“Traceability” and “transparency” are core words related to the production and sustainability of textiles. Both get a lot of media attention. Manufacturers, brands and retailers use them in their communication and consumers encounter “traceability” and “transparency” all over social media. Both terms are very often used interchangeably, but they are not the same.
In this post, we explain transparency and traceability, the differences between them and the benefits of implementing both in a credible way. We also discuss the major challenges our industries are facing with implementation.
Traceability
Traceability is the ability to track a product seamlessly throughout every stage of its production before it reaches its point of sale. This is only possible when all suppliers and actors involved in each production step of a single product are known.
If a product is not traceable, it’s not possible to obtain information about the supply chain and the suppliers. As a result, transparency can’t be claimed or communicated.
Transparency
Transparency means sharing trustworthy, verified information (for example regarding product traceability) and making this information easily and publicly accessible (for example on your company’s website, on product pages, etc.).
It is very important to make sure that your communication is understandable and easy to find.
How does OEKO-TEX® support traceability and transparency?
Our OEKO-TEX® Label Check tool provides credible product information that can be accessed and verified anytime. Thanks to a unique certificate number, product ID or a QR code on the product’s label or packaging, the information is available to both end-consumers buying certified and labelled products and to companies holding an OEKO-TEX® MADE IN GREEN label or an OEKO-TEX ® STANDARD 100, ORGANIC COTTON or LEATHER STANDARD certificate.
Additionally, for MADE IN GREEN, the Label Check provides information about the production facilities, the stage of production to which each facility belongs and the countries where production took place. If a facility holds an OEKO-TEX® certificate, the Label Check also shows the type and scope of certification so that customers can immediately see what the certification contains. We also share a full criteria catalogue for each of our standards.
The information is verified by our testing institutes. All areas of a facility, such as chemicals management and social responsibility, are analysed in laboratory tests and during regular supplier audits.
The OEKO-TEX ® database contains data on all certified suppliers. Each supplier needs to officially confirm delivery of their products to their customers. This information is verified on-site and through review of delivery confirmations, contracts and agreements with subcontractors and other relevant information. This verification process is a significantbut essential effort to ensure data quality and credibility, which usually remains unnoticed by the media and consumers.
Major challenges regarding traceability and transparency
You can probably relate to some of these traceability and transparency challenges facing our very complex textile and leather industries:
Seamless traceability down to the lowest tier
Gathering information about indirect suppliers and contractors deep down in the supply chain remains a major challenge. Access to data on suppliers involved in raw material extraction (tier 1) and processing (tier 2) is often limited, particularly when production steps are dispersed globally. With facilities located far apart, gaining visibility into lower tiers of the supply chain becomes increasingly complex.
Software fatigue & IT investments
Technology offers critical support for traceability, but it can also create new hurdles. Depending on a company’s needs, there are many tools available to record and manage supply chain data. However, information is often scattered across multiple systems, requiring large volumes of data to be manually entered, verified and structured. As a result, companies must invest significant time, financial resources and manpower into IT implementation and data management.
Maintaining long-term cooperations
Building and maintaining long-term supplier relationships is complicated by shifting consumer demands, supplier limitations and global disruptions. Brands often change suppliers to align with evolving fashion trends, sustainability goals or production needs. Not all suppliers can scale operations to match brand growth, forcing companies to seek alternatives. In addition, external factors like political instability or pandemics make it harder to regularly visit facilities, build trust and gather reliable traceability data.
Confusing legal requirements
In the EU alone, more than a dozen legislations impact the textile and leather industries—ranging from PFAS restrictions to the Digital Product Passport and Green Claims Directive. The sector is in a transition phase toward greater regulation, leaving many companies uncertain about how to address current and upcoming requirements. Internal change management and proactive compliance strategies are becoming essential to navigate this evolving legal landscape.
Traceability as building block for due diligence
Traceability is essential for companies to meet their due diligence obligations. Due diligence, as defined by the OECD, is the process companies use to identify, prevent and address negative impacts across their operations and supply chains. It involves risk analysis, appropriate measures, monitoring, complaints handling and transparent communication. Traceability plays a big role in the 4 essential building blocks for implementing due diligence obligations:
Create a full overview of all suppliers and actors for each product.
Conduct risk assessments based on this information.
Implement and monitor corrective measures where needed.
Report findings and share actions taken with customers and stakeholders.
Tools like the Digital Product Passport (DPP)will help companies structure and communicate this data in a legally compliant way.
The Extended Producer Responsibility (EPR) policy, also supports due diligence by making producers responsible for a product’s full life cycle, helping to identify and reduce environmental impacts across the supply chain.
How can your company approach traceability and transparency?
Sustainability is a step-by-step process. There will always be room for improvement, but the important thing is to start. Being open about where you stand and communicating clearly is more valuable than waiting until everything is perfect.
Using existing tools and building on what is already available can make it easier for your company to make small, continuous improvements. There is no need to reinvent everything from scratch.
Most importantly, traceability and transparency must be embedded into the company culture. If they are not part of your company’s mindset and daily work, they won’t take hold.
Traceability leads to transparency and transparency builds credibility, trust and long-term loyalty. Customers, consumers and stakeholders trust companies that openly share information instead of hiding or omitting critical details.
