Buyer accountability central to Ethical Denim Council report
The Ethical Denim Council (EDC), a US-based non-profit organisation, has published its 2024 State of the Denim Industry report, highlighting challenges including the need for greater buyer accountability and calling for “systemic reform” within the denim supply chain.
The report, building on last year's findings, expands its focus to include the perspectives of factory workers, consumers and brand employees, highlighting key themes such as awareness of buying practices, accountability of buyers, impact on workers and collaboration for a fairer industry.
Surveys were carried out from April until October and included around 1,000 factory workers from Bangladesh, 500 from Pakistan, seven brand employees and 49 consumers.
The report highlights disparities in awareness of buying practices. Factory workers in Bangladesh demonstrate a strong understanding of supplier requirements, it said, whereas awareness in Pakistan remains notably lower. Among consumers and brand employees, there is varied understanding of critical issues such as order cancellations and supplier obligations, underscoring the need for education and greater transparency across the supply chain.
A central theme of the report is buyer accountability. Factory workers, consumers and brand employees collectively believe that brands should be held financially responsible for losses caused by order changes, delays or cancellations. Workers in Bangladesh and Pakistan strongly support enforceable compliance riders to protect suppliers, reflecting the urgency of systemic change to ensure fairness.
The report also sheds light on the impact of order cancellations and modifications on workers’ livelihoods, including job insecurity and wage instability.
The EDC supports the Non-Cancellation Compliance Clause, developed in collaboration with Responsible Contracting Project, which aims to protect suppliers from financial instability caused by order cancellations and changes.
Download the full report here.
