GFA Policy Matrix: EU

Sustainability Reporting and Due Diligence

• On 3 July 2026, the European Commission adopted the revised European Sustainability Reporting Standards (ESRS), alongside a voluntary sustainability reporting standard for smaller companies. The revised standards aim to simplify reporting requirements and reduce administrative burdens while maintaining high-quality disclosures on environmental, social, and governance issues.
• On 13 July 2026, the Commission adopted measures to support the implementation of theEU Deforestation Regulation (EUDR), which aims to ensure that certain products placed on or exported from the EU market are deforestation-free, legally produced, and traceable to their origin. The measures amend the product scope, notably removing cattle hides, skins, and leather. They also introduce targeted exemptions for waste, used and second-hand products, and packaging materials.
• The European Commission’s public consultation on guidelines supporting the implementation of the Corporate Sustainability Due Diligence Directive (CSDDD) closed on 14 August 2026. The guidelines aim to give companies practical clarity on how to fulfil their due diligence obligations and are expected in Q1 2027.
• On 3 September 2026, the European Commission published non-binding guidelines to support the implementation of the EU Forced Labour Regulation. The Regulation prohibits products made with forced labour from being placed or made available on the EU market, or exported from it, and will apply from 14 December 2027.

Circularity, Products, and Waste

• On 19 July 2026, the ban on the destruction of unsold apparel, clothing accessories and footwear under the Ecodesign for Sustainable Products Regulation (ESPR) started applying to large enterprises. The following day, the Digital Product Passport (DPP) Registry went live. It provides a central digital registry to securely store the unique identifiers for Digital Product Passports.
• By 31 July 2026, Member States were required to transpose the Directive on common rules promoting the repair of goods into national law. The Directive aims to make repair more accessible and affordable, extending product lifespans and reducing waste.
• On 12 August 2026, the Packaging and Packaging Waste Regulation (PPWR)started applying across the EU. It sets out rules to reduce packaging waste and improve recyclability. Ahead of its application, the Commission released updated guidance on 3 August 2026.
• On 18 August 2026, the Commission opened a consultation on a draft Delegated Act proposing to ‘green-list’ certain types of waste, including selected textile waste streams, for shipments for recovery between Member States. The measure would make it easier to ship these textiles across borders for sorting and recycling. Adoption is planned for Q4 2026.

Enabling Circularity and Innovation

• On 9 September 2026, the European Commission launched a consultation on aligning VAT rules with the principles of the circular and low-emission economy, as part of the upcoming Circular Economy Act (CEA). The consultation explores how VAT rules can better support circular business models, with a focus on the treatment of second-hand goods and the destruction of viable goods. It will close on 4 November 2026.
• On the same day, the Commission adopted its legislative proposal for the Public Procurement Act. The proposal aims to simplify and modernise EU public procurement rules, reduce administrative burdens, and strengthen the use of public procurement to support EU objectives, including environmental sustainability, social considerations, innovation, security, and resilience. It introduces a dedicated Green Public Procurement (GPP) chapter, which identifies circular economy criteria that public buyers may use, such as durability, reparability, reuse, recycled content, and waste prevention. While GPP remains largely voluntary, public buyers would be required to include environmental characteristics when procuring certain products covered by EU legislation, including the ESPR.
• The Commission also published its legislative proposal for the European Innovation Act. The proposal aims to help innovative ideas developed in Europe move from research to market, scale across borders, and grow and attract investment within the EU.

Both legislative proposals will now be considered by the European Parliament and the Council.

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GFA Policy Matrix: Americas

• On 14 September 2026, the Fashioning Accountability and Building Real Institutional Change (FABRIC) Act (S.5393 and H.R.10372) was reintroduced in the United States. First introduced in 2022, the bill aims to strengthen protections for garment workers by addressing unsafe working conditions, wage theft, and piecework pay, while supporting the revitalisation of domestic garment manufacturing.
• On 17 September 2026, US Representative Chellie Pingree introduced the Textile Waste Reduction Act, which aims to reduce textile waste in the United States, strengthen national data collection, and advance circularity in the textile industry. The bill would direct the Environmental Protection Agency (EPA) to lead a coordinated federal effort, including developing a comprehensive national textile strategy, identifying federal funding opportunities for circularity initiatives, and publishing annual data on textile waste generation and management.

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GFA Policy Matrix: Asia

• On 8 July 2026, Cambodia’s Ministry of Labour and Vocational Training and the International Labour Organization (ILO) held a consultation on the draft Occupational Safety and Health (OSH) Law. Around 200 representatives from government, employers, and workers took part. The draft would establish Cambodia’s first comprehensive OSH law, consolidating more than 20 existing legal instruments. Adoption is expected by the end of 2026 or in 2027.
• On 1 September 2026, a revised mandatory standard on water pollutant discharges from the textile industry entered into force in the People’s Republic of China, replacing the 2012 standard. It updates requirements for textile wastewater discharge, monitoring, and supervision, and extends to a broader range of textile activities, including chemical fibre weaving and industrial textile products.

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Disclaimer: The GFA Policy Matrix is an independent resource developed by Global Fashion Agenda. The information provided does not constitute, nor is it intended to constitute, a comprehensive overview of all relevant legislation. It reflects GFA’s views and is shared for informational purposes only.