California has introduced a legislative proposal that could revolutionize the fashion industry: the Fashion Environmental Accountability Act of 2025 (Assembly Bill 405). This regulation aims to hold major fashion players accountable for their environmental impact, going beyond mere transparency by imposing concrete and verifiable actions.
What is it about?
The bill, introduced on February 4, 2025, applies to fashion sellers with annual revenues exceeding $100 millionoperating in California. If approved, the law will require these companies to:
Conduct comprehensive environmental due diligence, including chemical management, greenhouse gas emissions monitoring, and wastewater testing;
Map their supply chain, requiring them to identify and disclose their suppliers in multiple stages;
Publish an annual Environmental Due Diligence Report, subject to independent verification and made publicly available;
Establish and achieve greenhouse gas emission reduction targets, in line with the Science Based Targets Initiative.
Key deadlines and requirements
If the Fashion Environmental Accountability Act is approved, here are some of the main deadlines companies will need to meet:
January 1, 2027: Disclosure of Tier 1 suppliers (at least 80% by production volume);
July 1, 2027: First Environmental Due Diligence Report, covering the previous year;
January 1, 2028: Disclosure of Tier 2 suppliers (75%) and mandatory reporting on wastewater, chemical inventory, and compliance with local regulations;
January 1, 2030: Disclosure of Tier 3 suppliers (50% by volume or value);
January 1, 2032: Disclosure of Tier 4 suppliers (50%).
A paradigm shift for the industry
The Fashion Environmental Accountability Act represents one of the most ambitious sustainability proposals in the fashion industry. Currently, most fashion-related regulations focus on transparency, but this law enforces an obligation to act, with independent audits and penalties for non-compliance.
The California initiative is reminiscent of a similar attempt in New York in 2023 with a bill of the same name, which was not passed. However, California seems determined to push the fashion industry toward greater environmental responsibility.
Links to other regulations
This law fits into a broader regulatory framework. Related regulations include:
Senate Bill 707 (2024), already enacted in California, which addresses responsible textile recovery;
PFAS regulations, such as AB 1817 (2022), which bans the intentional use of PFAS in textile products from 2025;
Proposition 65, which requires consumer warnings for products containing hazardous chemicals.
What will be the consequences for brands?
If the bill is passed, fashion brands operating in California will face new challenges, including:
Increased transparency in the supply chain;
Additional compliance costs and independent audits;
The need for innovation in materials and production processes to reduce environmental impact;
Possible penalties for failing to meet obligations.
At the same time, the bill could present an opportunity for more sustainable brands to stand out in the market with certified responsible practices.
The Fashion Environmental Accountability Act could mark a turning point for the fashion industry: companies must start preparing now to comply with potential new regulations, investing in transparency, innovation, and responsible resource management.
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