Implementing responsible purchasing practices is imperative for fashion companies to support worker rights and ensure fair compensation, including living wages for all, according to a report released by Global Fashion Agenda, a Copenhagen-based non-profit organisation.

In the report titled ‘Fashion CEO Agenda 2024’, the GFA has outlined five pivotal opportunities for fashion executives and the industry at large to create transformative impacts for both people and the planet.

The GFA on Tuesday released the report aiming at guiding fashion organisations towards achieving a net positive industry by 2050.

On the occasion of the 15th anniversary of the inaugural Global Fashion Summit in Copenhagen, the Global Fashion Agenda has released the special edition of the report.

Acknowledging the rights and needs of the 300 million people employed globally in the fashion industry is essential for its long-term viability and sustainability, the report observed.

The report also emphasised implementing concrete measures that ensure equity, fair compensation, well-being, and dignity for all workers.

It also necessitated advocating for worker representation and rights, such as freedom of association and collective bargaining, especially during crises.

In regions with restricted freedom of association rights, companies should leverage their collective influence alongside local governments, NGOs and labour organisations to explore parallel mechanisms that empower workers and protect their rights.

‘Simultaneously implementing responsible purchasing practices is imperative to foster conditions conducive to upholding worker rights and enabling fair compensation, including the payment of living wages to all,’ the report said.

Upholding the rights of workers, championing diversity and inclusivity, redefining success metrics, and reshaping growth paradigms are key to enabling profound transformation, the report mentioned.

The Fashion CEO Agenda also said that despite providing employment for millions of people, bolstering economies, and making considerable improvements in occupational health and safety in many workplaces, the industry still faced significant challenges, particularly in low-wage countries where workers lacked adequate protection.

Over the past 15 years, millions of garment workers were denied legally mandated severance pay, totalling an estimated 4 billion pounds, the report claimed.

It also said that persistent economic instability facilitated the rise of authoritarian regimes and precarious work conditions in major textile hubs.

Meanwhile, increased demand for fast-paced, flexible, and low-cost production heightened hostility towards labour unions, the agenda identified.

The report said that fashion companies faced with market volatility and disruption could quickly lose sight of the imperative for deeply ingraining sustainability across business functions.

Last year, the fashion industry experienced a wave of layoffs, with redundancies ranging from 10 to 15 per cent in various brands and corporations, disproportionately affecting sustainability teams—a trend that appears to be continuing into 2024, it said.

The report emphasised that when sustainability is properly integrated as a core element of business operations and support functions, it can significantly influence business practices.

Additionally, the report highlighted that companies must consider the impact on current garment workers and waste handlers who are newly entering the fashion value chain when transitioning to a circular system.

The industry also needs to carefully evaluate the effects of nature conservation interventions on indigenous peoples and local communities, the report also mentioned.