The fashion industry is undergoing a significant shift in sustainability practices due to increasing scrutiny over ethical manufacturing and new regulations on production standards. Yet forty-five percent of global supply chain leaders say that they either have no visibility into upstream supply chain operations, or that they can see only as far as first-tier suppliers.
New regulations will change that, with companies in the US preparing for the SEC Climate Disclosure act, and tracking the proposed New York Fashion Act, California Climate Corporate Data Accountability Act and Climate Related Financial Risk Act. In the EU, myriad legislation including CSRD, EU Green Claims Directive and the German Supply Chain Act, among others, are also front of mind.
All of these regulations will require companies to collect deeper supply chain data: which means staying in the dark is no longer an option for responsible businesses.
Why primary data has been tough to gather
However, deep supply chain visibility has been challenging for brands. Historically, collecting primary facility data has not been reliable, standardized, or GHG compliant. Data is typically collected manually via excel spreadsheets, with limited or no aggregation or normalization, or it is collected yearly, which can be too infrequent to be actionable. Some software platforms do enable brands to deploy custom assessments, but they require deep expertise to develop and they don’t typically follow a consistent methodology. As a result, much of the apparel industry relies on estimates to understand many supply chain impacts, making it hard to measure the impact of improvements to product design, materials, or manufacturing processes.
Delayed, inconsistent, or infrequent reporting from suppliers will increasingly leave brands vulnerable and unable to meet new disclosure requirements. For instance, the German Supply Chain Act requires annual reporting on progress, with similar requirements expected from upcoming legislation across the world. In just a few years, it’s expected that investors, ESG reporting requirements, and regulations will demand that businesses provide accurate carbon emissions data on a regular basis.
How Worldly makes primary data easier to gather
To remain viable in those global markets, businesses need visibility into every tier of their supply chain. But where to start?
At Worldly, we believe that high-frequency collection of utility data on energy, water, and waste is the first step towards deeper supply chain visibility. Our platform is designed to help brands collect near-real-time, primary data from their factories, which is simply submitted from their utility bills. This approach to data collection aligns with the most important corporate reporting standards, allowing companies to make informed decisions to identify hotspots and improve their footprint.
Designed for ease-of-use by all parties
Crucially, these solutions work well for both brands and manufacturers. Manufacturers can report production data, energy use, water use, and waste creation within minutes using Worldly, without requiring any special sustainability knowledge. The process is simple: just report the usage data from factory bills whenever they are received, and Worldly takes care of the rest. No additional calculating or sustainability knowledge is required.
For brands, this means high-resolution data that is pulled directly from water, energy, and waste bills without any additional calculations needed, giving businesses accurate insights they can confidently act on. The collected data aligns with the GHG Protocol, Global Reporting Initiative (GRI), and the Carbon Disclosure Project (CDP), ensuring it meets industry standards. And compared to an annual assessment, it’s much simpler to deploy.
Better data for faster improvements
Clarity of data and simplicity of solutions are essential for uncovering insights and tracking progress for both manufacturers and brands. With Worldly, frequent collection of environmental impact data becomes easy and efficient, allowing brands to spend more on impact improvement.
To remain viable in global markets, businesses need visibility into every tier of their supply chain. With credible, high-resolution impact data, they can make informed decisions to improve their footprint, comply with new regulations, and build a more sustainable future.