Brief Introduction
This paper explores key considerations for brands and retailers on the role and implications of using sustainability certifications for their due diligence; it also offers considerations for policy makers. While the paper draws on research and examples from the garment and footwear sector, the paper aims to be of relevance to companies, policy makers and certifications across all sectors.
The garment and footwear sector can play a key role in facilitating economic and social development in production countries through employment and skills development opportunities, but it also faces challenges. The size and complexity of the sector, coupled with economic pressures, market volatility and its dispersed and fragmented nature, can make it difficult for brands and retailers to identify and address labour, human rights, environmental and integrity risks and impacts in their supply chains. The legal and enforcement context in sourcing geographies is also an important factor for brands and retailers to consider in their due diligence. At the same time, consumers, trade unions, civil society, investors and governments increasingly expect enterprises to carry out human rights and environmental due diligence. As a result, due diligence has seen uptake in voluntary and mandatory measures as policy makers seek to promote responsible and resilient supply chains as well as sustainable development and inclusive growth. Many brands and retailers have long turned to third parties, including sustainability certifications, for support in response to the complexity of addressing risks and impacts and to communicate responsible practices to consumers. Yet growing market and legal expectations have given new urgency to discussions on their appropriate role in due diligence.
Certifications provide a third-party attestation that a particular company, product, process, or system fulfils the certification scheme’s requirements.