The Rise of Ecolabels

By Johanna Ramaer

The news has recently been incredibly sobering, as the global impacts of the Coronavirus show that those who are most vulnerable bear the worst impacts of the crisis. It is critical that we emphasise a new approach on how we treat our workforces, making them less vulnerable by securing their rights. The fashion industry is mostly regulated through the use of ecolabels and other voluntary measures. The immense rise of voluntary measures has created confusion rather than transparency within the industry. Therefore the UK government should step in and create more organization and transparency with regards to the scattered environment of ecolabels. 

Until now, there has been very little success in securing workers’ rights throughout supply chains. In February, the EU Commission released a study on options for regulating due diligence through supply chains. One of its main findings was that the current regimes of voluntary measures have failed to significantly change the way businesses manage their social, environmental and governance impacts. A finding that is especially worrying for the fashion industry as voluntary measures are the most popular form of regulating the industry.

The fashion industry operates in the most complex supply chains, which makes regulation very difficult. Transparency is very low and knowing where, how and who made a piece of clothing is very difficult to locate. Voluntary measures function to deal with complex supply chains within the industry. Especially ecolabels have become a very common voluntary measure to regulate the fashion- as well as many other industries. According to Ecolabel Index there are currently 445 ecolabels circulating within 197 countries spread across 25 industries. Of these 445 ecolabels, 107 are on textiles; addressing environmental and/or social sustainability within the fashion industry. Each label covers a diversity of topics including cotton, farmer welfare, child labour, forced labour, organic production, working conditions, chemical use, and so on. They all have very diverse features. Some are industry wide initiatives while others are government-led ecolabels; some focus just on one issue, while others try to address the whole supply chain. The immense rise of ecolabels is an attempt to be more transparent about the complex and obscure supply chains in which the fashion industry operates. Sustainability is becoming more popular and consumers increasingly want to know where and how their clothes are manufactured. Because of the industry’s complex supply chains, consumers rely on the information that is provided to make conscious decisions. Ecolabels serve to support and inform consumers in their attempt to make more conscious consumption choices.

Despite ecolabel’s promising potential, the immense rise of ecolabels has led to confusion among both consumers and companies. For example, an organically certified product sometimes only looks at the farming process whereas other ecolabels look at the whole supply chain before certifying it as an organic product. With a growing number of ecolabels on products, consumers may become confused and decide that, in fact, none of the labels is credible. Today there are numerous reports that have shown that ecolabels simply not work. 'The false promise of certification' 2018 report on labelling standards by Changing Markets Foundation, shows that, rather than being an accelerator for positive change, this ‘flood’ of labels is actually standing in the way of genuinely sustainable consumption. Transparency in the sector still seems to be optional; only the most progressive companies make their suppliers public, and even fewer are willing to report on their performance. Moreover, the voluntary character of most labels forms an obstacle to the implementation of higher standards that cover the whole industry or entire supply chain.

Currently, the ecolabel environment within the fashion industry is too scattered and complex, and asks for restructuring measures. Therefore, the UK government should step in and implement more organization and transparency. To read more on which measures could help to enhance transparency and organisation read our policy piece here.