Transparency in the supply chain: These labels get it right
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The demand for Transparency in the supply chain In 2025, sustainability is more than a trend; it is a fundamental demand of ethically conscious consumers.
We live in a time in which knowing the origin of our clothing has become a decisive purchasing criterion.
Consumers not only want to know What they buy, but How and where it was produced. The fashion industry, long an opaque entity, is under enormous pressure to lift this veil.
Fortunately, there are pioneers. Some labels have recognized that complete disclosure not only minimizes risks but also builds trust and brand loyalty. We highlight those companies that are paving the way to complete Transparency in the supply chain pursue consistently.
Their practices set new standards for the entire industry and demonstrate that a fair and sustainable fashion future is possible.
What does complete transparency mean in the fashion industry?
True transparency goes far beyond simply stating the country of production; it is disclosure at all stages of the value chain.
What levels does supply chain disclosure cover?
Complete Transparency in the supply chain requires the disclosure of the so-called Tier 1 to Tier 4Suppliers. This includes every process step, from raw materials to the finished product.
Level 1 (Tier 1) includes the garment manufacturers, i.e. the factories where the final product is sewn. Level 2 (Tier 2) includes the finishers, such as dyeworks or tanneries, which are often the biggest polluters.
Level 3 (Tier 3) are the manufacturers of components such as buttons or zippers. Level 4 (Tier 4) affects raw material suppliers, such as cotton farms or fiber producers.
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Why is transparency so difficult at the lower levels?
The complexity increases exponentially with each lower level. Brands often only have direct contact with level 1. The origin of raw materials (level 4) is a black box for many conventional labels.
A further complicating factor is the high fluctuation and the lack of digital recording systems in the deeper links of the chain. Transparency in the supply chain therefore requires the development of long-term, trusting relationships.
In addition, brands must create incentives for their suppliers to provide the data. This is the only way to fully comply with the due diligence obligations of the German Supply Chain Due Diligence Act (LkSG).
Which labels are setting new standards in transparency?
Some pioneers are using digital tools and radical openness to inform consumers directly about the origin of their clothing.
How do leading brands use digital tools for traceability?
Innovative labels rely on technologies such as blockchain or digital product passports to document every step of the production process in a forgery-proof manner.
See also: The best online shops for sustainable fashion
Case study: Outdoor clothing and the digital product passport
The Austrian sports company Spoonbill is an excellent example. In collaboration with a digital platform, the company specifies the origin of its materials (e.g. from Sofileta SA in France) and the sewing factories (e.g. Juli Lipteks Ltd. in Bulgaria) open.
Consumers can often trace the entire journey of the garment directly via a QR code on the label. This creates an unprecedented basis of trust and underlines the importance of Transparency in the supply chain.
See more: Sustainable Shoes: 10 Brands You'll Love
Pioneers of fiber transparency
Other labels focus on the origin of the fibers themselves. They ensure, for example, that their organic cotton comes from certified farms and that no GMO seeds were used.
These brands explicitly disclose the chemical finishing processes (such as dyeing and finishing). They display not only the factory names but also their social and environmental audits.
Example 1 (original): The label Armedangels uses interactive maps on its website that show not only factories, but also the certificates used (such as GOTS) and even the actual number of employees on site. This level of detail is becoming the standard for genuine Transparency in the supply chain.
Why is transparency the key to sustainability?
Transparency is not the ultimate goal, but rather the necessary prerequisite for effectively addressing environmental and social problems.
How does transparency enable compliance with ethical standards?
Without knowing exactly where production takes place, it is impossible to monitor compliance with human rights or environmental regulations.
The role of transparency in living wages
Brands that disclose their factory locations can more easily collaborate with NGOs or local unions to guarantee living wages. This disclosure is the first step toward assuming social responsibility.
The exact knowledge of the production costs caused by Transparency in the supply chain This helps labels negotiate fair prices and prevents price pressure from coming at the expense of workers.
Transparency as a catalyst for environmental protection
Dyeing plants (Tier 2) are often large consumers of water and chemicals. By making this process transparent, a company can invest specifically in waterless dyeing technologies.
Disclosure makes environmental impact quantifiable and measurable. Only in this way can brands effectively reduce their carbon footprint and fulfill their carbon neutrality commitments.
Analogies: The opaque fast fashion supply chain is like a fog in which abuses remain hidden. Transparency in the supply chain is the sunrise that clears the fog and allows us to see the landscape clearly and identify problem areas.
Challenges and the way forward
Despite progress, there are still major hurdles on the path to full supply chain transparency, affecting both technology and legislation.
What role do legislation and consumer behavior play?
New laws and increased consumer expectations are accelerating change in the industry.
The driving force of EU legislation
The EU Corporate Sustainability Reporting Directive (CSRD) and the upcoming regulations on the Digital Product Passport (DPP) are forcing large companies to Transparency in the supply chainThe laws make disclosure mandatory, not optional.
This regulatory framework creates a competitive disadvantage for companies that continue to operate opaquely. Legal compliance is becoming a decisive factor for the future viability of fashion.
The purchasing behavior of the informed generation
The younger generation of shoppers rewards brands that communicate honestly and openly with loyalty and purchasing power. They use apps and seals to verify the ethical performance of labels.
This consumer shift is putting more pressure on large retail chains than many audits ever could. The demand for sustainable, transparent products is driving the market.
Example 2 (original): A major German fashion retailer was publicly criticized in 2024 for only naming 15% of its Tier 2 suppliers despite its commitment. The resulting reputational damage underscores that partial transparency is no longer acceptable today.
Study/Data Point: According to the Fashion Transparency Index 2024 by Fashion Revolution, the average transparency score of the 250 largest global fashion brands was only 26%This underlines that supply chain transparency is still the exception rather than the rule in the industry.
The best in transparency: Insights into leading labels (as of 2025)
| Label category | Transparency focus | Example disclosure | Digital tool/method |
| Pioneers (Highest Disclosure) | Tier 1 to Tier 4; Social Data | Publication of all factories, subcontractors and material manufacturers | Interactive maps, blockchain solutions |
| Advanced | Tier 1 & Tier 2; Environmental Audits | Disclosure of sewing and dyeing factories with chemical audits | Detailed PDF reports, supply chain tracker |
| Beginners | Tier 1; Ethical Codes | Publication of the main production sites (sewing factories) | List of Tier 1 suppliers on the website |
| Conventional | Minimal | Information on the country of origin (legal minimum requirement) | No disclosure beyond legal obligations |
Conclusion: Transparency as the new normal
The Transparency in the supply chain is transforming the fashion industry from the ground up. It is the essential mechanism that enables brands to truly fulfill their environmental and social commitments and consumers to make conscious choices.
The labels that disclose their entire supply chains are the ethical market leaders of tomorrow. Their openness creates trust and resilience in a world where consumers no longer accept half-truths. The future belongs to fashion that has nothing to hide.
Which aspects of the supply chain (e.g., water consumption or wages) are most important to you personally when making a purchasing decision? Share your criteria for a transparent purchasing decision in the comments!
Frequently Asked Questions (FAQ)
Q: Does a GOTS seal automatically mean full transparency?
A: No. The GOTS (Global Organic Textile Standard) seal guarantees high ecological and social standards throughout the entire textile chain.
It is a strong indicator of sustainability, but it does not necessarily guarantee the public, complete disclosure of all factory names and addresses (which is the actual Transparency in the supply chain constitutes).
Q: What can I do as a consumer to promote transparency?
A: Ask brands directly on social media or via email to name their suppliers. Reward transparent labels with your purchase. Use the Fashion Transparency Index as a source of information.
Q: Are small fair fashion labels always more transparent than large corporations?
A: Not necessarily. While small labels often maintain close, personal relationships with their few factories, large corporations have more resources for expensive tracking technologies (like blockchain). It's about willingness to release, not just size.