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ΕλληνικάCurrent situation and obstacles
Each year Fashion Revolution compiles the Fashion Transparency Index, a report that rates companies on their commitment to transparency and traceability. The index ranks 250 brands with annual turnover of at least $400 million on the information they publicly disclose about sustainability across 246 topics, from animal welfare and biodiversity to working conditions and recycling.
Although the overall score increased by 2 percentage points in 2020, there is still a lot to be done, as many companies do not even reach a 20 % score.
Supply chain responsibility is a recent subject and requires major investments from brands, which is why supply chains are still unknown. Added to this is the fact that until now, the logics that have guided market choices have been strongly related to a better value for money.
The right application of traceability principles requires the active collaboration of all the partners involved in the same production network. The many intermediaries and the multiple stages in development complexify data collection.
Traceability is still challenged by a lack of transparency in the industry and the complexity of actually gathering the information. Without tools specifically for that purpose, retracing the chain of development is a complicated task.
This is also linked to the low level of technology of many of the actors involved, e.g. artisans working in small workshops or even at home, a situation that is widespread in Italy, or factories in some Asian countries. If they were asked to implement blockchain to track processes, these actors would probably find it difficult: without computers, an internet connection, software and the skills to use them, it would be very difficult to collect information in a structured and organic way.
Another big obstacle to transparency and traceability is related to privacy and data security. The need to monitor supply chains for environmental and social standards clashes with the need to protect one’s trade secrets. Suppliers generally have an interest in keeping their processes and partners as confidential as possible.