California Fashion Act
Governmental Agency: California State Senate
Jurisdiction: California, USA
Ref no: AB405
Status: IN REVIEW
A law, formally called the Fashion Environmental Accountability Act, inspired by the NY Fashion Act that would require fashion brands to disclose their environmental impact, carbon emissions, water use, and waste.
Starting in 2026, fashion brands would be required to publicly disclose their scope 1 and scope 2 greenhouse gas emissions annually, and their scope 3 greenhouse gas emissions in 2027. They must also cut emissions in line with the Paris Agreement targets of limiting global warming to 1.5 degrees Celsius above pre-industrial levels.
Starting in 2027, brands would need to submit an Environmental Due Diligence Report to the California Department of Toxic Substances Control and state board, outlining their environmental diligence efforts and supply chain’s greenhouse gas emissions.
Due diligence requirements include integrating responsible business conduct into company policies and management systems, as well as identifying and mitigating areas of significant risk for societal and ecological harm. By January 1, 2028, fashion brands would also be required to ensure significant tier 2 dyeing, finishing, printing, and garment washing suppliers annually report wastewater chemical concentrations and water usage in the due diligence report.
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The law would apply to brands that do business in California with a total annual revenue over $1 billion. It would not apply to retailers that sell used fashion goods or multibrand retailers, unless the total annual gross receipts of all of the private labels under the retailer exceeds $100 million. Violations could lead to penalties of up to 2% of their annual revenue, which would go towards environmental remediation projects for injured communities.
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The bill was introduced on February 4, 2025 and awaits referral to its first policy committee.
