chain of the largest brands and retailers. The transparency achieved with the publication of these lists proposes a better evaluation of these companies and the identification of the best initiatives to deal with environmental and human rights risks, when necessary. This year, we’ve made some changes to this section. The first was the need to disclose a minimum percentage of first-tier suppliers and processing lists. To be considered a meaningful supplier list, the disclosure must cover at least 60% of the total set of facilities responsible for supplying the total demand of the brand. This percentage may be compared to the total number of suppliers or the total financial value of supply contracts. For brands that do not disclose what percentage is included in their lists, we use our own criteria to determine whether or not the lists would be considered significant. In these cases, the criteria we used were based on the comparison with other brands with a structure and operations similar to those of the brands analysed.
The reason for the inclusion of this change was to establish a clear parameter of analysis, allowing better comparability among the brands. Even so, it is important to emphasise that a good practice would be to disclose all suppliers and that we intend to increase the minimum percentage required in this section over the next years to encourage an improvement in the disclosures of supplier lists.
The second new indicator looks at the length of time the brand has been working with each listed supplier. This indicator refers to the time that the brand has been relating to each supplier since the first contract was signed. It was formulated considering the good practices present in the Better Buying Partnership Index.
Finally, we included two indicators that look for public energy and water consumption data by facility of direct suppliers at the firsttier and processing level. It is noteworthy that no new indicators have been added to the raw material traceability subsection.
We also included an indicator on the existence of a trade union or other type of independent workers’ committee in the suppliers’ facilities. Thus, starting this year, we also looked for the name of the trade union or class entity in each facility. We also added four new indicators to this section. The first aims to raise whether brands disclose the average monthly takehome wage of entry-level workers at the facility, excluding overtime. This indicator seeks to contribute, with Brazilian brands, to the Fashion Revolution advocacy campaign in the European Union with a proposal for legislation on living wage in the textile, clothing, leather and footwear sectors, Good Clothes, Fair Pay.
Photo: T.Cristina production facility at Fashion Revolution Week 2023
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FASHION TRANPARENCY INDEX BRASIL 2023
SUPPLY CHAIN TRACEABILITY
FASHION REVOLUTION
Nº of brands 30
Decathlon
RESULTS
1
Shein
1
Amaro
0
Animale
0
Besni
0
Brooksfield
0
Caedu
0
AVERAGE SCORE PER BRAND
Carmen Steffens 0
25
20
15
10
5
Centauro
0
Cia. Marítima
0
Colcci
0
Dakota
0
Di Santinni
0
Dumond
0
Ellus
0
Farm
0
Fórum
0
Havan
0
Klin
0
Kyly
0
Leader
0
Lojas Avenida
0
Lojas Pompéia
0
Marisol
0
Moleca
0
Netshoes
0
Olympikus
0
Osklen
0
Penalty
0
Puket
0
Sawary
0
Shoulder
0
Hering
Studio Z
0
TNG
0
Torra
0
Track&Field
0
0 – 5%
Zara
6 – 10%
11% – 20%
11
Malwee
70
58
Hope
67
Adidas
56
Lupo
64
Marisa
56
Trifil
64
John John
21
Arezzo
45
Nike
55
Ipanema
62
Le Lis Blanc
21
Reserva
45
DeMillus
52
Melissa
62
21% – 30%
31% – 40%
41% – 50%
51% – 60%
61% – 70%
Dafiti
86
Aramis
85
C&A
85
Renner
85
Youcom
85
Riachuelo
84
Pernambucanas
71% – 80%
81
81% – 90%
Havaianas
96
91% – 100% Score range
* The brands are ranked in numerical order out of a score of 73, but they are shown here as a rounded-up percentage. If any brands have the same score, they are listed in alphabetical order. 72
FASHION TRANPARENCY INDEX BRASIL 2023
SUPPLY CHAIN TRACEABILITY
FASHION REVOLUTION
FINDINGS
FIRST-TIER MANUFACTURERS
73
PROCESSING FACILITIES
RAW MATERIAL SUPPLIERS
38%
Publish a list of their first-tier manufacturers.
12%
Include the race breakdown in each facility.
35%
Publish processing facilities list.
25%
Publish raw material suppliers list.
35%
Include the address in the suppliers list.
30%
Publish at least 95% of their manufacturers in the list.
20%
Include the gender breakdown of workers in each facility.
2%
Include the gender breakdown of workers in each facility.
30%
Include the gender breakdown of workers in each facility.
20%
Publish length of time working with each supplier.
12%
Include the race breakdown in each facility.
2%
Include the race breakdown in each facility.
FASHION TRANPARENCY INDEX BRASIL 2023
SUPPLY CHAIN TRACEABILITY
FASHION REVOLUTION
Publicly disclosed supplier lists are useful to labour and environmental activists, trade unions, worker representatives and civil society as they provide quick and effective evidence of where responsibility lies when human rights and environmental abuses are discovered within the supply chains of major brands and retailers. The importance of public disclosure of supplier data is explained by Jenny Holdcroft, former Assistant General Secretary of IndustriALL Global Union - an organization representing more than 50 million workers in 140 countries in the mining, energy, and manufacturing sectors, supporting the quest for better working conditions and trade union rights around the world:
“Knowing the names of major buyers
from factories gives workers and their unions a stronger leverage, crucial for a timely solution when resolving conflicts, whether it be refusal to recognise the union, or unlawful sackings for demanding their rights. It also provides the possibility to create a link from the worker back to the customer and possibly media to bring attention to their issues.”
Nº of brands
ANALYSIS Besides the disclosure and monitoring of supply chains being a responsibility of brands, publishing supplier lists also brings significant benefits to their own businesses. Supply chain transparency enables companies to engage with employee representatives and environmental groups that monitor conditions in global supply chains. This can help mitigate risks that can be identified by such actors, such as unauthorised subcontracting. Supply chain transparency also enables collaboration with companies sourcing in the same facilities, enabling them to work together, exchanging knowledge and resources to solve similar problems identified with their suppliers. It can also enhance investor and consumer trust, showing stakeholders that brands are willing to be open about where their products are being made and to be held to account for what happens in their supply chains.
TRACEABILITY: OVERALL AVERAGE SECTION SCORE YEAR-ON-YEAR PROGRESS
25
25
25
21 20
18 17
15
12
10
5
Year
2018 20 brands 74
FASHION TRANPARENCY INDEX BRASIL 2023
SUPPLY CHAIN TRACEABILITY
2019 30 brands
2020 40 brands
2021 50 brands
2022 60 brands
2023 60 brands FASHION REVOLUTION
DISCLOSING FIRST-TIER MANUFACTURERS Out of the 60 brands reviewed, 38% disclose their first-tier manufacturing lists, i.e. those who are responsible for the cutting, sewing and finishing of garments in the final stage of production. These are the suppliers that will then ship products to warehouses ready for the shop floor and our wardrobes. This score represents an increase of five percentage points compared to last year. Despite the slight evolution, it is important to highlight the difference between the disclosure of lists of direct suppliers by the brands reviewed by the Global Index and those analysed by the Brazilian Index. A little more than half (52%) of the 250 brands reviewed globally disclose their first-tier supplier lists. This demonstrates that nationally operating brands are still at the rear of traceability transparency at this first-tier of the supply chain. We believe that an important factor that may have influenced the progress observed in the traceability section of the Global Index is the increase in legislation (proposed and upcoming) for the sector in other countries. This proves that voluntary mechanisms alone are not sufficient to drive the necessary change and that legislation is the most effective way to drive business progress. Some examples of ongoing legislation are the EU’s Corporate Sustainable Reporting Directive, The French Corporate Duty of Vigilance Law, the Dutch Child Labour Due Diligence
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FASHION TRANPARENCY INDEX BRASIL 2023
Law, Lieferkettengesetz in Germany (also known as the Supply Chain Act), and The proposed Fashion Act Bill in New York. In the case of the Corporate Sustainability Due Diligence Directive (CSDDD), the landslide vote in favour by the European Parliament in June this year means companies of a certain size will be legally obliged to investigate their supply chains and identify risks to people and the planet. Regarding the details of the information available in supplier lists, 35% of the brands reviewed by the Fashion Transparency Index Brazil publish the address of their facilities and the name of the parent companies of each one. In addition, 38% disclose what types of products/services are developed in these facilities and 37% the number of workers in each facility. Among the companies reviewed, 22% disclose whether the supplier facilities have a trade union or independent worker committee, indicating the name of this organisation. Although not a very significant percentage, it is higher than that found by the Global Index, in which only 4% of the 250 companies publish this information. Worker committees and trade unions are important for better working conditions to be achieved and public disclosure of this information helps worker representatives and brands themselves to identify how best to engage with a supplier when labour concerns arise. On the other hand,
transparency here also helps trade unions understand where they can prioritise their organising efforts. When we looked at the gender and race breakdown in each supplier, we found that 30% of the companies disclose the breakdown between men and women, and 12% disclose the ethnic-racial breakdown. In addition, 23% of brands disclose the number of migrant or contract workers at the facilities.
Knowing the percentage of female workers in a given facility allows the creation of actions focused on promoting a better internal environment for them. Having knowledge of this data allows for creating policies and procedures aimed at workers’ real needs. For example, knowing the percentage of female workers in a given facility allows the creation of actions focused on promoting a better internal environment for them. Examples of actions would be training to fight harassment and violence for supervisors as well as procedures that enable good menstrual hygiene, providing more breaks for toilet use and access to menstrual products.
SUPPLY CHAIN TRACEABILITY
This year, 30% of the brands reviewed published which certifications each supplier holds. As in the previous year, the brands reviewed in the Brazilian Index disclosed this information more often than those in the Global Index – only 13% of the brands globally reviewed published this data. Publicly disclosing certifications at the facility level helps unions and civil society to understand the nature and robustness of due diligence at that facility. Finally, 30% disclose a public list representing at least 95% of their suppliers and 33% report whether their lists have been updated in the last six months. It is common for brands’ supplier lists to become out-of-date quickly, as companies start and stop working with suppliers on a frequent basis. This means that regular updates, at least every six months, are important to ensure continuous and correct visibility of the companies’ supply chain. The disclosure of outdated lists makes it difficult for stakeholders to act in times of need for remediation.
FASHION REVOLUTION
Nº of brands 40
35
FIRST-TIER MANUFACTURERS
40
Supplier name
38
38
36
36 35
34
33
Facility address Types of products or services produced on site Approximate number of workers at each site
33
Gender breakdown of workers
30 30
30 28
Race breakdown of workers
30 28
% of migrant workers or contract workers List available as a CSV, JSON or XLS
27
25
23
If the list includes at least 95% of its supply chain If the list has been updated in the last 6 months
23
20
15
12 10
10
12
5
Year
2021
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FASHION TRANPARENCY INDEX BRASIL 2023
2022
2023
SUPPLY CHAIN TRACEABILITY
FASHION REVOLUTION
DISCLOSING PROCESSING FACILITIES Processing facilities is a category capturing a wide range of activities, such as ginning, spinning yarn, knitting and weaving fabrics, dyeing and wet processing, leather tanneries, embroidering and embellishing, fabric finishing, dyeing and printing and laundering. In 2023, 35% of companies published lists of suppliers that perform these activities, an increase of 7 percentage points compared to last year. This percentage is the highest ever found by the research in this subsection since the first Index in 2018. Unlike the large difference in disclosure identified at first-tier level, this score is similar to that found by the Global Index, in which 36% of companies disclose processing suppliers. In addition, in general, the disclosure of the indicators in this subsection showed an improvement among last year’s results. Among the brands reviewed, 35% publish the address of the suppliers listed, 33% publish what type of product or service is performed, and 28% publish what certifications the facility has. For more information, see the chart below.
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FASHION TRANPARENCY INDEX BRASIL 2023
Photos: Paula Barros - Fashion Revolution Week 2023 - Sebrae São Luis/MA and Fashion Revolution Week 2023 in Natal/RN
SUPPLY CHAIN TRACEABILITY
FASHION REVOLUTION
% of brands that publish
PROCESSING FACILITIES
40
Supplier name Facility address Types of products or services produced on site
35
35
Approximate number of workers at each site
33 30
28 28
25
26
27
24
Gender breakdown of workers
30
Race breakdown of workers
28
% of migrant workers or contract workers List available as a CSV, JSON or XLS
25
If the list includes at least 95% of its supply chain If the list has been updated in the last 6 months
20 20
20
17 15
16
12 10
5
6
5
Year
2021
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FASHION TRANPARENCY INDEX BRASIL 2023
2022
2023
SUPPLY CHAIN TRACEABILITY
FASHION REVOLUTION
WATER AND ENERGY CONSUMPTION PER FACILITY
LISTS IN SEARCHABLE FORMAT AND OPEN SUPPLY HUB
In addition to the indicators mentioned above, we also looked at whether companies publish data on water and energy consumption at their first-tier and processing suppliers.
Another data point that is analysed as a reference to first-tier and processing suppliers is whether brands actively contribute their supplier lists to the Open Supply Hub platform (formerly known as the Open Apparel Registry), linking the initiative to their websites.
As it is the first year of these indicators in the Index, they do not yet have a score. Our intention was, before assigning points, to identify how the national scenario is in relation to the disclosure of this type of information. We emphasize that only the Dafiti brand publishes energy consumption data from all its listed tier 1 and 2 suppliers. We recognize the brand’s effort and expect other companies in the industry to follow its good practice. None of the 60 brands reviewed published information on water consumption at each supplier. The lack of transparency on this data keeps the environmental impact of clothing production opaque and makes it difficult to create robust actions aimed at reducing the negative effects of fashion on the environment.
The Open Supply Hub (OS Hub) is a neutral and freely available tool that assigns a unique identification number to garment facilities around the world to standardise facility names and addresses. This unique number would be like an Individual Taxpayer ID, which allows you to differentiate people with the same first name and surname. Having the lists available in this tool facilitates greater cooperation as well as simpler and more efficient access to this data on a global level by trade unions, NGOs and other stakeholders.
This year, only 7 brands out of the 60 reviewed (12%) published their supplier lists on OS Hub. Despite seeing a slight increase of 5% compared to last year, we expect brands to step up their commitment to provide their lists to the initiative to contribute to the creation of a global supplier data platform for the industry. Another important point regarding the sharing of data on suppliers is that the industry best practices suggested by the Open Data Standard for the Apparel Sector require that the lists be released in a machine-readable format, such as xls, csv or json. By providing lists in these formats, brands make it easier to access, search and handle the data. The use of these formats is also fundamental to the methodology used by the Open Supply Hub. Among the brands included in the Index, 33% disclose their Tier 1 supplier lists in a machine-readable format and 30% do so to the suppliers at the processing level.
“As the wave of supply chain due diligence and reporting legislation being enacted globally continues to grow, the resulting increase in the volume of apparel brands and retailers choosing to share their supplier data on Open Supply Hub is notable – and encouraging. If this legislation is going to achieve what it was designed to (improving conditions in global supply chains), rather than being merely a tick-box exercise, supply chain data must be shared openly, and in a format that enables organizations to work with it practically and efficiently. In turn, this will accelerate opportunities for collaboration, as organizations are quickly able to identify shared connections at global production sites.” Natalie Grillon Executive Director Open Supply Hub
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FASHION TRANPARENCY INDEX BRASIL 2023
SUPPLY CHAIN TRACEABILITY
FASHION REVOLUTION
DISCLOSING RAW MATERIAL SUPPLIERS Raw material suppliers are those that provide brands and their manufacturers with materials such as fibres (cotton, wool, viscose, polyester, nylon, and more), leather, rubber, dyes, chemicals, metals, and so on. This is the level of supply furthest from the brands’ direct operations and generally the one with the least disclosure of detailed data. Less visibility into where our clothing materials come from makes it easier for human rights abuses and environmental impacts to go unseen. It is important to mention that, although several brands disclose their fabric and yarn suppliers as raw material suppliers, this is not what we are looking for in this section. Here we look specifically for the early stage of the raw material. For example, in the case of cotton, we look for the farm where it is grown and not the weaving mill that supplies the ready-made fabric to the brand. With regard to polyester, for virgin polyester, we are looking for the name of the oil rig (where oil/ petroleum is extracted) and/or the supplier of refined oil. Moreover, just publishing their chemical suppliers, as some brands do, is not enough to score points either. We look for a list that includes the main type of material used by companies, which in the case of clothing brands would be fibres, such as cotton, polyester, or viscose. The observed variation in brands’ disclosure signals the need for standardisation and alignment across the fashion industry. 80
FASHION TRANPARENCY INDEX BRASIL 2023
Supply chain traceability is more important than ever considering the toll the COVID-19 pandemic has had on supply chain workers across the world as well as the intensifying climate crisis. In addition, it is important to consider that cases of forced labour are often reported at raw material suppliers, such as the one documented in Tamil Nadu in India, Xinjiang in China and the wine and sugar sector in Brazil. This demonstrates the fragility of the relationship between brands from different sectors and the workers who produce the raw materials of the products we consume, especially those produced in rural areas. Greater traceability would allow us, for example, to identify if the material in our clothes comes from regions where forced labour has already been identified or from areas linked to deforestation. This year’s results show that, for the first time, a quarter of the brands reviewed disclose at least a selection of their raw material suppliers. This represents a significant increase compared to 2022, in which only 8% of companies published this information. It is also worth mentioning that this score is higher than that found in the Global Index, in which 12% of the 250 brands reviewed disclose some of their raw material suppliers.
In this subsection, in addition to the brands C&A, Havaianas, Melissa, Ipanema and Zara, which already disclosed supplier lists in previous years of the Index, this year, the brands Pernambucanas, Renner, Youcom, Riachuelo, Dafiti, Lupo, Aramis, Demillus, Hope, Trifil disclosed for the first time their lists with at least one type of supplier of the main raw materials used in their products. Despite the improvement in terms of disclosure, we can see that the lists of suppliers at the raw material level are those that have less detailed information. Only 12% publish the name of the specific facility or farm where the raw materials come from, 7% publish the approximate number of workers at each site and 20% disclose a list in a machine-readable format (XLS, CSV or JSON). Only one brand discloses the number of migrant workers at the disclosed supplier list as well as the gender and race breakdowns at the listed facilities. The lack of detail makes it difficult to monitor and advance effective improvements in the places of origin of the raw material of the products.
SUPPLY CHAIN TRACEABILITY
When we seek to identify whether the brands are tracing the source or supplier of one or more specific raw materials, we find a gap between the brands operating in Brazil in relation to those reviewed by the Global Index. While 61% of global brands disclose this information, in the Brazilian survey this number drops to 20%. Tools used by brands to do this tracing and mapping may include certification systems (other than those that use a mass balance system such as Better Cotton), blockchain, DNA tracing and other similar technologies.
Greater traceability would allow us, to identify if the material in our clothes comes from regions where forced labour has already been identified or from areas linked to deforestation. We hope that the improvement in the disclosure of raw material supplier lists will continue in the next editions of the Index and that we can see progress also related to the detailing of information and the inclusion of more types of raw materials.
FASHION REVOLUTION
% of brands that publish
SUPPLIERS OF RAW MATERIAL
40
Supplier name Facility address Name of the specific facility or farm
35
Approximate number of workers at each site Gender breakdown of workers Race breakdown of workers
30
% of migrant workers or contract workers List available as a CSV, JSON or XLS 25
25
What percentage of raw material suppliers is published
23
If the list has been updated in the last 12 months Whether the company is tracing the supplier of one or more specific raw materials
20
20 18
15
14
12
12
10
8 5
6
6
7 5
2 2021
81
8
FASHION TRANPARENCY INDEX BRASIL 2023
3 2 2022
2
Year
2023
SUPPLY CHAIN TRACEABILITY
FASHION REVOLUTION
VIEWPOINT DO YOU KNOW HOW MUCH DEFORESTATION YOU ARE WEARING RIGHT NOW?
JESSICA PEDREIRA
Technical adviser of the Cerrado and Caatinga programme Institute for Society, Population And Nature (ISPN)
The Cerrado is the second largest biome in the country, it connects the Amazon with other regions and is important for water generation, climate maintenance and the protection of 5% of the planet’s biodiversity. This biodiversity is strongly linked to the plurality of peoples and cultures that interact and conserve the Cerrado’s landscape through their way of life. However, the impacts of agribusiness and mining as well as the land grabbing and appropriation of public lands and traditional communities bring the degradation of natural resources and land conflicts that affect, amongst others, quilombolas, indigenous peoples and local family farmers from different regions (known as geraizeros and fecheiros).
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FASHION TRANPARENCY INDEX BRASIL 2023
Deforestation in the Cerrado is taking place quickly and on a large scale. An area the size of the entire Ibirapuera Park is deforested every two hours daily, that is, 75 ha per hour. Agriculture and cattle ranching are the main vector of this deforestation, which occurs faster than in the Amazon, although it is not as visible nor debated as intensely. As news of the loss of the majestic evergreen Amazon rainforest sweeps the world, the Cerrado, characterised by crooked thin trees, is being overlooked and ignored. The European Parliament’s regulation to prohibit the import of agricultural products associated with forest deforestation reinforces this disparity in attention between biomes and can direct deforestation to savanna and field areas. Would our attention to deforestation be a matter of aesthetic standard? Selective sustainability does not solve the problem. Talking about deforestation in the Cerrado implies talking about soybean and cotton. From 2016 to 2018, the area of cotton in Brazil increased by 25% and more than 90% of it is in the Cerrado. Soybean and cotton are commodities which are intertwined in production and as regards their socio-environmental consequences: monotonous landscapes polluted by pesticides, social relations marked by conflicts, land grabbing and appropriation of public lands. Tracking production only in forests may generate more degradation and conflicts in the Cerrado.
Almost all Brazilian cotton that is produced on a large scale is sold as “responsible”, “best” and “sustainable”. Although consumers can track the journey of a clothing piece by QR code and know what these so-called associated best practices are, this BCI (Better Cotton Initiative) standard cotton does not eliminate pesticides, transgenic seeds or reduce social inequalities. Only 8% of companies disclose evidence of the implementation of regenerative practices in one or more raw material sources in their chain. In Brazil, BCI can be associated with alarming amounts of pesticides. “Best practices” means almost only compliance with the Brazilian legislation, which is very permissive on high-risk pesticides. The greatest chances of finding ecological production with social justice are in cotton produced with an agroecological basis by family farming. Much of this family farming is in the Caatinga area (Paraíba, Ceará and Pernambuco) and, on a smaller scale, in the Cerrado (in Minas Gerais, in the Vale do Jequitinhonha and Urucuia regions - Grande Sertão Veredas zone), where the culture of spinners, embroiderers and cotton weavers has been prospering for centuries.
SUPPLY CHAIN TRACEABILITY
The traditional knowledge of “backyard cotton” has been adapted for the cultivation of industrial varieties in agroecological systems - cotton in partnership with food, medicine, dyeing and other crops. In principle, they involve solidary social relations, mutual learning and trust, use of non-transgenic seeds and prohibition of pesticides. Short production circuits, such as between Copabase, Central Veredas and family farmers in the Vale do Urucuia, promote fair trade relations as well as strengthen and make traditional elements visible. A further step is the certification for Social Control in a Participatory Guarantee System, which, being a medium and long-term process, engages and changes behaviours in the production of not only cotton, but also of the entire property. Social Control Organisations follow the Brazilian Organic Production Legislation and may be found in the National Register of Organic Producers of the Ministry of Agriculture and Livestock. For those looking for a better origin of raw materials, terms such as “best” or “responsible” are not enough. “Sustainable” can even mean forms of production that do not necessarily result in socioenvironmental benefits. Caring about how much biodiversity there is in your clothes, shoes and food is one of the keys to actively being part of the transformation that the productive sectors in Brazil need to face.
FASHION REVOLUTION
KNOW, SHOW & FIX
APPROACH WHAT DO MAJOR BRANDS AND RETAILERS COMMUNICATE ABOUT THEIR HUMAN RIGHTS AND ENVIRONMENTAL DUE DILIGENCE PROCESSES? Our methodology aligns to the United Nations Guiding Principle 17 on Business and Human Rights, which recommends that companies identify, prevent, mitigate and remediate their actual and potential adverse impacts. We only accept disclosures that go beyond compliance auditing, as auditing alone does not represent a robust due diligence process on environmental or human rights issues. KNOW We measure disclosure on human rights and environmental due diligence to understand what steps brands are taking to identify human rights and environmental risks, impacts and violations in their supply chains. We also looked for information on how affected stakeholders (such as workers, trade unions and women’s rights organisations) are involved in the brand’s due diligence process. This section also captures disclosure on the criteria for taking on new facilities before production commences. It also measures transparency of the scope, process and accreditation of environmental audits – looking for disclosure on how brands assess whether suppliers are meeting their environmental standards.
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FASHION TRANPARENCY INDEX BRASIL 2023
SHOW We looked at whether brands disclose the findings of their facility level assessments, either as a summary of issues found or at a more granular level (e.g. disclosing findings by individual factories, processing facilities and farms). FIX We looked at what brands publish about how they remediate human rights and environmental violations occurring within their supply chain. We also measured whether brands publish a confidential grievance mechanism for both direct employees and workers in the supply chain, including how the company responds to reported violations and grievances, how workers are informed of the grievance mechanism and whether brands disclose outcome data on reported violations.
KNOW, SHOW & FIX
In the Know, Show & Fix section, we awarded points if brands disclose information such as: •
How the brand works to identify and address both human rights and environmental risks, impacts and violations in its supply chain
•
How affected stakeholders (including workers, unions and women’s rights organisations) are involved in the due diligence process
•
How suppliers are assessed against the brand’s policies
•
The process for taking on new suppliers
•
The process for exiting a supplier responsibly
•
Whether brands conduct supplier assessments beyond the first-tier, and if so, whether this is disclosed by named facility
•
If supplier assessments involve trade union representatives and include off-site worker interviews
•
Findings from its facility-level assessments (e.g. at factories, processing facilities, and farms).
FASHION REVOLUTION
Nº of brands
RESULTS AVERAGE SCORE PER BRAND
30
25
20
Olympikus
4
Torra
4
Caedu
2
Lupo
2
Netshoes
2
Studio Z
2
Trifil
2
Besni
0
Brooksfield
0
Carmen Steffens 0
15
10
5
Cia. Marítima
0
Colcci
0
Dakota
0
Di Santinni
0
Dumond
0
Ellus
0
Fórum
0
Havan
0
Hope
0
Leader
0
Amaro
17
Lojas Avenida
0
John John
17
Lojas Pompéia
0
Le Lis Blanc
17
Pernambucanas 30
Marisol
0
Marisa
15
Animale
28
Moleca
0
Track&Field
15
Arezzo
28
Havaianas
40
Adidas
49
Penalty
0
Shoulder
13
Reserva
28
Nike
40
C&A
49
Puket
0
Centauro
11
Farm
26
Aramis
38
Hering
49
Ipanema
55
Sawary
0
Klin
11
DeMillus
21
Decathlon
34
Renner
47
Melissa
55
Dafiti
62
TNG
0
Shein
11
Osklen
21
Riachuelo
34
Youcom
47
Zara
55
Malwee
57
0 – 5%
Kyly
9
6 – 10%
11% – 20%
21% – 30%
31% – 40%
41% – 50%
51% – 60%
61% – 70%
71% – 80%
81% – 90%
91% – 100% Score range
* The brands are ranked in numerical order out of a score of 47, but they are shown here as a rounded-up percentage. If any brands have the same score, they are listed in alphabetical order. 85
FASHION TRANPARENCY INDEX BRASIL 2023
KNOW, SHOW & FIX
FASHION REVOLUTION
FINDINGS KNOW
SHOW
HUMAN RIGHTS DUE DILIGENCE
ENVIRONMENTAL DUE DILIGENCE
40%
27%
Disclose a summary of assessment findings at the first-tier.
Disclose how affected stakeholders are involved in their due diligence.
8%
Disclose how many workers were interviewed off-site as part of audits.
5%
Disclose a summary of assessment findings at the raw material level.
12%
Disclose the outcomes of steps taken to address violations.
3%
Disclose if the audits included a trade union representative.
0%
No brand publishes selected findings by named facility at the raw material level.
17%
Disclose strategies to terminate relationships with facilities that remain in non-compliance.
45%
Disclose how the confidential whistleblowing mechanism is implemented for supply chain workers.
28%
Disclose how affected stakeholders are involved in their due diligence.
5%
Disclose the outcomes of steps taken to address violations.
27%
7%
3%
AUDIT RESULTS
Describe the scope, process, and accreditation for their environmental audits.
Describe their environmental due diligence process.
Describe their human rights due diligence process.
SUPPLIER ASSESSMENTS
FIX REMEDIATING ISSUES
32%
86
Describe the process for remediation.
FASHION TRANPARENCY INDEX BRASIL 2023
KNOW, SHOW & FIX
FASHION REVOLUTION
ANALYSIS KNOW Environmental and social risks are intrinsically linked. This is evidenced by the fact that the climate crisis is a humanitarian crisis.
It is therefore vital that brands conduct robust due diligence to identify both their human rights and environmental risks across their supply chain, which is what we measure in this section. According to the Organisation for Economic Co-operation and Development (OECD), due diligence is the process by which companies can identify, prevent, mitigate and account for how they deal with their actual and potential adverse impacts. For example, if a company works with a supplier that is located in a region with a weak environmental regulatory body inspection, the measures it will need to take to prevent impacts will be more comprehensive than the measures it would need to take with a supplier operating in an area with adequate environmental inspections.
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FASHION TRANPARENCY INDEX BRASIL 2023
The data collected in this section reveals that there is a long way to go for the fashion industry to fulfil its social and environmental obligations. Analysing the data, we noticed that brands tend to disclose more information on their approach to due diligence, including what are the salient risks identified, and less on what are the effective steps taken to address these risks and its outcomes. This trend has been identified for both human rights due diligence processes and environmental processes. Regarding human rights, the data show that 27% of brands disclose processes to identify and prioritise risks, impacts and violations in their supply chains, which is an 8% growth compared to 2022, but it is still far from the 68% of the Global Index. One of the main reasons for an increase in disclosure on human rights and environmental due diligence, also present in the FTI Global, could be upcoming laws at European Union (EU) level. As the world’s largest importer of clothes, the EU has contributed to increased due diligence practices by businesses, particularly following the launch of the Corporate Sustainability Due Diligence Directive (CSDDD) and the Corporate Sustainability Reporting Directive (CSRD). In a landmark vote in June 2023, Members of the European Parliament (MEPs) voted
in favour of a stringent CSDDD sending a clear message of resounding support for corporate accountability across the political spectrum. In this regard, it is clear that major fashion brands are preparing for being legally required to disclose their due diligence procedures, and beginning to disclose in a voluntary capacity in anticipation of this. Beyond the EU, efforts to enforce due diligence are also ramping up in Japan, Germany, the US and more. The EU decision could also have a positive impact on the market for Brazilian companies already adopting good corporate responsibility practices by disclosing information about their due diligence processes. On the other hand, it can also represent a loss of market or investments for companies that do not yet perform this practice. Still, regarding human rights due diligence, there was a slight decrease - 17% in 2022 to 13% in 2023 - in the number of brands that disclose evidence of measures taken to cease, prevent, mitigate and remedy their risks, impacts and social violations. As a result, there was a similar decline in the number of brands disclosing the results of these measures, falling from 7% in 2022 to 3% in 2023.
KNOW, SHOW & FIX
While a gender lens should be deeply embedded and applied to every stage of a meaningful due diligence process, just 3% of brands currently disclose that they consult women (including women’s organisations and gender experts) in their human rights due diligence process. We can see an increase in the disclosure of brands on how they identify and prioritise environmental risks, impacts and violations in their supply chain. This year, 28% of brands disclosed this information, which is an increase of 10 percentage points compared to the 18% indicated in the 2022 Index. Still, this percentage remains below the 49% presented by the Global Index. Only 15% of brands disclose how they cease, prevent, mitigate and remedy these risks, which is an increase of 3 percentage points compared to the previous year. There was also a decline in disclosing how representatives of affected stakeholders (e.g. workers, producers, farmers, unions and others) are involved in the environmental due diligence process, falling from 7% in 2022 to 5% in 2023.
FASHION REVOLUTION
Human rights Environment
Despite this, there are still areas where transparency on audit processes can improve. For example, only 8% of brands disclose the number or percentage of workers interviewed offsite as part of audits. This practice is important to ensure that audits are comprehensive and that all voices are heard. In addition, only 3% of brands disclose how many audits included a trade union representative, which is an important practice in order to ensure trade unions are engaged in these processes.
HOW AFFECTED STAKEHOLDERS ARE INVOLVED IN THEIR DUE DILIGENCE
100
There will be no conditions for a company to be healthy in a sick society and planet.
100 % of brands
Regarding how brands perform their audits, 40% disclose their scope, process and accreditation for their environmental audits, and 47% disclose the scope, process and accreditation for their human rights audits. This result represents an increase in disclosure among the results found last year. In 2022, only 26% of brands disclosed information about their environmental audits and 30% about social audits.
APPROACH TO CONDUCTING DUE DILIGENCE
Brands urgently need to understand that the negative impacts caused by a company’s activities are risks to itself, as there will be no conditions for a company to be healthy in a sick society and planet, warns Peter Drucker in his essay for Harvard Business Review as early as 1992.
% of brands
Improved transparency about the scope and accreditation for brand audits
80
80
60
60
40
40
+10 20
18
28 27 20
+9
7 Year
0 2022
88
FASHION TRANPARENCY INDEX BRASIL 2023
KNOW, SHOW & FIX
2023
0 2022
0 -2
7 5
Year
2023
FASHION REVOLUTION
SHOW MAIN RISKS, IMPACTS AND VIOLATIONS IDENTIFIED
MEASURES TAKEN TO ADDRESS IDENTIFIED RISKS
% of brands
80
80
80
60
60
60
40
40
40
+12 20
17 15
20
+8
Year 2022
2023
FASHION TRANPARENCY INDEX BRASIL 2023
17
-4
12
+3
20
15 13 Year
0 2022
8 7 0
2023
2022
KNOW, SHOW & FIX
In this section, we look for disclosures on brand supply chain assessments, from level 1 to raw material level (e.g. factories, processing facilities, and farms). Once again, the results this year illustrate a widespread lack of transparency on audit results, especially on the working conditions beyond the first-tier of the supply chain – where workers tend to be less visible. Transparency in supply chains is essential to ensure that workers’ rights are respected at all stages of production. When we searched for an overall summary of first tier facility reviews, we found disclosures for 27% of brands, which is an increase of 5 percentage points over 2022. Similarly, when we analysed this information for suppliers beyond tier 1, we found an increase from 18% in 2022 to 23% in 2023. However, at the raw material level, there was a drop, decreasing from 7% to 5% since last year.
27 25
0
89
100 % of brands
100 % of brands
100
RESULTS OF ACTIONS TAKEN TO ADDRESS RISKS
+4
12
-4
3 2023
Year
When looking for more detailed information, we noticed that the transparency on the results found in the audits tends to decrease. Only 17% of companies disclose the assessment status of each facility - e.g. gold, silver or bronze - from first tier and beyond, identifying them nominally. Only 5% of brands disclose this information about their raw material suppliers.
FASHION REVOLUTION
RESULTS OF ASSESSMENTS AT DIFFERENT LEVELS OF SUPPLIERS
Finally, when searching the public disclosure of full audit reports by identifying individual facilities, the results remained the same as last year. Only 3% of companies disclose this information both at tier 1 and beyond tier 1, and no brands disclose it to their raw material suppliers.
These results indicate that, while there is a slight increase in information disclosure at some levels, a lack of transparency is still a critical issue in supply chains, especially when it comes to individual facilities and detailed audit reports. Disclosure of information is essential internally for management, especially for managers, to improve working conditions across the supply chain and for accountability to society. It is essential that companies strive to increase transparency at all levels, ensuring that workers at all stages of production are treated with dignity and respect, highlighting how important this is for their own risk management.
At first-tier (tier 1)
% of brands
Regarding the results of the audits selected by the name of the facilities, it is observed that, for level 1, the disclosure of information has remained static at 8% since 2022 thereby showing no growth. On the other hand, in addition to tier 1, there was a slight increase from 8% in 2022 to 10% in 2023. At the raw material level, the situation remained unchanged, remaining at 0%, with no growth.
Beyond first-tier Raw material level
Summary of findings without listing individual facilities
90
FASHION TRANPARENCY INDEX BRASIL 2023
KNOW, SHOW & FIX
Facility-level rating by identifying the facilities
Selected audit findings by named facility
Full audit reports by named facility
FASHION REVOLUTION
FIX Identifying social and environmental risks is only valuable if brands then take tangible action to cease, prevent and mitigate these risks, in line with UN Guiding Principle 17 as well as the OECD Due Diligence Guidance on Responsible Business Conduct. This is exactly what the Corporate Sustainability Due Diligence Directive (CSDDD) is proposing to bring into EU law – corporate accountability to ensure that businesses address adverse impacts of their actions, including in their value chains inside and outside Europe. The outcomes presented in this analysis reveal that progress in transparency on companies’ remediation procedures has been limited. Brands must be held accountable for remediating noncompliances identified in the facilities where their clothes are made. Appropriate remediation depends on the issue found and its severity.
91
FASHION TRANPARENCY INDEX BRASIL 2023
We found that 32% of major fashion brands describe the remediation process put in place when issues are found in their supplier facilities. This usually includes corrective action plans or stop-work notices, or less commonly supplementary training or policy revision. This represents an increase of 7 percentage points compared to 25% in 2022. Only 10% of brands disclose how affected stakeholders (including workers, producers, farmers and their trade unions etc) are involved in the remediation process. Consulting affected stakeholders is always relevant in remediation; workers are uniquely placed with valuable lived experience which would enrich and improve remediation. Only 17% of brands disclose their responsible exit strategy when leaving a supplier. Fashion Revolution believes brands have a moral responsibility to stay and remediate problems, rather than walk away, in line with established industry best practice. We extend these responsibilities to short-term and informal partners, including informal and semi-formal workers (like homeworkers and workers in unauthorised subcontracted sites). We only credit policies that ensure brands do not ‘cut-and-run’ when facing issues in the supply chain. This includes giving reasonable notice of intent to terminate the relationship to suppliers, and conducting assessments on potential adverse human rights impacts.
Photo: Art by CEMIR’s migrant women seamstresses
Transparency on confidential whistleblowing mechanisms continues to steadily increase. Independent, confidential grievance mechanisms are a critical lever of an effective due diligence process. Workers must feel empowered to speak up without fear of retaliation, including on issues with their supervisors – who may be part of the problem. In this regard, 63% of brands publish confidential grievance mechanisms for their employees, and 50% do so for workers in the supply chain (up from 52% and 43%, respectively, last year).
KNOW, SHOW & FIX
In addition, 20% of brands describe how workers are informed about the grievance mechanism, and 40% publish their grievance mechanism within their supplier code of conduct. Finally, 30% of brands disclose data about worker grievances filed, addressed and resolved. This percentage is also above the global average, which reached 26%. Disclosing outcomes of grievances can provide valuable learning for the sector as a whole.
FASHION REVOLUTION
This aligns to the general trend we find across the Index that brands are more guarded about their outcome and impact data. What are the potential reasons for this gap between the disclosure of grievances and information about how they are resolved? Is it due to a fear to disclose violations in case of backlash or due to a lack of an appropriate monitoring mechanism in place? Unique focus on financial profit and short-term results? There may not be a single or specific reason, but brands need to understand that the consequences of this trend are detrimental to society and business.
The failure to measure effective outcomes can lead to the inefficiency of sustainability efforts and a loss of opportunities to improve the management and performance of the organisation. The lack of disclosure of real outcomes can allow harmful practices to continue undetected and corrected, which can have a negative impact on the company itself, people, society, the environment and the market itself.
The lack of transparency regarding these outcomes can undermine the confidence of stakeholders, such as consumers and investors. The emphasis on processes to the detriment of results can perpetuate greenwashing and consequently the lack of public trust in company statements, which is a reality that is leading to the emergence of anti-greenwashing laws.
92
FASHION TRANPARENCY INDEX BRASIL 2023
“ Transparency can be an antidote to greenwashing practices.” Isabella Luglio Education and Fashion Transparency Index Brazil Coordinato Fashion Revolution Brasil
KNOW, SHOW & FIX
FASHION REVOLUTION
SPOTLIGHT ISSUES
APPROACH Each year, the Fashion Transparency Index explores some key pressing issues in the fashion industry in deeper detail. For 2023, our focus covers six strategic areas to align with and support the United Nations’ Sustainable Development Goals (SDGs), which aims to bring nations together to build a better world for people and nature by 2030. The following indicators were formulated based on consultation with industry experts.
Overconsumption, Waste & Circularity What are brands and retailers doing to address overproduction, minimise waste and move towards circularity? We specifically looked at: Gender & Racial Equality What are major brands doing about gender and racial equality? On this topic, we looked at: •
Gender inequality in the company and the supply chain.
•
Racial equality data and what brands are doing to address it.
•
Gender pay gap within the company and supplier facilities.
•
How many items were produced in the reporting period.
•
Commitment to degrowth.
•
How much textile waste is generated and how much was destroyed or recycled.
•
Strategies and progress on reducing pre-consumer waste and recycling post-consumer waste.
•
Combating modern slavery and recruitment practices in supply chains.
•
Strategies and progress on reducing the use of hazardous chemicals.
Strategies for take-back schemes and clothes longevity.
•
Water footprint in direction operations and in the supply chain.
•
Investments in circular solutions.
•
Water risk assessments.
•
Investment in labour force training for a just economic transitio.
Sustainable Sourcing & Materials
Climate Change & Biodiversity
What are brands doing to increase the use of sustainable materials and reduce the use of virgin plastics? We looked at:
What are brands and retailers doing to combat the climate crisis and mitigate their environmental impacts? Here we looked at whether brands publish: •
Progress on decarbonisation with verified, science-based targets.
•
Information about how the company defines “sustainable raw materials”.
•
Commitments and progress towards zero deforestation.
•
Evidence of the implementation of regenerative agricultural practices.
•
Carbon footprint in owned facilities and in the supply chain.
•
Paying living wages to workers.
•
Purchasing practices and business relations with suppliers.
•
Strategies and progress on the transition to more sustainable materials.
•
Unionisation and collective bargaining.
•
Overall fibre composition of the brands
•
Absolute energy reduction.
Strategies and progress on reducing the use of virgin plastics in packaging and clothing.
•
Renewable energy use in owned facilities and in the supply chain.
•
Reliance on coal in supply chains.
•
•
94
What are brands and retailers doing to reduce the use of hazardous chemicals and minimise their water footprint? Here, we review:
•
Decent Work & Purchasing Practices What are major brands and retailers doing to improve conditions for workers within the company and their supply chains? At this point, we look specifically at:
Water & Chemicals
FASHION TRANPARENCY INDEX BRASIL 2023
What the brand is doing to minimise the impact of microfibres.
SPOTLIGHT ISSUES
FASHION REVOLUTION
Nº of brands
RESULTS AVERAGE SCORE PER BRAND
30
25
20
15
10
5
Shoulder
5
Lupo
3
Trifil
3
Puket
2
Kyly
1
Besni
0
Brooksfield
0
Caedu
0
Carmen Steffens 0 Cia. Marítima
0
Colcci
0
Dakota
0
Di Santinni
0
Dumond
0
Ellus
0
Fórum
0
Havan
0
Klin
0
Leader
0
Lojas Avenida
0
Havaianas
39
Lojas Pompéia
0
Nike
39
Marisol
0
Adidas
36
Moleca
0
Centauro
10
Le Lis Blanc
18
Decathlon
34
Penalty
0
DeMillus
10
Shein
18
Aramis
33
Renner
48
Sawary
0
Olympikus
8
Track&Field
18
Arezzo
33
Youcom
48
Studio Z
0
Marisa
7
John John
16
Hering
Animale
31
Dafiti
45
C&A
60
TNG
0
Osklen
6
Amaro
14
Pernambucanas 26
Farm
30
Melissa
45
Malwee
59
Torra
0
Hope
5
Netshoes
13
Riachuelo
Reserva
30
Ipanema
44
Zara
52
0 – 5%
6 – 10%
11% – 20%
21% – 30%
28
24
31% – 40%
41% – 50%
51% – 60%
61% – 70%
71% – 80%
81% – 90%
91% – 100% Score range
* The brands are ranked in numerical order out of a score of 87, but they are shown here as a rounded-up percentage. If any brands have the same score, they are listed in alphabetical order. 95
FASHION TRANPARENCY INDEX BRASIL 2023
SPOTLIGHT ISSUES
FASHION REVOLUTION
FINDINGS DECENT WORK & PURCHASING PRACTICES
LIVING WAGES
MODERN SLAVERY
32%
96
Disclose an approach to recruitment fees in the supply chain.
20%
Publish data on the prevalence of modern slavery related violations.
13%
Publish actions related to foreign migrant workers in suppliers.
FASHION TRANPARENCY INDEX BRASIL 2023
PURCHASING PRACTICES
12%
Publish their commitment to ensure living wages to workers in the supply chain.
UNIONISATION AND COLLECTIVE BARGAINING
2%
Disclose method for isolating labour costs in price negotiations.
17%
Publish nº of supplier facilities that have trade unions.
3%
Disclose approach to achieving living wages for supply chain workers.
0%
No brand publishes an example of a standard supplier agreement, establishing order types and terms and conditions for payments.
18%
Publish no. of workers covered by collective bargaining agreements.
12%
Disclose % above the legal minimum wage that supply chain workers are paid.
7%
Publish average nº of days suppliers are paid after delivering orders.
13%
Publish data on violations of collective bargaining and freedom of association in the supply chain.
0%
No brand publishes number of garment workers being paid a living wage.
SPOTLIGHT ISSUES
FASHION REVOLUTION
ANALYSIS MODERN SLAVERY Modern slavery in Brazil remains a serious issue in three key sectors: agriculture and industry, civil construction and the textile industry. The fight against this practice is guided by Article 149 of the Brazilian Penal Code, established by the Law 10,803 of 2003. Together, these two tools represent an important milestone in the fight against this practice. This law provides clear definitions for crimes linked to modern slavery and establishes severe penalties on that basis. In addition, the law also provides for the expropriation of land where slave labour is caught, thereby preventing offenders from benefiting through this brutal exploitation. Companies must establish effective policies and procedures to ensure their suppliers are not involved in forced labour practices. This may include conducting risk assessments to identify areas that may be vulnerable to modern slavery and taking proactive measures to mitigate these risks. In this context, companies that commit to business ethics not only ensure that their own internal processes comply with the legislation, but they also require their suppliers to follow the same principles. The issue of modern slavery should be an issue managed at the highest levels of the company and its executives, as it relates directly to the duty that these individuals have towards the company, society, laws and regulations to which it is subject.
97
FASHION TRANPARENCY INDEX BRASIL 2023
Despite the regulations in place, Brazil rescued a record number of victims of slave labour in the agricultural sector during the first half of 2023, with 1,407 people in this situation, as reported by the Pastoral Land Commission. In addition, also this year, the Dirty List of Forced Labour – prepared by the Federal Government with names of employers who subjected workers to conditions of forced labour – underwent its most substantial update in history, with the inclusion of 204 new names, bringing the total to 473 entities and individuals. These events highlight the imperative need for companies to recognise that the unbridled pursuit of profit is not only unsustainable but also carries significant risks from a humanitarian, regulatory and institutional perspective.
Companies must establish effective policies and procedures to ensure their suppliers are not involved in forced labour practices.
This year’s Fashion Transparency Index data on the fight against modern slavery raises concerns: 32% of brands publish their approaches to recruitment fees at suppliers, registering an increase compared to last year when 23% of brands published this data. However, considering the regulatory framework, this is still a low percentage. In addition, 20% publish data on violations related to modern slavery, which is 2% less than in 2022, and only 13% publish actions related to foreign migrant workers in suppliers, thereby indicating a slight increase compared to the previous Index, which was 7%. The lack of transparency regarding these violations makes it more difficult for consumers, investors and society to trust companies. Lack of transparency on the payment of recruitment fees The results of this year’s Index show that there is little transparency on the recruitment fees in the supply chain,which fails to give a clear picture on the risks of modern slavery and recruitment fees specifically. Only 12% of brands disclose the number of workers in their supply chain affected by the payment of these fees or other related costs. This information is key to tracking the risks of forced labour, such as debt bondage, a term used when workers are forced to work until they pay off the debt incurred at the time of their employment.
SPOTLIGHT ISSUES
To understand how this happens, thirdparty recruitment agencies help major brand vendors and retailers meet their hiring needs in global supply chains. These agencies generally operate in the informal economy and do not provide workers with contracts or legal agreements on wages, benefits or work arrangements. Recruitment fees can be imposed covertly, hidden in contract clauses written in complex language or in languages unknown to workers, thereby trapping them in debt bondage. Although the practice is illegal in many countries, it is common for workers to be forced to pay such debts to those who exploit them. With garment workers’ wages being low and their debts high, recruitment fees often take a long time to pay off. Importantly, indebted workers are far less likely to bargain for better pay or working conditions to assert their rights, which perpetuates exploitation. The data also shows a stagnation in disclosure about worker interviews to determine whether they have paid recruitment fees or related costs, remaining at the same level of 17% compared to 2022. Maintaining this relatively low percentage of disclosure reveals the need for more ambitious commitments by brands to the protection of workers’ rights and the prevention of exploitation.
FASHION REVOLUTION
“The lack of systematized
information and transparency on working conditions and on forced labour in the fashion industry makes it difficult to know what exactly leads people to exploitative situations, hindering initiatives for the defence of human rights.”
Data and Facts Series Forced and bonded labour in the fashion industry Laudes Foundation
Photo: Dyed hands - Suzi Koe
98
FASHION TRANPARENCY INDEX BRASIL 2023
SPOTLIGHT ISSUES
FASHION REVOLUTION
VIEWPOINT THE COSTS OF MODERN SLAVERY
GLAUCIA TERREO
ESG Materiality/Sustainability Consultant
Cases of modern slavery are still recurrent in Brazil, as evidenced by the latest update of the ‘dirty list’ of slave labour. One reason this exploitation continues to happen is that those relying on slave labour gain an unfair economic advantage over companies that follow the labour laws. This advantage is gained because these companies that rely on modern slavery do not properly hire workers and avoid paying any taxes, social security, overtime, holidays and other mandatory benefits. For companies hiring within the laws, there seem to be only two options left: Close their business or adopt similar dishonest practices. On the workers’ side, the remaining option is to be subjected to long working hours, often from seven in the morning to midnight from Monday to Saturday.
99
FASHION TRANPARENCY INDEX BRASIL 2023
In addition to the economic impact, modern slavery has a significant social cost. The precarious living condition of workers ends up generating expenses for society, such as the payment of unemployment benefits for rescued workers and expenses with health care, housing and education. Meanwhile, these workers are unable to contribute to the development of the community in which they live through the payment of their taxes. The fight against modern slavery is not only a humanitarian issue, but also an economic one. It is about ensuring an environment of fair competition and collecting the taxes necessary for the wellbeing of society and the financial balance of the government. We are all impacted and must mobilise to end this practice.
SPOTLIGHT ISSUES
The occurrence of such modern slavery cases can result in serious legal, financial and reputational risks for the company, which must recognise them and take measures to mitigate them. Ethical companies need to be transparent and publicly report their initiatives, fulfilling their role in combating these illegal practices as well as taking responsibility for immediate remediation when problems are identified in their supply chains. The fight against modern slavery is a critical issue in guaranteeing human rights, compliance and corporate ethics. The top management of companies must play a key role in creating a culture of respect for labour rights and compliance with the laws. This not only protects the company from legal and financial risks, but also promotes a positive and responsible image in the market.
FASHION REVOLUTION
ANALYSIS PURCHASING PRACTICES Unfair purchasing practices are the backbone of exploitation in the fashion industry. Brands’ purchasing practices represent the way companies establish their commercial relationships with their suppliers. This process includes price negotiation and the definition of other contract terms, such as order placement deadlines and payment terms. These play an enormous role in enabling decent, dignified and safe work. Check out the table below to see how brands’ purchasing practices can directly affect working conditions.
Brands’ purchasing practices that may impact working conditions PLANNING & FORECASTING
COST & COST NEGOTIATION
Brand purchasing practices
Brand purchasing practices
Sudden changes in order volumes
Negotiate lower prices or ask for discounts
Delays in providing order specifications or approvals; last minute changes Short lead times Volatile and unpredictable purchase orders, ordering ‘on-demand’
Supplier response Outsource/subcontract to smaller, low-cost units Impacts on workers
Supplier response Suppliers’ inability to plan regular and overtime for workers Abusive, humiliating verbal abuse and forcing workers to work more quickly
Exploitative working conditions could thrive in hidden facilities, where workers may be left with little recourse to access remediation or compensation as difficult to establish links to lead firm Workers could receive piece-rate wages
Restrict toilet, water and meal breaks Hiring ‘flexible workers’ to respond to unstable orders, including day workers Impacts on workers Excessive overtime Reduction in productivity Potential to make more mistakes that can lead to accidents and injury Disruption of family life Increased vulnerability to stress, anxiety, fatigue, and disease Gendered impact for women workers who need additional rest breaks during menstruation Insecure and informal work arrangements without social protections like sick pay and holiday pay
100
FASHION TRANPARENCY INDEX BRASIL 2023
SPOTLIGHT ISSUES
FASHION REVOLUTION
PAYMENT & TERMS
MANAGING THE PURCHASING PROCESS
Brand purchasing practices
Brand purchasing practices
Negotiate lower prices or ask for discounts
Order cancellation
Supplier response Inability to invest in health and safety improvements for workers, including precautions against fire and other types of building accidents
Unwarranted penalties issued to suppliers to cut costs (i.e. asking for discounts) Supplier response Inability to pay workers’ wages, having already fronted production costs like raw materials and labour
Impacts on workers Unsafe working conditions making them vulnerable to injuries and even death
Impacts on workers Increased vulnerability to stress, anxiety, fatigue, and other disease Debt to meet basic needs such as food, housing, education, medical assistance, etc.
* Data from Better Buying, Human Rights Watch, Transform by The University of Aberdeen and Transform Trade.
101
FASHION TRANPARENCY INDEX BRASIL 2023
SPOTLIGHT ISSUES
Worrying lack of transparency in the Brazilian fashion industry about its purchasing practice. The data collected this year reveals a widespread lack of transparency on how the commercial relationships of brands with their suppliers are established. Of the total of 8 indicators on this topic, 4 recorded a decrease in disclosure, 2 remained without progress and only 1 indicator gained greater disclosure. We identified that 2% of brands disclose the method they use for isolating labour costs, which is a small improvement compared to 2022, when no brand had scored on this item. We also identified that 2% of brands disclose the percentage/volume of orders where wages and other labour costs are disclosed, remaining at the same level as 2022. Just like last year, no brand publishes a standard supplier agreement template, aligned with due diligence. This model should establish the order types, terms and conditions of payment, including commitments such as responsible purchasing practices in which the agreed prices cover production costs and other costs associated with responsible business conduct and responsible exit actions at the end of the contract, for example. In this regard, we also identified that only 5% of brands publish a Responsible Purchasing Code of Conduct, representing a decrease of 2 percentage points compared to 2022.
FASHION REVOLUTION
Regarding payment practices to suppliers, 2% of brands disclose a policy on what percentage of orders are normally paid in advance to suppliers before starting production. In addition, 15% of brands disclose their supplier payment policy, with maximum stipulated terms, which is a decrease of 2 percentage points compared to 2022, when this percentage was 17%. Regarding the deadline for the payment of suppliers, 7% disclose the average number of days in which purchase orders are paid in full after delivery, similar to 2022, when this percentage was 8%. We also identified that 10% of brands disclose supplier feedback on their purchasing practices annually through a formal process, which is a decrease of 2 percentage points compared to 12% identified in the 2022 Index.
The lack of transparency makes it difficult to identify and prevent cases of worker exploitation in fashion supply chains, putting them at risk. For these workers, this means they are less likely to have their rights respected. For consumers and other stakeholders, it means less information about brands’ labour practices regarding their chains so they can make informed purchasing decisions.
Of the total of 8 indicators on this topic, 4 recorded a decrease in disclosure, 2 remained without progress and only 1 indicator gained greater disclosure. Brands must not be afraid of disclosing cases of exploitation that may be happening among their suppliers because, without identifying them, not only can they not be corrected, but the brands expose themselves to market and reputational risks.
102
FASHION TRANPARENCY INDEX BRASIL 2023
New market trends can increase pressure on suppliers and, consequently, worsen working conditions. An increasingly popular trend, especially in ultra-fast fashion brands is the adoption of on-demand ordering and production models. These direct-to-consumer (D2C) models typically encompass ordering very small quantities upfront, and if they are selling well, orders are ramped up. Purchasing in this way may reduce unsold goods, but it places suppliers under risk and workers under immense pressure. Sudden and unpredictable surges in order volumes with tight deadlines make it impossible for suppliers to plan. Purchasing unpredictably can drive up excessive overtime, as well as stress and anxiety for workers to meet production targets.
SPOTLIGHT ISSUES
D2C models also make the customer the importer, not the retailer. This means that brands operating with D2C models can avoid tax and fly under the radar of forced labour regulations. In addition, these tax advantages help create an environment of unfair competition in the market, leading other brands to reduce their prices – and, consequently, increase the pressure for better prices on their suppliers - to remain competitive. This can lead to a reduction in prod uction costs to the detriment of workers’ rights and the environment. In Brazil, this scenario has mobilised national retailers and entities in the fashion sector to pressure the Government for greater examination and taxation of companies that follow this model.
FASHION REVOLUTION
LIVING WAGES Fashion is one of the most unequal industries on the planet. Some of the richest people in the world have amassed their billionaire fortunes in fashion retail, spanning from fast fashion to luxury. And yet millions of people who make these clothes – mainly young women of colour– are not paid enough to meet their basic needs. Receiving a fair living wage is a fundamental human right which is recognised by the United Nations. It should cover the basic living costs of the worker and their dependents, including food, housing, education, health, transport and savings for unexpected events. It is typically higher than the minimum wage and its estimated value varies according to the region where the workers live. Methodologies to calculate a fair living wage are prepared and disseminated by government and international agencies, academic organisations, worker rights activist groups and NGOs.
103
FASHION TRANPARENCY INDEX BRASIL 2023
A large proportion of workers in the global fashion industry are not paid enough to meet their basic needs. Meanwhile, the business models of most companies favour maximising profit for shareholders, while workers in their value chains struggle to survive with dignity. Despite the seriousness of this problem, this year’s Index data reveals, for another year, the lack of transparency of brands on this issue. We found that 12% of companies disclose their approaches to ensuring a wage capable of covering the basic living costs of workers. Similarly, only 3% of brands publish measurable strategies to ensure living wages and annual progress towards meeting these commitments. Public disclosure of the company’s approach to the issue, in addition to its time-bound roadmaps and annual progress, are essential tools to demonstrate a clear vision of how companies intend to achieve the payment of living wage in their supply chain.
The business models of most companies favour maximising profit for shareholders, while workers in their value chains struggle to survive with dignity. In addition, only 3% of companies disclose the approximate percentage of workers who are paid by piece-rate produced by their suppliers. This data refers to a new indicator added in the survey this year that seeks to deepen the evaluation of brands’ payment practices in their supply chains and understand the risks associated with production-based payment, such as pressure for productivity and job insecurity. On the other hand, we can see an increase in disclosure on the percentage of workers in supply chains paid above minimum wage, from 3% in 2022 to 12%. This 8 percentage point advance can be considered as a promising sign for the beginning of the companies’ transparency journey on this issue.
SPOTLIGHT ISSUES
As we identify few improvements in the disclosures related to this issue, the importance of increasing transparency and commitment is evident to ensure the payment of wages capable of covering the basic living costs of workers. This increased transparency can have positive impacts on the lives of these workers and on society in general, reducing exploitation and promoting a more ethical and responsible fashion industry.
“A living wage is a human right, not a luxury. The fashion industry is not doing enough. Most brands make profits at the expense of the human rights of workers in their supply chain.” Iberian Fair Trade in partnership to the Good Clothes, Fair Pay Campaign
FASHION REVOLUTION
UNIONISATION AND COLLECTIVE BARGAINING Freedom of association, including the right of everyone to form and join trade unions for the protection of their interests, is a cornerstone of democracy enshrined in a number of international agreements and national laws.
or rural nature. However, according to the Labor Rights Index of the International Trade Union Confederation (ITUC), Brazil is classified as one of the countries with the greatest challenges for trade unionists and for guaranteeing labour rights.
Workers are their best advocates and coming together to speak openly and negotiate with their employers remains the most effective mechanism for them to achieve better working conditions. Independent trade unions can address the issues that concern workers the most, such as wages, social security benefits, overtime, maternity rights, discrimination at work and are even associated with less accidents in the workplace.
Data from this year’s 2023 Fashion Transparency Index shows that 17% of brands disclose the number or percentage of supplier facilities that have independent trade unions and 18% the number of workers in the supply chain are covered by collective bargaining agreements.
Unionization and collective bargaining are guaranteed by legislation in Brazil, in which Article 8 of the Federal Constitution of 1988 guarantees the right to unionize and strike, as well as establishes that unions are private, non-profit entities and that they are free to organise and act. Articles 511 to 610 of the Consolidation of Labor Laws (CLT) regulate union organisation in Brazil and establish that unions are formed by workers of the same professional category, and that they can be of a professional, economic
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Even today, in several countries, many of the major brands remain passive about ensuring an environment which would enable legitimate representation of workers.
Regarding disclosure on the number of collective bargaining agreements that provide wages higher than the local legislation, only 3% of companies provide this information, which is a slight improvement compared to the 2022 Index, when no brand disclosed this information. Finally, 13% publish data on violations related to collective bargaining and freedom of association in supplier facilities. Disclosure of these violations is crucial to addressing, preventing and correcting unfair labour practices.
SPOTLIGHT ISSUES
“ Brands need to go beyond policy commitments when it comes to freedom of association and lay out exactly how they plan to actively engage with trade unions and worker representatives along their supply chain to ensure genuine worker engagement. Importantly, this should include how they will work with suppliers to ensure a conducive environment for freedom of association and the development of representative trade unions at factory level. This is all the more important with the roll-back of trade union rights in multiple garment supplying countries. As the sector continues to be impacted by economic turbulence, it is more important than ever that workers are able to collectively bargain for safer workplaces and decent livelihoods to ensure that it is not the lowest paid in the supply chain paying the cost for ongoing instability.”
Natalie Swan Labour Rights Programme Manager Business and Human Rights Resource Centre
FASHION REVOLUTION
INTERVIEW THE IMPORTANCE OF TRANSPARENCY FOR MIGRANT WOMEN IN SEWING
DILMA CHILACA
Leader of the Center for Immigrant and Refugee Women (CEMIR)
My name is Dilma Chilaca Medinaceli. I am Bolivian and I am 42 years old. I arrived in Brazil in 2009, working as a seamstress and looking for a better future for my children. Here, I saw the difficulties that immigrant women face and began to seek help from institutions in order to help other women in difficult situations. In 2017, CEMIR invited me to be part of the centre and I am currently leading the group which has a total of 87 women.
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Q: How do you see the impact of the fashion industry on the lives of immigrant and refugee women in Brazil? What are the main challenges they face? A: As I work with sewing, just like most of the women who come here to Brazil, making clothes is a way to earn a living, but the fashion industry has also its dark side because it is not very regulated and the labour is not valued. Most of the time the wages that are paid are not fair. They are very low and so, out of necessity, we unfortunately end up accepting it because it is practically the only way we can survive here. Q: Why is a fair wage and recognition of the workmanship of these women important? A: It is important because we can improve our living conditions and workshops as well as regularise our employment status since not all of us are regularised. Most of us work officially, issuing invoices, etc., but we do not always regularise ourselves. Many families work as freelancers. So it is also important that it is a fair wage so that they can be regularised and work properly so that there is no self-enslavement. When we cannot provide for the family fully, we work longer hours to be able to cover the costs such as rent.
Q: The Fashion Transparency Index assesses brands’ transparency regarding working conditions in their supply chains. Why do you think transparency is important for immigrant and refugee women in the fashion industry? A: Transparency is very important to give credit and value to the entire process required for a brand to exist and produce its products. This gives more recognition to its workforce, and with more transparency, it is possible to detect irregularities such as the low prices paid to make the products and the long hours of work that we undergo to deliver within the deadlines that they give. With more regularisation, there will also be more empathy and awareness of the work we do. Q: What advice would you give to fashion brands looking to improve inclusion, gender equity and working conditions for immigrant and refugee women in their supply chains? A: They need to be more transparent, gain more knowledge of their own manufacturing process and increase the monitoring of the sewing area. Ensure to also listen to everyone’s voice. Hold an event once a year to ask us how it was to work with them for the year and discuss any difficulties and wages. If they would simply listen to us and carry out actions through our dialogue, we would already feel more valued.
SPOTLIGHT ISSUES
Q: Dilma, is there anything else you would like to share with us? A: I also wanted to add that immigrant women always have difficulties because we are immigrants. There are people who take advantage of our vulnerability to be able to make us work as outsourced labour. I’ve been there. I’ve had that experience. We have to accept these conditions because we have a family and children. We must pay our rent, and so we end up accepting outsourced work. We work longer hours and enslave ourselves to provide for our children. There are always people who do not care about us: If they order our service, they only say that we have to deliver in 15 days. They do not see us as human beings, that there is Saturday and Sunday, that we are flesh and blood and we have families. The owners should also know a little bit about who is behind the work and to value us so that they can help us in the workforce so that it is a fair wage. I am a seamstress just like the other women who make the wheels of each company turn. We always want to be recognised in our work, and you do that with a fair wage. This is important to us!
FASHION REVOLUTION
FINDINGS GENDER AND RACIAL EQUALITY
GENDER EQUALITY
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RACIAL EQUALITY
27%
Publish career development programs for women.
0%
No brand publishes the gender pay gap in suppliers’ facilities.
33%
Publish actions focusing on promoting race equality.
0%
No brand publishes the company’s ethnicity pay gap.
38%
Publish gender breakdown of job roles in the company.
10%
Publish data on gender-based violations in supplier facilities.
13%
Publish career development programs for black employees.
0%
No brand publishes the ethnicity pay gap in suppliers’ facilities.
25%
Publish the company’s gender pay gap.
18%
Publish the race or ethnicity breakdown of job roles of their own employees.
FASHION TRANPARENCY INDEX BRASIL 2023
SPOTLIGHT ISSUES
FASHION REVOLUTION
ANALYSIS GENDER AND RACIAL EQUALITY Among the 60 brands reviewed this year, 27% of them publish information on career development programmes aimed at reducing gender inequality. When this indicator was included in the survey in 2021, only 16% of the 50 brands reviewed disclosed this. We also observed that 38% of major brands and retailers disclose their gender breakdown by position (e.g. executive level, managers/supervisors, assistants). This represents an increase of 10 percentage points compared to the 2022 results. This disaggregated data is important as it allows the company to monitor its year-on-year progress towards greater diversity. Monitoring also enables the creation of specific programmes to reach hierarchical levels where the greatest gaps in representation are found, usually in leadership positions.
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A study conducted by Talenses Group and Insper shows that only 17% of company presidency positions in Brazil are held by women. In this same document, Margareth Goldenberg, executive manager of , also points out that “We have the effect of the broken step. Around 56% of women are concentrated in positions such as coordination, entry-level positions, assistants and analysts, and this total turns into less than 20% when we talk about female managers and directors.” According to the research, having women in leadership positions in the company has effects on the entire gender composition of the positions. The data indicate that the proportion of women in the positions of vice-presidency, board of directors and councils is twice as high, on average, when the presidency is occupied by an executive. Regarding the wage gap between men and women, a quarter (25%) of the brands reviewed publish this information annually. Although it is still a low number, there has been a progressive increase in the transparency of this indicator since 2018 when only 1 brand among the 20 reviewed (5%) in that edition disclosed this information.
Brands tend to be more transparent on data on gender equality about their own female employees than they are about female workers in their supply chain. Although much is said about the fact that women represent the majority of workers in fashion supply chains worldwide, our research shows little progress linked to the transparency of women who work for the brands’ suppliers. As identified by the 2022 survey, no brand publishes the gender pay gap at its suppliers’ facilities. In addition, only 7% of brands published effective actions focused on promoting gender equality at supplier facilities, which is an increase of a subtle 2 percentage points compared to last year.
SPOTLIGHT ISSUES
Importantly, although half of the brands reviewed published a policy against harassment and violence to their suppliers, only 10% published data on the prevalence of gender-related labour violations in their supply chain. This lack of transparency does not mean that such violations do not exist. It reveals that brands may not be monitoring this issue in their due diligence processes or have chosen not to disclose the sensitive data found. According to a study carried out in partnership between UNOPS, UN Women, the Public Labour Prosecutions Office (MPT) and Tewá 225, women are the ones who suffer the most from the precariousness and informality of the fashion sector, being subject to the lowest wages, lack of access to health policies and services, double or triple working hours, and cases of gender-based violence and sexual harassment. In Brazil, this vulnerability is intensified by the fact that many of these female workers are also immigrants and refugees and, therefore, they also face other human and labour rights violations. The continued lack of transparency regarding female workers in the supply chain is worrying and impedes addressing this issue.
FASHION REVOLUTION
For another year, the reviewed brands show little progress on transparency related to racial equality indicators
When we look for a step beyond inclusion, that is, if the company discloses information about career development mechanisms or programmes aimed at promoting opportunities for black employees, the result found drops to 13% of brands.
Only 18% of the companies reviewed published information on the race and colour breakdown of their employees, considering data from different hierarchical levels, which represents a growth of 3 percentage points in relation to the 2022 results. The performance of a racial census as well as the public disclosure of the data found is a first step towards the adoption of effective improvements in the racial equality of a company’s employees. After all, it is not possible to improve what cannot be seen. Thus, it is worrisome to note the low disclosure on this topic year after year.
This lack of transparency may show that most of the major fashion brands and retailers in Brazil are still not addressing this issue and, therefore, in addition to not contributing to social improvements, they are missing a great competitive opportunity. According to the Instituto Identidades do Brasil (ID_BR), affirmative actions represent an essential part of the strategy to transform the corporate world into something with greater social justice and success for organizations. A survey carried out by the same institute shows that advances of only 10% in the ethnic-racial diversity of companies already stimulate a growth in their productivity of almost 4%. In addition, diversity is a key factor for innovation, also contributing to an improvement in the corporate atmosphere and increased visibility with a potential target audience not yet served by most companies.
According to data from the 2022 National Survey by Continuous Household Sample (PNAD), 56% of Brazilians declare that they are black or brown. Despite being a majority in the population, black people are still underrepresented in corporate leadership positions. In Brazil, among the companies that participated in the Corporate Sustainability Index (ISE B3) in 2021, the majority (79%) said they had only 0% to 11% black leaders. These data reinforce the need for companies to adopt affirmative measures to promote racial equality and career development programmes for black professionals. However, only one-third of the reviewed brands published actions focused on promoting racial equality among their employees.
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Although more than half of the brands reviewed (65%) have a policy against discrimination in their Code of Conduct for employees, cases of racism at the points of sale of the brands are recurrent and have been increasingly reported by the press. This shows that, despite the importance of establishing internal guidelines, brands need to go beyond the pages of their codes and establish concrete actions to combat racial discrimination.
Therefore, this year, we included an indicator to monitor whether brands disclose what actions are taken to prevent cases of racism in their stores. As not all brands surveyed have physical stores, no points were allocated for this indicator. We seek to identify whether companies publish information on measures taken regarding the treatment of customers in their stores, both by their employees and outsourced employees and both about attendants/salespeople and security guards and other employees. Only 4 brands - Animale, Havaianas, Renner and Youcom - publish specific and concrete actions taken to avoid cases of racism at their points of sale. Among the information found is the establishment of a specific service protocol for cases of racism in stores and training on racial equity and anti-discrimination for all internal employees.
Likewise, no brand publishes the ethnicity pay gap of its suppliers’ facilities. This lack of transparency is also found when we seek to identify whether the companies publish actions focused on the promotion of race and ethnic equality in the suppliers’ facilities. Only 1 brand publishes initiatives aimed at promoting race or ethnic equality in their supply chain. In view of all the results found in this subsection, it is evident that brands need to be more transparent and incisive in tackling racism and ethnic inequality across the value chain from their points of sale to their suppliers.
Another important point is that, since the first edition of the Fashion Transparency Index Brazil in 2018, no brand has published information regarding the pay gap in its internal staff from a racial perspective, considering the breakdown by positions.
SPOTLIGHT ISSUES
FASHION REVOLUTION
VIEWPOINT WOMEN GAIN PROMINENCE IN EXTRACTIVE PRODUCTION IN THE AMAZON
GABRIELA ANTONIA Coordinator of the “Rubber Women” Project SOS Amazônia
The forest, water and all of nature are manifestations of life that hold in themselves the feminine principle, shrouded in mystery and magic. Guardians of well-being, masters and doctors of forests, water and fields, women are the ones who contribute the most to the care of nature and the good living of the land.
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It is impossible to talk about means and systems of production without relating them to women. In several locations worldwide, in their countless working hours, they are underpaid or, most of the time, they work without pay.
The second rubber cycle took place between 1942 and 1945, in the context of World War II, when the federal government pushed a broad propaganda of enlistment, where entire families or only men were enlisted to become “rubber soldiers”.
This lack of recognition and appreciation for the infinite activities delegated and attributed to women is a result of the sexist, patriarchal and capitalist structure of society. In this context, the more vulnerable you are, the more exploited and silenced you will be.
In both cycles, women were present in the various stages of the rubber production chain but obtained little visibility, attention and credit. With this, community-based organizational movements emerged, building a defence front for the Amazon, thus highlighting the protagonism of women.
To understand the participation of women in the production of raw materials in the Amazon rainforest, it is worth remembering the historical context of the occupation of the region. The state of Acre was and still is a very important territory when it comes to extractivism in the Amazon, Brazil and worldwide. The state experienced two “rubber boom”, periods of great economic strength based on the extraction of latex, the sap from the rubber tree (Hevea brasiliensis) that, after its transformation into rubber, was indispensable to the Industrial Revolution. The first rubber boom took place between 1879 and 1910 and was based on the exploitation of the work of northeastern migrants, mainly from Ceará, who fled drought and misery in their homeland. They then started working in the native rubber plantations of the Amazon, a territory already occupied by countless indigenous peoples.
Affirmative actions are alternatives to promote the financial and emotional autonomy of women through public policies and access to rights. One of these actions is the Rubber Women project, developed by SOS Amazônia and the company Veja through the Zelar Department and the Social Development Institute. The project aimed to recognize, value and expand the awareness of women about the importance of their participation in rubber production as well as in the family and social environment. More than a thousand women participated in community workshops held in several municipalities of Acre. About 25 women, who act as leaders in their communities in the Upper and Lower Acre regions, participated in two training modules to be catalysts. In addition, a delegation of 65 rural women workers attended the 7th Marcha das Margaridas (Daisies’ March) in Brasilia, the largest action organised by and for women in Latin America.
SPOTLIGHT ISSUES
With the motto ‘sustainable rubber is family production’, the project shows that women are also involved in the various stages of the production chain, from cutting through the processing of latex to marketing. The work with the workshops generated positive results and increased women’s interest in occupying positions on the board of cooperatives, associations and unions as well as in regularising their social security rights. It also contributed to a greater involvement of women in commercial relations and the training of young leaders. Another benefit is linked to the sustainability and maintenance of the forest. For extractive practices to occur, it is necessary to have a conserved forest environment. For many women, it is still a surprise to recognise themselves as rubber tappers or extractivists since, until then, they were conditioned to carry out the function of helper or housewife, and the one who always accounted for the activity was the father, husband, brother or any other man who had a family relationship. Considering that in the history of occupation of the Amazon, women were made invisible and men occupied positions of power, decision-making and recognition, leaving the hidden space in the “shadow” and recognizing oneself as an extractivist woman represents, in fact, a great conquest.
FASHION REVOLUTION
VIEWPOINT POSSIBILITIES OF DIVERSITY, EQUITY AND INCLUSION FOR THE BRAZILIAN FASHION INDUSTRY
CAROLINE RODRIGUES SILVA
Operations director of the Brazilian Institute of Diversity, Phd student at FGV EAESP and specialist in diversity focused on social justice
Fashion Revolution in Brazil plays a key role in collecting data that monitors gender and racial diversity for companies in the Brazilian fashion industry. This organization is extremely important, and it highlights the current situation in Brazil by inviting companies to act with diversity, equity and inclusion in the international arena. This movement is crucial because representation in decisionmaking positions in the reviewed companies calls for reflections on the diversity of the Brazilian population. At the same time, it guides an innovative and disruptive journey for countries that are reluctant to enter the journey of inclusion, especially in the ethnicracial agenda.
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By awarding points to companies that publicly disclose data on their supply chain and decision-making positions from a gender and ethnicity perspective, Fashion Revolution stands out as an example that values those companies in the fashion industry that have equality and representativeness as their strategy and culture. This not only strengthens the reputation of the Brazilian fashion industry in the international market, but also serves as a model to be followed by other countries, encouraging the adoption of more inclusive practices throughout the sector.
Representing this plurality plays strategic roles in the fashion industry, as it maintains constant contact with diversity in all aspects of its chain. This is reflected in the people who are impacted on a daily basis through job opportunities and in the final consumers, who actively seek to dress themselves with their identities and their deep nuances. Faced with this opportunity, the only viable approach is to ensure that leadership positions are occupied by genuine representatives of diversity, capable of perceiving and meeting the real needs of a multifaceted society.
If, on the one hand, the Brazilian fashion industry serves as an international example of success in the journey of Diversity, Equity and Inclusion internally, the country still faces significant challenges regarding representativeness. Considering the diversity of the Brazilian population, we come across groups that have been dismissed and need to be brought to the decision-making table. These groups have a rich plurality that includes black, indigenous, young, elderly, person with disability, LGBTQIAP+ people as well as people from different regions and white women.
In this sense, when we recognise the lack of representation, current leaders must become allies, opening space for an inclusive dialogue that allows the cocreation of strategies, rooted in the plural social construct that needs to be part of the whole ecosystem so that they are truly sustainable. In addition, it is essential to recognise that diversity, as in other sectors, needs to be formally recognised as an area of knowledge to be structured in organisations. This implies hiring specialised professionals, qualified to act in a transversal and plural way, ensuring that diversity is treated with the seriousness and comprehensiveness it deserves. Managers committed to inclusion must act in a way that truly ‘mirrors’ Brazilian society. In
SPOTLIGHT ISSUES
other words, they need to seek to ensure that the same diversity found in society is reflected equitably in all positions within the companies. Challenges include establishing inclusion criteria, recognising exclusionary stigmas and ensuring diverse people are comprehensively represented across the supply chain. This approach can generate substantial benefits for companies, including a stimulus to creativity, innovation and greater attunement with consumers and the sustainability agenda from a social perspective. Therefore, it is essential that the fashion industry in Brazil persists in its efforts to achieve these Diversity, Equity and Inclusion (D&EI) objectives, aiming at more equitable and diversified representation in all aspects of its operation. In this way, it will ensure that they are at the forefront of innovation, sustainability and D&EI, which are factors that are intertwined in the perspective of responsible management.
FASHION REVOLUTION
FINDINGS SUSTAINABLE SOURCING & MATERIALS
SUSTAINABLE MATERIALS
111
PLASTICS AND SYNTHETIC MATERIALS
35%
Disclose data on the types of fibres sourced annually.
27%
Publish annual progress on sustainable materials targets.
22%
Publish targets to reduce the use of textiles deriving from virgin fossil fuels.
30%
Publish targets to reduce the use of packaging deriving from virgin plastics.
30%
Publish a time-bound, measurable sustainable materials strategy.
32%
Explain how they define so-called ‘sustainable’ materials.
15%
Publish annual progress to reduce the use of textiles deriving from virgin fossil fuels.
10%
Publish what the brand is doing to minimise the shedding of microfibres.
FASHION TRANPARENCY INDEX BRASIL 2023
SPOTLIGHT ISSUES
FASHION REVOLUTION
ANALYSIS SUSTAINABLE SOURCING & MATERIALS With the increasing concern of consumers with the sustainability of the products they buy, there is a growing number of products and collections sold as “sustainable”, “eco” or “less impactful”. Given the various environmental impacts related to the production and processing of the raw materials used in our clothes, it is essential that brands are transparent about which criteria, processes and studies accredit such material sold as sustainable and that these credentials are credible. It is also important that there is transparency on whether the sustainability claims are related to the whole product or only to a component or part of the end product. Additionally, it is essential to clarify whether these sustainability claims are related to the environmental or social impacts of a product. Despite this, only 32% of the brands reviewed disclose which reference they used to define a raw material as sustainable. Transparency on this topic can serve as a shield to avoid increasingly common cases of greenwashing wherein certain materials are sold as sustainable without their real impacts social or environmental having been considered.
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To deal with this problem, some countries are taking punitive measures. In Europe, for example, the Competition and Markets Authority (CMA) opened an investigation into fashion brands ‘green claims’ in their marketing, and the Norwegian Consumer Authority (NCA) issued warnings of economic sanctions to clothing retailers that are breaking the law over “misleading” environmental claims. Reinforcing this anti-greenwashing crackdown, the European Union is formulating a set of regulatory practices for the fashion industry. Given that these various legislations are currently being discussed, there is a lack of visibility and understanding on the requirements major brands and retailers will need to comply with. An example to be cited is the Green Claims Directive, which seeks to stop companies from making misleading claims about the environmental merits of their products and services, thereby ensuring the use of labels with correct and reliable information. In Brazil, greenwashing is an illegal practice under the Consumer Protection Code (Law N. 8,078/1990) that prohibits misleading advertising. Despite this, little has been done regarding more specific regulation on these practices, primarily related to the textile and clothing sector.
Increase in the number of brands that disclose goals and progress towards the use of sustainable materials. Among the brands reviewed in the Index, 35% publish the quantities of the different types of fibres used each year, which allows stakeholders to identify which materials are the most used and whether brands’ sustainability strategies are aligned with the most impactful materials in their production. In 2022, the Index found evidence for this indicator for only 23% of brands, thereby representing an increase of 12 percentage points now in 2023. This year, we also saw an increase in disclosed of measurable and time-bound targets for the management of sustainable materials with 30% of brands publicly disclosing their strategies compared to 22% in 2022. In addition, 27% published the annual progress of their goals, which is an increase of 12 percentage points compared to last year.
SPOTLIGHT ISSUES
“ According to the report “The State of Fashion 2023”, from McKinsey & Company, the production of textile materials contributes somewhere between 25 and 40 percent of the industry’s CO2 emissions, making it the stage with the greatest climate impact in the entire life cycle of fashion products. With this in mind, consciously choosing the materials to be used becomes clear and urgent in the textile sector. This involves in-depth research regarding the raw material to be chosen.”
Eduarda Bastian Founder and Executive Director Fibershed Brasil
FASHION REVOLUTION
PLASTICS AND SYNTHETIC MATERIALS According to Textile Exchange, synthetic fibres accounted for 62% of the total fibres used in fashion in 2021. Synthetic fabrics are made from polymers derived from petroleum and have polyester as its best known and most widely used synthetic fibre. This highlights the fashion industry’s heavy dependence on fossil fuels. In addition, the growth in polyester production is intimately linked to the exponential increase in clothing production, as overproduction demands the availability of a cheaper raw material. It is estimated that, if no changes are made, this reliance could increase resulting in almost three quarters (73%) of fabrics being produced from fossil fuels by 2030. It is important to remember that, to mitigate the climate crisis, it will be necessary to eliminate the use of fossil fuels. Thus, the fashion industry urgently needs to start replacing the materials used in their products.
Among the brands reviewed, 22% publish measurable and time-bound targets on reducing textile products derived from virgin fossil fuels and 15% publish data on their annual progress towards meeting these targets. Both results represent an increase of 7 percentage points compared to the 2022 results that were 15% and 8%, respectively. Regarding virgin plastics used in packaging, 30% of companies disclose their measurable and time-bound targets to eliminate its use, indicating an increase of 10 percentage points compared to last year’s Index. Brands are also more transparent about year-over-year progress towards achieving these targets, as 28% of companies reported progress in 2023, up from 15% in 2022, which is an increase of 13 percentage points.
Recycled polyester from PET bottles is not a perfect solution Several companies focus their sustainable materials strategy on the use of recycled polyester, considering that this is a quick solution to a complex problem. It is important to emphasise that the indiscriminate use of recycled polyester in the current way is not a definitive solution for the fashion industry. There is a myth that recycled polyester fabrics are made only from postconsumer textile waste when they can actually come from various sources e.g. bottles, fishing nets and other packaging - since fabric-to-fabric recycling technology is still in its infancy. In Brazil, for example, approximately 1/4 of recycled PET is destined for the textile industry. When recycled polyester is made from plastic bottles, the packaging is removed from its closed recycling cycle to be transformed into fabrics, and will hardly be recycled again, thus stopping the continuation of the recycling cycle that they could have if they continued as bottles. Rather than solving the challenge, this may encourage the consumption of virgin plastics and disposable products so that they can later be recycled into new products. Recycled raw material saves materials and energy in comparison to virgin plastic, but this can lead to a zero-sum result, as the production of recycled polyester from PET bottles requires a continuous flow of virgin plastic production for the production of PET bottles while creating a reliance on waste flows from other sectors. It is also worth mentioning that the use of recycled polyester does not prevent the shedding of microplastics. Therefore, it is important that brands are critical about using this material as the only way to introduce sustainable materials into their collections as well as how they promote it to their consumers. Recycled material should be seen as a transitional solution as the industry develops and strengthens its own closed loop system from fabric to fabric.
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SPOTLIGHT ISSUES
FASHION REVOLUTION
Only 10% of brands disclose what they are doing to minimise the impact of microplastics. Every time we wear, wash and dispose of our clothes, they release microfibres. In the textile industry, ‘microfiber’ is a technical term used for a fibre smaller than 10 µm in diameter. According to the Microfibre Consortium, fragments of this type of material have been found in humans and other organisms, being consumed through food, beverages and air. Research has already shown that microfibres have been found in human blood and placentas. When these particles are derived from materials made of plastic polymers, they are also called microplastics. Synthetic fibres are one of the main sources of microplastics found in the ocean, accounting for 34.8% of the global total. In Brazil, researchers from the Federal University of Pará have found microplastics in about 30% of fish in the Amazon and Xingu rivers.
Microfibres from natural fibre fabrics are also harmful. This is because, despite the material being of natural origin, these fibres may also go through intensive manufacturing processes involving toxic chemicals, meaning that whilst the fibre itself may be ‘natural’, the processes are not, and the fibres may end up with a cell structure not found in nature which means it will never biodegrade. Thus, it is worrisome that only 10% of brands disclose their strategies to deal with the impact of microfibres. Brands need to invest in research and solutions to this problem and they need to be transparent about these initiatives, sharing good practices in order to inspire their peers in the sector. This is expected to reduce the use of synthetic and hazardous chemical materials in the production processes of our clothes.
Illustration: Amanda da Silva Boas - Fórum Fashion Revolution 2022
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SPOTLIGHT ISSUES
FASHION REVOLUTION
VIEWPOINT CONTRIBUTIONS OF TRADITIONAL QUILOMBOLA COMMUNITIES TO FASHION, STYLE AND RESISTANCE TO A CLIMATE DEMAND.
LEONIDIA INSFRAN DE OLIVEIRA CARVALHO
History teacher, master in environmental science and technology Leader of Quilombo Dona Bilina
The fashion world is constantly evolving and influenced by several factors with an awareness of climate issues playing an increasingly important role. In this constantly evolving environment, sustainability, ethnic-racial relations, agroecology and appreciation of culture assume crucial roles not only as trends but also as pressing needs. This transformation in the fashion industry is a response not only to the demand for clothing but also to the urgency of climate change impacting our planet. An inspiring example of this transformation can be found in the vast Brazilian Cerrado, where golden grass flourishes. This natural resource is used to make bags, costume jewellery and decorative objects, thereby giving fashion a touch of authenticity from the communities that inhabit this region. The uniqueness of this fashion can be appreciated in a video by writer Nego Bispo titled “Quilombola Life, Memory and Learning”, where he proudly wears an elegant golden hat. Valuing this peculiar style is essential for preserving the natural resources of the Cerrado and provide livelihoods for local communities.
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In addition, the fashion of quilombola communities, indigenous people and other traditional groups highlights the use and reuse of natural resources, such as seeds and trunks that would otherwise be wasted in nature, which are used to make jewellery pieces. For example, straw yarns from the banana tree trunk, which are known and used by ancestral communities worldwide, gained prominence in the industry for their sustainability. Valuing this ancestral knowledge is fundamental to addressing environmental imbalances and strengthening the identity of communities. In Quilombo Dona Bilina, one of the largest productions is the banana, whose trunks are often discarded. The whole use of this banana production could add value to the fruit and contribute to sustainability. The banana embira, which used to tie vegetable bundles or to support tomato plantations, could be transformed into an additional source of income, for example, thereby benefiting the banana fibre fabric market.
SPOTLIGHT ISSUES
Fashion plays a key role in this equation, providing a space to promote ethnic equality and highlight the importance of sustainability in the face of a climate crisis. Traditional communities, such as Quilombo Dona Bilina, can contribute a lot to contemporary fashion, improving it with their traditions and presenting innovative and ecological solutions that benefit everyone. This intersection of fashion, sustainability, culture and identity is paving the way for a more inclusive and conscious fashion sector while also underscoring the importance of protecting the environment in an ever-changing world.
FASHION REVOLUTION
FINDINGS OVERCONSUMPTION, WASTE & CIRCULARITY
PRODUCT VOLUME & BUSINESS MODEL
116
WASTE AND RECYCLING
25%
Offer circular solutions, which allow parts to be recycled (in addition to reuse or downcycling).
20%
Publish the amount of pre-production textile waste generated annually.
18%
Disclose the number of items destroyed during the year.
Offer new business models that slow consumption.
8%
Disclose % of products designed to enable closed loop.
17%
Disclose the amount of postproduction/pre-consumption waste generated annually
32%
Dcislose how they provide permanent in-store take-back schemes.
Offer repair services to increase clothing longevity.
0%
Disclose commitment to degrowth.
27%
Disclose the amount of pre-consumer waste reused.
33%
Disclose what happens to clothes received through the take-back schemes.
40%
Disclose the overall quantity of products made annually.
22%
7%
FASHION TRANPARENCY INDEX BRASIL 2023
SPOTLIGHT ISSUES
FASHION REVOLUTION
ANALYSIS OVERCONSUMPTION, WASTE & CIRCULARITY Overproduction, overconsumption and waste continues to be a growing challenge caused by the global fashion industry’s linear ‘take, make, dispose’ model where mostly non-recyclable materials are extracted, made into products, and ultimately downcycled, sent to landfill or exported through the global secondhand clothing trade or incinerated when no longer used. To illustrate this problem, we can highlight the increase in the number of garments produced globally each year. The number of garments produced annually has more than doubled since 2000 and exceeded 100 billion for the first time in 2014. In the global context, Brazil ranks in the 5th place as main textile producers, producing approximately 8 billion pieces in 2021, in addition to having the fourth largest world market in the textile sector. However, given the current levels of overproduction, aggravated by the fact that 80% of textile products end up being discarded, usually in landfills, it is essential for brands to be transparent not only regarding the number of products manufactured and the waste generated but also in communicating their efforts in favour of degrowth and circularity.
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Less than half of the brands reviewed disclose the overall quantity of products made annually. In order to understand the real extent of overproduction, the public disclosure of the annual production volume of large brands is essential. This is because this information allows for a more accurate overview of this exponential increase in production over time. In the Brazilian Index, 40% of the brands disclose their annual production volumes, marking a significant increase of 15 percentage points compared to the 2022 report, which recorded 25%. It is noteworthy that, based on these results, the brands operating in Brazil tend to be more transparent about the number of products they produce annually than those reviewed by the Global Index this year, in which only 12% of brands disclose this data.
Not a single brand publicly commits to degrowth. Degrowth is a term that challenges the traditional concept of infinite and unlimited economic growth and production. It suggests the transition to an economy that puts the responsible use of energy and natural resources as well as human and environmental well-being as the priorities, as opposed to profit and growth at any cost. For degrowth theorists, the relentless pursuit of economic growth undermines the ability to limit global warming to 1.5 degrees Celsius, which could aggravate the consequences of the climate crisis. Therefore, for brands committed to combating the climate crisis, public disclosure related to their growth as well as a commitment to degrowth and to a transition to a more sustainable fashion can be crucial.
Another relevant indicator relates to the percentage of the brands’ production that is carried out in Brazil. This information allows for a better understanding of the participation of national suppliers over international ones on the amount of clothes produced by Brazilian and international brands. This year, 37% of brands publish this information, which is an increase of 7 percentage points compared to the 2022 results.
SPOTLIGHT ISSUES
Fashion Revolution understands that degrowth is a complex issue that can have catastrophic consequences if it is not done carefully, considering the systemic complexities of the fashion industry. In this context, a “Just Transition” from the current model to a more sustainable, circular and regenerative one cannot be achieved without careful considerations and without consulting the people impacted, which includes workers. For garment workers, without whom major fashion brands cannot exist, a just transition provides and guarantees better working conditions, social protection, efficient training and safety for all workers affected by the climate crisis. However, there is still a lot to be done. An example of this is that only 4 brands (7%) disclose their efforts to provide qualification and/or professional development for workers in their supply chain, aiming to prepare them for a transition to a circular economy. This data suggests that companies may be doing something in this regard, but they choose not to disclose it, or they may not really be doing anything at all. Transparency on this topic is important as it can tell us if we are gradually transitioning to a circular fashion system and if workers are acquiring enough interpersonal and technical skills to achieve the transformation we want to see in fashion.
FASHION REVOLUTION
Few brands disclose data on the amount of waste generated in their production. Another pressing problem in the fashion industry, intrinsically linked to overproduction, is waste generation. Currently, the textile and fashion industry operates under a linear structure, which results in the generation of waste throughout the life cycle of products, not limited to their end-of-life stage. In addition, clothes and other textile waste are the cause of several social and environmental impacts in many parts of the planet. The Atacama Desert and its population, for example, are being impacted by a large amount of textile waste dumped in this region, which can already be visible from space. In Brazil, just in São Paulo alone, it is estimated that the equivalent of 20 tonnes of post-consumer clothing and 35 tonnes of other waste are generated every day. Other materials are found among the remains of textile products, such as broken needles, threads, cardboard tubes, kraft paper used in moulds, plastics, etc.
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When looking at the public disclosure of information about brands’ pre-production waste, including offcuts, scraps, yarn, and end-of-roll fabrics, only 20% of companies choose to share this data publicly. This number drops to 17% when we look for post-production/pre-consumer waste, such as overstock, samples and defective pieces.
Only 27% of brands disclose the amount of reused waste as well as details about the process involved in this reuse. Some strategies to make the fashion industry more circular may include the reuse of waste through techniques such as upcycling, resale and recycling into new fabrics and energy generation use. However, we noticed that only 27% of brands disclose the amount of reused waste as well as details about the process involved in this reuse.
Despite brands knowing the negative impacts of incineration, they continue this practice instead of reducing their production. When assessing the disclosure of brands regarding the amount of waste destroyed annually, we found that 82% of them do not share this data. It is essential to highlight that the destruction of pieces is often linked to incineration, which, in turn, constitutes another source of emission of carbon dioxide (CO2) and other atmospheric pollutants, contributing to the worsening of the problem of global warming and the intensification of the climate crisis. However, even when aware of this dilemma, many brands, seeking to maintain their image in the market, sometimes choose to incinerate products instead of reducing their production. Burning clothing raises ethical concerns of both a social and environmental nature. From an environmental perspective, incinerating clothes can be seen as a wasteful act, as these materials are often derived from the extraction of natural resources and are consumed irresponsibly and excessively. This practice also highlights a more extensive social issue, namely the inequality
SPOTLIGHT ISSUES
in access to essential clothing. While many individuals struggle to obtain necessary garments, some companies opt to destroy them to maintain a level of exclusivity. This situation underscores the ethical concerns and social inequalities perpetuated by the fashion industry.
Low transparency regarding the types and quantities of waste generated and how it is handled by brands can undermine the effectiveness and impacts of solutions such as circularity initiatives. Low transparency regarding the types and quantities of waste generated and how it is handled by brands can undermine the effectiveness and impacts of solutions such as circularity initiatives.
FASHION REVOLUTION
Brands release more information about their take-back schemes than repair services. Among the brands reviewed, 32% disclose how they make permanent take-back schemes available for returning garments in their shops and 33% disclose what happens to the clothes they receive. Such initiatives generally involve collection bins in which consumers can deposit items they no longer use. Often, brands highlight in their communication channels that these clothes are sent to NGOs and vulnerable populations. However, in some cases, these clothes are actually destroyed, lost, sent to landfills or even exported to countries on the African continent, for example. This highlights the need for greater transparency in relation to these mechanisms. The information to the consumer is that these are circularity strategies, which serve to “close the loop” of the industry. However, there may be a discrepancy between the initial disclosure of the brands and the reality behind the destination of the clothes, which reinforces the importance of public disclosure of data about this.
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This year, only four brands (7%) disclosed that they offer repair services that can extend clothing longevity and slow down the consumption of new pieces. As we seek the transition to a circular industry, it is essential to understand that circular practices must be incorporated into each stage of a product’s life cycle, not restricted to the disposal of clothes. In this sense, adjustment and repair systems are also strategies for circularity. However, this data may suggest that many brands actually transfer responsibility for the products they create to consumers. This exempts them from being held accountable for the excessive consumption patterns they encourage and normalise, neglecting circular practices that could be even simpler and more accessible than others, such as recycling. In this sense, another way to slow the consumption of new clothes down is by creating new business models that foster garment longevity. Just over 1/5 of brands (22%) disclose information on the implementation of systems such as renting and reselling, which is the same percentage reported in 2022.
Transparency on circularity remains low among the brands reviewed. Compared to the 2022 Index, there was relative stability linked to the disclosure of information about the brands’ investments in circular solutions that go beyond reuse or downcycling and that allow the recycling of pieces: 24% in 2022 and 25% in 2023. In addition, in 2023, only 8% of companies disclose the percentage of their products designed to enable circularity compared to 7% in 2022. The Ellen MacArthur Foundation defines the circular economy as being based on the three following principles: eliminate waste and pollution, keep products and materials in use and regenerate natural systems. It is vital to highlight that circularity is about changing the current production model and not just about using recycled materials. Therefore, circularity practices should be applied throughout the supply chain.
SPOTLIGHT ISSUES
92% of companies do not disclose the percentage of their products designed to enable circularity.
For the circular economy to be truly effective, it is essential to reduce the production of new pieces and focus on the repairing, reconditioning, reuse and recycling of existing products and materials. However, when companies invest in circular solutions without considering the crucial “slowing the production of pieces”, this may indicate that their attention focuses more on profiting from an image of sustainability and social responsibility than on adopting genuinely sustainable practices. Ultimately, this can even be interpreted as a form of “greenwashing”, in which companies try to look sustainable without actually implementing effective sustainable actions in their operations.
FASHION REVOLUTION
VIEWPOINT NEW IMPULSES TO CONNECT CIRCULARITY AND FASHION
ALICE BEYER SCHUCH
Journalist specialised in research for sustainability and innovation with holistic approach
The situation we are currently experiencing in this Anthropocene era could be translated into a few words: “evolve or disappear”. In this urgent scenario, the Circular Economy brings a complete model for reconciliation with nature which is anchored in a holistic way of designing.
On the other hand, 16 brands publish their annual progress in searching for more sustainable materials, disclosing the percentage of recycled, reused, organic, fairtrade fabrics used, etc. And even 21 brands disclose the number of different types of fibres they purchase and use annually.
We are happy to see circularity gain more space in the Fashion Transparency Index and to follow the growth of good practices based on its three principles - eliminate waste and pollution, circulate products and materials as well as regenerate nature, according to the Ellen MacArthur Foundation. Currently, achieving these goals to move towards circular fashion with a greater chance of encompassing all three principles, such as “disclose the percentage of products that are designed to enable closed loop or textile to textile recycling at end of life”, is disclosed by only 5 companies, among the 60 brands reviewed in the FTI Brazil launched now. 120
GABRIELA MACHADO
Specialist in circular fashion with a focus on materials and design strategies
FASHION TRANPARENCY INDEX BRASIL 2023
To accelerate circularity based on the type of material used we will launch the e-book “Fibres and Materials Towards Circular Fashion” with the support of Fashion Revolution. In it, there will be a comprehensive analysis of the various categories of fibres and materials, and we will share tips to help when deciding how to design clothes or accessories. Along with this contribution, we believe that more debate and dissemination about a circular fashion, in addition to the help of public policies, will achieve structural advances that influence the mindset of brands in Brazil. In Europe, circularity is already embedded in many bills. Since the launch of the Circular Economy Action Plan in 2020, a series of guidelines have been unfolding for companies that trade in the European Union.
For example, the Ecodesign for Sustainable Products Regulation, the implementation of Extended Producer Responsibility programs and the strategy on Sustainable and Circular Textiles for 2030. In countries such as France and the Netherlands, a program is already in force to replace at least 25% of the virgin polyester used in the industry with its recycled version by 2025. Even better, replace a minimum of 25% of these synthetic fibres with alternatives from renewable resources by 2028. The obligation for a Digital Product Passport is also being considered in the European Union, which will promote transparency in circularity! Through standardised QR Codes on the pieces, for example, users will have access to composition and ecological footprint data as well as instructions for maintenance, repair and correct disposal. This passport will also assist the teams in the processes of collection, reuse and future recycling of products.
SPOTLIGHT ISSUES
In Brazil, Bill 00270/2022 is currently expected to create a national reverse logistics system for textile waste. This is the first national proposal for the regulation of textile disposal and it would correspond to the European Extended Producer Responsibility. The Bill aims to return waste to the business sector for its reintroduction through mechanical and chemical recycling, for donations to craft centres or, finally, and less desirable, for incineration. The Bill was presented in early 2022, passed by deliberation of the Commission on Environment and Sustainable Development (CMADS) at the Brazilian Congress at the beginning of 2023. At the end of August, it was then reopened for amendments. We understand that the action addresses the problem of waste, also known in the Circular Economy as a “design error”. However, when we become aware that endof-cycle management alone is not effective but only efficient, it will become common to find standards regulating, for example, the mixing of fibres in fabrics, ensuring their real recyclability and maximum added value.
FASHION REVOLUTION
FINDINGS WATER & CHEMICALS
HAZARDOUS CHEMICALS
12%
Publish time-bound commitment to eliminate hazardous chemicals.
WATER USE
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32%
Publish annual water footprint in company’s own facilities.
2%
Publish annual water footprint at raw material level.
12%
Publish their progress towards eliminating hazardous chemicals.
13%
Publish the water footprint of the processing facilities.
20%
Disclose the methodology used for water-related risk assessments.
7%
Publish wastewater test results from the supply chain.
FASHION TRANPARENCY INDEX BRASIL 2023
SPOTLIGHT ISSUES
FASHION REVOLUTION
ANALYSIS WATER & CHEMICALS Stagnation on disclosure for water-related indicators. Water is a crucial resource for the fashion industry – it is used at all stages of our clothes’ life from the farm where fibres are made, all the way along the supply chain (e.g. to process fibres, dye and finish products) right to the end when customers use water to wash their clothes. Thus, the fashion sector is responsible for a high consumption of water. Many of the biggest garment-producing regions are also subject to significant water risks – which include water availability, flooding, pollution or gaps in water regulation and planning. Pakistan, a major producer of clothing and cotton, for example, was hit by torrential rains that resulted in floods that severely affected a third of its territory and destroyed more than 40% of local cotton plantations. This is further intensified by the increase of garment production - and consequently the increase in the water footprint - and by the worsening of the climate crisis. In Brazil, it is estimated that Cerrado, the region responsible for much of the country’s cotton production, may lose more than 30% of its water volume by 2050 due to land use by agriculture.
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Considering these risks, it is worrisome that only one third of the brands reviewed disclose the methodology they use for water-related risk assessments. In addition, only 32% of companies publish the annual water footprint of their own facilities and disclosure decreases when we look for information regarding water use in the supply chain. Only 13% publish the water footprint of the processing suppliers processes that usually employ intensive water use - and even less, only 2%, disclose the annual water use at the raw material level.
Many of the biggest garment-producing regions are also subject to significant water risks – which include water availability, flooding, pollution or gaps in water regulation and planning. The level of disclosure on water footprint data is similar when compared to the results found by the Global Index and to previous years of the Brazil Index, thereby suggesting a stagnation within the fashion sector on this key issue.
Few brands are transparent about their commitment to eliminate the use of hazardous chemicals. More than 8,000 synthetic chemicals are used in the fashion manufacturing process and end up in what we wear. All stages of textile manufacturing use chemicals: from pesticides in the fields, inputs in fibre production, washing, transportation, dyeing, and finishing (anti-static, anti-crease) and even up to the baling of second-hand items. Among the substances used we can mention hormone disruptors, like phthalates, others are carcinogens like PFCs and formaldehyde. The impact of hazardous materials is felt throughout the supply chain, from workers down to the consumer who buys the clothes. But it doesn’t stop there, as textile waste has negative impacts on the environment and the people who live near landfills.
It is paramount that brands are committed to setting targets to eliminate the use of hazardous chemicals in their products that may harm people’s health and the environment. However, only 12% of the brands reviewed disclose a commitment to eliminate hazardous chemicals, as proposed by international standards such as ZDHC and Bluesign. These results are below those found by the Global Index, in which 30% of the brands reviewed disclose their commitments. Brands need to track their entire value chain to address the social and environmental impacts that may arise, such as water pollution, workers’ health, local communities or the natural environment around their chain operations. In Toritama, a city known as the Brazilian capital of jeans, for example, it is common to see the Capibaribe river polluted and changing colour as waste from local laundries is dumped. Therefore, it is worrisome that less than 10% of companies publish the results of the wastewater tests from their suppliers.
The impact of hazardous materials is felt throughout the supply chain, from workers down to the consumer who buys the clothes.
SPOTLIGHT ISSUES
FASHION REVOLUTION
FINDINGS CLIMATE AND BIODIVERSITY RENEWABLE ENERGY
DECARBONISATION & CARBON EMISSIONS
123
0%
No brand discloses absolute energy consumption reduction data at suppliers.
DEFORESTATION & REGENERATION
15%
Publish a measurable decarbonisation commitment.
45%
Publish annual carbon footprint in their own operations.
10%
Publish a measurable commitment to zero deforestation.
37%
Publish renewable energy % in their own facilities.
2%
Publish short-term and long-term scientific-based decarbonisation targets.
40%
Publish annual carbon footprint in the supply chain.
2%
Publish their progress towards zero deforestation.
10%
Publish renewable energy % in the supply chain.
45%
Publish what is included in the company’s scope 1, 2 and 3 emissions.
37%
Publish annual carbon footprint at a raw material level.
8%
Provide evidence of implementing regenerative farming practices.
8%
Publish what proportion of their production is powered by coal.
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SPOTLIGHT ISSUES
FASHION REVOLUTION
ANALYSIS CLIMATE AND BIODIVERSITY As temperatures continue to increase globally along with the frequency and intensity of natural hazards - from devastating droughts in Amazon to disastrous floods in Southern Brazil - scientists have been raising the alarm regarding our lack of action to reduce our greenhouse gas emissions globally. The fashion industry is a major contributor, contributing an estimated 2-8% of the world’s greenhouse gases. What makes this situation even more complex is that the people who make our clothes are often part of communities that tend to be socially and economically vulnerable groups and are disproportionately and unequally exposed to environmental impacts and risks, thereby becoming victims of what we call ecological racism.
Therefore we can say that climate justice and social justice are intrinsically linked. As a result, brands cannot effectively reduce their impact on the climate without addressing this issue across their supply chain, considering how the climate crisis impacts their suppliers, workers families and local communities. Deforestation, for example, which is the main source of carbon emissions in Brazil, is related to the fashion industry due to the demand for leather or cotton, for instance, and has contributed to increasing the number of fires in the Amazon, which has made people sick due to the smoke. That is why effective solutions include not only measures to decarbonise and combat deforestation but also the commitment to regenerative fashion practices which seek to promote a better quality of life for all the people involved in addition to regenerating environmentally what has already been destroyed by the fashion industry. Despite the urgency of these issues, it is concerning to note that many of the reviewed brands still lack transparency on topics related to climate and biodiversity.
Photo: Alexander Tsang - Unsplash
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SPOTLIGHT ISSUES
FASHION REVOLUTION
Few brands disclose the decarbonisation commitments that cover their entire value chain. According to a publication from the UN Environment Programme, to mitigate the impacts of the climate crisis by 2030 and achieve the goal of limiting global warming to 2°C, or ideally 1.5°C, it is necessary to reduce global GHG emissions by 25% to 55% compared to the 2017 levels. The Paris Agreement, which is an international treaty, has played a key role in this effort. Signed by national governments, including Brazil, the agreement establishes the commitment to keep the limit of the temperature increase below 2°C and seeks efforts to limit the temperature increase to 1.5°C, while promoting the decarbonisation of economies. Companies play a crucial role in meeting these commitments, and science-based short-term and long-term targets, such as those set by Science Based Targets initiative (SBTi), can serve as a clearly defined pathway to achieving decarbonisation in line with the Paris Agreement. Short-term targets give companies an insight into how much they need to reduce GHG emissions across their value chain (scopes 1, 2 and 3) and how quickly they should act. On the other hand, long-term goals aim at the complete neutralisation of Scope 1, 2 and 3 emissions. 125
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Only 15% of brands disclose measurable decarbonisation commitments.
In 2008, the Brazilian GHG Protocol Programme was created to adapt the GHG Protocol method to the Brazilian context, in addition to providing calculation tools to estimate GHG emissions. One of the fundamental criteria of the GHG Protocol involves the elaboration and categorisation of the meaning of scopes 1, 2 and 3 for emission reports. In this scenario, scope 1 covers direct emissions from sources controlled by the company, while scope 2 includes indirect emissions related to the generation of purchased energy. Scope 3, in turn, covers all indirect emissions in the company’s supply chain, including those associated with the production of raw materials and the manufacture of clothing.
Although 45% of companies have disclosed what is included in their Scope 1, 2 and 3 emissions, an increase of 17 percentage points compared to 2022, only 15% of brands disclose measurable decarbonisation commitments. To score on this indicator, it is essential that this commitment covers all three scopes and is verified by Science Based Targets (SBTi). Transparency on these indicators is fundamental, as it allows us to assess what brands’ true commitments are and what they consider in their GHG emission reduction targets. It is also surprising to note that only 2% of brands publish science-based decarbonisation targets, both in the short and long term. Another point of attention is that only 13% of brands publish their progress towards decarbonisation. This suggests that companies have not yet fully understood the global urgency of disseminating this data or effectively working to achieve decarbonisation.
SPOTLIGHT ISSUES
“ Transparency is one of the most necessary tools for our sector to advance in the fight against the Climate Crisis. Fashion can no longer be absent from commitment to people and the most urgent global issues. It’s time to be part of the solution!”
Fernanda Simon Executive Director Instituto Fashion Revolution Brasil
FASHION REVOLUTION
“ Today, our perspective as indigenous people and guardians of the Amazon rainforest and of Brazil is to always maintain and preserve our Brazilian Biome. Our greatest challenge and mission for these biomes may continue to exist even when we are no longer here and so future generations can take up the reins of the struggles we face today. Our fashion is different because it is a small-scale, handmade craft and reflects the culture of the indigenous peoples of the Amazon. The materials are biodegradable and there is durability in them. They are more sustainable because they are handmade. In addition, this fashion helps to support many women in local communities. In this relationship, clothes are not just clothing, but an outfit that expresses the art and culture of various indigenous peoples. For example, symbols and graphics are part of our culture and ancestral wisdom that have been passed down for many generations. It is a relationship of struggle and an interaction to preserve the forest that is our home and our school. Above all, it is where we find our sustenance and survival; an indigenous garment or accessory is not just a decoration, but rather the connection between existing culture and spirituality.”
Rita Huni Kuin Visual Artist
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SPOTLIGHT ISSUES
FASHION REVOLUTION
SF6
CO2e
HFCs
N20
CH4
CO2
NF3
PFCs
Processing of sold products
Leased assets
Leased assets
End of life treatment of sold products
Purchased electricity, steam, heating & cooling for own use
$
Transportation
Employees commuting
Waste generated in operations
UPSTREAM Indirect emissions from production
FASHION TRANPARENCY INDEX BRASIL 2023
Company facilities
Fuel & activities
Business
Capital goods
127
investments
Use of sold products
Purchased goods & services
Franchises
Transportation & distrubution
DOWNSTREAM Company vehicles
Impacts of product use and end of life
REPORTING COMPANY CO2e CO2 CH4 N20 HFCs PFCs SF6 NF3
Scope 1 emissions (Direct emissions from company) Scope 2 emissions (Indirect emissions from purchased energy) Scope 3 emissions (Product emissions) Carbon Dioxide Equivalent Carbon Dioxide Methane Nitrous Oxide Hydrofluorocarbons Perfluorocarbons Sulphur Hexafluoride Nitrogen Trifluoride FASHION REVOLUTION
ANALYSIS DISCLOSURE OF CARBON FOOTPRINT DATA The public disclosure of data on greenhouse gas (GHG) emissions is crucial for brands to reduce their emissions and meet their decarbonisation goals. The main cause of global warming are the greenhouse gas emissions resulting from human activities, such as industry. Among gases, carbon dioxide (CO2) emissions are responsible for approximately 82% of global warming, while the remainder is mainly associated with methane and nitrous oxide gases. The carbon footprint is a measure that assesses the amount of GHG emissions, including carbon dioxide and methane (CH4), released into the atmosphere due to human actions, such as individual activities, operations of companies, organisations, governments and industries. It is calculated through the total GHG emission, especially CO2, as it is the gas with the highest potential for climate warming, and allows the assessment and quantification of the possible environmental impacts throughout the life cycle of a product or process from the extraction of raw materials to final disposal.
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The emissions of the fashion industry happen mainly in the stages of raw material production and product manufacturing. Therefore, we need to have an accurate understanding of the carbon footprint of brands to more accurately assess the climate impacts of the fashion sector throughout its production chain. This year, the data collected brings a more positive scenario: 45% of brands publish the carbon footprint of their own facilities compared to 33% in 2022. In addition, 40% of brands publish their carbon footprint in the supply chain, which is an increase from 28% in 2022. Finally, 37% publish their carbon footprint at the raw material level compared to 18% in 2022. These data suggest that brands may be increasingly concerned about their climate, social and environmental impacts as they begin to monitor carbon emissions across their supply chain, including the areas of greatest impact, such as the raw material level.
It is important to note that one of the first steps towards decarbonisation is precisely transparency on the carbon footprint of companies, as this data can raise awareness among stakeholders about the impacts of brands, define concrete emission reduction targets, help support strategic decision-making, stimulate innovation and ensure that companies are prepared for constantly evolving environmental regulations.
This year, the data found by the Index brings a more positive scenario: 45% of brands publish the carbon footprint of their own facilities compared to 33% in 2022.
For an effective energy transition, brands need to be more transparent about their current energy consumption. The demand for electricity from the Brazilian textile industry increased by more than 98.2% after the COVID-19 pandemic, which is the second highest among industries, behind only the automotive segment. Although there was a decrease in 2022 of between 3% and 4% compared to 2021 usage, the textile industry ended the year with an average consumption of 614 megawatts. It is important to emphasise that the exploitation and use of non-renewable energy sources, such as fossil fuels (oil, coal, natural gas), present significant social and environmental challenges, including GHG emissions and air and water pollution. Therefore, in the Index, we prioritise indicators that analyse the use of renewable energy by companies since we recognise the importance of this type of energy in the energy transition and, therefore, in reducing the impacts of the climate crisis.
SPOTLIGHT ISSUES
FASHION REVOLUTION
When searching whether companies disclose the percentage of energy that comes from renewable sources, we noticed a pattern consistent with what was identified in the report: Brands tend to provide more information on their own facilities than on their suppliers’ facilities. While 37% disclose the amount of energy from renewable sources in their administrative headquarters, retail shops, distribution centres and warehouses, only 10% make this information available in their supply chain. In addition, no brand provides data on the absolute reduction in energy consumption along its entire value chain. This suggests that no brand is taking specific measures to evaluate the actions of its suppliers concerning reducing energy consumption. Only 8% of brands publish what proportion of their production is powered by coal. Considering the known impacts of coal mining and burning coal, which often involves environmentally destructive practices, the lack of transparency in this area can be interpreted as a lack of accountability and environmental responsibility by these companies. For the first time this year, we included an indicator to track the number of brands committed to RE100 - a global corporate renewable energy initiative bringing together companies committed to 100% renewable electricity. This year, no brand scored on this indicator. 129
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Beyond the disclosure of carbon footprint and energy use, brands need to disclose information about concrete activities to decarbonise their business. It is essential to highlight that just having information on the carbon footprint and energy use of companies is not enough; the dissemination of concrete data on decarbonisation actions is equally crucial. It is only through this transparent disclosure that we can assess the real commitment of companies to solving the problem of decarbonisation. The carbon footprint provides an initial view of the environmental impacts, but data on the measures taken to reduce these emissions are what really demonstrates the commitment and seriousness of companies in dealing with this issue. So, for the first time this year, we included a new indicator on decarbonisation investment to understand the actions that brands are taking on decarbonisation. We found that 82% of them do not disclose their annual investments in decarbonisation, which shows us that brands still have a long way to go to achieve concrete goals in this regard.
Despite the growing loss of Brazilian biodiversity, only 10% of brands disclose zero deforestation commitments. Our clothes are made from materials that come from nature, and we need to recognise that the fashion sector can have a negative impact on biodiversity. Some research points out that many of the materials widely used in fashion may be associated with deforestation, which is destroying natural diversity. A significant example is the increase in deforestation in the Cerrado, which grew 32.4% in 2022. The municipality of São Desidério, located in western Bahia, leads the ranking, having deforested more than 36,000 hectares. It is observed that, in this region, deforestation is not only limited to the expansion of fields for agriculture but also involves crops of soybeans, corn and, notably, cotton. In fact, most of the cotton production in Brazil is located in Cerrado. It is important to note that deforestation leads to several social and environmental problems. In the Amazon region, for example, where studies have already identified fashion brands associated with deforestation related to leather production,
SPOTLIGHT ISSUES
the consequences of deforestation extend to local indigenous communities. In addition, deforestation puts Amazon in imminent danger of reaching what scientists call the ‘point of no return’. In this situation, the rainforest enters a self-destructive process, losing its capacity to regenerate and moving inexorably towards desertification, releasing enough carbon emissions to help destroy the planet’s climate stability. Considering that the fashion industry directly depends on nature and natural fibres for its existence, companies in the fashion sector must take responsibility for their suppliers and be aware of problems related to deforestation and biodiversity loss. However, we found that only 10% of companies publish measurable zero deforestation commitments. Compared to 2022, there was a 10-point increase in this indicator. It is worth noting that 5 of the 6 brands that disclose a zero deforestation commitment do so by being a signatory of the Fashion Pact. The Fashion Pact is a global initiative of companies in the fashion and textile industry committed to a common core of key environmental goals in three areas: stopping global warming, restoring biodiversity and protecting the oceans.
FASHION REVOLUTION
However, despite its notable goals on climate and biodiversity, the Fashion Pact, is not in itself an exclusive pact to combat deforestation. This raises questions about the level of brand commitment to this particular issue. Another point of attention is that not much information has yet been released on the progress of this initiative and its signatories on the commitments made, resulting in some brands deciding to abandon the initiative this year. In addition, only 2% of brands publish their progress towards zero deforestation. We cannot mitigate the climate crisis without addressing forest loss and damage, and so the need for brands to ensure that their production is not threatening our forests is urgent. In the absence of adequate and comprehensive transparency on this matter, we are left without concrete information about the real environmental costs of our clothes. Finally, the topic of regenerative agriculture is becoming increasingly popular among sustainability advocates in the global fashion industry. Regenerative agriculture can be defined as “a system of farming principles and practices that increases biodiversity, enriches soils, improves watersheds, and enhances ecosystem services.”
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An example of how this can be applied to fashion is precisely through the cotton crop, which is considered only as a commodity today without a holistic approach. In this context, the regenerative approach highlights the importance of promoting cotton cultivation in a way that preserves and nourishes the soil, maintains the biodiversity of microorganisms and ensures decent working conditions for the people involved. Therefore, we seek to educate farmers in an attempt to reduce the use of fertilisers, pesticides and genetically modified organisms. Instead, bio-fertilisers, crop rotation and the restoration of degraded areas are chosen, in addition to respecting the climatic and geographical context of each site. It is a fact that fashion brands rely on agriculture for raw materials, but we found that only 8% of top brands disclose evidence of implementing regenerative farming practices for at least one source of raw material. Given the urgency of the climate crisis, major brands and retailers urgently need to support farmers in their supply chains and rethink how the climate crisis can affect the cost of producing raw materials and sustaining communities.
When it comes to regenerative agriculture, it is essential to acknowledge that this practice is not new. It has been used for a long time by several communities around the world, such as quilombola communities.
In addition, by pursuing regenerative fashion through regenerative agriculture, we are exploring an approach that aligns with natural cycles. This perspective requires a transformation in practices and in our fundamental relationship with nature. Based on a systemic and decolonial view of processes, it incorporates the ecological knowledge of local communities and indigenous peoples, thereby establishing a crucial new paradigm for a revolution in the fashion industry.
When it comes to regenerative agriculture, it is essential to acknowledge that this practice is not new. It has been used for a long time by several communities around the world, such as quilombola communities. The adoption of a regenerative system must, therefore, respect ancestral agricultural techniques, focusing on issues such as agrarian reform, food security, rural workers’ well-being and valuing indigenous and quilombola communities. This leads us to a deeper reflection on our colonial past both as an industry and as a global society.
SPOTLIGHT ISSUES
FASHION REVOLUTION
“ We have long been warned of weather events, but we never imagined that they would arrive so early and be so fierce. This year, we faced the largest drought ever recorded in the Amazon, with several riverside communities being totally isolated without access to the nearest urban centres. However, these events not only affected the countryside communities, but also the urban sector. Several businesses were left without their goods because Amazonian logistics became more difficult. In the fashion sector, in which products are already scarce for the region, access has become even more difficult, not only for industrial products, but also for natural products that have been lost due to wildfires and deforestation. The impacts generated by climate change not only affect nature, but also the way of life for all of us Amazonians. We depend on natural resources to get around, survive, have a source of income, have a job and generate employability. Urgent action must be taken to combat this climate emergency now! The base of the pyramid, where the most vulnerable people are, is suffering more and more, not only regarding their way of life, but also for their quality of life. However, they will not be the only ones affected by these events. We urgently need to not only reforest the deforested and burned areas, but also reforest minds.”
Samara Borari Undergraduate student in biological sciences, climate activist, social media, environmental educator, leader of the Youth Transforming Territory of Tapajós and part of the Youth Network Engajamundo
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SPOTLIGHT ISSUES
FASHION REVOLUTION
VIEWPOINT WAYS TO DECARBONISE FASHION
NATALIE UNTERSTELL President Instituto Talanoa
Fashion has always been more than just clothing; it is an eloquent expression of our cultural identity and a reflection of the society we live in. However, its beauty and expression are now stained by the fact that the sector is responsible for 10% of global carbon emissions. This figure exceeds the combined impact of all international flights and shipping, according to the World Bank.
Fashion Revolution’s “Fashion Transparency Index Brazil 2023” tells a story of awakening but also of inertia. A mere 15% of Brazilian brands disclose measurable decarbonisation commitments, while only 2% have clear targets for the future. Although some steps have been taken, the progress is still timid.
This alarming statistic is compounded by the fact that, at the current pace, the fashion industry may fail to achieve the goal of limiting global warming to 1.5 degrees by the end of this decade. Considering the projected 63% increase in demand for apparel and footwear over the next decade, the horizon looks hazy.
So what can be done? Brands should take science-based approaches and set clear targets as well as measure and monitor their emissions. Thus, collaboration with stakeholders across the supply chain is crucial. It is vital to evolve from a “fastfashion” mindset to a durability-andregeneration approach.
The path to decarbonisation is possible but aggravated by the fragmented nature of the industry. However, the words of the IPCC report are clear: The responsibility lies with the brands.
To influence real change, the industry must not only reshape its practices but also guide consumers to more sustainable choices. The imperative is clear: A transition to circular fashion with conscious production and responsible consumption. In conclusion, fashion is at a critical turning point. With the need for decisive action, scientific clarity and uncompromising commitments, the industry must recalibrate its compass. The future of fashion will be defined not only by aesthetics, but also by its accountability and actions in the face of the climate crisis. The time for change is now. It’s late, but it’s not too late.
Despite initiatives such as the Global Fashion Agenda and the UN Fashion Charter, the current efforts are insufficient. Further analysis reveals that more than 70% of emissions come from activities in the early stages, such as fabric production, underscoring our reliance on synthetic materials and energy-intensive processes.
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SPOTLIGHT ISSUES
FASHION REVOLUTION
FINAL RECOMMENDATIONS
TAKE ACTION ON TRANSPARENCY WHAT NEEDS TO HAPPEN NEXT? FOR CITIZENS THIS MEANS CALLING ON:
Anyone anywhere should be able to find out how, where, by whom and at what social and environmental costs their clothes are made. This requires greater transparency across fashion’s global value chain. By working together, as one collective voice, we must demand that companies become more transparent and that governments must require transparency from the brands we buy. We want to see an industry where transparency and accountability are so deeply embedded across the entire value chain that the Fashion Transparency Index is no longer needed. However, until that time, greater transparency is an essential first step towards making change in the global fashion industry. Ultimately, transparency will help us to create a global fashion industry that conserves and restores the environment and values people over growth and profits.
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Major brands and retailers to be more transparent on all the issues included in the Fashion Transparency Index - get in touch with brands and ask them #WhoMadeMyClothes? #WhatsInMyClothes? and #TheColorOfWhoMadeMyClothes
OUR CALL TO YOU IS THIS: Do not use this Index to inform your shopping choices but rather use these findings to inform your activism.
Policymakers to create legislation and more effective inspection processes that holds big brands accountable for human rights and environmental impacts the length of the value chain Shareholders and investors to use their power to influence big brands to be more transparent and do better for the planet and the people who make our clothes Civil society, such as trade unions and NGOs, to ensure that brands’ policies and practices translate into positive outcomes in the places where clothes are made
Scrutinise the major brands and hold them to account on their claims.
FINAL RECOMMENDATIONS
FASHION REVOLUTION
FOR POLICYMAKERS
FOR INVESTORS AND SHAREHOLDERS
FOR CIVIL SOCIETY, TRADE UNIONS, JOURNALISTS AND ACADEMIC INSTITUTIONS
THIS MEANS:
THIS MEANS:
THIS MEANS:
THIS MEANS:
Publish your supply chain right down to raw material level as soon as possible, doing so in alignment with the Open Data Standard for the Apparel Sector, and upload the list to the Open Supply Hub
Support better regulations, laws and government policies that require transparency and corporate accountability on environmental and human rights issues in the global fashion industry
Ask major fashion brands and retailers for clear governance and accountability on human rights and environmental issues
Use the data and findings available in this report to scrutinise and verify the public claims made by brands and hold them to account
Be completely transparent on all the topics covered in the Fashion Transparency Index, continuously updating public disclosure in response to evolving risks
Support better enforcement of existing laws, including sanctions, on social and environmental issues that relate to the global fashion industry
Ask for board level accountability on human rights and environmental issues and demand that executive pay is tied to improved impacts on these issues
Raise the flag when brands make public claims that do not reflect the reality on the ground
Implement robust due diligence on human rights and environmental risks and publicly evidence the outcomes and impacts of your efforts
Be more proactive at responding to ‘red flags’ and risk factors associated with labour exploitation and environmental damage in the global fashion industry
Work collaboratively on due diligence with your peers, especially when they operate in the same facilities, and with rights holders, especially women workers and trade unions, and then share these efforts publicly
Listen to stakeholders, such as workers and communities affected by the fashion industry, to inform their policy-making strategies
FOR MAJOR BRANDS AND RETAILERS
Demand that the board has expertise on the complexities and nuance of human rights and environmental issues Prioritise meaningful and credible environmental, social and governance (ESG) factors into your investment strategies Call for mandatory transparency and corporate accountability legislation on environmental and human rights issues in the global fashion industry
Use this data to collaborate with other stakeholders and brands themselves to address issues found in supply chains and prevent them in the future Stand together in calling for mandatory transparency and corporate accountability legislation on environmental and human rights issues in the global fashion industry Use this data to create new initiatives, complementary studies or claims for improvements in the fashion industry
Support legislation that requires greater transparency and corporate accountability on environmental and human rights issues in the global fashion industry Work in partnership with civil society organizations to promote projects that have a positive impact on the lives of workers and on the environment
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FINAL RECOMMENDATIONS
FASHION REVOLUTION
THANK YOU! The Fashion Transparency Index Brazil 2022 was written by Isabella Luglio, Claudia Castanheira, Glaucia Terreo, Renato Moya, Ciara Barry, Delphine Williot, Liv Simpliciano and Maeve Galvin. The project was carried out with the technical partnership of Aron Belinky and Renato Moya from ABC Associados, supported by Mariana Kohler, from Em Roda Sustentabilidade e Estratégia The report was designed by Molly Porteous and adapted by Igor Arthuzo. Sara Ramos was responsible for proofreading the Portuguese version, while Samira Spolidorio translated the report into English. Our most sincere thank you to our researchers, Elisa Tupiná, Isabella Luglio, Loreny Ielpo, Mariana Kohler e Renato Moya, who have worked carefully and diligently to produce the research underpinning this report. A special thanks to Delphine Willot, Aron Belinky and Fernanda Simon for all their support and immense dedication to the project. We would like to give special thanks to Sarah Ditty who created the Fashion Transparency Index and to Eloisa Artuso who started the project in Brazil. Thank you for paving the way with such mastery. We are honoured to carry on your legacy and demand greater transparency and accountability in the fashion industry.
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We extend the utmost gratitude to our pro bono consultation committee, who have been instrumental in guiding our team throughout this project: Dr. Mark Anner, Neil Brown, Maddy Cobbing, Gary Cook, Subindu Garkhel, Fiona Gooch, Christina Hajagos-Clausen, Kristian Hardiman, Aruna Kashyap, Kate Larsen, Hester Le Roux, Emily MacIntosh, Maya Rommwatt, Francois Souchet, Joe Sutcliffe, Urska Trunk, Nusa Urbanic, George Harding-Rolls, Ben Vanpeperstraete, Frank Michel, Klaas Nuttbohm, Olivia Windham Stewart, Katie Shaw, Pauline Op De Beeck, Laura Balmond, Lead, Anna Bryher, Chloe Rollscane, Holly Syrett, Alessandra Mezzadri, Rohan Preece, Kratika Choubey, Louise Nicholls, Kaarina Kolle and Jospeh Zacunee. And an enormous thank you to all the others who provided informal feedback on the methodology. A very heartfelt thanks to the experts who contributed their additional analysis and viewpoints for the report this year: Alice Beyer and Gabriela Machado, Caroline Rodrigues, Dilma Chilaca from Centro da Mulher Imigrante e Refugiada, Gabriela Souza from SOS Amazônia, Jéssica Pedreira from Instituto Sociedade, População e Natureza, Natalie Unterstell from Instituto Talanoa, Leonídia Carvalho from Quilombo Dona Bilina, Renata Scarellis from Mercy for Animals, Rita Huni Kuin, Samara Borari from Juventude Território Transformador do Tapajós and Valeria Café from Instituto Brasileiro de Governança Corporativa.
Thanks also to Paula Velasco Leal, Administrative Coordinator of Fashion Revolution Brasil; Anna Laura Moura, Communication Coordinators and Press Offices and Marina Ribeiro, producer of the Index launch event. We extend our gratitude to the entire core team of Fashion Revolution Brasil, which follows and supports the project with energy and dedication - Carolina Terrão, Claudia Castanheira, Fabrício Vieira, Luana Fernandes, Marina de Luca, Paloma Gervásio Botelho e Samara Borari - and to our local representatives, student and teacher ambassadors, as well as to all other movement volunteers in the country.
AND, FINALLY, WE WOULD LIKE TO THANK YOU FOR READING THIS REPORT!
Thank you to Labora - Decent Work Support Fund, from the Fundo Brasil de Direitos Humanos for the financial support to carry out this project. We also thank the institutional support of Aliança Empreendedora, Associação Brasileira da Indústria Têxtil e de Confecção (Abit), Associação Brasileira do Varejo Têxtil (Abvtex), InPACTO and Pacto Global da ONU no Brasil. Thanks to all the brands and their representatives for taking the time to attend our meetings and complete the survey questionnaires. We know that brands receive frequent requests for information from different organisations, and it’s difficult to respond to them all. Your participation is both vital and appreciated.
FINAL RECOMMENDATIONS
FASHION REVOLUTION
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ANJOS, A. B.“Já atingimos ponto de não retorno” em algumas regiões da Amazônia, diz pesquisadora. Agência Pública, 2022. Available at: https://apublica.org/2022/09/ja-atingimos-pontode-nao-retorno-em-algumas-regioes-daamazonia-diz-pesquisadora/ APIB – Articulação dos Povos Indígenas do Brasil. Cartilha sobre o julgamento decisivo para o futuro dos povos indígenas do Brasil e o enfrentamento da crise climática. 2023. Available at: https://apiboficial.org/files/2023/09/ marcotemporal_cartilha_v10_tela.pdf
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FINAL RECOMMENDATIONS
BMAS – BundesministeriumfürArbeitundSoziales. Das LieferkettengesetzimÜberblick. Available at: https://www.bmas.de/DE/Service/Gesetze-undGesetzesvorhaben/Gesetz-UnternehmerischeSorgfaltspflichten-Lieferketten/gesetzunternehmerische-sorgfaltspflichten-lieferketten. html#:~:text=Das%20Lieferkettengesetz%20im%20 %C3%9Cberblick&text=Es%20verpflichtet%20 Unternehmen%20in%20Deutschland,Handeln%20 weiterer%20(mittelbarer)%20Zulieferer. BOUCHER, J.; FRIOT, D. Primary Microplastics in the Oceans: A Global Evaluation of Sources. IUCN, 2017. Available at: https://portals.iucn.org/library/ sites/library/files/documents/2017-002-En.pdf BRASIL. Constituição da República Federativa do Brasil de 1988, Artigo 8. Available at: https://www. jusbrasil.com.br/topicos/10641170/artigo-8-daconstituicao-federal-de-1988 BRITO, M. L.; SANTOS, R. A. Degradação Ambiental em Terras Indígenas. BRUNO, F. S. A Quarta Revolução Industrial Do Setor Têxtil E De Confecção: A Visão De Futuro Para2030. Abit, 2023. Available at: https://www.abit. org.br/cont/a-quarta-revolucao-industrial BSR: Sustainable Business Network and Consultancy. Keeping Workers in the Loop Preparing for a Just, Fair, and Inclusive Transition to Circular Fashion. 2021. Available at: https://www.bsr.org/en/ reports/circular-fashion-keeping-workers-in-the-loop Business and Human Rights Resource Centre. Companies. Available at: https://www.businesshumanrights.org/en/companies/
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Business and Human Rights Resource Centre. France: Natl. Assembly Adopts Law Imposing Due Diligence on Multinationals to Prevent Serious Human Rights Abuses in Supply Chains – Timeline. Available at: https://www. business-humanrights.org/en/latest-news/ france-natl-assembly-adopts-law-imposingdue-diligence-on-multinationals-to-preventserious-human-rights-abuses-in-supply-chains/ Câmara dos Deputados. PL 270/2022. Available at: https://www.camara.leg.br/proposicoesWeb/ fichadetramitacao?idProposicao=2314561
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Canal Rural. Cerrado é destaque na produção sustentável de algodão. 2022. Available at: https:// www.canalrural.com.br/nacional/brasilia/cerradoe-destaque-na-producao-sustentavel-de-algodao/
Civil society call for supply chain transparency. A Global Call for Supply Chain Transparency in the Clothing Sector. Medium, 2021. Available at: https://call-for-transparency.medium.com/aglobal-call-for-full-supply-chain-transparencyin-the-clothing-sector-33535011c1ed.
CAPIRAZI, Beatriz. Igualdade racial no mercado de trabalho será alcançada somente daqui a 167 anos, diz estudo. Estadão, 2023. Available at: https://www.estadao.com. br/economia/governanca/igualdade-racialalcancada-daqui-167-anos/
ClimaInfo. Seca na Amazônia deve ser a pior da história e se estender até 2024. 2023. Available at: https://climainfo.org.br/2023/10/04/seca-naamazonia-deve-ser-a-pior-da-historia-e-seestender-ate-2024/
CARDIAL, Ilana. UE avança para banir falsos produtos verdes e barrar greenwashing. Capital Reset, Uol Notícias, 2023. Available at: https:// capitalreset.uol.com.br/regulacao/ue-avanca-parabanir-falsos-produtos-verdes-e-barrar-greenwashing/ CASTANHEIRA, C.Por uma Indústria da Moda Circular e Regenerativa.Menos 1 Lixo, 2023. Available at: https://www.menos1lixo.com.br/posts/poruma-industria-da-moda-circular-e-regenerativa CCEE - Câmara De Comercialização De Energia Elétrica. Consumo de energia na indústria têxtil segue em queda e sinaliza produção menor no ano. 2022. Available at: https://www.ccee.org. br/pt/web/guest/-/consumo-de-energia-naindustria-textil-segue-em-queda-e-sinalizaproducao-menor-no-ano Central Veredas. Available at: https://www. centralveredas.com.br/
Climate Group RE100. Available at: https://www. there100.org/ Comissão Europeia. Causas das alterações climáticas. Available at: https://climate. ec.europa.eu/climate-change/causes-climatechange_pt#:~:text=A%20principal%20causa%20 das%20altera%C3%A7%C3%B5es,para%20o%20 aquecimento%20do%20planeta. Comissão Europeia. Plano de ação paraa economia circular – Pacto Ecológico Europeu. 2020. Available at: https://ec.europa. eu/commission/presscorner/api/files/ attachment/863177/EU_Greendeal_Circular_ economy_pt.pdf.pdf COPABASE – Cooperativa de Agricultura Familiar Sustentável com Base em Economia Solidária. Available at: https://www.copabase.org/ Cradlesto Crayons. Available at: https://www. cradlestocrayons.org/endclothinginsecurity/ DRUCKER, Peter F. The New Society of Organizations. Harvard Business Review, 1992. Available at: https://hbr.org/1992/09/the-newsociety-of-organizations
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DW. ONGs criticam lei antidesmatamento da UE por excluir Cerrado. 2022. Available at: https://www. dw.com/pt-br/ongs-criticam-lei-antidesmatamentoda-ue-por-excluir-cerrado/a-64006117 eCycle. Pegada de carbono: o que é e para que serve?Available at: https://www.ecycle.com.br/ pegada-de-carbono/ Ellen MacArthur Foundation. Circular Business Models: Redefining Growth for a Thriving Fashion Industry. 2021. Available at: https:// emf.thirdlight.com/file/24/Om5sTEKOmmfEeVOm7xNOmq6S2k/Circular%20business%20 models.pdf Ellen MacArthur Foundation. Fashion and the circular economy – deep dive. Available at: https://www.ellenmacarthurfoundation.org/ fashion-and-the-circular-economy-deep-dive Ellen MacArthur Foundation. O que é a economia circular? Available at: https://www. ellenmacarthurfoundation.org/pt/temas/ economia-circular-introducao/visao-geral Ellen MacArthur Foundation; Circular Fibres Initiative. A New Textiles Economy: Redesigning Fashion’s Future. 2017. Available at: https://emf.thirdlight. com/link/2axvc7eob8zx-za4ule/@/preview/1?o. EMBRAPA – Empresa Brasileira de Pesquisa Agropecuária. Produtividade do algodão no Centro-Oeste é tema de Dia de Campo na TV. 2023. Available at: https://www.embrapa.br/buscade-noticias/-/noticia/17939088/produtividadedo-algodao-no-centro-oeste-e-tema-de-diade-campo-na-tv#:~:text=O%20Cerrado%20 representa%2082%2C7,e%20apresenta%20a%20 maior%20produtividade Embrapa. Cultura do algodão no Cerrado. 2017. Available at: https://www.embrapa.br/busca-depublicacoes/-/publicacao/1155388/cultura-doalgodao-no-cerrado Enviromental Health. The global environmental injustice of fast fashion. 2018. Available at: https:// ehjournal.biomedcentral.com/articles/10.1186/ s12940-018-0433-7
FINAL RECOMMENDATIONS
Estadão. CEOs negros trabalham o dobro para chegarem à liderança, diz pesquisa. 2022. Available at: https://www.estadao.com.br/ economia/sua-carreira/ceo-negros-trabalhamo-dobro-que-brancos-diversidade-pesquisa/ EUR-Lex. DIRETIVA (UE) 2022/2464 DO PARLAMENTO EUROPEU E DO CONSELHO de 14 de dezembro de 2022 que altera o Regulamento (UE) n.o 537/2014, a Diretiva 2004/109/CE, a Diretiva 2006/43/CE e a Diretiva 2013/34/UE no que diz respeito ao relato de sustentabilidade das empresas. Available at: https://eur-lex.europa.eu/legal-content/PT/TXT/ PDF/?uri=CELEX:32022L2464 EUR-Lex. Proposta de DIRETIVA DO PARLAMENTO EUROPEU E DO CONSELHO relativa ao dever de diligência das empresas em matéria de sustentabilidade e que altera a Diretiva (UE) 2019/1937. Available at: https://eur-lex.europa.eu/ legal-content/PT/ALL/?uri=CELEX%3A52022PC0071 European Comission. Corporate sustainability due diligence: Fostering sustainability in corporate governance and management systems. Available at: https://commission.europa.eu/ business-economy-euro/doing-business-eu/ corporate-sustainability-due-diligence_en European Comission. Corporate sustainability reporting. Available at: https://finance.ec.europa. eu/capital-markets-union-and-financial-markets/ company-reporting-and-auditing/companyreporting/corporate-sustainability-reporting_en European Comission. ReSetthe Trend: EU calls o nyoung people to promote circular and sustainable fashion. 2023. Available at: https://environment.ec.europa.eu/news/resettrend-2023-01-26_en#:~:text=Global%20textiles%20 production%20almost%20doubled,102%20 million%20tonnes%20in%202030. European Commission. Ecodesign for Sustainable Products Regulation. Available at: https:// commission.europa.eu/energy-climate-changeenvironment/standards-tools-and-labels/ products-labelling-rules-and-requirements/ sustainable-products/ecodesign-sustainableproducts-regulation_en
FASHION REVOLUTION
European Commission. EU strategy for sustainable and circular textiles. 2022. Available at: https://environment.ec.europa.eu/ publications/textiles-strategy_en European Commission. Factsheet - Extended Producer Responsibility for textiles. 2023. Available at: https://ec.europa.eu/commission/ presscorner/detail/en/fs_23_3636 European Parliament. The impact of textile production and waste on the environment (infographics). 2020. Available at: https://www. europarl.europa.eu/news/en/headlines/ society/20201208STO93327/the-impactof-textile-production-and-waste-on-theenvironment-infographics Fashion Checker. Available at: https:// fashionchecker.org Fashion For Good. Tracing Organic Cotton From Farm to Consumer. 2019. Available at: https://fashionforgood.com/wp-content/ uploads/2019/12/Fashion-for-Good-OrganicCotton-Traceability-Pilot-Report.pdf Fashion Revolution. Fashion Revolution na cidade Tiradentes. 2023. Available at: https:// fashrevnacidadetiradentes.com.br Fashion Revolution. Fórum Fashion Revolution. Available at: https://www.fashionrevolution.org/ brasil-forum-fashion-revolution/ Fashion Revolution. Guia de transparência da moda. Available at: https://www.fashionrevolution. org/wp-content/uploads/2021/11/ITMB_Guia.pdf Fashion Revolution. Lixo têxtil, uma nova forma de colonização através da poluição. Carta Capital, 2023. Available at: https://www.cartacapital. com.br/blogs/fashion-revolution/lixo-textil-umanova-forma-de-colonizacao-atraves-da-poluicao/ Fashion Revolution. Manifesto for a Fashion Revolution. 2023. Available at: https://issuu.com/ fashionrevolution/docs/fr_manifesto_ptbr Fashion Revolution. Por que precisamos de uma revolução fashion? Manifesto. Available at: https://brasil.fashionrevolution.org/pt/sobre/
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FASHION TRANPARENCY INDEX BRASIL 2023
Fashion Revolution. Semana Fashion Revolution. 2023. Available at: https://semanafashionrevolution. com.br Fashion Revolution. SmallButPerfect Toolkit 1: Criatividade com Propósito. 2023. Available at: https://issuu.com/fashionrevolution/docs/sbp_ toolkit1_criatividade_com_propo_sito_ Fashion United. List of the Richest People in Fashion. Disponível: https://fashionunited.com/i/ richest-people-in-fashion FERNANDES, Daniela. 4 dados que mostram por que Brasil é um dos países mais desiguais do mundo, segundo relatório. BBC News, 2021. Available at: https://www.bbc.com/portuguese/ brasil-59557761 FGV CeDHE. Promovendo a resiliência de mulheres migrantes na cadeia produtiva da moda: uma análise de políticas e práticas. 2022. Available at: https://bibliotecadigital. fgv.br/dspace/bitstream/handle/10438/31935/ Policy%20paper_Promovendo%20a%20 resilie%cc%82ncia%20e%20a%20inclusa%cc%83o%20 produtiva_vf_reposito%cc%81rio%20digital. pdf?sequence=1&isAllowed=y FGV EAES. Programa Brasileiro GHG Protocol. Available at: https://eaesp.fgv.br/centros/centroestudos-sustentabilidade/projetos/programabrasileiro-ghg-protocol G1. Brasil bate recorde e faz o maior resgate de vítimas de trabalho escravo no campo para um 1º semestre em 10 anos. 2023. Available at: https://g1.globo.com/economia/agronegocios/ noticia/2023/10/10/brasil-bate-recorde-e-faz-omaior-resgate-de-vitimas-de-trabalho-escravo-nocampo-para-um-1o-semestre-em-10-anos.ghtml G1. Chuvas no Sul: o que está por trás das tempestades devastadoras que já mataram 27 pessoas. 2023. Available at: https://g1.globo. com/meio-ambiente/noticia/2023/09/06/chuvasno-sul-o-que-esta-por-tras-das-tempestadesdevastadoras-que-ja-mataram-21-pessoas.ghtml
G1. ‘Lista suja’ do trabalho escravo tem a maior atualização da história, com 204 novos nomes. 2023. Available at: https://g1.globo.com/trabalhoe-carreira/noticia/2023/10/10/lista-suja-dotrabalho-escravo-tem-a-maior-atualizacao-dahistoria-com-204-novos-nomes.ghtml G1. Microplásticos são encontrados na placenta de mulheres grávidas, diz estudo. 2020. Available at: https://g1.globo.com/cienciae-saude/noticia/2020/12/23/microplasticossao-encontrados-na-placenta-de-mulheresgravidas-diz-estudo.ghtml G1. Pesquisa encontra, pela 1ª vez, micropartículas de plástico no sangue de seres humanos. 2022. Available at: https:// g1.globo.com/jornal-nacional/noticia/2022/04/25/ pesquisa-encontra-pela-1a-vez-microparticulasde-plastico-no-sangue-de-seres-humanos.ghtml G1. Seca histórica agora afeta todas as 62 cidades do Amazonas. 2023. Available at: https:// g1.globo.com/am/amazonas/noticia/2023/10/27/ seca-historica-agora-afeta-todas-as-62cidades-do-amazonas.ghtml GHG Protocol – Greenhouse Gas Protocol. Available at: https://ghgprotocol.org/ Global Fashion Agenda. Accelerating impact to create a net positive fashion industry. Available at: https://globalfashionagenda.org/ Good Clothes, Fair Pay: Demand a Living Wage for the People who Make our Clothes. Available at: https:// www.goodclothesfairpay.eu/ Goodonyou. Available at: https://goodonyou.eco gov.br. Acordo de Paris. Available at: https://www. gov.br/mcti/pt-br/acompanhe-o-mcti/sirene/ publicacoes/acordo-de-paris-e-ndc/arquivos/ pdf/acordo_paris.pdf gov.br. Biomas. Available at: https://antigo.mma. gov.br/biomas.html
FINAL RECOMMENDATIONS
gov.br. Cadastro Nacional de Produtores Orgânicos. Available at: https://www.gov.br/ agricultura/pt-br/assuntos/sustentabilidade/ organicos/cadastro-nacional-produtores-organicos gov.br. Decreto-lei no 8.740, de 19 de janeiro de 1946. Available at: https://www.planalto.gov.br/ ccivil_03/decreto-lei/Del8740.htm gov.br. Lei no 10.803, de 11 de dezembro de 2003. Available at: https://www.planalto.gov.br/ ccivil_03/Leis/2003/L10.803.htm gov.br. O Bioma Cerrado. Available at: https://antigo. mma.gov.br/biomas/cerrado.html#:~:text=O%20 Bioma%20Cerrado,de%2022%25%20do%20 territ%C3%B3rio%20nacional gov.br. Resolução CVM 59. 2021. Available at: https:// conteudo.cvm.gov.br/legislacao/resolucoes/ resol059.html GQ. The 15 richest billionaires in fashion. 2023. Available at: https://www.gq.com.au/style/news/ the-15-richest-billionaires-in-fashion/image-gal lery/9e9c15743c32f2a7af21d166eb650dd3 Greenpeace UK. Coal. Available at: https://www. greenpeace.org.uk/challenges/coal/ GUARALDO, L. Desmatamento no Cerrado cresceu 32,4% em 2022, aponta MapBiomas Alerta. Ipam Amazônia, 2023. Available at: https:// ipam.org.br/desmatamento-no-cerrado-cresceu324-em-2022-aponta-mapbiomas-alerta/ HaDEA – European Health and Digital Executive Agency. Digital Product Passport. European Commission, 2023.Available at: https://hadea.ec.europa.eu/callsproposals/digital-product-passport_en HOFF, Anneloes. Dutch Child Labour Due Diligence Law: A Step Towards Mandatory Human Rights Due Diligence. Business and Human Rights Resource Centre, 2019. Available at: https://www.business-humanrights.org/en/ latest-news/dutch-child-labour-due-diligencelaw-a-step-towards-mandatory-human-rightsdue-diligence/
FASHION REVOLUTION
HSM Management. Panorama Mulheres 2023. Available at: https://movimentomulher360.com. br/wp-content/uploads/2023/05/EspecialMulheres-6-digital.pdf HWW – Homeworkers Worldwide. A practical toolkit for brands. Available at: https://www.homeworkersww. org.uk/resources/hidden-homeworkers-toolkit HWW – Homeworkers Worldwide. Available at: https://www.homeworkersww.org.uk/abouthomeworking IBGC - Instituto Brasileiro de Governança Corporativa. Código das Melhores Práticas de Governança Corporativa - 6° edição. 2023. Available at: https://conhecimento.ibgc.org.br/Paginas/ Publicacao.aspx?PubId=24640 IBGC – Instituto Brasileiro de Governança Corporativa. Available at: https://www.ibgc.org.br/ IFSULDEMINAS – Instituto Federal de Educação, Ciência e Tecnologia do Sul de Minas Gerais.Organização de controle social. 2017. Available at: https://portal. ifsuldeminas.edu.br/images/PDFs/proex/publicacoes_ livros/cartilha_2.pdf
ISPN – Instituto Sociedade, População e Natureza. Povos e Comunidades Tradicionais do Cerrado. Available at: https://ispn.org.br/biomas/cerrado/ povos-e-comunidades-tradicionais-do-cerrado/ ISPN – Instituto Sociedade, População e Natureza. Projeto Algodão Sustentável inicia atividades de capacitação. 2020. Available at: https://ispn. org.br/projeto-algodao-sustentavel-iniciaatividades-de-capacitacao/ ITUC – International Trade Union Confederation. Global Rights Index. 2023. Available at: https://files. mutualcdn.com/ituc/files/ITUC-Global-RightsIndex-2023.pdf ITUC – International Trade Union Confederation. Just Transition Centre. Available at: https://www.ituccsi.org/just-transition-centre?lang=en
MALI, Tiago. Desigualdade do Brasil está a décadas de distância da Europa. Poder360, 2023. Available at: https://www.poder360.com.br/economia/ desigualdade-do-brasil-esta-a-decadas-dedistancia-da-europa/ MapBiomas Alerta. A cada segundo, cerca de 21 árvores foram derrubadas na Amazônia em 2022. Available at: https://alerta.mapbiomas.org/acada-segundo-cerca-de-21-arvores-foramderrubadas-na-amazonia-em-2022 MapBiomas Alerta. RAD 2022: Relatório anual do desmatamento no Brasil. 2023. Available at: https:// storage.googleapis.com/alerta-public/dashboard/ rad/2022/RAD_2022_Destaques_12.06ok_1.pdf Marco Zero. Toritama: entre o fim do mundo e a chance de sobrevivência. 2022. Available at: https://marcozero.org/nordeste-e-o-fim-domundo-toritama-entre-o-fim-do-mundo-e-achance-de-sobrevivencia/ Matter. Are you looking for a sustainable pension? Available at: https://www.thisismatter. com/pension-uk
IFSULDEMINAS – Instituto Federal de Educação, Ciência e Tecnologia do Sul de Minas Gerais. Legislação de produção orgânica no Brasil.2017. Available at: https://portal.ifsuldeminas.edu.br/images/PDFs/ proex/publicacoes_livros/cartilha_3.pdf
JONES, Huw. EU parliament backs company checks on suppliers for human rights abuses. Reuters, 2023. Available at: https://www.reuters.com/ sustainability/eu-parliament-backs-companychecks-suppliers-human-rights-abuses-2023-06-01/
McKinsey & Company; Global Fashion Agenda. Fashion on Climate: How the Fashion Industry can Urgently Act to Reduce its Greenhouse Gas Emissions. 2020. Available at: https://www2. globalfashionagenda.com/initiatives/fashionon-climate/#/
ILO – International Labour Organization. Working from home: From invisibility to decent work. 2021. Available at: https://www.ilo.org/wcmsp5/ groups/public/---ed_protect/---protrav/--travail/documents/publication/wcms_765806.pdf
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MEYNEN, Nick. What Is Degrowth (And More Importantly, What Is It Not)?European Environmental Bureau, 2023. Available at: https:// meta.eeb.org/2023/06/14/what-is-degrowth/
IndustriALL – Global Union. Available at: https:// www.industriall-union.org/
MACCARTHY, J.; RICHTER, J.; TYUKAVINA, S.; WEISSE, M.; HARRIS, N. Os dados mais recentes confirmam: os incêndios florestais estão piorando.WRI Brasil, 2023. Available at: https://www.wribrasil.org.br/ noticias/os-dados-mais-recentes-confirmam-osincendios-florestais-estao-piorando
IPAM Amazônia. Relatório revela a maior emissão em quase duas décadas. 2023. Available at: https://ipam.org.br/relatorio-revela-a-maioremissao-em-quase-duas-decadas/ IPCC. Climate Change 2023: Synthesis Report. 2023. Available at: https://www.ipcc.ch/report/ar6/syr/ downloads/report/IPCC_AR6_SYR_LongerReport.pdf
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ISLAM, M. A.; ABBOTT, P.; HAQUE, S. et al. Impact Of Global Clothing Retailers’ Unfair Practices On Bangladeshi Suppliers During COVID-19. University of Aberdeen, 2023. Available at: https://www.abdn.ac.uk/news/documents/Impact_ of_Global_Clothing_Retailers_Unfair_Practices_on_ Bangladeshi_Suppliers_During_COVID-19.pdf
FASHION TRANPARENCY INDEX BRASIL 2023
MADEIRO, Carlos. Menor desigualdade em 10 anos revela peso de transferências de renda. Uol Notícias, 2023. Available at: https://noticias.uol. com.br/colunas/carlos-madeiro/2023/05/11/ desigualdade-menor-em-2022-revela-pesode-transferencias-de-renda-no-brasil.htm
MILLET, Audrey. How toxic are the textiles we consume? And how can the EU trade tools tackle it? The Greens/EFA, 2022. Available at: https:// issuu.com/saskiabricmont/docs/20231701_ hazardous_chemicals_textile_report_def Ministério da Agricultura, Pecuária e Abastecimento. Produtos orgânicos: sistemas participativos de garantia. 2008. Available at: https://www.gov. br/agricultura/pt-br/assuntos/sustentabilidade/ organicos/arquivos-publicacoes-organicos/ sistema_participativo.pdf
FINAL RECOMMENDATIONS
MIRANDA, Mariana Maia De. Fator de emissão de gases de efeito estufa da geração de energia elétrica no Brasil: implicações da aplicação da Avaliação do Ciclo de Vida. USP, 2012. Available at: https://www.teses.usp.br/teses/ disponiveis/18/18139/tde-22012013-112737/ publico/DissertacaoMarianaMaiaDeMiranda.pdf modefica. Fibras do Cuidado: Algodão Agroecológico. 2022. Available at: https://www. modefica.com.br/fibras-do-cuidado-algodaoagroecologico/ modefica. Fios da Moda – Relatório 2021: Perspectiva Sistêmica Para Circularidade. 202. Available at: https://loja.modefica.com.br/produto/ publicacoes/fios-da-moda-perspectivasistemica-para-circularidade/ modefica. O Agro Não é Pop: 9 Motivos Pelos Quais o Algodão BCI Não é Sustentável. 2022. Available at: https://www.modefica.com.br/o-agronao-e-pop/ Movimento Mulher 360. Available at: https:// movimentomulher360.com.br/ MSF – Médicos Sem Fronteiras. A crise climática é uma crise humanitária e de saúde. 2021. Available at: https://www.msf.org.br/noticias/acrise-climatica-e-uma-crise-humanitaria-ede-saude/#:~:text=A%20emerg%C3%AAncia%20 clim%C3%A1tica%20%C3%A9%20uma,dos%20 cuidados%20b%C3%A1sicos%20de%20sa%C3%BAde. News European Parliament. Parliament adopts new law to fight global deforestation. 2023. Disponível: https://www.europarl.europa.eu/news/en/pressroom/20230414IPR80129/parliament-adoptsnew-law-to-fight-global-deforestation NEWTON, P.; CIVITA, N.; FRANKEL-GOLDWATER, L.; BARTEL K.; JOHNS, C. What Is Regenerative Agriculture? A Review of Scholar and Practitioner Definitions Based on Processes and Outcomes.Frontiers, 2020. Available at: https://www.frontiersin.org/ articles/10.3389/fsufs.2020.577723/full#B52 NOBRE, C.A. et al. Nova Economia da Amazônia. WRI Brasil, 2023. Available at: https://www.wribrasil.org. br/sites/default/files/2023-07/NEA-Nova-EconomiaAmazonia-Relatorio-Completo-portugues.pdf FASHION REVOLUTION
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PEGADO, T. de S. e S.; SCHMID, K.; WINEMILLER, K. O. et al. First evidence of microplastic ingestion by fishes from the Amazon River estuary. Marine Pollution Bulletin, 2018. Available at: https://www. sciencedirect.com/science/article/abs/pii/ S0025326X18304326
ROCHA, Daniel. Preços da Shein mudam e varejo brasileiro acirra competição. Quem ganha? Estadão, 2023. Available at: https://einvestidor. estadao.com.br/negocios/precos-sheincompeticao-varejistas-brasileiras/
FASHION TRANPARENCY INDEX BRASIL 2023
RODGERS, Daniel. A massive mountain of fast fashion landfill can now be seen from space. Dazed, 2023. Available at: https://www.dazeddigital. com/fashion/article/60016/1/a-mountainof-landfill-can-now-be-seen-from-spaceatacama-fast-fashion-shein ROSÁRIO, Fernanda. O que é racismo ambiental e como contribui para a retirada de direitos no Brasil. Alma Preta – Jornalismo Preto e Livre, 2021. Available at: https://almapreta.com.br/sessao/ cotidiano/o-que-e-racismo-ambiental-e-comocontribui-para-a-retirada-de-direitos-no-brasil/ Salmona, Y.B.; Matricardi, E.A.T.; Skole, D.L. et al. A Worrying Future for River Flows in the Brazilian Cerrado Provoked by Land Use and Climate Changes. Sustainability, 2023. Available at: https://www.mdpi.com/2071-1050/15/5/4251 SCHUCH, Alice Beyer. Bad Sustainability? – Controversial Paths Towards the Circularity of Fashion. Slow Fashion Next, 2017. Available at: https://cirklamodo.wordpress.com/2018/01/25/ bad-sustainability/ Science Based Targets. Available at: https:// sciencebasedtargets.org/ SEBRAE. Importância da governança para micro e pequenas empresas. 2022. Available at: https:// sebrae.com.br/sites/PortalSebrae/artigos/importanciada-governanca-para-micro-e-pequenas-empresas,4 e34d6b90ed24810VgnVCM100000d701210aRCRD SEBRAE. Retalhos de tecidos: no lugar do desperdício, negócios sustentáveis. Available at: https://respostas.sebrae.com.br/retalhos-de-tecidosno-lugar-do-desperdicio-negocios-sustentaveis/ SHAHZAD, Asif. Pakistan floods cost at least $10 billion, planning minister says. Reuters, 2022. Available at: https://www.reuters.com/world/asiapacific/initial-economic-losses-pakistan-floodsleast-10-bln-planning-minister-2022-08-29/ SHERMAN, John F. HumanRights Due Diligence and Corporate Governance. Corporate Responsibility Initiative. Harvard Kennedy School, 2021. Available at: https://www.hks.harvard.edu/sites/ default/files/centers/mrcbg/files/CRI_WP_79_Final.pdf
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SIDRA – IBGE. Pesquisa Nacional por Amostra de Domicílios Contínua Anual - PNADC/A. Available at: https://sidra.ibge.gov.br/pesquisa/pnadca/tabelas SIMON, F.A moda pode contribuir para a regeneração do meio ambiente – e isso depende de você. Vogue, 2021. Available at: https://vogue.globo.com/Sustentabilidade/ noticia/2021/06/moda-pode-contribuir-pararegeneracao-do-meio-ambiente-e-issodepende-de-voce.html Sociedade Brasileira para o Progresso da Ciência – SBPC. Povos tradicionais e biodiversidade no Brasil: contribuições dos povos indígenas, quilombolas e comunidades tradicionais para a biodiversidade, políticas e ameaças.Manuela Carneiro da Cunha, Sônia Barbosa Magalhães e Cristina Adams, organizadoras. 2021. Available at: http://portal. sbpcnet.org.br/livro/povostradicionais5.pdf SOLÓN, Pablo. Alternativas sistêmicas: Bem Viver, decrescimento, comuns, ecofeminismo, direitos da Mãe Terra e desglobalização. Elefante, 2019. SOUSA, G. C. Energia Sustentável #1: Matriz não renovável.Jornal da USP, 2023. Available at: https:// jornal.usp.br/podcast/energia-sustentavel-1matriz-nao-renovavel/ Stand Research Group. Nowhere to Hide: How the Fashion Industry Is Linked to Amazon Rainforest Destruction. STAND.earth, 2021. Available at: https://stand.earth/resources/nowhere-tohide-how-the-fashion-industry-is-linked-toamazon-rainforest-destruction/#slidedeck Stand.earth. Nowhere to Hide: How the Fashion Industry Is Linked to Amazon Rainforest Destruction. 2021. Available at: https://stand.earth/ resources/nowhere-to-hide-how-the-fashionindustry-is-linked-to-amazon-rainforest-destruction/ Stand.earth. Research Group. Available at: https:// stand.earth/research-group/ Textile Exchange. The 2025 Recycled Polyester Challenge was designed to accelerate change. 2023. Available at: https://textileexchange.org/2025recycled-polyester-challenge/
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The Fashion Act. Backgrounder: A Deeper Dive on the Fashion Act. Available at: https://www.thefashionact. org/backgrounder#:~:text=Companies%20 under%20the%20Fashion%20Act,diligence%20in%20 an%20effective%20manner
Veja. Inundação no Paquistão foi 50% maior pelo aquecimento global, diz estudo. 2022. Available at: https://veja.abril.com.br/mundo/ inundacao-no-paquistao-foi-50-maior-peloaquecimento-global-diz-estudo
The Fashion Pact. Forging a Nature Positive and Net Zero Future for Fashion. Available at: https:// www.thefashionpact.org/
Vogue. Glossário da Moda Sustentável: impactos ambientais. 2020. Available at: https:// vogue.globo.com/premio-muda/noticia/2020/11/ glossario-da-moda-sustentavel-impactosambientais.html
The Microfibre Consortium. Resources. Available at: https://www.microfibreconsortium.com/resources-1 The World Bank. How Much Do Our Wardrobes Cost to the Environment? 2019. Available at: https://www.worldbank.org/en/news/ feature/2019/09/23/costo-moda-medio-ambiente UN – United Nations. Five ways to jump-start the renewable energy transition now. Available at: https://www.un.org/en/climatechange/raisingambition/renewable-energy-transition UNEP – United Nations Environment Programme. Emissions Gap Report 2018. Available at: https:// www.unep.org/resources/emissions-gap-report-2018 UNEP – United Nations Environment Programme. Sustainability and Circularity in the Textile Value Chain: A Global Roadmap. One Planet network. Available at: https://www. oneplanetnetwork.org/sites/default/files/fromcrm/UNEP%2520Textiles%2520Roadmap%2520%2520Executive%2520Summary.pdf United Nations. Fashion Industry Charter for Climate Action.Available at: https://unfccc.int/ climate-action/sectoral-engagement-forclimate-action/fashion-charter United Nations. Guiding Principles on Business and Human Rights. 2011. Available at: https:// www.ohchr.org/sites/default/files/documents/ publications/guidingprinciplesbusinesshr_en.pdf UNOPS – Escritório das Nações Unidas de Serviços para Projetos. Mulheres na Confecção: Estudo sobre gênero e condições de trabalho na Indústria da Moda. 2023. Available at: https://www.tewa225.com/_files/ ugd/343b58_38804ca53c5146f5897e189151b4282c.pdf
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Wikirate. Available at: https://wikirate.org World Economic Forum. Degrowth – what’s behind the economic theory and why does it matter right now? 2022. Available at: https://www. weforum.org/agenda/2022/06/what-is-degrowtheconomics-climate-change/ World Economic Forum. Global Gender Gap Report. 2022. Available at: https://movimentomulher360. com.br/wp-content/uploads/2022/08/WorldEconomic-Forum_GGGR_2022.pdf World Resources Institute. Deforestation Linked to Agriculture. Available at: https://research.wri.org/gfr/ forest-extent-indicators/deforestation-agriculture WRI Brasil. 3 maneiras de garantir metas corporativas confiáveis para zerar as emissões líquidas. 2021. Available at: https:// www.wribrasil.org.br/noticias/3-maneiras-degarantir-metas-corporativas-confiaveis-parazerar-emissoes-liquidas
WWF. Relatório Planeta Vivo 2022 - Construindo uma sociedade positiva para a natureza. Almond, R.E.A., Grooten, M., Juffe Bignoli, D. & Petersen, T. (Eds). WWF, Gland, Suíça, 2022. Available at: https://wwfbr.awsassets.panda.org/downloads/ lpr_2022_full_report_portugues_caderno.pdf WWF. Water Risk Filter. Available at: https:// riskfilter.org/water/home WWF: Open Supply Hub. Avant-Garde: The Water Risks and Opportunities Facing Apparel and Textiles Clusters. Available at: https://wwfint. awsassets.panda.org/downloads/avant_garde___ the_water_risks_and_opportunities_facing_ textile_and_apparel_clusters.pdf WWF; H&M Group. Eau Courant: Water Stewardship in Apparel & Textiles. Available at: https://wwfint.awsassets.panda.org/downloads/ wwf_hm_water_strategy_report_220823_final.pdf ZANON, Sibélia. O desafio de zerar o desmatamento diante da alta demanda por carne. Infoamazonia, 2023. Available at: https:// infoamazonia.org/2023/02/17/o-desafio-de-zerar-odesmatamento-diante-da-alta-demanda-por-carne/ ZDHC Foundation – Zero Discharge of Hazardous Chemicals/Road map to zero. Our Third Impact Report. Available at: https://www.roadmaptozero. com/impact-report-2021
WWE – World Economic Forum. The Global Risks Report 2023 – 18th Edition. Available at: https:// www3.weforum.org/docs/WEF_Global_Risks_ Report_2023.pdf WWE – World Economic Forum. The High Cost of Cheap Water. 2021.Available at: https://wwfbrnew. awsassets.panda.org/downloads/wwf-highcost-of-cheap-water.pdf WWF. New Study Finds 94% of Deforestation and Habitat Destruction in Brazil’s Amazon and Cerrado Could Be Illegal.2021. Available at: https://www.wwf.org.uk/press-release/illegaldeforestation-report-brazil
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LICENÇAS CREATIVE COMMONS
DISCLAIMER The Fashion Transparency Index Brazil is made available on the express request that it will be used only for general information purposes. Readers are encouraged to form their own views and opinions on each of the brands mentioned in this Index. All content in the Fashion Transparency Index is not to be construed as connected to or relating to any form of legal, governance, regulatory, research or investment advice nor any other specific or general advice on buying, selling or dealing in any way with the brands mentioned in this Index. This Index has not been prepared to any specific or general investment objectives. Before acting on anything inspired by anything contained in this Index, you must consider whether it is suitable to your circumstances and, if necessary, seek professional advice. No representation or warranty is given that the material in this Index is accurate, complete or up-to-date. The material in this Index is based on information that we have found in the public domain and reasonably consider correct at time of publication. Fashion Revolution has not verified, validated or audited the data used to prepare this Index. The assessment of fashion brands has been carried out solely according to the new Fashion Transparency Index methodology and no other assessment models used by any of the project partners or our analyst team. Any statements, opinions, conclusions or recommendations contained in this Index are honestly and reasonably held or made at the time of publication. Any opinions expressed are our current opinions based on detailed research as of the date of the publication of this Index only and may change without notice. Any views expressed in this Index only represent the views
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of Fashion Revolution CIC and Instituto Fashion Revolution Brasil, unless otherwise expressly noted. The content of this publication can in no way be taken to reflect the views of any of the funders of Fashion Revolution CIC, the Instituto Fashion Revolution Brasil or the Fashion Transparency Index Brazil. While the material contained in this Index has been prepared in good faith, neither Fashion Revolution CIC or the Instituto Fashion Revolution Brasil nor any of its partners, agents, representatives, advisers, affiliates, directors, officers or employees accept any responsibility for or make any representations or warranties (either express or implied) as to the accuracy, completeness, reliability, or truth, of the information contained in this Index or any other information made available in connection with this Index, and disclaims all liability for loss of any kind suffered by any party as a result of the use of this Fashion Transparency Index. Neither Fashion Revolution CIC, nor the Instituto Fashion Revolution Brasil, nor any of its agents, representatives, advisers, affiliates, directors, officers and employees undertake any obligation to provide the users of this Index with additional information or to update the information contained therein or to correct any inaccuracies which may become apparent. Reference herein to any specific brand, commercial product, process, or service by trade name, trademark, manufacturer, or otherwise, does not constitute or imply its endorsement, recommendation, favouring, boycotting, abusing, defaming by Fashion Revolution CIC and the Instituto Fashion Revolution Brasil nor any of its agents, representatives, advisers, affiliates, directors, officers and employees.
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This work is owned by Fashion Revolution CIC (Company number: 8988812) and Instituto Fashion Revolution Brasil and has been written by Isabella Luglio, Claudia Castanheira, Glaucia Terreo, Renato Moya, Ciara Barry, Delphine Williot, Liv Simpliciano and Maeve Galvin. The research was led between April and July 2023 by Elisa Tupiná, Isabella Luglio, Mariana Kohler, Loreny Ielpo and Renato Moya with further support of Aron Belinky, Fernanda Simon and Delphine Williot. Labora - Decent Work Support Fund, from Fundo Brasil de Direitos Humanos and other funder partners has given support to the Instituto Fashion Revolution Brasil that, in turn, has funded the research for this Index. Part of the project was also sponsored by Sebrae. The content of this publication is the sole and exclusive responsibility of Fashion Revolution.
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© Fashion Revolution CIC 2023 Published 30th November 2023
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