California Proposes Law For Fashion Sustainability Disclosure
California legislators have introduced the Fashion Environmental Accountability Act (AB 405), a bill aimed at increasing transparency in the fashion industry’s environmental impact. The proposed law would require fashion brands with annual revenues exceeding $1 billion and operating in California to disclose carbon emissions, water usage and waste. Retailers selling used fashion goods and multibrand retailers with private labels below $100 million in revenue would be exempt.
Starting in 2026, brands must publicly report scope 1 and scope 2 greenhouse gas emissions, with scope 3 emissions disclosure mandated in 2027. Additionally, the bill requires companies to conduct environmental due diligence, integrate sustainability into their business practices and submit Environmental Due Diligence Reports by July 1, 2027. From January 1, 2028, tier 2 suppliers involved in dyeing, finishing, printing and garment washing must report wastewater chemical concentrations and water usage.
AB 405 is now awaiting referral to its first policy committee. This legislation aligns with California’s ongoing efforts to address fashion’s environmental footprint, following the passage of the Responsible Textile Recovery Act (SB 707) in September 2024.
