This Sustainability Recommendations Paper (SRP) on Sustainability Reporting in the Garment, Footwear and Travel Goods (GFT) Sector aims to strengthen the foundations for environmental, social and governance (ESG) practices and data collection and management for reporting. This is increasingly important, as new HREDD legislation, mostly from Global North (buyer markets), is likely to set a backdrop for evolving sustainability reporting requirements in the future.
The EU is one of Cambodia’s largest destination markets for GFT products, with an export value of $2.9 billion destined for European retail customers in 2024 under all EBA (Everything But Arms) categories (textiles, footwear, bicycles, foodstuffs, milled rice, and other agricultural products). Therefore, recent EU legislation on sustainability reporting and human rights due diligence and the attendant requirements will have a significant impact on the GFT sector and its ability to continue to provide products of the quality needed for EU markets.