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Sustainability

For Textile and Apparel with a focus on brands championing sustainable production.

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Overview

Globally, there is an increasing recognition of the responsibility of importers, brands, retailers and even customers to be aware of, and address social and environmental issues associated with textiles and apparel.
The EU Sustainable and Circular Textiles Strategy, Europe has an ambitious plan to make the textiles ecosystem more sustainable. To incentivize circular businesses, the European Commission proposes mandatory criteria for green public procurement, as well as circular design and production through eco-design requirements. At the same time, due diligence (Directive on corporate sustainability due diligence) and traceability requirements (such as the digital product passport) mandate companies to tr
The New York fashion act is set to enforce major changes that will impact on sourcing of textile and apparel, including Mandating that companies know and disclose their supply chains; Requiring companies to be responsible for their impact in those supply chains, and pushing for Regulation & enforcement by the New York State’s Attorney General or the Attorney General’s designated administrator.
As regulations tighten and consumer awareness grows, businesses are recognizing the imperative to embrace green and circular measures throughout the entire supply chain. Major textile brands are stepping up their commitments to invest in innovative technologies, sourcing materials more responsibly, and reevaluating their production processes to reduce their environmental footprint.
This shift is driving European and US brands to explore sourcing destinations that not only offer cost efficiencies but also align with stringent environmental standards and circular requirements set forth by the EU. This provides an opportunity for East African countries to reposition themselves to attract trade and investments with a strong sustainability footprint. While most textiles sold in the EU & USA still come from Asia, there is growing interest in sourcing from African countries, including East Africa.

Sample sustainable business models across East Africa

Company Name: Modular Real Estate EPZ LTD

Category: Developer
Brief Description: An industrial shed developer that uses rapid build technologies that can deliver within 8 months. Key features include Circular Model from Upcycled containers; The First EDGE Certified Textile & Garment with embodied Carbon, Water and Energy; Most recent development has 5,000m2 un interrupted production space, 165kW of grid-tie solar power and 170,000 litre water storage capacity, ILO Standards on health and safety and it is Edge Advanced Certified;

Evolving Sustainability Policies in the Textile and Apparel Industry

In response to growing consumer demand and global environmental challenges, the textile and apparel industry is undergoing significant regulatory changes. Understanding these policies is crucial for investors looking to support and engage with brands committed to sustainability and long-term growth.

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Shifting Policies in the Textile and Apparel Industry

Key Regulations Shaping a Greener Future

Policy FrameworkDescriptionResource Link
1EU Corporate Sustainability Due Diligence DirectiveMandates due diligence on environmental and human rights impacts.View Framework
2EU Corporate Sustainability Reporting Directive (CSRD)Extends non-financial reporting requirements to more companies from January 2023View Framework
3New York Fashion ActRequires environmental and human rights due diligence for fashion sellers in New York.View Framework
4EU Forced Labour RegulationProhibits products made with forced labour from entering the EU market.View Framework
5US Uyghur Forced Labor Prevention ActRequires proof of no association with forced labor in products from China’s Xinjiang regionView Framework
6EU Ecodesign for Sustainable Products RegulationSets requirements for product durability, reusability, and recyclability.View Framework
7EU Packaging and Packaging Waste DirectiveAddresses packaging and recycling practicesView Framework
8EU Microplastics RegulationAims to reduce environmental impact from microplastics in productsView Framework
9UK Plastic Packaging TaxEncourages the use of recycled plastic in packaging to avoid tax.View Framework
10EU Product Environmental Footprint GuideMeasures and discloses environmental impact of productsView Framework
11EU Textile Labelling RegulationControls fibre names and labelling for textile products.View Framework
12EU TaxonomyDefines sustainable economic activities for environmental alignmentView Framework

The sections below highlight leading brands that have successfully integrated sustainable practices into their operations. From eco-friendly materials to ethical manufacturing processes, these brands exemplify how sustainability and business growth can go hand-in-hand.