Carbon Trail

2026

California SB 261

Company

United States

Adopted

Overview

California SB 261, known as the Climate-Related Financial Risk Act, aims to enhance transparency regarding climate-related financial risks faced by businesses. The Act mandates that certain companies disclose their exposure to these risks, including the potential financial impact of climate change on their operations and supply chains. This legislation represents a significant shift towards accountability in the fashion industry, requiring brands to assess and report on their climate risk management strategies.

Key requirements

Fashion brands covered under SB 261 must provide comprehensive sustainability reporting, which includes:


  • Assessments of how climate-related risks could impact financial performance.
  • Disclosure of governance practices around climate risk management.
  • Strategies for mitigating identified risks, ensuring that stakeholders have a clear understanding of the brand’s approach to sustainability.

Who’s affected

SB 261 applies to:


  • Large fashion retailers and manufacturers with gross revenues exceeding $1 billion.
  • Companies listed on California stock exchanges.
  • Any business in the fashion sector that meets specific size and revenue thresholds.

Timeline

January 1, 2024

Businesses must begin implementing the required disclosures.

December 31, 2024

Initial reports are due for submission, covering the previous fiscal year.

Ongoing

Annual updates will be required to maintain compliance and reflect any changes in climate-related risks.

How can Carbon Trail help?

Compliance Assistance

  • Carbon Trail offers support to fashion brands navigating the complexities of SB 261 compliance. We assist in gathering necessary data, preparing reports, and ensuring adherence to all disclosure requirements.

Services for sustainability reporting

  • Carbon Accounting: Measure and manage carbon emissions.


  • Product Life Cycle Assessment (LCA): Conduct lifecycle assessments for products.


  • Digital Product Passports: Create digital profiles for products to enhance transparency.


  • Decarbonization Services: Develop strategies to reduce carbon footprints effectively.

FAQs

What is California SB 261? 


California SB 261 is a law that requires large businesses to disclose their climate-related financial risks and management strategies.

Who needs to comply with SB 261?

It applies to large fashion retailers and manufacturers with revenues exceeding $1 billion and those listed on California stock exchanges.

When do businesses need to start reporting?

Businesses must implement the required disclosures by January 1, 2024, with initial reports due by December 31, 2024.

How can Carbon Trail assist my fashion brand with compliance?

Carbon Trail provides services like data collection, sustainability reporting, and strategic decarbonization to help brands meet SB 261 requirements.

What kind of information must be disclosed?

Brands must disclose assessments of climate-related risks, governance practices, and risk mitigation strategies.

Are there penalties for non-compliance?

Yes, businesses that fail to comply with SB 261 may face fines and penalties, affecting their reputation and market standing.

Check out other regulations

Learn more about Digital Product Passport

Elevate your product with our comprehensive suite of solutions

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Can an NGO Rate Your Sustainability Efforts and Environmental Cost?

If the new French Textile Environmental Cost law (a.k.a. the France Textile Eco-Score) is to be seen, then yes, anyone can publish the official Environmental Cost scores for your textiles if you don't yourself disclose them by the end of the voluntary phase.

Control your brand's sustainability narrative, before someone else does it for you

The new Textile Environmental Cost, (coût environnemental) enters into force in as of today - the start of October 2025. The portal to report the different metrics for textile manufacturers has been open since mid-September. The enforcement initially begins with a voluntary phase from 1st October 2025. Anyone can publish a score on your behalf if you have not published a score by the end of the voluntary phase. No permission needed, and this will be an official score displayed on all your garment tags, website, and product pages.

What is the France Textile Environmental Cost?

The new decree requires all companies who sell garments in the French market, not just French companies, to publish an "Environmental Cost" score for each of their products. This is an aggregate score that considers all factors related to the environmental impact of a garment. This includes carbon emissions, energy use, microplastic impact, durability, and more. All companies are encouraged to publish a score in the voluntary phase beginning in October 2025. Once the voluntary phase ends, ANYONE can publish a score on behalf of the companies if they continue to sell in the French market. A detailed analysis of the Environmental Cost decree can be found here.

How NGOs and other third-parties could publish a potentially worse score for you

What does this mean? NGOs who might use assumptions for your supply chain will control your narrative. They might publish a score which might denote a far higher environmental impact than actually the case. From an NGOs perspective trying to champion the cause of the environment, they will use negative estimates where subjectivity is permitted. For example, standard (or even unsustainably sourced) cotton, zero recycled fabrics, high transport emissions, and poor durability. While you may think your brand's organic cotton tee shirt may land a low environmental cost score of 500 (lower score is better), the NGOs assumption may lead to a score calculation of 1000+. Our team analysis has observed this in the official Environmental Cost portal.

It is also worthwhile to note that the Environmental Cost score will be visible everywhere. In physical stores on product tags, online in the product description, and with QR codes that redirect consumers to a landing page with the breakdown of the score. It is the first instance where factors like durability are also included. These have until now have not had much negative impact on fast fashion companies. If you're a textile brand selling apparel in the French market and you haven't submitted data to calculate your score, any third-party can publish a score for you once the voluntary phase ends. This will be mandated to be included on your own product pages, tags, and more.

An example of how an NGOs score created for you could be worse

Suppose your company manufactures a tee shirt. It uses 150g cotton, with 80% organic cotton and 20% sourced from production waste. You've set up your supply chain in an Eastern European country from the spinning to weaving to stitching. You use custom steps in the process to reduce the environmental impact and minimise your fabric wastage in production. By entering data in the Environmental Cost portal, you have achieved a low score of 500+ for your tee shirt.

The same score calculated by a third-party like an NGO may not be the same. How? Well for example, the NGO will assume your cotton to be standard cotton - not recycled or organic. Then, it will take a look at your product tag which says "Made in the Czech Republic". They naturally assume that it is for the final step, not the spinning of the yarn all the way to weaving the fabric. They assume that these initial steps are done in Asia-Pacific and accordingly take the average values. It will also consider industry default processes, industry averages of the manufacturing steps and assume a standard fabric wastage value. The result? Your low impact tee shirt in reality gets a high score of 1279. Good luck convincing your customers to buy your "organic" tee shirts now.

How much worse can your score get when rated by a third-party?

The short answer is very much worse. As seen in the example above, assumptions made by a third-party even with the best of intentions will lead to a significantly worse Textile Environmental Cost for your garments. There needs to be no malicious intent for general assumptions like standard cotton, industry average processes, and sourcing the yarns to spin your fabric from major global hubs. Yet, these can lead to a worse Textile Environmental Cost for your products, as calculated on the official portal.

How do you control your Textile Environmental Cost then?

So how do you control your narrative? How do you communicate your true environmental cost to your customers? Not an exaggeration by a third-party which has no stake in your business? One option is getting started with the portal yourself or through your company's legal team. However, keep in mind that the Environmental Cost requires 10+ variables per garment type you sell. Multiple that with 100s of types and styles you might sell, and the input cost of gathering this data potentially exceeds your total revenue from selling in the French market.

Enter Carbon Trail - an AI powered SaaS tool specifically for textile and garment companies, that helps you navigate regulatory compliances not just like the Textile Environmental Cost, but also of those like CSRD, ESRS, and Digital Product Passport. Undertake LCA impact assessments in days instead of months, at a fraction of the cost while traditional LCA assessments can cost you $10,000+/product.

Aditya Bhatt September 30, 2025
0
Global Standards Blog

France Textile Eco‑Score: What Fashion Brands Need to Know

If you make or sell apparel in France, the new “environmental cost” or France Textile Eco-Score label is about to touch everything from your bills of materials to your product

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Blog

August 2025 Product Updates: Uncertainty, Sensitivity, and Smarter Data Collection

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July 2025 Product Updates: AGEC French DPPs, Auto-costing and CDP Reporting

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In effect

French AGEC Law Decree 2022-748

Products

France

Adopted

Overview

The AGEC Law (Anti-Waste for a Circular Economy) in France, particularly the AGEC Law Decree 2022-748, aims to reduce waste and promote circular economy practices across various sectors, including fashion. This regulation requires fashion businesses to adopt sustainable practices and report on their environmental impact.
The law emphasizes transparency in product life cycles, encouraging brands to provide consumers with clear information about sustainability efforts and waste management strategies.

Key requirements

Under the AGEC Law, fashion brands must comply with several sustainability reporting obligations, including:


  • Disclosures on product sustainability, including sourcing materials and production processes.
  • Information on end-of-life management of products, promoting recycling and circularity.
  • Reporting on the environmental impact of packaging materials and waste management practices.
  • Transparency in supply chain practices, including the carbon footprint of products.

Who Needs to Comply with the AGEC Law?

The AGEC Law affects various stakeholders in the fashion retail sector:


  • All fashion brands selling products in France, regardless of size.
  • Companies engaged in manufacturing, importing, or distributing fashion items.
  • Retailers that provide information about the sustainability of their products.

AGEC Law Compliance Timeline (2023–2025)

Important deadlines for compliance with the AGEC Law include:

2023

Initial reporting requirements begin, focusing on product sustainability disclosures.

2024

Expansion of reporting obligations to include comprehensive environmental impact assessments.

2025

Full compliance with all AGEC Law requirements is expected from all affected businesses

How can Carbon Trail help?

Compliance Assistance

  • Carbon Trail assists fashion brands in navigating the AGEC Law’s complexities through:


    • Data Collection: Streamlining the collection of necessary sustainability data from suppliers.
    • Reporting Support: Guiding brands in preparing accurate and compliant sustainability reports.

Services for sustainability reporting

  • Carbon Trail offers various services tailored to meet the AGEC Law requirements:


  • Carbon Accounting: Measure and report greenhouse gas emissions.


  • Product Life Cycle Assessment (LCA): Analyze the environmental impact of products throughout their life cycle.


  • Digital Product Passports:  Facilitate transparent product information for consumers and regulators.


  • Decarbonization Services: Support brands in developing strategies to reduce their carbon footprint.

FAQs

What is the AGEC Law in France?


The AGEC Law is a regulation aimed at promoting a circular economy and reducing waste, focusing on sustainability practices in various sectors, including fashion.

Who needs to comply with the AGEC Law?

All fashion brands operating in France, including manufacturers, importers, and retailers, must comply with the AGEC Law.

What are the key reporting obligations under the AGEC Law?

Brands must disclose information regarding product sustainability, end-of-life management, packaging waste, and supply chain transparency.

When do companies need to start reporting?

Initial reporting requirements began in 2023, with full compliance expected by 2025.

How can Carbon Trail assist with AGEC Law compliance?

Carbon Trail provides data collection, reporting support, and sustainability services to help brands meet the AGEC Law requirements.

What services does Carbon Trail offer for sustainability reporting?

Carbon Trail offers Carbon Accounting, Product LCA, Digital Product Passports, and Decarbonization services tailored to fashion brands.

Check out other regulations

Learn more about Digital Product Passport

Elevate your product with our comprehensive suite of solutions

You may also like

Global Standards Blog Product

Can an NGO Rate Your Sustainability Efforts and Environmental Cost?

If the new French Textile Environmental Cost law (a.k.a. the France Textile Eco-Score) is to be seen, then yes, anyone can publish the official Environmental Cost scores for your textiles if you don't yourself disclose them by the end of the voluntary phase.

Control your brand's sustainability narrative, before someone else does it for you

The new Textile Environmental Cost, (coût environnemental) enters into force in as of today - the start of October 2025. The portal to report the different metrics for textile manufacturers has been open since mid-September. The enforcement initially begins with a voluntary phase from 1st October 2025. Anyone can publish a score on your behalf if you have not published a score by the end of the voluntary phase. No permission needed, and this will be an official score displayed on all your garment tags, website, and product pages.

What is the France Textile Environmental Cost?

The new decree requires all companies who sell garments in the French market, not just French companies, to publish an "Environmental Cost" score for each of their products. This is an aggregate score that considers all factors related to the environmental impact of a garment. This includes carbon emissions, energy use, microplastic impact, durability, and more. All companies are encouraged to publish a score in the voluntary phase beginning in October 2025. Once the voluntary phase ends, ANYONE can publish a score on behalf of the companies if they continue to sell in the French market. A detailed analysis of the Environmental Cost decree can be found here.

How NGOs and other third-parties could publish a potentially worse score for you

What does this mean? NGOs who might use assumptions for your supply chain will control your narrative. They might publish a score which might denote a far higher environmental impact than actually the case. From an NGOs perspective trying to champion the cause of the environment, they will use negative estimates where subjectivity is permitted. For example, standard (or even unsustainably sourced) cotton, zero recycled fabrics, high transport emissions, and poor durability. While you may think your brand's organic cotton tee shirt may land a low environmental cost score of 500 (lower score is better), the NGOs assumption may lead to a score calculation of 1000+. Our team analysis has observed this in the official Environmental Cost portal.

It is also worthwhile to note that the Environmental Cost score will be visible everywhere. In physical stores on product tags, online in the product description, and with QR codes that redirect consumers to a landing page with the breakdown of the score. It is the first instance where factors like durability are also included. These have until now have not had much negative impact on fast fashion companies. If you're a textile brand selling apparel in the French market and you haven't submitted data to calculate your score, any third-party can publish a score for you once the voluntary phase ends. This will be mandated to be included on your own product pages, tags, and more.

An example of how an NGOs score created for you could be worse

Suppose your company manufactures a tee shirt. It uses 150g cotton, with 80% organic cotton and 20% sourced from production waste. You've set up your supply chain in an Eastern European country from the spinning to weaving to stitching. You use custom steps in the process to reduce the environmental impact and minimise your fabric wastage in production. By entering data in the Environmental Cost portal, you have achieved a low score of 500+ for your tee shirt.

The same score calculated by a third-party like an NGO may not be the same. How? Well for example, the NGO will assume your cotton to be standard cotton - not recycled or organic. Then, it will take a look at your product tag which says "Made in the Czech Republic". They naturally assume that it is for the final step, not the spinning of the yarn all the way to weaving the fabric. They assume that these initial steps are done in Asia-Pacific and accordingly take the average values. It will also consider industry default processes, industry averages of the manufacturing steps and assume a standard fabric wastage value. The result? Your low impact tee shirt in reality gets a high score of 1279. Good luck convincing your customers to buy your "organic" tee shirts now.

How much worse can your score get when rated by a third-party?

The short answer is very much worse. As seen in the example above, assumptions made by a third-party even with the best of intentions will lead to a significantly worse Textile Environmental Cost for your garments. There needs to be no malicious intent for general assumptions like standard cotton, industry average processes, and sourcing the yarns to spin your fabric from major global hubs. Yet, these can lead to a worse Textile Environmental Cost for your products, as calculated on the official portal.

How do you control your Textile Environmental Cost then?

So how do you control your narrative? How do you communicate your true environmental cost to your customers? Not an exaggeration by a third-party which has no stake in your business? One option is getting started with the portal yourself or through your company's legal team. However, keep in mind that the Environmental Cost requires 10+ variables per garment type you sell. Multiple that with 100s of types and styles you might sell, and the input cost of gathering this data potentially exceeds your total revenue from selling in the French market.

Enter Carbon Trail - an AI powered SaaS tool specifically for textile and garment companies, that helps you navigate regulatory compliances not just like the Textile Environmental Cost, but also of those like CSRD, ESRS, and Digital Product Passport. Undertake LCA impact assessments in days instead of months, at a fraction of the cost while traditional LCA assessments can cost you $10,000+/product.

Aditya Bhatt September 30, 2025
0
Global Standards Blog

France Textile Eco‑Score: What Fashion Brands Need to Know

If you make or sell apparel in France, the new “environmental cost” or France Textile Eco-Score label is about to touch everything from your bills of materials to your product

Aditya Bhatt September 15, 2025
0
Blog

August 2025 Product Updates: Uncertainty, Sensitivity, and Smarter Data Collection

 Measuring product footprints is hard work. Data is often incomplete, assumptions creep in, and getting inputs from across teams and facilities can be a challenge. At Carbon Trail, our

Shantanu Singh August 29, 2025
0
Blog

July 2025 Product Updates: AGEC French DPPs, Auto-costing and CDP Reporting

 At Carbon Trail, we spend a lot of time talking to sustainability teams, product managers, and compliance officers. And recently, we've been hearing some recurring themes: “I’m not sure

Shantanu Singh August 15, 2025
0

In effect

UK SECR Compliance for Fashion Brands

Company

United Kingdom

Adopted

Overview

The UK Streamlined Energy and Carbon Reporting (SECR) framework was introduced to improve transparency around energy use and carbon emissions among businesses. It aims to encourage organizations to reduce their carbon footprint and support the UK’s commitment to net-zero emissions by 2050.

The SECR requires companies to report on energy consumption, greenhouse gas emissions, and energy efficiency measures, providing valuable insights into their environmental impact.

SECR Reporting Requirements for Quoted and Unquoted Companies

The SECR framework has separate objectives for quoted companies and large unquoted companies or LLPs, based on defined thresholds of relevance.

Quoted Companies

        Scope: It applies to quoted companies of any size.

        Mandatory Reporting:

  1. Electricity, gas, and transport energy consumption, are calculated from all activities across the globe.
  2. Greenhouse gas emissions (Scope 1, 2, and optionally Scope 3).
  3. Intensity Ratios: Metrics such as emissions per employee or unit of production.
  4. Energy conservation measures implemented in the Financial year.
  5. Additional Requirements: Explain what approach has been used for emission and energy consumption estimation.

Unquoted Companies and LLPs

  • Scope: Made applicable to the large companies and LLPs satisfying any two out of the following three conditions:
  1. Annual turnover of £36 million or more.
  2. £18 million or more in total assets.
  3. 250 or more employees.
  • Mandatory Reporting:
  1. UK total final consumption (electricity, gas, and transport fuel).
  2. Greenhouse gas emissions are associated with the organization’s energy consumption (Scope 1 and Scope 2).
  3. Intensity Ratios: Specific measures related to operations, for example, emissions per dollar of revenues or unit of production.
  4. Energy conservation activities were conducted during the financial year.

Key requirements

Fashion brands subject to SECR must disclose the following:


  • Total energy consumption (electricity, gas, etc.)
  • Greenhouse gas emissions (Scope 1 and Scope 2)
  • Intensity ratios (e.g., emissions per unit of production)
  • Measures taken to improve energy efficiency

Who’s affected

SECR applies to large companies and limited liability partnerships that meet two of the following three criteria:

  1. Annual turnover of £36 million or more
  2. Total assets worth £18 million or more
  3. 250 or more employees

Fashion retailers and brands meeting these criteria must comply with SECR reporting requirements.

Timeline

The SECR framework was implemented on April 1, 2019, with compliance expected annually. The reporting period aligns with the company’s financial year, and reports must be included in the annual report or submitted alongside the Companies House filing.

How can Carbon Trail help?

Compliance Assistance

  • Carbon Trail offers expert guidance to fashion brands navigating SECR regulations, ensuring accurate data collection and reporting.

Services for sustainability reporting

  • Carbon Accounting: Comprehensive tracking and analysis of carbon emissions.
  • Product Life Cycle Assessment (LCA): Life cycle assessment services to evaluate the environmental impact of products.


  • Digital Product Passports: Support in creating and implementing digital passports for transparency.


  • Decarbonization Services: Strategies to reduce carbon footprints effectively.

FAQs

What is SECR?

SECR stands for Streamlined Energy and Carbon Reporting, a UK framework that mandates certain businesses to report on their energy consumption and carbon emissions.

Who needs to comply with SECR?

Large companies and limited liability partnerships that meet specific financial criteria are required to comply with SECR reporting.

What information must be reported under SECR?

Businesses must report their total energy consumption, greenhouse gas emissions, intensity ratios, and energy efficiency measures.

When is the SECR compliance deadline?

SECR reports should be submitted annually, aligning with the company’s financial year and included in the annual report.

How can Carbon Trail assist with SECR compliance?

Carbon Trail provides expertise in data collection, sustainability reporting, and various services to help fashion brands comply with SECR regulations.

What are the consequences of non-compliance with SECR?

Failing to comply with SECR can lead to penalties, reputational damage, and potential restrictions on business operations.

Check out other regulations

Learn more about Digital Product Passport

Elevate your product with our comprehensive suite of solutions

You may also like

Global Standards Blog Product

Can an NGO Rate Your Sustainability Efforts and Environmental Cost?

If the new French Textile Environmental Cost law (a.k.a. the France Textile Eco-Score) is to be seen, then yes, anyone can publish the official Environmental Cost scores for your textiles if you don't yourself disclose them by the end of the voluntary phase.

Control your brand's sustainability narrative, before someone else does it for you

The new Textile Environmental Cost, (coût environnemental) enters into force in as of today - the start of October 2025. The portal to report the different metrics for textile manufacturers has been open since mid-September. The enforcement initially begins with a voluntary phase from 1st October 2025. Anyone can publish a score on your behalf if you have not published a score by the end of the voluntary phase. No permission needed, and this will be an official score displayed on all your garment tags, website, and product pages.

What is the France Textile Environmental Cost?

The new decree requires all companies who sell garments in the French market, not just French companies, to publish an "Environmental Cost" score for each of their products. This is an aggregate score that considers all factors related to the environmental impact of a garment. This includes carbon emissions, energy use, microplastic impact, durability, and more. All companies are encouraged to publish a score in the voluntary phase beginning in October 2025. Once the voluntary phase ends, ANYONE can publish a score on behalf of the companies if they continue to sell in the French market. A detailed analysis of the Environmental Cost decree can be found here.

How NGOs and other third-parties could publish a potentially worse score for you

What does this mean? NGOs who might use assumptions for your supply chain will control your narrative. They might publish a score which might denote a far higher environmental impact than actually the case. From an NGOs perspective trying to champion the cause of the environment, they will use negative estimates where subjectivity is permitted. For example, standard (or even unsustainably sourced) cotton, zero recycled fabrics, high transport emissions, and poor durability. While you may think your brand's organic cotton tee shirt may land a low environmental cost score of 500 (lower score is better), the NGOs assumption may lead to a score calculation of 1000+. Our team analysis has observed this in the official Environmental Cost portal.

It is also worthwhile to note that the Environmental Cost score will be visible everywhere. In physical stores on product tags, online in the product description, and with QR codes that redirect consumers to a landing page with the breakdown of the score. It is the first instance where factors like durability are also included. These have until now have not had much negative impact on fast fashion companies. If you're a textile brand selling apparel in the French market and you haven't submitted data to calculate your score, any third-party can publish a score for you once the voluntary phase ends. This will be mandated to be included on your own product pages, tags, and more.

An example of how an NGOs score created for you could be worse

Suppose your company manufactures a tee shirt. It uses 150g cotton, with 80% organic cotton and 20% sourced from production waste. You've set up your supply chain in an Eastern European country from the spinning to weaving to stitching. You use custom steps in the process to reduce the environmental impact and minimise your fabric wastage in production. By entering data in the Environmental Cost portal, you have achieved a low score of 500+ for your tee shirt.

The same score calculated by a third-party like an NGO may not be the same. How? Well for example, the NGO will assume your cotton to be standard cotton - not recycled or organic. Then, it will take a look at your product tag which says "Made in the Czech Republic". They naturally assume that it is for the final step, not the spinning of the yarn all the way to weaving the fabric. They assume that these initial steps are done in Asia-Pacific and accordingly take the average values. It will also consider industry default processes, industry averages of the manufacturing steps and assume a standard fabric wastage value. The result? Your low impact tee shirt in reality gets a high score of 1279. Good luck convincing your customers to buy your "organic" tee shirts now.

How much worse can your score get when rated by a third-party?

The short answer is very much worse. As seen in the example above, assumptions made by a third-party even with the best of intentions will lead to a significantly worse Textile Environmental Cost for your garments. There needs to be no malicious intent for general assumptions like standard cotton, industry average processes, and sourcing the yarns to spin your fabric from major global hubs. Yet, these can lead to a worse Textile Environmental Cost for your products, as calculated on the official portal.

How do you control your Textile Environmental Cost then?

So how do you control your narrative? How do you communicate your true environmental cost to your customers? Not an exaggeration by a third-party which has no stake in your business? One option is getting started with the portal yourself or through your company's legal team. However, keep in mind that the Environmental Cost requires 10+ variables per garment type you sell. Multiple that with 100s of types and styles you might sell, and the input cost of gathering this data potentially exceeds your total revenue from selling in the French market.

Enter Carbon Trail - an AI powered SaaS tool specifically for textile and garment companies, that helps you navigate regulatory compliances not just like the Textile Environmental Cost, but also of those like CSRD, ESRS, and Digital Product Passport. Undertake LCA impact assessments in days instead of months, at a fraction of the cost while traditional LCA assessments can cost you $10,000+/product.

Aditya Bhatt September 30, 2025
0
Global Standards Blog

France Textile Eco‑Score: What Fashion Brands Need to Know

If you make or sell apparel in France, the new “environmental cost” or France Textile Eco-Score label is about to touch everything from your bills of materials to your product

Aditya Bhatt September 15, 2025
0
Blog

August 2025 Product Updates: Uncertainty, Sensitivity, and Smarter Data Collection

 Measuring product footprints is hard work. Data is often incomplete, assumptions creep in, and getting inputs from across teams and facilities can be a challenge. At Carbon Trail, our

Shantanu Singh August 29, 2025
0
Blog

July 2025 Product Updates: AGEC French DPPs, Auto-costing and CDP Reporting

 At Carbon Trail, we spend a lot of time talking to sustainability teams, product managers, and compliance officers. And recently, we've been hearing some recurring themes: “I’m not sure

Shantanu Singh August 15, 2025
0

In effect

UK Climate-related Financial Disclosure (CFD) Regulations

Company

United Kingdom

Adopted

Overview

The UK Climate-related Financial Disclosure (CFD) Regulations require businesses to disclose relevant climate-related information that can impact their financial performance. These regulations aim to improve transparency and accountability around climate risks, ultimately guiding investors towards more sustainable practices. For fashion businesses, this means reporting on how climate change affects their operations, strategies, and financial planning.

Key requirements

Governance

  • How climate-related issues are integrated into the company’s governance structure.

Strategy

  • The actual and potential impacts of climate-related risks and opportunities on the business model.

Risk management

  • Processes for identifying, assessing, and managing climate-related risks.

Metrics and Targets

  • Disclosure of the metrics used to assess climate-related risks and opportunities, including the establishment of targets related to emissions reductions.

Who’s affected

The CFD regulations apply to large UK-based companies and financial institutions, including fashion brands with:


  • A net turnover of over £500 million.
  • A balance sheet total of over £500 million.
  • More than 500 employees.

This includes publicly traded companies and certain private companies that meet these criteria.

How Are CFD and TCFD Different?

While both CFD (Climate-related Financial Disclosure) and TCFD (Task Force on Climate-related Financial Disclosures) aim to promote transparency around climate risks, they differ in scope and applicability:

  • CFD Regulations: Required for large companies and financial organizations in the UK, CFD complies with current legislation and contains requirements under the Companies Act.
  • TCFD Framework: A nonbinding international standard that provides hints on how to report climate risks and opportunities. The British regulations in CFD are based on TCFD guidelines but reporting in compliance with CFD is mandatory for the companies qualifying under it.

Timeline

The UK government has set the following key deadlines for compliance:

April 2022

The regulations came into force, requiring early adopters to disclose in their 2022 reports.

April 2023

Mandatory disclosures for applicable businesses began.

Ongoing

Annual reporting is required, with each business needing to provide updates in their financial reports.

How can Carbon Trail help?

Compliance Assistance

  • Carbon Trail provides expert guidance to fashion brands navigating the complexities of UK climate-related financial disclosures. We assist with:


    • Data Collection: Gathering necessary climate-related data for accurate reporting.
    • Reporting: Ensuring compliance with disclosure requirements.

Services for sustainability reporting

  • Carbon Accounting: Detailed tracking of carbon emissions throughout the supply chain.


  • Product Life Cycle Assessment (LCA): Life Cycle Assessment to evaluate the environmental impact of products.


  • Digital Product Passports: Creating digital records that include sustainability information.


  • Decarbonization Services: Strategies to reduce carbon footprints in business operations.

FAQs

What are the UK Climate-related Financial Disclosure regulations?

The regulations require large businesses to disclose information regarding their exposure to climate-related risks and how they plan to manage these risks.

Who needs to comply with these regulations?

Large UK companies and financial institutions, particularly in the fashion sector, with a turnover exceeding £500 million or a balance sheet total above £500 million.

When did the regulations come into effect?

The CFD regulations came into force in April 2022, with mandatory disclosures starting in April 2023.

What types of disclosures are required?

Disclosures must include governance structures, risk management processes, strategies regarding climate change, and metrics used to assess climate risks.

How can Carbon Trail assist with compliance?

Carbon Trail aids fashion brands in data collection, reporting, and implementing sustainability practices, ensuring adherence to the CFD regulations.

Is CFD mandatory?

Yes, every company that falls under the CFD regulations in the UK must adhere to the regulations.

Check out other regulations

Learn more about Digital Product Passport

Elevate your product with our comprehensive suite of solutions

You may also like

Global Standards Blog Product

Can an NGO Rate Your Sustainability Efforts and Environmental Cost?

If the new French Textile Environmental Cost law (a.k.a. the France Textile Eco-Score) is to be seen, then yes, anyone can publish the official Environmental Cost scores for your textiles if you don't yourself disclose them by the end of the voluntary phase.

Control your brand's sustainability narrative, before someone else does it for you

The new Textile Environmental Cost, (coût environnemental) enters into force in as of today - the start of October 2025. The portal to report the different metrics for textile manufacturers has been open since mid-September. The enforcement initially begins with a voluntary phase from 1st October 2025. Anyone can publish a score on your behalf if you have not published a score by the end of the voluntary phase. No permission needed, and this will be an official score displayed on all your garment tags, website, and product pages.

What is the France Textile Environmental Cost?

The new decree requires all companies who sell garments in the French market, not just French companies, to publish an "Environmental Cost" score for each of their products. This is an aggregate score that considers all factors related to the environmental impact of a garment. This includes carbon emissions, energy use, microplastic impact, durability, and more. All companies are encouraged to publish a score in the voluntary phase beginning in October 2025. Once the voluntary phase ends, ANYONE can publish a score on behalf of the companies if they continue to sell in the French market. A detailed analysis of the Environmental Cost decree can be found here.

How NGOs and other third-parties could publish a potentially worse score for you

What does this mean? NGOs who might use assumptions for your supply chain will control your narrative. They might publish a score which might denote a far higher environmental impact than actually the case. From an NGOs perspective trying to champion the cause of the environment, they will use negative estimates where subjectivity is permitted. For example, standard (or even unsustainably sourced) cotton, zero recycled fabrics, high transport emissions, and poor durability. While you may think your brand's organic cotton tee shirt may land a low environmental cost score of 500 (lower score is better), the NGOs assumption may lead to a score calculation of 1000+. Our team analysis has observed this in the official Environmental Cost portal.

It is also worthwhile to note that the Environmental Cost score will be visible everywhere. In physical stores on product tags, online in the product description, and with QR codes that redirect consumers to a landing page with the breakdown of the score. It is the first instance where factors like durability are also included. These have until now have not had much negative impact on fast fashion companies. If you're a textile brand selling apparel in the French market and you haven't submitted data to calculate your score, any third-party can publish a score for you once the voluntary phase ends. This will be mandated to be included on your own product pages, tags, and more.

An example of how an NGOs score created for you could be worse

Suppose your company manufactures a tee shirt. It uses 150g cotton, with 80% organic cotton and 20% sourced from production waste. You've set up your supply chain in an Eastern European country from the spinning to weaving to stitching. You use custom steps in the process to reduce the environmental impact and minimise your fabric wastage in production. By entering data in the Environmental Cost portal, you have achieved a low score of 500+ for your tee shirt.

The same score calculated by a third-party like an NGO may not be the same. How? Well for example, the NGO will assume your cotton to be standard cotton - not recycled or organic. Then, it will take a look at your product tag which says "Made in the Czech Republic". They naturally assume that it is for the final step, not the spinning of the yarn all the way to weaving the fabric. They assume that these initial steps are done in Asia-Pacific and accordingly take the average values. It will also consider industry default processes, industry averages of the manufacturing steps and assume a standard fabric wastage value. The result? Your low impact tee shirt in reality gets a high score of 1279. Good luck convincing your customers to buy your "organic" tee shirts now.

How much worse can your score get when rated by a third-party?

The short answer is very much worse. As seen in the example above, assumptions made by a third-party even with the best of intentions will lead to a significantly worse Textile Environmental Cost for your garments. There needs to be no malicious intent for general assumptions like standard cotton, industry average processes, and sourcing the yarns to spin your fabric from major global hubs. Yet, these can lead to a worse Textile Environmental Cost for your products, as calculated on the official portal.

How do you control your Textile Environmental Cost then?

So how do you control your narrative? How do you communicate your true environmental cost to your customers? Not an exaggeration by a third-party which has no stake in your business? One option is getting started with the portal yourself or through your company's legal team. However, keep in mind that the Environmental Cost requires 10+ variables per garment type you sell. Multiple that with 100s of types and styles you might sell, and the input cost of gathering this data potentially exceeds your total revenue from selling in the French market.

Enter Carbon Trail - an AI powered SaaS tool specifically for textile and garment companies, that helps you navigate regulatory compliances not just like the Textile Environmental Cost, but also of those like CSRD, ESRS, and Digital Product Passport. Undertake LCA impact assessments in days instead of months, at a fraction of the cost while traditional LCA assessments can cost you $10,000+/product.

Aditya Bhatt September 30, 2025
0
Global Standards Blog

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2026

French Loi Climat: Understanding the Eco-Score for Fashion Compliance

Products

France

Adopted

Overview

The French Climate and Resilience Law (Loi Climat) aims to combat climate change and promote sustainability through comprehensive measures, including the implementation of an Eco-Score. This regulation affects various sectors, including fashion, by requiring businesses to disclose their environmental impact and sustainability efforts. Under the law, companies are expected to provide transparent information on their supply chains and carbon footprints, fostering accountability and encouraging sustainable practices within the fashion industry.

Key requirements

Fashion brands will face specific sustainability reporting obligations under the ESPR. These include:

Eco-Score Disclosure

  • Brands must calculate and publicly display their Eco-Score, reflecting the environmental impact of their products.

Supply Chain Transparency

  • Companies must report on their supply chain practices, including sourcing materials and labor conditions.

Carbon Footprint Reporting

  • Firms are required to measure and disclose their greenhouse gas emissions as part of their sustainability reporting.

Who’s affected

  • The French Climate and Resilience Law applies to:
    • Large Fashion Brands: Companies with significant revenue and extensive supply chains are mandated to comply.
    • Retailers: Businesses selling fashion products in France, including online retailers, must adhere to the regulations.
    • Importers: Brands importing fashion items into France must also comply with the Eco-Score requirements.

 

December 2024 Updates

The French Eco-Score framework is at a turning point, which means it is on the way to obligatory regulation. On November 28th, the Minister of Ecological Transition opened an official public consultation, which is the last step before completing the setting of rules under the Climate and Resilience Act. As companies in the fashion and textile industries gear up for new environmental labeling requirements, this landmark is a major development.

 

After two years of active development, the Eco-Score framework is still under construction, although its use will be required after a trial period. First, the framework is intended to offer precise and distinct information on the environmental cost of clothing and, second, to promote responsibility in the fashion network.

Methodological Updates

Some updates to the Eco-Score framework include new guidelines to help fashion brands apply the theory and calculate their scores. Key updates include:

  • Labeling Options: Brands will be able to submit environmental impacts on a per-weight basis (for example, points per kilogram) along with the total figure for each product.
  • Product Range Definitions: It will be even easier to separate the product categories, with proper definitions for things like men, women and children’s ranges.
  • Repair Services: Information on repair services will only include those services recognized by Refashion, the French organization that addresses textile sustainability issues.
  • Traceability Requirements: Overall supply chain details should be visible to the brands, with traceability information posted on the homepage of the brand’s website as well as on the ‘TAG’ that displays public information about brands in a store.
  • Year-Round Consistency: The parameters of Eco-Score modeling mustn’t change throughout the year, even in sales and promotions.
  • Trims and Components: Subsequent versions of the methodology will enhance the tools for trims and smaller parts, for a better estimation of environmental performance.

Timeline

2023

Initial compliance deadlines for major brands to begin reporting Eco-Scores.

2024

Full implementation of Eco-Score disclosures expected.

2025

Companies are required to submit annual reports by the end of each fiscal year, with the first reports already filed in 2024.

How can Carbon Trail help?

Compliance Assistance

  • Carbon Trail helps fashion brands meet the reporting and disclosure requirements of the French Loi Climat by guiding them through the data collection, product life cycle analysis, and Eco-Score calculation processes. Our platform simplifies the complex environmental assessments necessary to comply with the law.

Services for sustainability reporting

  • Carbon Accounting: Accurately track emissions data for each stage of the product lifecycle to calculate the Eco-Score.

  • Product Life Cycle Assessment (LCA): Assess environmental impacts from raw materials to end-of-life disposal.

  • Digital Product Passports: Ensure that all product information, including sustainability credentials, is available to consumers.

  • Decarbonization Services: Help fashion brands create strategies to lower their environmental impact and improve their Eco-Score.

FAQs

What is the French Climate and Resilience Law?

The law aims to enhance sustainability and combat climate change by requiring businesses to disclose their environmental impact.

Who needs to comply with the Eco-Score requirements?

Large fashion brands, retailers, and importers operating in France must adhere to the law.

What are the key obligations for fashion brands under this law?

Brands must calculate and display their Eco-Score, ensure supply chain transparency, and report on their carbon emissions.

When do companies need to start complying with the Eco-Score requirements?

Initial compliance deadlines began in 2023, with full implementation expected by 2024.

How can Carbon Trail assist my fashion business?

We provide compliance assistance, data collection, and reporting services to help brands meet regulatory requirements.

What is an Eco-Score?

The Eco-Score is a score that reflects the environmental impact of fashion products, promoting transparency and sustainability in the industry.

Check out other regulations

Learn more about Digital Product Passport

Elevate your product with our comprehensive suite of solutions

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Can an NGO Rate Your Sustainability Efforts and Environmental Cost?

If the new French Textile Environmental Cost law (a.k.a. the France Textile Eco-Score) is to be seen, then yes, anyone can publish the official Environmental Cost scores for your textiles if you don't yourself disclose them by the end of the voluntary phase.

Control your brand's sustainability narrative, before someone else does it for you

The new Textile Environmental Cost, (coût environnemental) enters into force in as of today - the start of October 2025. The portal to report the different metrics for textile manufacturers has been open since mid-September. The enforcement initially begins with a voluntary phase from 1st October 2025. Anyone can publish a score on your behalf if you have not published a score by the end of the voluntary phase. No permission needed, and this will be an official score displayed on all your garment tags, website, and product pages.

What is the France Textile Environmental Cost?

The new decree requires all companies who sell garments in the French market, not just French companies, to publish an "Environmental Cost" score for each of their products. This is an aggregate score that considers all factors related to the environmental impact of a garment. This includes carbon emissions, energy use, microplastic impact, durability, and more. All companies are encouraged to publish a score in the voluntary phase beginning in October 2025. Once the voluntary phase ends, ANYONE can publish a score on behalf of the companies if they continue to sell in the French market. A detailed analysis of the Environmental Cost decree can be found here.

How NGOs and other third-parties could publish a potentially worse score for you

What does this mean? NGOs who might use assumptions for your supply chain will control your narrative. They might publish a score which might denote a far higher environmental impact than actually the case. From an NGOs perspective trying to champion the cause of the environment, they will use negative estimates where subjectivity is permitted. For example, standard (or even unsustainably sourced) cotton, zero recycled fabrics, high transport emissions, and poor durability. While you may think your brand's organic cotton tee shirt may land a low environmental cost score of 500 (lower score is better), the NGOs assumption may lead to a score calculation of 1000+. Our team analysis has observed this in the official Environmental Cost portal.

It is also worthwhile to note that the Environmental Cost score will be visible everywhere. In physical stores on product tags, online in the product description, and with QR codes that redirect consumers to a landing page with the breakdown of the score. It is the first instance where factors like durability are also included. These have until now have not had much negative impact on fast fashion companies. If you're a textile brand selling apparel in the French market and you haven't submitted data to calculate your score, any third-party can publish a score for you once the voluntary phase ends. This will be mandated to be included on your own product pages, tags, and more.

An example of how an NGOs score created for you could be worse

Suppose your company manufactures a tee shirt. It uses 150g cotton, with 80% organic cotton and 20% sourced from production waste. You've set up your supply chain in an Eastern European country from the spinning to weaving to stitching. You use custom steps in the process to reduce the environmental impact and minimise your fabric wastage in production. By entering data in the Environmental Cost portal, you have achieved a low score of 500+ for your tee shirt.

The same score calculated by a third-party like an NGO may not be the same. How? Well for example, the NGO will assume your cotton to be standard cotton - not recycled or organic. Then, it will take a look at your product tag which says "Made in the Czech Republic". They naturally assume that it is for the final step, not the spinning of the yarn all the way to weaving the fabric. They assume that these initial steps are done in Asia-Pacific and accordingly take the average values. It will also consider industry default processes, industry averages of the manufacturing steps and assume a standard fabric wastage value. The result? Your low impact tee shirt in reality gets a high score of 1279. Good luck convincing your customers to buy your "organic" tee shirts now.

How much worse can your score get when rated by a third-party?

The short answer is very much worse. As seen in the example above, assumptions made by a third-party even with the best of intentions will lead to a significantly worse Textile Environmental Cost for your garments. There needs to be no malicious intent for general assumptions like standard cotton, industry average processes, and sourcing the yarns to spin your fabric from major global hubs. Yet, these can lead to a worse Textile Environmental Cost for your products, as calculated on the official portal.

How do you control your Textile Environmental Cost then?

So how do you control your narrative? How do you communicate your true environmental cost to your customers? Not an exaggeration by a third-party which has no stake in your business? One option is getting started with the portal yourself or through your company's legal team. However, keep in mind that the Environmental Cost requires 10+ variables per garment type you sell. Multiple that with 100s of types and styles you might sell, and the input cost of gathering this data potentially exceeds your total revenue from selling in the French market.

Enter Carbon Trail - an AI powered SaaS tool specifically for textile and garment companies, that helps you navigate regulatory compliances not just like the Textile Environmental Cost, but also of those like CSRD, ESRS, and Digital Product Passport. Undertake LCA impact assessments in days instead of months, at a fraction of the cost while traditional LCA assessments can cost you $10,000+/product.

Aditya Bhatt September 30, 2025
0
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Add Your Heading Text Here

In effect

German Supply Chain Act (LkSG)

Company

Germany

Adopted

Overview

The German Supply Chain Act (LkSG), also known as the Lieferkettensorgfaltspflichtengesetz, imposes stringent requirements on businesses operating in Germany to ensure they uphold human rights and environmental standards throughout their supply chains. Introduced in 2021, it affects multiple industries, including fashion, where complex supply chains can involve labor practices and environmental risks that need scrutiny.

Fashion brands must implement measures to identify, prevent, and mitigate risks such as child labor, unsafe working conditions, and environmental harm, ensuring compliance through detailed due diligence processes.

Key requirements

For fashion brands, the German Supply Chain Act outlines specific obligations, including:

Risk Analysis

  • Companies must conduct regular risk assessments across their entire supply chain, identifying risks to human rights and environmental standards.

Preventive measures

  • If risks are identified, fashion businesses must take preventive steps to mitigate them. This could involve revising supplier contracts, providing supplier training, or requiring more stringent oversight from primary suppliers.

Remedial Action

  • If violations occur, companies are obligated to rectify them immediately, either directly or in cooperation with suppliers.

Reporting Obligations

  • Detailed annual reports must be submitted to the German Federal Office for Economic Affairs and Export Control (BAFA), outlining the identified risks and the actions taken to address them.

Who’s affected

The LkSG initially targets large companies with more than 3,000 employees, extending to those with 1,000 or more employees in 2024. This includes fashion retailers and manufacturers that either operate directly in Germany or supply goods to the German market. Even smaller companies indirectly tied to larger fashion businesses may face pressures to comply as part of larger supply chain relationships.

Timeline

Key deadlines for compliance with the EU Taxonomy Regulation include:

2023

Enforcement began for companies with over 3,000 employees.

2024

The threshold lowers to companies with over 1,000 employees, meaning many more mid-sized fashion brands will need to be in full compliance by this time.

Ongoing

Companies are required to submit annual reports by the end of each fiscal year, with the first reports already filed in 2024.

How can Carbon Trail help?

  • Carbon Trail assists fashion brands by guiding them through the LkSG compliance process, from gathering supplier data to ensuring robust sustainability reporting. Our services include:



  • Carbon Accounting: Accurate measurement of carbon emissions across the supply chain.


  • Product Life Cycle Assessment (LCA): Comprehensive lifecycle assessments to evaluate the environmental impact of products.


  • Digital Product Passports: Creation of digital passports that provide consumers with detailed sustainability information.


  • Decarbonization Services: Strategies to reduce carbon footprints and enhance sustainability practices.

FAQs

What is the German Supply Chain Act (LkSG)?

The LkSG is a law requiring companies to ensure human rights and environmental standards are upheld throughout their supply chains.

When does the LkSG affect fashion brands?

As of 2023, companies with over 3,000 employees are affected, with the threshold dropping to 1,000 employees in 2024.

What reporting is required under the LkSG?

Companies must submit an annual report outlining the risks identified in their supply chains and the actions taken to address them.

What are the penalties for non-compliance?

Non-compliance can lead to fines, sanctions, and exclusion from public procurement in Germany.

How can Carbon Trail help fashion brands comply with the LkSG?

Carbon Trail helps with supplier data collection, carbon accounting, and sustainability reporting to ensure full compliance.

Which government agency enforces the LkSG?

The German Federal Office for Economic Affairs and Export Control (BAFA) is responsible for enforcing the LkSG.

Check out other regulations

Learn more about Digital Product Passport

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Can an NGO Rate Your Sustainability Efforts and Environmental Cost?

If the new French Textile Environmental Cost law (a.k.a. the France Textile Eco-Score) is to be seen, then yes, anyone can publish the official Environmental Cost scores for your textiles if you don't yourself disclose them by the end of the voluntary phase.

Control your brand's sustainability narrative, before someone else does it for you

The new Textile Environmental Cost, (coût environnemental) enters into force in as of today - the start of October 2025. The portal to report the different metrics for textile manufacturers has been open since mid-September. The enforcement initially begins with a voluntary phase from 1st October 2025. Anyone can publish a score on your behalf if you have not published a score by the end of the voluntary phase. No permission needed, and this will be an official score displayed on all your garment tags, website, and product pages.

What is the France Textile Environmental Cost?

The new decree requires all companies who sell garments in the French market, not just French companies, to publish an "Environmental Cost" score for each of their products. This is an aggregate score that considers all factors related to the environmental impact of a garment. This includes carbon emissions, energy use, microplastic impact, durability, and more. All companies are encouraged to publish a score in the voluntary phase beginning in October 2025. Once the voluntary phase ends, ANYONE can publish a score on behalf of the companies if they continue to sell in the French market. A detailed analysis of the Environmental Cost decree can be found here.

How NGOs and other third-parties could publish a potentially worse score for you

What does this mean? NGOs who might use assumptions for your supply chain will control your narrative. They might publish a score which might denote a far higher environmental impact than actually the case. From an NGOs perspective trying to champion the cause of the environment, they will use negative estimates where subjectivity is permitted. For example, standard (or even unsustainably sourced) cotton, zero recycled fabrics, high transport emissions, and poor durability. While you may think your brand's organic cotton tee shirt may land a low environmental cost score of 500 (lower score is better), the NGOs assumption may lead to a score calculation of 1000+. Our team analysis has observed this in the official Environmental Cost portal.

It is also worthwhile to note that the Environmental Cost score will be visible everywhere. In physical stores on product tags, online in the product description, and with QR codes that redirect consumers to a landing page with the breakdown of the score. It is the first instance where factors like durability are also included. These have until now have not had much negative impact on fast fashion companies. If you're a textile brand selling apparel in the French market and you haven't submitted data to calculate your score, any third-party can publish a score for you once the voluntary phase ends. This will be mandated to be included on your own product pages, tags, and more.

An example of how an NGOs score created for you could be worse

Suppose your company manufactures a tee shirt. It uses 150g cotton, with 80% organic cotton and 20% sourced from production waste. You've set up your supply chain in an Eastern European country from the spinning to weaving to stitching. You use custom steps in the process to reduce the environmental impact and minimise your fabric wastage in production. By entering data in the Environmental Cost portal, you have achieved a low score of 500+ for your tee shirt.

The same score calculated by a third-party like an NGO may not be the same. How? Well for example, the NGO will assume your cotton to be standard cotton - not recycled or organic. Then, it will take a look at your product tag which says "Made in the Czech Republic". They naturally assume that it is for the final step, not the spinning of the yarn all the way to weaving the fabric. They assume that these initial steps are done in Asia-Pacific and accordingly take the average values. It will also consider industry default processes, industry averages of the manufacturing steps and assume a standard fabric wastage value. The result? Your low impact tee shirt in reality gets a high score of 1279. Good luck convincing your customers to buy your "organic" tee shirts now.

How much worse can your score get when rated by a third-party?

The short answer is very much worse. As seen in the example above, assumptions made by a third-party even with the best of intentions will lead to a significantly worse Textile Environmental Cost for your garments. There needs to be no malicious intent for general assumptions like standard cotton, industry average processes, and sourcing the yarns to spin your fabric from major global hubs. Yet, these can lead to a worse Textile Environmental Cost for your products, as calculated on the official portal.

How do you control your Textile Environmental Cost then?

So how do you control your narrative? How do you communicate your true environmental cost to your customers? Not an exaggeration by a third-party which has no stake in your business? One option is getting started with the portal yourself or through your company's legal team. However, keep in mind that the Environmental Cost requires 10+ variables per garment type you sell. Multiple that with 100s of types and styles you might sell, and the input cost of gathering this data potentially exceeds your total revenue from selling in the French market.

Enter Carbon Trail - an AI powered SaaS tool specifically for textile and garment companies, that helps you navigate regulatory compliances not just like the Textile Environmental Cost, but also of those like CSRD, ESRS, and Digital Product Passport. Undertake LCA impact assessments in days instead of months, at a fraction of the cost while traditional LCA assessments can cost you $10,000+/product.

Aditya Bhatt September 30, 2025
0
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France Textile Eco‑Score: What Fashion Brands Need to Know

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Aditya Bhatt September 15, 2025
0
Blog

August 2025 Product Updates: Uncertainty, Sensitivity, and Smarter Data Collection

 Measuring product footprints is hard work. Data is often incomplete, assumptions creep in, and getting inputs from across teams and facilities can be a challenge. At Carbon Trail, our

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0
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In effect

EU Taxonomy

Company

European Union

Adopted

Overview

The EU Taxonomy Regulation is a classification system established to determine which economic activities can be considered environmentally sustainable. It aims to guide investments towards sustainable projects and ensure transparency in sustainability reporting. The regulation impacts fashion businesses by requiring them to disclose how and to what extent their activities align with the Taxonomy criteria.

This initiative is part of the broader Corporate Sustainability Reporting Directive (CSRD), which enhances the sustainability disclosures required from companies across various sectors.

Key requirements

Fashion brands will face specific sustainability reporting obligations under the ESPR. These include:


  • Conducting life cycle assessments (LCA) to evaluate environmental impacts.
  • Providing transparent information on the sustainability features of products, including material composition and recyclability.
  • Implementing measures to minimize waste and promote circularity in production processes.

Who’s affected

The EU Taxonomy applies to a wide range of businesses in the fashion retail sector, particularly those that:


  • Are large companies meeting specific revenue thresholds.
  • Are publicly traded.
  • Fall under the scope of the CSRD, which includes large enterprises and certain SMEs.

Timeline

2022

The Taxonomy Regulation came into effect.

2023

Companies must start disclosing their alignment with the Taxonomy for the financial year.

2024

Extended reporting requirements and disclosures begin for additional sectors.

How can Carbon Trail help?

Compliance Assistance

  • Carbon Trail provides compliance assistance by guiding fashion brands through the complexities of EU Taxonomy regulations. We offer support in:


  • Data Collection: Gathering necessary information to assess alignment with the Taxonomy.
  • Reporting: Facilitating accurate and comprehensive disclosures.

Services for sustainability reporting

  • Carbon Accounting: Helping brands measure and report their carbon emissions.


  • Product Life Cycle Assessment (LCA): Conducting life cycle assessments to evaluate environmental impacts.
  • Digital Product Passports: Assisting in the creation of digital tools for transparency.


  • Decarbonization Services: Supporting strategies to reduce carbon footprints.

FAQs

What is the EU Taxonomy?

The EU Taxonomy is a framework designed to classify sustainable economic activities to guide investments and improve transparency in sustainability reporting.

Who needs to comply with the EU Taxonomy Regulation?

Large companies and certain SMEs in the fashion sector that fall under the CSRD are required to comply with the EU Taxonomy Regulation.

What are the main reporting obligations under the EU Taxonomy?

Companies must disclose how their activities align with the Taxonomy’s environmental objectives and provide information on their sustainability impacts.

When do companies need to start reporting under the EU Taxonomy?

Companies must begin reporting their alignment for the financial year 2023, with extended requirements starting in 2024.

How can Carbon Trail assist fashion brands?

Carbon Trail helps fashion brands navigate EU Taxonomy regulations through data collection, reporting assistance, and various sustainability services.

What types of services does Carbon Trail offer?

Our services include Carbon Accounting, Product LCA, Digital Product Passports, and Decarbonization strategies tailored for the fashion industry.

Check out other regulations

Learn more about Digital Product Passport

Elevate your product with our comprehensive suite of solutions

You may also like

Global Standards Blog Product

Can an NGO Rate Your Sustainability Efforts and Environmental Cost?

If the new French Textile Environmental Cost law (a.k.a. the France Textile Eco-Score) is to be seen, then yes, anyone can publish the official Environmental Cost scores for your textiles if you don't yourself disclose them by the end of the voluntary phase.

Control your brand's sustainability narrative, before someone else does it for you

The new Textile Environmental Cost, (coût environnemental) enters into force in as of today - the start of October 2025. The portal to report the different metrics for textile manufacturers has been open since mid-September. The enforcement initially begins with a voluntary phase from 1st October 2025. Anyone can publish a score on your behalf if you have not published a score by the end of the voluntary phase. No permission needed, and this will be an official score displayed on all your garment tags, website, and product pages.

What is the France Textile Environmental Cost?

The new decree requires all companies who sell garments in the French market, not just French companies, to publish an "Environmental Cost" score for each of their products. This is an aggregate score that considers all factors related to the environmental impact of a garment. This includes carbon emissions, energy use, microplastic impact, durability, and more. All companies are encouraged to publish a score in the voluntary phase beginning in October 2025. Once the voluntary phase ends, ANYONE can publish a score on behalf of the companies if they continue to sell in the French market. A detailed analysis of the Environmental Cost decree can be found here.

How NGOs and other third-parties could publish a potentially worse score for you

What does this mean? NGOs who might use assumptions for your supply chain will control your narrative. They might publish a score which might denote a far higher environmental impact than actually the case. From an NGOs perspective trying to champion the cause of the environment, they will use negative estimates where subjectivity is permitted. For example, standard (or even unsustainably sourced) cotton, zero recycled fabrics, high transport emissions, and poor durability. While you may think your brand's organic cotton tee shirt may land a low environmental cost score of 500 (lower score is better), the NGOs assumption may lead to a score calculation of 1000+. Our team analysis has observed this in the official Environmental Cost portal.

It is also worthwhile to note that the Environmental Cost score will be visible everywhere. In physical stores on product tags, online in the product description, and with QR codes that redirect consumers to a landing page with the breakdown of the score. It is the first instance where factors like durability are also included. These have until now have not had much negative impact on fast fashion companies. If you're a textile brand selling apparel in the French market and you haven't submitted data to calculate your score, any third-party can publish a score for you once the voluntary phase ends. This will be mandated to be included on your own product pages, tags, and more.

An example of how an NGOs score created for you could be worse

Suppose your company manufactures a tee shirt. It uses 150g cotton, with 80% organic cotton and 20% sourced from production waste. You've set up your supply chain in an Eastern European country from the spinning to weaving to stitching. You use custom steps in the process to reduce the environmental impact and minimise your fabric wastage in production. By entering data in the Environmental Cost portal, you have achieved a low score of 500+ for your tee shirt.

The same score calculated by a third-party like an NGO may not be the same. How? Well for example, the NGO will assume your cotton to be standard cotton - not recycled or organic. Then, it will take a look at your product tag which says "Made in the Czech Republic". They naturally assume that it is for the final step, not the spinning of the yarn all the way to weaving the fabric. They assume that these initial steps are done in Asia-Pacific and accordingly take the average values. It will also consider industry default processes, industry averages of the manufacturing steps and assume a standard fabric wastage value. The result? Your low impact tee shirt in reality gets a high score of 1279. Good luck convincing your customers to buy your "organic" tee shirts now.

How much worse can your score get when rated by a third-party?

The short answer is very much worse. As seen in the example above, assumptions made by a third-party even with the best of intentions will lead to a significantly worse Textile Environmental Cost for your garments. There needs to be no malicious intent for general assumptions like standard cotton, industry average processes, and sourcing the yarns to spin your fabric from major global hubs. Yet, these can lead to a worse Textile Environmental Cost for your products, as calculated on the official portal.

How do you control your Textile Environmental Cost then?

So how do you control your narrative? How do you communicate your true environmental cost to your customers? Not an exaggeration by a third-party which has no stake in your business? One option is getting started with the portal yourself or through your company's legal team. However, keep in mind that the Environmental Cost requires 10+ variables per garment type you sell. Multiple that with 100s of types and styles you might sell, and the input cost of gathering this data potentially exceeds your total revenue from selling in the French market.

Enter Carbon Trail - an AI powered SaaS tool specifically for textile and garment companies, that helps you navigate regulatory compliances not just like the Textile Environmental Cost, but also of those like CSRD, ESRS, and Digital Product Passport. Undertake LCA impact assessments in days instead of months, at a fraction of the cost while traditional LCA assessments can cost you $10,000+/product.

Aditya Bhatt September 30, 2025
0
Global Standards Blog

France Textile Eco‑Score: What Fashion Brands Need to Know

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In effect

Dutch EPR for Textiles: Compliance & Sustainability Reporting

Other Sustainability

Netherlands

Adopted

Overview

The Dutch Extended Producer Responsibility (EPR) for Textiles Decree aims to encourage textile producers to take responsibility for the entire lifecycle of their products, from design to disposal. This regulation mandates that fashion businesses develop sustainable practices and engage in waste management to minimize their environmental impact. By integrating the EPR framework, the Dutch government seeks to promote a circular economy, requiring brands to report on their sustainability efforts and product lifecycles.

Netherlands’ Circular Economy Goal by 2050

The Dutch EPR for Textiles is agreeing with the country’s plan to make the Netherlands a circular economy country by 2050. This new approach reflects the government’s goals to prevent all expendable resources from going to waste and to reuse or recycle materials wherever possible to cut the consumption of virgin materials. By 2030, reducing the utilization of raw materials by 50% shall be the interim target for all sectors, including textiles. These targets are achieved by proactively encouraging sustainable design of products, encouraging recycling, and making producers accept full responsibility in line with the EPR framework.

It is in line with the Dutch government’s priority to reduce the effects of climate change, promote efficient consumption of resources, and support innovation of sustainable solutions within fashion and textile businesses.

Dutch EPR Targets and Deadlines

The targets set under the EPR for Textiles by the Dutch government include aims to increase the levels of recycling, reuse, and circularity. These targets set clear milestones for businesses to achieve by specific deadlines:

2025

  • The Dutch market currently requires that at least 50% of clothing sold must be recycled or reused.
  • For textiles, 20% should be recycled, of which 10% is for recycling within the Netherlands.
  • From this category, at least 25% of the recycled textiles must be through fiber-to-fiber recycling.
  • It requires producers to set up and fund an effective intake mechanism, to ensure the correct acquisition and handling of textiles.

2030

  • The percentage rate for recycling and reuse rises to 75%.
  • 25% of textiles must be recycled and 15% of reused within the Netherlands.
  • At least 33% of the recycled textiles are required to be recycled through fiber-to-fiber recycling.

2050

  • The target has to be 100% recycling /reusing of the textile on the market, to support the circular economy goals of the Netherlands.

New conditions for producers will include reporting by the year, consumer education as well as the subsequent elaboration of additional conditions for producers in the 2025-2030 period to enhance the EPR framework. These progressive targets give evidence that the Dutch government is rather serious about the creation of a circular textile ecosystem.

Key requirements

Fashion brands must comply with specific sustainability reporting obligations under the FCA UK Listing Rules. These include:

Product Lifecycle Assessments (LCA)

  • Brands must conduct assessments to evaluate the environmental impacts of their textiles throughout their lifecycle.

Recycling and Collection Targets

  • Producers are obligated to ensure that a significant percentage of their textiles is collected for recycling or reuse.

Reporting

  • Annual reporting on the quantities of textiles placed on the market and how they are managed at the end of their lifecycle.

Who’s affected

The Dutch EPR for Textiles Decree applies to all businesses involved in the production, import, and sale of textile products within the Netherlands. This includes:


  • Clothing manufacturers and brands
  • Retailers and wholesalers
  • Online fashion platforms
  • Importers of textile goods

Timeline

January 1, 2023

The EPR for textiles officially came into effect, requiring businesses to start adhering to the new obligations.

January 1, 2025

Full compliance with reporting and recycling targets is expected from all affected businesses.

How can Carbon Trail help?

Compliance Assistance

  • Carbon Trail provides comprehensive support to fashion brands navigating the Dutch EPR for Textiles Decree. Our services streamline the process of data collection, ensuring that brands can efficiently meet their reporting requirements.

Services for sustainability reporting

  • Carbon Accounting: Track and report on carbon emissions associated with textile products.


  • Product Life Cycle Assessment (LCA): Conduct lifecycle assessments to evaluate environmental impacts.


  • Digital Product Passports: Create digital records that detail the sustainability attributes of textiles.


  • Decarbonization Services:  Implement strategies to reduce carbon footprints across the supply chain.

FAQs

What is the Dutch EPR for Textiles Decree?

The Dutch EPR for Textiles Decree mandates that textile producers take responsibility for their products throughout their lifecycle, promoting sustainability and waste reduction.

Who must comply with the Dutch EPR for Textiles?

All businesses involved in the production, import, and sale of textiles in the Netherlands are required to comply with this decree.

What are the key reporting requirements?

Brands must conduct product lifecycle assessments, set recycling targets, and report annually on the textiles they place on the market.

When did the Dutch EPR for Textiles come into effect?

The decree came into effect on January 1, 2023, with full compliance expected by January 1, 2025.

How can Carbon Trail assist with compliance?

Carbon Trail helps fashion brands with data collection, sustainability reporting, and implementing strategies to meet EPR obligations.

What are the penalties for non-compliance?

Non-compliance may result in fines and other penalties as outlined by the Dutch government, emphasizing the importance of adherence to the EPR regulations.

Check out other regulations

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Can an NGO Rate Your Sustainability Efforts and Environmental Cost?

If the new French Textile Environmental Cost law (a.k.a. the France Textile Eco-Score) is to be seen, then yes, anyone can publish the official Environmental Cost scores for your textiles if you don't yourself disclose them by the end of the voluntary phase.

Control your brand's sustainability narrative, before someone else does it for you

The new Textile Environmental Cost, (coût environnemental) enters into force in as of today - the start of October 2025. The portal to report the different metrics for textile manufacturers has been open since mid-September. The enforcement initially begins with a voluntary phase from 1st October 2025. Anyone can publish a score on your behalf if you have not published a score by the end of the voluntary phase. No permission needed, and this will be an official score displayed on all your garment tags, website, and product pages.

What is the France Textile Environmental Cost?

The new decree requires all companies who sell garments in the French market, not just French companies, to publish an "Environmental Cost" score for each of their products. This is an aggregate score that considers all factors related to the environmental impact of a garment. This includes carbon emissions, energy use, microplastic impact, durability, and more. All companies are encouraged to publish a score in the voluntary phase beginning in October 2025. Once the voluntary phase ends, ANYONE can publish a score on behalf of the companies if they continue to sell in the French market. A detailed analysis of the Environmental Cost decree can be found here.

How NGOs and other third-parties could publish a potentially worse score for you

What does this mean? NGOs who might use assumptions for your supply chain will control your narrative. They might publish a score which might denote a far higher environmental impact than actually the case. From an NGOs perspective trying to champion the cause of the environment, they will use negative estimates where subjectivity is permitted. For example, standard (or even unsustainably sourced) cotton, zero recycled fabrics, high transport emissions, and poor durability. While you may think your brand's organic cotton tee shirt may land a low environmental cost score of 500 (lower score is better), the NGOs assumption may lead to a score calculation of 1000+. Our team analysis has observed this in the official Environmental Cost portal.

It is also worthwhile to note that the Environmental Cost score will be visible everywhere. In physical stores on product tags, online in the product description, and with QR codes that redirect consumers to a landing page with the breakdown of the score. It is the first instance where factors like durability are also included. These have until now have not had much negative impact on fast fashion companies. If you're a textile brand selling apparel in the French market and you haven't submitted data to calculate your score, any third-party can publish a score for you once the voluntary phase ends. This will be mandated to be included on your own product pages, tags, and more.

An example of how an NGOs score created for you could be worse

Suppose your company manufactures a tee shirt. It uses 150g cotton, with 80% organic cotton and 20% sourced from production waste. You've set up your supply chain in an Eastern European country from the spinning to weaving to stitching. You use custom steps in the process to reduce the environmental impact and minimise your fabric wastage in production. By entering data in the Environmental Cost portal, you have achieved a low score of 500+ for your tee shirt.

The same score calculated by a third-party like an NGO may not be the same. How? Well for example, the NGO will assume your cotton to be standard cotton - not recycled or organic. Then, it will take a look at your product tag which says "Made in the Czech Republic". They naturally assume that it is for the final step, not the spinning of the yarn all the way to weaving the fabric. They assume that these initial steps are done in Asia-Pacific and accordingly take the average values. It will also consider industry default processes, industry averages of the manufacturing steps and assume a standard fabric wastage value. The result? Your low impact tee shirt in reality gets a high score of 1279. Good luck convincing your customers to buy your "organic" tee shirts now.

How much worse can your score get when rated by a third-party?

The short answer is very much worse. As seen in the example above, assumptions made by a third-party even with the best of intentions will lead to a significantly worse Textile Environmental Cost for your garments. There needs to be no malicious intent for general assumptions like standard cotton, industry average processes, and sourcing the yarns to spin your fabric from major global hubs. Yet, these can lead to a worse Textile Environmental Cost for your products, as calculated on the official portal.

How do you control your Textile Environmental Cost then?

So how do you control your narrative? How do you communicate your true environmental cost to your customers? Not an exaggeration by a third-party which has no stake in your business? One option is getting started with the portal yourself or through your company's legal team. However, keep in mind that the Environmental Cost requires 10+ variables per garment type you sell. Multiple that with 100s of types and styles you might sell, and the input cost of gathering this data potentially exceeds your total revenue from selling in the French market.

Enter Carbon Trail - an AI powered SaaS tool specifically for textile and garment companies, that helps you navigate regulatory compliances not just like the Textile Environmental Cost, but also of those like CSRD, ESRS, and Digital Product Passport. Undertake LCA impact assessments in days instead of months, at a fraction of the cost while traditional LCA assessments can cost you $10,000+/product.

Aditya Bhatt September 30, 2025
0
Global Standards Blog

France Textile Eco‑Score: What Fashion Brands Need to Know

If you make or sell apparel in France, the new “environmental cost” or France Textile Eco-Score label is about to touch everything from your bills of materials to your product

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August 2025 Product Updates: Uncertainty, Sensitivity, and Smarter Data Collection

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In effect

UK FCA Listing Rules & TCFD Compliance for Fashion Companies

Company

United Kingdom

Adopted

Overview

The UK FCA Listing Rules regarding the Task Force on Climate-related Financial Disclosures (TCFD) aim to enhance transparency in how businesses address climate-related risks and opportunities. This regulatory framework requires fashion companies to disclose their governance, strategy, risk management, and metrics related to climate change impacts. As the fashion industry grapples with the pressing need for sustainable practices, these rules emphasize accountability and investor protection.

UK Company Law Reporting Requirements

Some of the mandatory reporting obligations under UK company law correlate with TCFD guidelines so that companies conduct their operations responsibly about climate risks.

  • Strategic Report: UK-listed large companies are required to provide information on the environment, including considerations of risk and opportunity presented by climate change on business.
  • Streamlined Energy and Carbon Reporting (SECR): Businesses have to disclose on usage and carbon emissions of energy used in their operations, plus efforts to increase energy efficiency made within a year.
  • Section 172 Statement: The directors of big businesses are required to explain how they have considered the effects that are likely to arise from their decisions in the future, on the environment as well as societal aspects.

These legal obligations together with those set by the FCA form a consistent set of requirements to address climate disclosure aligned with the TCFD.

Key requirements

Fashion brands must comply with specific sustainability reporting obligations under the FCA UK Listing Rules. These include:

Governance

  • Describe how governance structures are set up to oversee climate-related risks and opportunities.

Strategy

  • Disclose the actual and potential impacts of climate-related risks and opportunities on business strategy.

Risk Management

  • Explain processes for identifying, assessing, and managing climate-related risks.

Metrics and Targets

  • Provide metrics used to assess climate-related risks and opportunities, alongside targets for reducing greenhouse gas emissions.

Who’s affected

The FCA UK Listing Rules primarily affect publicly listed fashion companies, including those on the London Stock Exchange. Any fashion retailer with a premium listing must adhere to these rules and report on TCFD recommendations, aiming for enhanced transparency and sustainability practices.

Timeline

2021

Initial disclosures for premium listed companies began.

2022

Further guidance was issued, and larger companies must provide detailed TCFD reports.

2023 and beyond:

Ongoing reporting requirements; companies are expected to refine and enhance their disclosures annually.

How can Carbon Trail help?

Compliance Assistance

  • Compliance Assistance: Carbon Trail aids fashion brands in navigating UK FCA Listing Rules by streamlining data collection and ensuring accurate reporting aligned with TCFD recommendations.

Services for sustainability reporting

  • Carbon Accounting: Comprehensive tracking of carbon emissions.


  • Product Life Cycle Assessment (LCA):  Life Cycle Assessments to evaluate environmental impact.


  • Digital Product Passports: Creating transparency through digital tools.


  • Decarbonization Services: Strategies to reduce carbon footprints effectively.

FAQs

What are the UK FCA Listing Rules?


The UK FCA Listing Rules set out the requirements for climate-related disclosures for companies listed on the London Stock Exchange, primarily focusing on TCFD recommendations.

Who needs to comply with the TCFD reporting requirements?

 Publicly listed fashion companies on the London Stock Exchange with a premium listing are required to comply with the TCFD reporting requirements.

What kind of disclosures are required under the TCFD?

Companies must disclose information about governance, strategy, risk management, and metrics related to climate change impacts.

When did the reporting requirements come into effect?

 The requirements began in 2021, with further guidance issued in subsequent years, and ongoing annual reporting obligations for companies.

How can Carbon Trail assist my fashion business?

Carbon Trail offers services such as data collection, reporting assistance, and sustainability solutions tailored to help businesses comply with regulatory requirements.

What are the consequences of non-compliance?

Non-compliance can lead to reputational damage, financial penalties, and a loss of investor confidence.

Check out other regulations

Learn more about Digital Product Passport

Elevate your product with our comprehensive suite of solutions

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Global Standards Blog Product

Can an NGO Rate Your Sustainability Efforts and Environmental Cost?

If the new French Textile Environmental Cost law (a.k.a. the France Textile Eco-Score) is to be seen, then yes, anyone can publish the official Environmental Cost scores for your textiles if you don't yourself disclose them by the end of the voluntary phase.

Control your brand's sustainability narrative, before someone else does it for you

The new Textile Environmental Cost, (coût environnemental) enters into force in as of today - the start of October 2025. The portal to report the different metrics for textile manufacturers has been open since mid-September. The enforcement initially begins with a voluntary phase from 1st October 2025. Anyone can publish a score on your behalf if you have not published a score by the end of the voluntary phase. No permission needed, and this will be an official score displayed on all your garment tags, website, and product pages.

What is the France Textile Environmental Cost?

The new decree requires all companies who sell garments in the French market, not just French companies, to publish an "Environmental Cost" score for each of their products. This is an aggregate score that considers all factors related to the environmental impact of a garment. This includes carbon emissions, energy use, microplastic impact, durability, and more. All companies are encouraged to publish a score in the voluntary phase beginning in October 2025. Once the voluntary phase ends, ANYONE can publish a score on behalf of the companies if they continue to sell in the French market. A detailed analysis of the Environmental Cost decree can be found here.

How NGOs and other third-parties could publish a potentially worse score for you

What does this mean? NGOs who might use assumptions for your supply chain will control your narrative. They might publish a score which might denote a far higher environmental impact than actually the case. From an NGOs perspective trying to champion the cause of the environment, they will use negative estimates where subjectivity is permitted. For example, standard (or even unsustainably sourced) cotton, zero recycled fabrics, high transport emissions, and poor durability. While you may think your brand's organic cotton tee shirt may land a low environmental cost score of 500 (lower score is better), the NGOs assumption may lead to a score calculation of 1000+. Our team analysis has observed this in the official Environmental Cost portal.

It is also worthwhile to note that the Environmental Cost score will be visible everywhere. In physical stores on product tags, online in the product description, and with QR codes that redirect consumers to a landing page with the breakdown of the score. It is the first instance where factors like durability are also included. These have until now have not had much negative impact on fast fashion companies. If you're a textile brand selling apparel in the French market and you haven't submitted data to calculate your score, any third-party can publish a score for you once the voluntary phase ends. This will be mandated to be included on your own product pages, tags, and more.

An example of how an NGOs score created for you could be worse

Suppose your company manufactures a tee shirt. It uses 150g cotton, with 80% organic cotton and 20% sourced from production waste. You've set up your supply chain in an Eastern European country from the spinning to weaving to stitching. You use custom steps in the process to reduce the environmental impact and minimise your fabric wastage in production. By entering data in the Environmental Cost portal, you have achieved a low score of 500+ for your tee shirt.

The same score calculated by a third-party like an NGO may not be the same. How? Well for example, the NGO will assume your cotton to be standard cotton - not recycled or organic. Then, it will take a look at your product tag which says "Made in the Czech Republic". They naturally assume that it is for the final step, not the spinning of the yarn all the way to weaving the fabric. They assume that these initial steps are done in Asia-Pacific and accordingly take the average values. It will also consider industry default processes, industry averages of the manufacturing steps and assume a standard fabric wastage value. The result? Your low impact tee shirt in reality gets a high score of 1279. Good luck convincing your customers to buy your "organic" tee shirts now.

How much worse can your score get when rated by a third-party?

The short answer is very much worse. As seen in the example above, assumptions made by a third-party even with the best of intentions will lead to a significantly worse Textile Environmental Cost for your garments. There needs to be no malicious intent for general assumptions like standard cotton, industry average processes, and sourcing the yarns to spin your fabric from major global hubs. Yet, these can lead to a worse Textile Environmental Cost for your products, as calculated on the official portal.

How do you control your Textile Environmental Cost then?

So how do you control your narrative? How do you communicate your true environmental cost to your customers? Not an exaggeration by a third-party which has no stake in your business? One option is getting started with the portal yourself or through your company's legal team. However, keep in mind that the Environmental Cost requires 10+ variables per garment type you sell. Multiple that with 100s of types and styles you might sell, and the input cost of gathering this data potentially exceeds your total revenue from selling in the French market.

Enter Carbon Trail - an AI powered SaaS tool specifically for textile and garment companies, that helps you navigate regulatory compliances not just like the Textile Environmental Cost, but also of those like CSRD, ESRS, and Digital Product Passport. Undertake LCA impact assessments in days instead of months, at a fraction of the cost while traditional LCA assessments can cost you $10,000+/product.

Aditya Bhatt September 30, 2025
0
Global Standards Blog

France Textile Eco‑Score: What Fashion Brands Need to Know

If you make or sell apparel in France, the new “environmental cost” or France Textile Eco-Score label is about to touch everything from your bills of materials to your product

Aditya Bhatt September 15, 2025
0
Blog

August 2025 Product Updates: Uncertainty, Sensitivity, and Smarter Data Collection

 Measuring product footprints is hard work. Data is often incomplete, assumptions creep in, and getting inputs from across teams and facilities can be a challenge. At Carbon Trail, our

Shantanu Singh August 29, 2025
0
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July 2025 Product Updates: AGEC French DPPs, Auto-costing and CDP Reporting

 At Carbon Trail, we spend a lot of time talking to sustainability teams, product managers, and compliance officers. And recently, we've been hearing some recurring themes: “I’m not sure

Shantanu Singh August 15, 2025
0