AGEC Law: Turning a constraint into an opportunity

A revolution in how brands with consumers

Since January 1, 2023, the AGEC law (anti-waste for a circular economy) requires producers to provide essential information on each product to inform purchasing decisions "product sheet relating to environmental qualities and characteristics ." This information includes the traceability of the production chain, the hazardous nature of any substances present, and the risks of plastic microfibers associated with the use of synthetic materials. The law also requires notification of the presence of recycled materials and the recyclability of each product.

Origin, health risks, environmental impact… Transparency is now displayed directly in stores to address the main concerns of increasingly demanding consumers. For brands, producers, and importers, the pressure is mounting because the AGEC law foreshadows the arrival of another regulation in 2024: environmental labeling .

How to achieve compliance?

The challenge is significant, but solutions exist—digital solutions tailored to the size of each operator—to activate product passports on each label. This is revealed in the state-of-the-art report from the Transparency and Traceability working group of the BALI Chair, presented to industry professionals at the last Biarritz Good Fashion event and accessible to all on the BALI Chair website.

Produced by Pantxika Ospital , PhD student in charge of the thesis "Transparency and Traceability" supported by Belharra Numérique , with the contribution of Bixente Demarcq , research engineer at ESTIA , and the support of Paris Good Fashion , the deliverable lists and analyzes for the first time the concepts, solutions and best practices
in Europe.

Objective: to enable marketers to see more clearly in order to choose the right tools.

We have produced a white paper on traceability based on the results of this study and our experience as the publisher of the e-SCM solution, dedicated to managing the supply chain process for brands in the fashion and luxury sector. You can download it below in your preferred language:

Summary of the study: "Traceability and transparency"

The product passport links traceability and transparency dynamically expands the information displayed on the product label circularity by facilitating maintenance, repair, resale, rental, dismantling, and recycling.

Understanding the challenges for the fashion industry

For products in the fashion and textile , transparency can be defined as the accessibility of traceability information. In a globalized context where brands outsource their production, traceability allows them to better understand their supply chain, comply with due diligence requirements, and gather all the necessary elements for a reliable audit trail.

This data collection is the key to traceability; the transparency of fashion companies depends on the reliability of this information. In turn, this information can facilitate:

Logistics monitoring and ensuring that production takes place under the planned conditions (quantity, quality, time, costs).
Legal aspects : ensuring the accuracy of product and supply chain information. Being able to substantiate brand claims.
Customer information : providing information about the product, manufacturers and their social and environmental conditions to inform the consumer.
Sustainable development : taking traceability data into account makes it possible to calculate life cycle analyses (LCAs) in order to assess the impact of the production of an item and to communicate to the consumer the environmental benefit of the item purchased.

The technological means supporting traceability

There are several types of digital traceability solutions:

Standard office software ( spreadsheets, email) and in-house storage of scanned documents. This solution is suitable for companies with few product references and a short supply chain.
Supply Chain Management software enabling traceability and monitoring across a wider range of products and a broader panel of suppliers.
Blockchain : It's a technology for storing and transmitting information that is transparent, secure, and operates without a central controlling authority (definition
from Blockchain France). Blockchain functions as a database accessible to all stakeholders, without intermediaries, allowing everyone to verify the chain's validity. Its key advantage is that the data entered into it cannot be modified or falsified.
Fiber markers : Verification of disclosed information must be possible for claims to be acceptable. The origin of the raw material used in a garment is key to traceability, and being able to provide proof of this information is a guarantee of reliability for brands. Marking initiatives are most often experimental or reserved for brands committed to traceability in 2021. Fibers can be marked before spinning, and the markers are of various types: biotechnological, fluorescent, and DNA. They are detectable during all stages of garment manufacturing, right up to the finished product. Furthermore, other technologies, such as microbiome sequencing, make it possible to identify the origin of cotton without adding
markers.

Technological means supporting transparency

Source: Report "State of the art of traceability and transparency solutions", Traceability Working Group, BALI Chair | Paris Good Fashion | Belharra Numérique