Transparency in the supply chain in the garments industry is a rapidly growing trend. The complex network of global suppliers that apparel companies use to produce their goods is much less opaque than only a few years ago. 

Knowing factory details enables workers, labor organizations, human rights groups, and others to swiftly alert apparel company representatives to labor abuses in those factories, allowing companies to intervene – sooner rather than later- to stop and rectify abuses. It also facilitates brand collaboration and collective action to stop, prevent, mitigate, and provide a remedy for labor abuses.

In 2016, nine human rights and labor rights organizations, together with global unions, formed a coalition to improve transparency in the garment supply chain. The coalition reached out to more than 70 companies with their brand label products, urging them to align their supply chain disclosure practices with the “Transparency Pledge “standard and advance industry good practices. The Transparency Pledge asked companies and factories involved in assembling, embellishing, and finishing their goods.

Supply Chain transparency can help to identify and address labor and environmental issues, improve working conditions and wages, enhance consumer trust and loyalty, and foster innovation and efficiency.

Some of the ways to accelerate supply chain transparency in the garments industry are:

-Adopting and implementing the Transparency Pledge, a standard for disclosing information about supplier factories, such as names, addresses, product types, and number of workers.

– Extending the scope to raw materials, spinning, weaving, dyeing, and finishing.

– Using digital technologies, such as blockchain codes, RFID tags, and smart contracts, to enable real-time tracking and verification of products and processes.

– Engaging with workers and local communities to collect and share data on working conditions, wages, grievances, and remediation.

– Participating in multi-stakeholder initiatives and platforms, such as Fashion Revolution, Clean Clothes Campaign, and Human Rights Watch to exchange information, best practices, and advocacy strategies.

– Supporting the development and enforcement of laws and regulations that mandate or incentivize supply chain transparency and accountability.

Between 2016 and 2023 supply chain transparency in the apparel industry has grown tremendously. The apparel industry and retailers that are serious about ethical supply chains can and should do more. A handful of companies have begun to disclose parts of their supply chain beyond including mills. Supply chain transparency is powerful because it provides basic information that facilitates redress for workers’ grievances. Workers benefit from easily accessible factory and brand information and can also help brands to collaborate where they share supplier factories, companies benefit from more sources of information about their factories, bolstering their human rights monitoring. Responsible business initiatives (RBIs) should play an important leadership role in driving and scaling up such transparency. Finally, governments should regulate companies’ human rights and due diligence responsibilities for their global supply chains and integrate transparency requirements.