September 2026 Sustainable Fashion Update

Written By OurFashionFix

Welcome to our September edition of the Sustainable Fashion Update!

It certainly feels like September has hit the ground running. Between Fashion Month sweeping through New York, London, Milan, and Paris, kids heading back to school, and crucial policies like the EU's EmpCo directive officially going live, it has been a whirlwind of a month. On one side, the macro picture has handed us some sobering reality checks: the UN issued stark warnings on global warming overshooting 1.5°C, and the latest industry reports show global fibre production pushing emissions up by 6.3%. Yet at the same time, the regulatory, commercial, and community momentum in response feels more urgent and active than ever.

From the EU’s EmpCo directive coming into force to growing calls across the UK for de minimis reform and safer, certified school uniforms, policy is catching up fast. Meanwhile, grassroots campaigns and independent brand innovators are proving that sustainable, circular models work in practice. We have seen circular pioneer Mud Jeans return to operations, and Bristol-based Yes Friends secure a clean sweep of investment from all five Dragons on Dragons' Den. There is a genuine sense that despite the scale of the challenge, practical solutions are gaining serious ground. So, how are you feeling as we head into the final quarter of the year? Let’s dive into this month’s updates.

Policy & Regulation

  • EU’s Empowering Consumers for the Green Transition Directive came into force on September 27, 2026, restricting vague environmental claims and requiring all product labels, including existing inventory, to meet strict new standards. Sustainable consumption - European Commission

  • France Enacts Fast Fashion Legislation: France officially implemented its national fast fashion laws (Loi n° 2026-602) on September 1, 2026, penalizing high-volume, low-cost ultra-fast fashion models. France Fast Fashion Law 2026: Loi n° 2026-602

  • EU Commission Launches Digital Product Passport Hub: The European Commission created a central hub for Digital Product Passport (DPP) standards for textiles and apparel to prepare brands for upcoming traceabilty mandates. Textile apparel - European Commission

  • EU Consults on Circular VAT Rules: As part of the upcoming Circular Economy Act, the European Commission launched a public consultation to reform VAT rules in favor of circular business models, repair, and reuse. VAT and circular economy

  • Vietnam Bans Imports Made via Forced Labour: A new decree went into effect on September 5, 2026, prohibiting any goods extracted, produced, or manufactured wholly or in part using forced labor from entering Vietnam. Just Style Article

  • US Fabric Act Reintroduced: US lawmakers reintroduced the Fabric Act to drive domestic apparel manufacturing growth, enforce minimum wage protections, and incentivize local production. Just Style Article

Bristol Bans Fast Fashion Ads

Circularity & Materials Innovation

  • Kearney Circular Fashion Index 2026 Released:  The global average Circular Fashion Index (CFX) score rose slightly to 3.7 out of 10 (up from 3.4 in 2025) across 241 analyzed brands. While 73% - 84% of brands now demonstrate moderate baseline activity in circular design, materials, and care, deep execution remains concentrated in a small leadership group, with only 3%–7% reaching extensive activation. Outdoor brands lead maturity at 5.9, followed by sportswear at 4.2 and premium fashion at 3.8. Meanwhile, complex service-based models struggle to scale, with 63% scoring low for repair services, 66% for resale, and 89% for rental offerings due to operational and economic hurdles. Kearney CFX 2026 Report

  • Circular Fashion News & Fashion for Good Map Textile Recycling: A joint report outlines the current operational landscape and scalability barriers of global textile-to-textile recycling networks. Circular Fashion News

M&S, New Look and Sainsbury’s join Oxfam

Rental Resale & Repair


MUD Jeans are back

  • MUD Jeans Relaunches Business Operations: Circular denim pioneer MUD Jeans officially restarted operations, reinforcing its lease-a-jeans circular model. MUD Jeans Relaunch

Supply Chain & Ethics

AAFA Releases Heat-Stress Toolkit for Garment Workers: Launched at Cascale's annual meeting, the American Apparel & Footwear Association unveiled worker heat-safety guidelines to combat rising climate risks in factories. American Apparel & Footwear Association (AAFA

AAFA Releases Heat-Stress Toolkit for Garment Workers

Retail Highs and Lows

  • PETA activists stormed the runway at H&M Group’s COS show during NY Fashion Week (and subsequently H&M in London) to protest the use of wool. While campaign groups continue pushing to eliminate animal-derived materials, industry leaders highlight that responsible, certified wool farming supports soil health, biodiversity, and regional agricultural communities, underscoring a growing need to educate consumers on natural fibres versus fossil-fuel synthetic alternatives. Retail Gazette Analysis

PETA protest at COS Catwalk

  • Next Profits Up 10.5% to £569M: Next reported strong H1 performance with full-price sales up 7.7% and raised its full-year profit target to £1.26B, driven by 23.9% international growth. Next Investor Relations

  • Inditex H1 Sales Rise 7.6% to €19.8B: Inditex posted gross profits of €11.6B and a net income increase of 6.8% to €3.0B, maintaining a 58.7% gross margin. Inditex H1 Results

  • Debenhams Group GMV Increases 1.8%: Debenhams Group EBITDA grew 13.9% to £24M, with Boohoo, PrettyLittleThing, and Karen Millen returning to growth. Debenhams Group Updates

  • John Lewis Sales Up 2%, Pre-Tax Losses Widen: John Lewis Partnership recorded H1 sales of £6.3B, but losses before tax widened to £89M. John Lewis Partnership Results

  • JD Sports Operating Profit Falls 20.5%: JD Sports reported H1 operating profits of £294M, down from £369M in the prior year period. JD Sports Financial Release

  • Yes Friends Secures 5-Dragon Investment on Dragons' Den: Ethical clothing brand Yes Friends received backing from all five investors on BBC’s Dragons' Den. BBC News Feature

  • Fashion-Enter Ltd/ FashionCapital Wins King’s Award for Sustainability: Garment manufacturing enterprise Fashion Enter received the King’s Award for Enterprise in Sustainability. Fashion Enter Announcement

  • ASOS.com Debuts Co-Created Adaptive Collection: ASOS launched an adaptive collection designed alongside disabled customers and inclusion agency Tilting the Lens. Retail Gazette Article

  • Nike Shareholders Reject Climate Transparency Proposal: Nike investors voted down a resolution requesting detailed climate target disclosures, despite support from Norway's sovereign wealth fund. Retail Gazette Report

  • Shein Shares Drop 6% as Quarterly Profit Slides 67%:  Fast-fashion platform Shein saw its shares drop over 6% following a 67% fall in quarterly adjusted net profit to $228 million. Profit margins were squeezed to 2.1% (down from 6.2% last year) due to rising air freight costs driven by Middle East disruptions, alongside upcoming EU parcel fees squeezing cross-border margins. Reuters Article

  • UK Retailers & DWP Target 100,000 Youth Jobs: Over 40 retailers, including M&S, Tesco, and John Lewis launched the 'Opening Shift' program to place 100,000 young people in jobs by 2029. UK Government Press Release

Reports & Research

UNEP Reports World Set to Exceed 1.5°C Goal: UNEP’s Limiting Overshoot report states global temperatures will temporarily exceed 1.5°C, peaking at 1.8°C minimum, requiring urgent supply chain adaptation. Limiting Overshoot - Navigating exceedance of 1.5°C and pathways towards return | UNEP - UN Environment Programme

UNEP Reports World Set to Exceed 1.5°C Goal

What were the biggest stories for you this month?


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August 2026 Sustainable Fashion Update