Design Delight Studio

How Can Government Support Fashion Businesses Amid Sustainability Legislation?

By Jill Geoghegan | 12 December 2025

As rigorous new sustainability laws approach, the fashion industry faces increasing financial and operational challenges. The UK and EU markets are gearing up for landmark regulations that will require fashion businesses to overhaul their manufacturing, reporting, and product management practices—often at significant cost.

Key Upcoming Sustainability Regulations

• EU Deadlines by 2028: Businesses trading within the European Union must comply with:

  • Corporate Sustainability Reporting Directive (CSRD)
  • Corporate Sustainability Due Diligence Directive (CSDDD)
  • Ecodesign for Sustainable Products Regulation (ESPR)

• Digital Product Passports (DPPs): A core requirement within ESPR, digital passports will track product sustainability data. Textiles will begin integration of DPPs from late 2027. – UK Extended Producer Responsibility (EPR) for Packaging: Introduced in October 2025, this requires UK businesses to cover the costs of managing the packaging waste they create. Major retailers such as M&S and John Lewis faced substantial new charges (£40m and £29m respectively).

Industry Challenges

These regulations create mounting cost burdens, risking strain especially on small and independent fashion businesses. With compliance deadlines swiftly approaching, navigating the financial and technical complexities is increasingly urgent.

Drapers Conscious Fashion Campaign Survey

To address these challenges, Drapers has launched a survey inviting industry feedback on government support measures that could alleviate pressures. The survey explores options such as:

• Tax credits for sustainable initiatives
• Reduced import duties on certified eco-friendly materials
• Grants to develop or adopt Digital Product Passports
• Investments to improve recycling infrastructure
• Incentives to boost local manufacturing and reduce carbon footprints

Next Steps and Industry Engagement

Drapers aims to consolidate industry insights to formally present to policymakers at the Drapers Conscious Fashion Summit and Awards on 11 March 2026. This engagement seeks to influence government frameworks for tailored support, helping businesses transition more smoothly to sustainability compliance without compromising viability.

Conclusion
The fashion sector stands at a crossroads where sustainability imperatives meet financial realities. Proactive government assistance through targeted incentives, infrastructure enhancements, and regulatory clarity will be crucial to enable businesses, particularly smaller players, to meet ambitious environmental goals effectively.

Fashion businesses interested in sharing their perspectives can participate in Drapers’ survey here.

For more in-depth analysis and updates on sustainable fashion legislation, stay connected with Drapers.

Design Delight Studio curates high-impact, authoritative insights into sustainable and organic product trends, helping conscious consumers and innovative brands stay ahead in a fast-evolving green economy.