Supply-chain rules are tightening and fashion is being forced to choose: protect climate-critical forests or keep buying convenience. Last week a group of global apparel and lifestyle brands publicly committed to phasing out fibre and packaging sourced from ancient and endangered forests — a signal that forest-risk sourcing has moved from a sustainability talking point to a commercial must-do. Packaging Suppliers Global+1

Why this matters now. The EU’s Deforestation Regulation (EUDR) and the EU push for textile Extended Producer Responsibility (EPR) are reshaping what “compliant sourcing” looks like across the supply chain. Delays and timeline adjustments for EUDR have given companies extra time to prepare, but regulators and civil society are tightening the scrutiny — leaving little room for slow adopters. Reuters+1

The scale is huge. Recent sector analysis shows billions of trees are felled for packaging and hundreds of millions for man-made cellulosic fibres (MMCFs) like viscose and rayon — materials still widely used in fashion. Transitioning away from fibres and paper products linked to ancient and endangered forests is therefore not only ethical but material to risk management and brand reputation. Textile Insights+1

Policy and compliance ripple effects. At the same time, labour law reforms in India (the recent rollout of the consolidated Labour Codes) and tax and budget changes in the UK are raising corporate compliance expectations and operational costs for brands with sourcing or retail footprints in those markets. For companies that span geographies, this creates a two-front compliance challenge: nature-risk due diligence and people-and-tax compliance. Press Information Bureau+1

Demand is changing — digitally and ethically. Consumer demand remains steady overall, but its profile is more digital and more values-led. Gen-Z shoppers increasingly expect personalised digital experiences (often powered by AI) while preferring low-impact materials and clear provenance. That combination puts a premium on supply-chain transparency, data-readiness and differentiated product stories. Fibre2Fashion

What brands can do — practical priorities

1. Map forest risk across raw materials (MMCFs, packaging fibre) and set clear phase-out targets for high-risk inputs. Use third-party tools and partnerships (e.g., Canopy-style initiatives) to accelerate safe alternatives. canopyplanet.org+1

2. Treat EUDR and textile EPR as business continuity risks: collect provenance data now; pilot digital traceability for high-risk SKUs; test product eco-modulation and take-back pilots ahead of mandatory EPR rules. Reuters+1

3. Align people-risk controls with new labour codes where you have suppliers in India — single-registration systems and digital records are becoming standard. Factor in new tax/tariff realities where you sell (UK Autumn Budget changes are shifting the cost base). Press Information Bureau+1

4. Invest in data and AI for hyper-personalisation that doesn’t compromise ethics: use AI to personalise recommendations and optimise inventory, while clearly communicating material provenance and lower-impact choices to consumers. Fibre2Fashion

A risk-opportunity summary
This moment is uncomfortable for supply chains reliant on inexpensive cellulosic fibres and commodity paper packaging — but it’s also fertile ground for competitive advantage. Brands that move early to substitute high-risk fibres, tighten traceability, and combine digital personalisation with verified low-impact materials will reduce compliance risk, lower reputational exposure, and win loyalty from eco-conscious shoppers.

Conclusion

Forests, footprints and finance are now tightly linked. The patchwork of new rules (EUDR, national EPRs), labour code rollouts and fiscal changes means brands must manage environmental, social and tax risks simultaneously. That’s operationally harder — but also strategically clarifying: sustainability isn’t a marketing layer anymore, it’s a fundamental supply-chain requirement. Brands that treat forest-risk and provenance as core product attributes — and back that with data, partnerships and low-impact alternatives — will be best positioned for the regulatory and consumer landscape ahead.