What is the New York State Fashion Act? How It Impacts Your Business and How to Prepare for the Changes
Figure 1. New York Fashion Act Logic Flowchart
We discussed California’s SB253 and SB261 and highlighted how these laws push companies to enhance transparency and accountability, particularly in disclosing supply chain impacts, greenhouse gas emissions, and climate-related risks tied to business operations (Other relevant articles: ESG reporting assurance, how to avoid carbon washing).
Now, New York State is taking a leading role in advancing stricter climate legislation with the Fashion Act. The New York State Fashion Sustainability and Social Accountability Act (S7428/A8352) would require fashion retailers and manufacturers operating in the state to meet supply chain mapping requirements and disclose the environmental and social impacts of their operations.
Enforcement of the Fashion Act by New York Attorney General (NY AG) Letitia James
The Fashion Act mandates that major fashion retailers and manufacturers 1) monitor and map their supply chains, 2) assess worker conditions and environmental impacts, and 3) address identified risks. The New York Attorney General will enforce the law, imposing penalties, injunctions, or other actions as needed. Non-compliant companies will have 3 months to comply before facing fines of up to 2% of annual revenue. An annual list of violators will be published, and consumers will have the right to take legal action against non-compliant businesses.
What is the New York State Fashion Act? The New York Fashion Sustainability and Social Accountability Act (Fashion Act) was first proposed in 2022 and reintroduced in 2023. This legislation aims to hold fashion brands accountable for their environmental and social impacts.
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Who must comply with this new law? Fashion retailers and manufacturers doing business in New York with global revenues over $100 million must comply by disclosing detailed information about their environmental and social due diligence policies.
What are the major requirements?
- Supply chain mapping: The bill, if passed, requires brands to map and trace 50% of their suppliers from raw materials to final production, with a focus on high-risk suppliers.
- Due diligence policies: Companies must disclose policies and actions taken to address social and environmental risks. They must also provide a report detailing how they prioritize responsible practices, identify high-risk areas in their supply chains, and mitigate those risks.
- Prioritized adverse impacts disclosure: Within 18 months, companies must report on material volumes, and recycled material usage, and set reduction targets for energy, emissions, water, and chemicals. Additionally, they must disclose median wages for high-risk suppliers and compare these to local minimum wages.
- Impact reduction targets: Companies must establish and disclose climate impact reduction targets aligned with industry standards, covering all production scopes. Progress must be tracked and compliance reported annually.
We understand that fashion companies are taking action to reduce their climate impact, but often face challenges such as setting scientific and practical targets, quantifying greenhouse gas emissions, assessing supply chain emissions, and evaluating climate-related risks. Dynimos can help your business transition smoothly to comply with the new Fashion Act through our straightforward digital tools, consulting, data assurance, and education.
Feel free to schedule an appointment with us. Dynimos carbon emission quantification tool allows you to estimate GHG emissions across your supply chain, and our data inventory platform helps streamline data collection and management with ease.
Figure 2. Dynimos supply carbon emission quantification toolsets
