We know transparency isn't just a nice-to-have, it is becoming a non-negotiable. As sustainability regulations increase with the European Green Deal, it’s essential to understand what’s coming and how you can be prepared.
What is the European Green Deal?
The European Green Deal is the EU’s roadmap toward a sustainable future. What the EU would like to achieve is:
Climate Neutrality by 2050
Reduce greenhouse gas emissions to net zero by the middle of the century.Promote a Circular Economy
Shift away from the “take-make-waste” model. Products should be designed to last longer, be reused, and recycle. This is especially focused on high-impact industries like fashion and textiles.
What does this mean for fashion and textiles?
The fashion and textile industry is one of the most resource-intensive and polluting industries globally, and the Green Deal aims to tackle this head-on. The EU wants products to be:
More durable and repairable
Easier to recycle
Made from sustainable materials
Transparent about how and where they’re made
That’s why new rules like the Ecodesign for Sustainable Products Regulation (ESPR) and the Corporate Sustainability Reporting Directive (CSRD) are being introduced—so consumers, regulators, and businesses can all see what’s really behind a product.
What are the new rules?
As mentioned above, the EU has introduced new regulations such as CSRD and ESPR. Below are some quick explanations of what these entail:
Corporate Sustainability Reporting Directive (CSRD)
Report on environmental, social, and governance (ESG) impacts. The goal is to improve transparency and provide investors, stakeholders, and the public with reliable and comparable information about how businesses impact people and the planet, as well as how sustainability issues influence operations and financial performance.
Ecodesign for Sustainable Products Regulations (ESPR)
This is an EU regulation that sets requirements to make products more durable, reusable, repairable, recyclable, and energy efficient. A key element is the Digital Product Passport (DPP), an electronic record that provides detailed information about a product’s materials, environmental impact, and lifecycle to support transparency, circularity, and sustainable consumption (Law is active since 2024, but the Digital product passport will be active in 2026).
Corporate Sustainability Due Diligence Directive (CSDDD)
It is a European Union law that requires companies to identify and prevent negative impacts on human rights and the environment throughout their value chains, including in their supply, distribution, and transport operations. The directive aims to promote sustainable and responsible corporate behavior. This law has been active since 2024.
European Union Deforestation Regulation (EUDR)
An EU law that bans the sale and export of certain commodities and products that contribute to global deforestation and forest degradation, such as cattle, cocoa, coffee, palm oil, rubber, soy, and wood, unless they can be proven to be produced on deforestation-free land and in compliance with the relevant laws of the country of origin. This law will be active in late 2025.
Forced Labour Regulation (FLR)
Prohibits products made with forced labour from being placed on or exported from the EU market, aiming to eliminate forced labour from global supply chains and protect human rights. Therefore, supply chains must be transparent and businesses know who is working on their products (Law will be active in 2027). For more in-depth information, you can read our FLR article.
Voluntary Sustainability Reporting Standard for SMEs (VSME)
A simplified framework developed by EFRAG (the European Financial Reporting Advisory Group) for non-listed micro, small, and medium-sized enterprises (SMEs) in Europe to report their environmental, social, and governance (ESG) performance.
General Product Safety Regulation (GPSR)
An EU Law that requires all consumer products, including clothing and textiles, placed on the EU market are safe and comply with rigorous safety standards. The regulation strengthens consumer protection, increases transparency across the supply chain, and includes new requirements for online sales and product traceability. This law has been active since 2024.
How does tex.tracer fit in?
With regulations fast approaching (or in some cases, already here), companies need a tool that gives them:
Full supply chain visibility
Accurate environmental and social data
Seamless ways to share this data via a DPP
tex.tracer’s platform is designed to help fashion and textile companies navigate these regulatory changes by providing tools for supply chain transparency and traceability.
By documenting each step of the production process, companies can ensure compliance with EPR and ESPR requirements, prepare for the implementation of Digital Product Passports, and demonstrate their commitment to sustainability.
Need more help? You can get in touch with us via chat or contact us via email at [email protected].