Valued at around $2tn, the global fashion and textile industry is a powerhouse employing one out of every six people worldwide and producing around 100 – 150bn garments each year. It is one of the most labour dependent industries with long and complex supply chains and has become the second largest sector after technology to support forced labour and modern slavery.
24 April 2025 marked the 12th anniversary of the Rana Plaza catastrophe when more than 1,000 workers died and around 2,000 were injured following a factory collapse in Dhaka, Bangladesh. The subsequent investigation revealed that the factory had two illegal plants and the collapse was the result of the machines used that destabilised the construction. Whilst various improvements have been made since, the 2023 Global Slavery Index report confirmed that $147.9bn worth of garments and $12.7bn worth of textiles at risk of being produced by forced labour are imported annually by G20 countries.
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According to the UN Guiding Principles on Business and Human Rights, companies have a responsibility to respect the human rights of workers, and cannot act in ways that have a negative impact. However, from harvesting cotton and spinning yarn to manufacturing the final garments, exploitation of workers is still found at all stages of the supply chain. Invariably, the pursuit to maximise financial returns has been at the expense of basic human rights with workers having little to no power to challenge exploitative practices or to demand better conditions – and this has become particularly acute in the fast fashion sector.
Is the fashion sector doing enough to raise standards?
So, what exactly is needed to raise standards and embed more just and equitable business practices in the sector? A snapshot of recent legislation shows that positive steps are being taken across a variety of jurisdictions to enhance and protect worker rights (as well as to improve environmental standards, and introduce circular and regenerative business practices):
- In the EU, the Corporate Sustainability Due Diligence Directive (CSDDD) mandates due diligence on environmental and human rights impacts. It applies to all companies operating in the EU or linked to its supply chains. The EU Forced Labour Regulation also prohibits products made with forced labour from being sold in the EU market.
- In the United States, the New York Fashion Act proposes environmental and human rights due diligence for fashion sellers in New York. Fashion brands doing business in the state must focus on sustainability, supply chain transparency, and reducing their environmental impact. There is also the US Uyghur Forced Labour Prevention Act which requires fashion brands to prove they are not associated with Uyghur forced labour – and which, ostensibly, prevented Shein from listing in the United States.
- In the UK, The Modern Slavery Act is currently under review with amendments likely to introduce stronger enforcement of transparency in supply chain and sanctions for non-compliance.
It is widely acknowledged that some of this legislation does not go far enough, so further effective regulation is essential to help level the playing field and improve worker rights.
Of course, it’s not only the human rights of workers within the supply chain that are being exploited. Fast fashion is having a catastrophic impact on wider society too, entrenching “buy cheap, throw away” consumer habits through manipulative social media techniques and degrading the natural world.
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By GlobalDataRecent analysis shows that over half a million tonnes of plastic microfibres are discharged into wastewater each year from the washing of synthetic clothes, polluting rivers, seas and oceans. It has likewise been reported that less than 1% of textiles worldwide are recycled, significantly contributing to issues such as landfill and water pollution and the increase of greenhouse gas emissions.
Fortunately, there are a growing number of mission-driven fashion brands and manufacturers who are choosing to do business in ways which are fundamentally designed to safeguard worker rights, minimise environmental harms and ensure their supply chains are transparent and sustainable. These involve regenerative/ circular business models which guarantee payment of fair wages, use of natural materials which are recyclable and biodegradable and science-based targets to reduce environmental harm.
Fashion profits and ethics do not need to be mutually exclusive
As sustainable fashion businesses have already demonstrated, profitable and ethical practices need not be mutually exclusive. Brands like DEPLOY, a globally high scoring B Corp certified womenswear company, is one such example.
“Business is a powerful agent of change. And far from a choice of either-or, equity and sustainability are in fact the other side of the coin for achieving improved profitability and optimisation. Our DEPLOY’s 360 Sustainability Compass guides us through every step of our operations from before design and environmental sourcing begins, all the way through our zero-waste supply chain to beyond sales transactions are completed with our knowledge share in partnership and charity programme. This enables us to maintain resource efficiency, customer loyalty, brand longevity and overall business agility and resilience, and ultimately demonstrate the way to reforming the fashion system”, says DEPLOY founder and chief creative officer, Dr.Bernice Pan.
As due diligence requirements increase and consumers become increasingly aware of human rights abuses, the evidence shows a growing shift towards ethical and sustainably produced garments, which should help drive positive change across the industry. Cost is of course a critical factor, but if brands want to build a strong and loyal customer base, then treating their workers fairly and respecting basic human rights is essential and makes business sense too.
About the author
Oliver Scutt is the sustainable fashion lead at legal firm Bates Wells and advises on a wide range of corporate and commercial issues across the impact investing, responsible business and B Corps, social enterprise and charities space. He is passionate about sustainability and the interplay between business and human rights with a particular interest in sustainable fashion.
