Luxury and ESG: Navigating the new EU legal environment in the fashion and luxury goods industry

Due to the increased importance of sustainability, environmental protection and social factors in recent years, the luxury industry has found itself at the crossroads of tradition and transformation. Once characterized primarily by exclusivity, creativity, craftsmanship and heritage, this sector is now increasingly influenced by global pressure for sustainable lifestyles and ethical practices. It is not only consumer awareness and changing consumer behavior towards sustainability that is influencing companies' strategic decisions and reshaping investors' expectations. It is also governments and regulators that are introducing new laws as well as new liability regimes that are putting significant pressure on the luxury industry. For companies operating in the fashion and luxury goods sector, it is essential to comply with new legal requirements and compliance standards while maintaining brand prestige and profitability. Product sustainability is increasingly becoming a value-creating factor throughout the entire product life cycle. From sourcing and production to product characteristics and final disposal, consumers and investors alike are willing to invest in companies or products that are luxurious and ethical. (Dr Tilman Kuhn, Dr Sonja Hoffmannová, Clare Connellan, Ian Ivory et al., more at lexology.com)