This story is part of Glossy’s “Earth Week” series, highlighting how fashion and beauty companies are conquering challenges and driving industry progress around sustainability.
In an economic moment defined by geopolitical volatility, rising tariffs and legislative uncertainty, sustainable fashion brands are pressing forward — not in spite of these forces, but because of them. Armed with deeper data, stronger coalitions and clearer direction, these brands are building businesses that anticipate regulation, rather than react to it.
For Katie Lopes, co-founder and creative director of the B Corp-certified, U.K.-based underwear brand Stripe & Stare, the European Union’s policy shifts, including the Corporate Sustainability Reporting Directive, effective from January 1 this year, and the Digital Product Passport, due in 2027, are less disruption, more validation. “We’ve long championed transparency, ethical sourcing and substantiated sustainability claims,” said Lopes. “This isn’t just about meeting rules — it’s about building stronger, more resilient businesses.”
She added, “These directives don’t just support our approach, they reinforce it.”
The DPP will make granular environmental data mandatory at the point of sale, transforming “sustainability” from a marketing story into an auditable dataset. “Vague language and superficial green campaigns are a liability now,” said Lopes. “Brands need data that can withstand regulatory scrutiny.”
In the U.S., progress is less centralized. California’s Extended Producer Responsibility law for textiles, passed in 2023, begins phased implementation in 2026. Brian London, president of the Secondary Materials and Recycled Textiles Association, said this is already reshaping how brands think about design. “Garments that are durable, mono-material and easier to recycle will soon come with lower fees. That’s the core of eco-modulation — it rewards better design upstream to cut waste downstream.” The company is in talks with secondhand retailer Goodwill to implement more circularity changes and clothing collection.
But even in resale, where sustainability is often baked in, regulatory and economic frictions persist. Dounia Wone, chief impact officer at Vestiaire Collective, pointed to rising tariffs and new import mandates as existential threats to the circular economy. “Some countries are now requiring country-of-origin declarations for secondhand goods,” she said. “It’s almost impossible to comply. These policies are misaligned with how circular business models actually work.”
Wone noted that logistical strain is mounting just as secondhand goods gain cultural traction. According to a 2025 report from resale company ThredUp, 58% of consumers shopped secondhand in 2024, the highest number ever recorded. “We’ve reached a point where it’s cheaper to produce new clothing than verify the origins of a pre-worn shirt,” she said. “That’s the opposite of what climate logic demands.”
France, however, is pushing for alignment. Its long-anticipated Fast Fashion Bill, initially scheduled for March last year and delayed because of election problems, is now slated for Senate review in June after public outcry revived its momentum. The bill proposes tighter controls on fashion advertising, eco-contributions for waste reduction and tax incentives for garment repair.
“It’s disappointing that the bill’s scope was softened, but it’s a step in the right direction,” said Wone. “We need regulation that shifts consumer behavior, like how French car ads must now encourage public transport. Fashion should face similar messaging rules.”
France is also exploring economic levers to make circularity more accessible. A recent Green Fiscal Policy Network report that Vestiaire Collective supports advocates for a circular VAT: reduced tax rates on secondhand goods and repair services. Wone called it a game-changer. “This would lower the cost of making sustainable choices,” she said. “It’s the kind of structural incentive circular business models need to scale.”
While policy gains traction, brands are bracing for economic headwinds. Tariffs are already complicating sourcing strategies and cost structures. But for the Apparel Impact Institute, which works with companies like Target, Puma and PVH, the response from its partners is unwavering. “Brands are caught between geopolitical sourcing challenges and climate obligations,” said Lewis Perkins, president of the Apparel Impact Institute. “But we’re not seeing a pullback. If anything, the sense of urgency has deepened.”
The Apparel Impact Institute’s Fashion Climate Fund, which mobilizes corporate and philanthropic capital to decarbonize shared supply chains, remains fully funded through 2030. “The brands we work with aren’t waiting for clarity. They’re driving measurable change,” said CFO Ryan Gaines. “With CSRD and DPP coming online, companies want third-party verification, lifecycle data and carbon intensity benchmarks. They know what’s coming.”
That message is echoed in the U.K., where brands are preparing for the Ecodesign for Sustainable Products Regulation, set to expand design mandates to textiles starting in 2026. Andy Garraway, climate policy lead at sustainability analytics firm Risilience, said fashion brands now view regulation as a strategic imperative, not a compliance box.
“Regulation is pushing brands to look closely at supply chains, biodiversity and climate risk, not just for sustainability teams, but for financial planning,” said Garraway. Risilience advises global companies including Burberry and Asos on scenario modeling and risk exposure. “Those who align to EU standards will be in the best position to operate globally and attract capital.”
That preparedness is already evident at eBay. The platform’s 2023 acquisition of Certilogo, an AI authentication firm, supports both compliance with DPP requirements and buyer trust. “We’re building for the future of resale, where transparency is foundational,” said Alexis Hoopes, eBay’s vp of global fashion.
EBay’s Circular Fashion Fund also invests in startups like Refipred, which specializes in material traceability. It’s part of a larger ecosystem push. “We’re merging recommerce with regulation and community,” said Hoopes. “That includes tech investment, designer collaborations and integrations into Fashion Week.”
EBay searches for “pre-loved” are up 50% year-over-year, and eBay’s physical presence at vintage pop-ups and live-streamed fashion events continues to grow, according to the company. “Consumers are choosing circularity not just for value, but for relevance,” said Hoopes.
