EU Approves Ban on Destruction of Unsold Clothing

The law bans the destruction of unsold textiles and footwear, and will apply two years after the law enters into force. Medium-size companies will have a six-year exemption, while smaller companies are wholly exempt from the ban - AFP
The law bans the destruction of unsold textiles and footwear, and will apply two years after the law enters into force. Medium-size companies will have a six-year exemption, while smaller companies are wholly exempt from the ban - AFP
TT

EU Approves Ban on Destruction of Unsold Clothing

The law bans the destruction of unsold textiles and footwear, and will apply two years after the law enters into force. Medium-size companies will have a six-year exemption, while smaller companies are wholly exempt from the ban - AFP
The law bans the destruction of unsold textiles and footwear, and will apply two years after the law enters into force. Medium-size companies will have a six-year exemption, while smaller companies are wholly exempt from the ban - AFP

The European Parliament and EU member states announced on Tuesday new rules to crack down on fast fashion and reduce waste, including a ban on destroying unsold clothes.

The new rules, first proposed by the European Commission last year, impose tougher rules on products to ensure they last longer and are easier to repair and recycle.

The law bans the destruction of unsold textiles and footwear, and will apply two years after the law enters into force. Medium-size companies will have a six-year exemption, while smaller companies are wholly exempt from the ban, AFP reported.

The commission, the EU's executive arm, will also have the power to extend the ban to other unsold products beyond clothing and footwear.

"It is time to end the model of 'take, make, dispose' that is so harmful to our planet, our health and our economy," said MEP Alessandra Moretti who spearheaded the legislation through parliament.

"New products will be designed in a way that benefits all, respects our planet and protects the environment," she added.

The law will also set specific requirements for key consumer goods in order to boost the durability of the products. Priority will be given to "highly impactful products" including clothing, furniture, mattresses as well as electronic goods.

Goods must also be sold with a "digital product passport", which could be a QR code, that will help consumers make informed choices about their purchases.

Under the new rules, large companies will also have to report annually how much of their production they have discarded as well as their reasons why, which the EU hopes will encourage such firms to give up such actions.



Sources: Shein Weighs Sale of Less Than 10% of Company in London IPO

A mannequin with a Shein sign stands in an office of a lingerie maker at WeMet Industrial Park, in Guanyun county of Lianyungang, Jiangsu province, China November 25, 2024. REUTERS/Florence Lo
A mannequin with a Shein sign stands in an office of a lingerie maker at WeMet Industrial Park, in Guanyun county of Lianyungang, Jiangsu province, China November 25, 2024. REUTERS/Florence Lo
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Sources: Shein Weighs Sale of Less Than 10% of Company in London IPO

A mannequin with a Shein sign stands in an office of a lingerie maker at WeMet Industrial Park, in Guanyun county of Lianyungang, Jiangsu province, China November 25, 2024. REUTERS/Florence Lo
A mannequin with a Shein sign stands in an office of a lingerie maker at WeMet Industrial Park, in Guanyun county of Lianyungang, Jiangsu province, China November 25, 2024. REUTERS/Florence Lo

Fast fashion retailer Shein is considering asking UK regulators to waive listing rules that require at least 10% of its shares to be sold to the public in its planned London flotation, two people with knowledge of the matter said.
The company is exploring this option to facilitate its IPO, one of the people said, according to Reuters.
If granted, it would likely be the first time that a company in London has been allowed to list below the recent 10% rule.
Singapore-headquartered Shein, which sells $5 tops and $10 dresses mostly made in China, in June filed confidentially with the Financial Conduct Authority (FCA) for a London listing.
However, Britain's financial regulator is taking longer than usual to approve its application, Reuters reported last week.
The people declined to be identified as they were not authorized to speak to the media.
Shein declined to comment.
Shein was valued at $66 billion in a fundraising round last year. A 10% flotation at that valuation would make the IPO worth $6.6 billion. The biggest European IPO this year was perfume and fashion company Puig's $2.9 billion deal, according to Dealogic.
The current valuation of Shein and how much it is looking to raise via the London listing was not immediately known.
London changed its listing rules in 2021 to boost the attractiveness of the venue for companies. It cut the proportion of shares an issuer is required to float to 10% from 25%, reducing potential barriers for large IPOs, the FCA said at the time.
In July, Britain ushered in the biggest reform of company listing rules in more than three decades to help it compete more effectively with New York and the European Union for new issuers.
Shein began to explore a listing on the London Stock Exchange early this year, Reuters reported in May, citing sources. The China-founded company's original plan to list in New York was derailed after opposition from US lawmakers.
Shein is also waiting for China's securities regulator to approve its plans for a London IPO, Reuters previously reported. Its revenues are expected to hit $50 billion this year, up 55% from 2023, according to Coresight Research.