ITALY: An Introduction to Public Law: Environmental

The Growing Relevance of Environmental Law in a Dynamic World

In an era that is marked by unprecedented environmental challenges, from accelerating climate change to the depletion of natural resources, environmental law is at the forefront of global governance. Governments, corporations and citizens are all grappling with the imperative of transitioning towards more sustainable practices. What was once a niche area of law has now become central to:

• economic planning;
• societal development; and
• most importantly, corporate governance.

The complexity of today’s environmental issues requires a legal framework that is capable of balancing economic growth with environmental protection. In this context, the European Union (EU) has taken a leading role, driving significant legislative advancements aimed at fostering sustainability across industries and companies. Among these, the Corporate Sustainability Due Diligence Directive (CSDDD) represents a landmark development, shaping how companies manage their environmental and human rights impacts.

CSDDD: a New Era for Corporate Accountability

The CSDDD, formally adopted by the European Parliament in July 2024, establishes binding obligations for large companies and certain medium-sized enterprises operating within the EU or trading with EU markets. The Directive requires businesses to identify, prevent and mitigate adverse impacts on human rights and the environment throughout their entire supply chains.

The Directive responds to previous legislative trends initiated by member states that increasingly reflect a growing desire to support companies in fulfilling their due diligence duties in supply chains, and to promote business conduct that is respectful of:

• human rights;
• minority rights; and
• the environment.

This has the aim of overcoming the problem of uneven national disciplines and imposing a uniform regulatory framework that can guarantee requirements for legal certainty, as well as a level playing field for companies in the single market.

This groundbreaking legislation represents a shift from voluntary to mandatory corporate accountability in the pursuit of global sustainability. Companies are now required to conduct due diligence assessments to ensure that their operations align with modern environmental and social standards. This includes:

• evaluating supply chain partners and suppliers;
• mitigating risks related to biodiversity loss; and
• addressing carbon emissions.

The CSDDD is a vital and key step towards harmonising sustainability standards across member states. However, it also introduces challenges, particularly for multinational corporations navigating diverse regulatory environments. While the Directive fosters transparency and accountability, it demands significant investments in compliance, monitoring and reporting mechanisms. For businesses, adapting to this regulatory framework requires not only financial resources but also a cultural shift towards embracing sustainability as a core corporate value.

Sustainability in the Fashion Industry Supply Chain: Challenges and Opportunities

The fashion industry, one of the largest global contributors to environmental degradation, faces mounting pressure to adopt sustainable practices across its supply chain. From the production of raw materials to manufacturing, transportation and retail, each stage of the supply chain has a significant environmental footprint.

Fast fashion, in particular, exemplifies the challenges of balancing economic growth with environmental and social responsibility. The reliance on cheap labour, resource-intensive materials and wasteful production processes has led to widespread criticism. In contrast to fast fashion, major fashion brands are now moving towards more sustainable supply chain models, incorporating initiatives such as:

• sustainable sourcing, by increasing the use of organic and recycled materials, such as organic cotton and recycled polyester, to reduce resource depletion and waste;
• circular economy models, by implementing take-back programmes and designing products with recyclability in mind to extend the life cycle of garments;
• transparency and traceability, by introducing blockchain technology and advanced data systems to provide consumers with detailed information about the origins and environmental impact of their purchases; and
• strict supplier monitoring and control, by adopting internal procedures that are able to track, identify and correct potential non-conformities and violations of the applicable labour, social security and environmental law.

Despite all these advancements, the sector continues to face challenges. Implementing sustainability in global supply chains is complex due to the dispersed nature of production networks and varying regulatory requirements. For instance, compliance with the CSDDD obliges fashion brands to track and mitigate environmental and social risks associated with their suppliers, requiring significant investments in monitoring their internal systems and stakeholder collaboration.

However, the push for sustainability also presents opportunities for innovation. Brands that adopt sustainable practices are not only reducing their environmental impact but further enhancing their reputation and appeal to more eco-conscious consumers. As sustainability becomes a key market differentiator, the fashion industry has the potential to transform itself into a model of responsible production and consumption.

Conclusion: The Road Ahead

As environmental law evolves, businesses must navigate a complex and rapidly changing legal and economic landscape. The adoption of frameworks such as the CSDDD underscores the urgency of aligning corporate practices with global sustainability goals.

In sectors such as fashion, where supply chains are often vast and deeply embedded in resource-intensive practices, the transition to sustainability is both a challenge and an opportunity. With the right combination of legal support, innovative strategies and a commitment to transparency, companies cannot only adapt to stricter regulations but can also thrive in a world that increasingly values environmental and social responsibility.

Experts in environmental law and corporate compliance play a crucial role in supporting businesses during this transition, helping them mitigate risks and unlock opportunities for sustainable growth. Lastly, embracing sustainability is not just a regulatory obligation but a vital step towards building resilient and ethical global markets for our future.