RIYADH: New York City has become the first state in the US to require global fashion brands to reduce greenhouse gas emissions.
Brands like Armani and Nike, with $100 million annual worldwide revenues, will be subject to fashion sustainability law under a bill introduced in the state legislature, Bloomberg reported.
The Fashion Sustainability and Social Accountability Act was introduced by The New Standard Institute, according to Vogue.
If the included companies fail to comply with the law, they may be fined up to 2 percent of revenues of $450 million or more, according to the legislation.
The fashion industry accounts for up to 10 percent of global greenhouse gas emissions, according to the United Nations. However, Companies would have to set targets to reduce greenhouse gas emissions and energy consumption across their supply chains.
“That is not a framework for success. By making these regulations the floor of doing business, every company will have to comply, and every company will have to do the right thing. Of course, they can go above and beyond that and show leadership in other ways, too,” the founder of the New Standard Institute, Maxine B?dat said to Vogue.
The legislation can take years, but B?dat is willing to watch over the next six months which brands and industry players throw their support behind it.