Companies face significant risk to brand reputation and unexpected product recall costs due to fiber counterfeiting. Many top apparel brands have set 100 per cent sustainable fiber goals to be achieved within the next three to five years, says TextileGenesis. However, for the majority of apparel brands, supply chain transparency is limited to Tier I or II suppliers. Only 10 of the top 250 apparel brands can identify Tier IV and Tier V fiber suppliers for their apparel collections.

The question is whether sustainable fibers targets can be reached in the absence of transparency up to the origin of the fiber itself. No credible sustainability journey or goal is possible without underpinning it with transparency. Transparency also reduces the business and compliance risks related to counterfeiting of sustainable fibers. Up to 30 per cent of sustainable fibers in the apparel supply chain can be counterfeited (at fiber, yarn or fabric stage).

Although the transparency debate has primarily focused on compliance, risk elimination and supporting sustainability initiatives, it can also positively contribute to business in terms of price premium and consumer loyalty. Consumers are willing to reward brands with a higher premium when they demonstrate fair and sustainable supply chains.