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The outcome of the PVH investigation could set a precedent for other foreign companies operating in the region. Credit: Robert Way / Shutterstock

Industry experts believe China’s move to investigate Calvin Klein and Tommy Hilfiger's parent company PVH for suspected violations of market trading regarding Xinjiang-related products could pose risks for other fashion brands doing business with China. 

China has claimed “PVH violated normal market transaction principles by disrupting transactions with Chinese enterprises, organizations, or individuals and implementing discriminatory measures related to Xinjiang products,” according to an October report by international law firm WilmerHale. 

It added the investigation “represents the first instance in which a foreign company ceased procurement from Chinese suppliers due to compliance with its home country’s laws”. 

Dr Miyuki Cheng, research assistant professor, department of logistics and maritime studies at the Hong Kong Polytechnic University’s faculty of business told Just Style “companies with a similar situation might need to prepare for potential investigations, sanctions, and disruptions to their supply chains.

The European Council (EC) has enacted a regulation that bans products manufactured using forced labour from being sold, exported or made available in the European Union (EU). 

This adoption marks the final phase in the EU’s legislative process for banning forced labour goods. The council established its negotiating stance on 26 January 2024 and a provisional agreement was reached between both co-legislators (the Council and Parliament) on 5 March 2024.    

The European Commission (EC) initially proposed this regulation on 14 September 2022 to prohibit products linked to forced labour within the EU.

Globally, an estimated 27.6m individuals are subjected to forced labour across various industries and continents, primarily within the private sector but also involving public authorities.   

The European Commission has proposed to delay the implementation of its deforestation regulation giving fashion companies longer to comply with rules that aim to ensure all products sold in the EU are not linked to deforestation. 

This decision comes in response to concerns from EU member states, non-EU nations, traders, and operators about the feasibility of meeting the original compliance deadline of 30 December 2024.   

The EU Parliament adopted the proposal through an urgency procedure, with a vote tally of 371 in favour, 240 against, and 30 abstentions.

Under the revised timeline, large operators and traders will now have until 30 December 2025 to meet the new requirements, while micro and small enterprises will have until 30 June 2026.  

The Accelerating Climate Transition (ACT) initiative has introduced a new mechanism designed to assist entities in the fashion sector, including luxury brands, manufacturers, and retailers in gauging their progress towards achieving carbon reduction targets. 

This tool, named the ACT Fashion (Luxury, Mass, Premium) methodology, serves as a process to evaluate the level of commitment and realism in the climate strategies of companies within the industry.   

The purpose of the assessment is to evaluate a company’s past, present, and projected future performance in order to determine its level of maturity in transitioning to a low-carbon economy.   

The fashion sector is reported to contribute roughly 2-8% of the world’s greenhouse gas emissions (GHG). Fashion brands typically have the largest portion of their GHG footprint in Scope 3 emissions.  

Swedish fashion company H&M has sold its off-price marketplace Afound to Secret Sales and tells Just Style it is confident that its expertise will be beneficial to the marketplace and its customer in future.

Afound has been a popular off-price destination for seven years with H&M explaining that “a lot of value has been created for its customers”.

H&M adds that it had already made the decision to “discontinue the business,” however it is happy that a new owner will continue to operate and develop Afound and serve the customers who have appreciated it throughout the years.

H&M notes that Secret Sales has a “longstanding experience” within the off-price industry, so it is “confident” that it will “take good care of the Afound marketplace and customer”.