New York is the first state to implement a fashion sustainability law.
On January 7, 2022, Senator Alessandra Biaggi and Assembly Member Anna Kelles announced the Fashion Sustainability and Social Accountability Act, which will require fashion retailers and manufacturers to disclose environmental and social due diligence policies, with penalties for non-compliance going towards a fund to benefit environmental justice communities.
The proposed Act is funded by nonprofits that are focused on sustainability and fashion, including the New Standard Institute, the Natural Resources Defense Council, and the New York City Environmental Justice Alliance.
This law requires companies to map a minimum of 50% of their supply chain from beginning to end, develop and disclose performance metrics related to social and environmental impact, and implement concrete plans for improvement.
Violations can be fined up to 2% of annual revenues of $450 million or more. Fines are to be deposited into a community benefit fund and used for projects that benefit environmental justice communities.