Government regulations that support sustainable practices are becoming more common, and a topic three industry experts discussed on the education stage at the August edition of SOURCING at MAGIC Las Vegas.

The live session was moderated by Sourcing Journal's Senior News & Features Editor Kate Nishimura with panelists including Hey Social Good CEO and Founder Dr. Cindy J. Lin and ProColombia’s Textiles and Apparel Sourcing Representative Sebastian Echavarria. The three jumped right into what sourcing professionals need to know by discussing the European Union’s Corporate Sustainability Due Diligence Directive (CSDDD). The new policy took effect in July, with the aim of fostering sustainable and responsible corporate behavior across operations and the global value chain.  

Here are four key points to know about the CSDDD from their conversation:

1. Just because your business isn’t based in the EU doesn’t mean these laws don’t apply. “That guidance has been in the works for five years and sets up reporting on carbon emissions,” Dr. Lin explained. “For the fashion market, which is now an international industry, even brands based in the United States will need to observe this policy if they sell online to customers in the EU.”

2. Several states within the United States have adopted–or are expected to adopt–similar legislation. “We also now have similar regulations [passed or in the works] in the U.S. in California, Washington, and New York,” continued Dr. Lin. Similarly, “Colombia is committed to reducing emissions by 2030, targeting carbon neutrality by 2050,” added Echavarria. “We’re attracting investment by demonstrating our commitment to sustainability.”

3. Speaking to how Colombia’s high premium on sustainability and infrastructure started, Echavarria noted: “Mostly, it’s consumer driven. Younger generations are becoming more demanding about being sustainable and taking care of the planet. In the past, saying ‘I’m sustainable’ was more like a marketing thing, but now brands require companies to prove their claims with audits and certifications that show that what you're saying is actually true,” Echavarria said. “We also have the 2050 Paris agreement (to limit global temperature rise and greenhouse gas emissions, for each country to set its own emission-reduction targets, and for richer countries to help poorer nations by providing funding to adapt to climate change and switch to renewable energy.) It becomes a combination of consumer demand, the industry regulating itself, and government policies. But it's all part of business nowadays.” (Editor's Note: Read more about sourcing opportunities in Colombia in SOURCING at MAGIC's Country Guide: Colombia.) 

4. These directives also focus on the “social” part of ESG (Environmental, Social, and Governance) policy. There’s a new emphasis on making sure that the people who make the clothes we wear are being treated fairly and conscientiously. 

Dr. Lin mentioned that many of the Colombian exhibitors that received Hey Social Good verification at SOURCING at MAGIC are recognized not only for paying a fair wage, but for making sure that they have a safe work environment, are easily accessible by their workers, and provide access to childcare. “There is an immediate understanding that people are important. While the United States focuses policies on avoiding forced labor, we also have to recognize that there is value in providing something as simple as wastewater treatment, making sure that people have access to quality water for drinking as well as for treating it in the production process.” 

Nishimura asked if there are any specific legislative acts that have been supportive of business development in this area, to which Echavarria pointed out, “in Colombia, we're trying now to find investment in tourism, biodiversity, and promoting exports and other sources of income in order to replace the money that we get from oil...selling a product that is conscious and ethical.”
 

Learn more about sustainability through SOURCING at MAGIC's recent editorials and guides such as Validating the Vision, Sustainable from the Start, and the Sustainability Now Guide. And join us at the upcoming SOURCING at MAGIC Las Vegas this February 10-12, 2024.