The recent case involving Loro Piana has once again put the spotlight on sustainability and supply chain control in luxury fashion. Unsustainable working conditions have cast doubt on the image of a brand long considered a symbol of excellence.
This is not an isolated episode but a strong signal that shows how due diligence in the fashion sector must become more concrete, integrated, and transparent.
In this article we analyze what has emerged, why traditional control systems do not always work, and which solutions can help companies strengthen their supply chains, protecting both reputation and competitiveness.
What is really happening in luxury fashion
Behind the allure of runways and precious materials, the fashion sector faces complex challenges. In recent months, several investigations have highlighted critical issues in workshops linked to high-profile brand suppliers.
The Loro Piana case has become symbolic precisely because it involved a brand known for attention to detail and quality. It is a sign that even companies with an established reputation are exposed if monitoring processes are not continuously integrated.
The Loro Piana Case: What Emerged and Why It Resonates
According to the Milan Prosecutor’s Office, cashmere garments sold at premium prices were being produced in irregular workshops, under working conditions that did not comply with industry and legal standards. Controls on the supply chain turned out to be fragile and fragmented.
The fact that Loro Piana was involved, a brand always associated with manufacturing excellence, deeply struck public opinion. The message is clear: not even the most careful brands are safe if control mechanisms are not thoroughly rethought.
Due Diligence in Fashion: What It Should Be and What It Often Isn’t
Due diligence was created to ensure that the entire supply chain complies with environmental, social, and governance criteria. In practice, however, it often remains a formal process consisting of policies to sign, scheduled audits, and questionnaires to fill out.
For it to truly work, it must become a continuous commitment that translates into:
- Real visibility extending to subcontractors and third parties;
- Proactive controls capable of preventing risks;
- Integration between company functions, with procurement, legal, and sustainability working together.
Recurring problems in supply chains
Some critical issues recur frequently in the fashion sector:
- Complex outsourcing: multiple subcontractors make it difficult to monitor every level of the supply chain.
- Formal rather than substantial due diligence: policies and one-off audits are not enough without continuous monitoring.
- Imbalance between brands and suppliers: high standards are demanded, but support and resources to achieve them are often lacking.
- Organizational silos: ESG, procurement, and legal processes do not always communicate in an integrated way.
Those who work in fashion know these situations are not exceptions but part of everyday life: pressure on timelines, increasingly narrow margins, and suppliers that change from one season to the next.
This is where due diligence risks becoming just a document on paper, while in reality companies need tools, skills, and processes that can truly support the business and those working in the supply chain.
Due Diligence in Large International Groups
Some fashion groups have already started strengthening due diligence by integrating it into their ESG strategies. Among the most common practices are:
- Digital platforms to map the supply chain in real time;
- Risk assessment systems with automatic alerts;
- Cross-functional teams that bring together legal, procurement, and sustainability.
Several Italian brands have begun working with carefully selected suppliers in a long-term partnership approach, rewarding those who guarantee transparency and safety.
Other European brands have introduced training programs for subcontractors, supporting them in meeting required standards.
These are signals that show change is already underway, perhaps gradually, but in a concrete and increasingly shared way.
Complex Supply Chains: How to address the Blind Spots
In contexts marked by frequent subcontracting, seasonal production, or high-risk geographical areas, achieving total transparency is difficult. But that does not mean giving up.
The most advanced companies proceed step by step. They start with realistic mapping, consolidate relationships with key suppliers, and introduce digital tools to monitor data and ESG indicators.
We see this happening in various Italian businesses working with artisanal workshops or seasonal production: the goal is not to control everything immediately, but to start with strategic partners, building trust and shared traceability.
Similarly, some European groups have adopted collaborative platforms that allow suppliers to upload data and certifications in real time, creating a more transparent and resilient ecosystem.
In other words, perfection is not the goal. Every additional step toward transparency strengthens the brand and protects the supply chain in the long run.
CSDDD: An Opportunity to Rewrite the Rules of Due Diligence
The new European Corporate Sustainability Due Diligence Directive (CSDDD) requires companies to strengthen environmental and social controls throughout the entire value chain.
This is an opportunity to make due diligence an integral part of the business model, not just a formal compliance exercise.
For luxury brands, this step is not only a regulatory obligation but also a chance to demonstrate leadership, strengthen their position in the international market, and build lasting trust with clients and stakeholders.
Corporate Culture and Due Diligence: A Needed Change in Mindset
Due diligence is not only a technical process but also requires a change in mindset. From leadership to buyers, from legal teams to operations, every function must recognize that sustainability and human rights are not constraints but an integral part of strategy.
A shared approach not only reduces risks but also helps to innovate business models and strengthen reputation. This is how due diligence becomes a tool for long-term competitiveness.
Conclusions: From the Loro Piana Case to a More Transparent and Sustainable Fashion Industry
The Loro Piana case has made it clear that the challenges of due diligence concern the entire fashion system.
With the new European regulation and more advanced digital tools, companies today have the opportunity to transform supply chain management into a competitive advantage.
Every company, large or small, can start with a first concrete step and turn due diligence from a formal obligation into a lever for shared value.
With Uyolo you can implement integrated, continuous, and traceable due diligence that helps you monitor ESG impacts and simplify supplier management.
It is not just about compliance, but about building trust and creating long-term value.
Would you like to see how it works in practice? Book a demo and discover how to strengthen your supply chains with Uyolo’s support.
