Horror stories from the industry
How we protect your business from the dreads of non-compliance
On this spooky Halloween day, we’re diving into some of the scariest risks facing businesses today: compliance nightmares. We spoke with Malene Treumer Nielsen, Sustainability & Compliance Manager at STUDIO 9, to hear about the real dangers of non-compliance and how we help companies stay protected from these chilling scenarios.
Can you share a “horror story” where the lack of compliance led to serious consequences?
One of the most tragic examples is the Rana Plaza disaster in Bangladesh in 2013. Over 1,100 lives were lost when a garment factory collapsed due to severe structural flaws that had been ignored for years. It was a devastating reminder of what can happen when compliance is not prioritised. The unsafe working conditions and lack of oversight highlighted deep-rooted issues in the garment industry – not just in Bangladesh but globally.
This reminds us of why we are deeply committed to following through on our standards. At STUDIO 9, we conduct regular on-site audits of all our suppliers, fostering a culture of responsibility and accountability. Every inspection enhances the importance of safety and ethical practices, ensuring that we’re not just meeting requirements but actively taking part in improving conditions across the industry. This continuous effort ensures that high standards are maintained for the well-being of everyone involved.
How does our compliance team act as a safety net for clients, preventing "nightmare" scenarios?
Navigating the ever-changing landscape of regulations can be a constant source of stress for businesses, where a single misstep may lead to serious consequences. Compliance should be more than a checklist item revisited once a year; it requires ongoing effort and resources, which some businesses might lack internally – that's where we come in.
We guide our clients through this complexity by helping them stay ahead of the curve. We work closely with them to navigate regulatory changes while balancing compliance with sustainability. For example, achieving 100% recycled products isn’t always the most sustainable choice. For a t-shirt, blending recycled cotton with virgin cotton enhances durability, extending the lifespan and reducing waste. Our primary goal is to help clients find the right balance between meeting regulatory requirements and adopting sustainable best practices.
What kind of “tricks and treats” (i.e., tools, strategies, or practices) do our compliance team use to keep clients in line with regulations?
Staying ahead of legislative requirements is always beneficial, but it can be a difficult task. That’s why we encourage not just following mandated changes but combining this with practical compliance guidance. For example, does it really make sense to package a pair of socks in a plastic bag?
Should we really use PET bottles to create polyester fabric when they could be recycled into new PET multiple times instead and thereby keep it in that same loop? Perhaps not. We don’t need legislation to tell us this. Our team helps clients think critically and make informed, sustainable decisions that strengthen operations and reduce unnecessary waste.
One particularly concerning “horror story” from the garment industry involves suppliers using brand-new water bottles only to empty them and later pass them off as “recycled” material. This was an attempt to meet the high demand for recycled polyester, yet it fully undermines the idea of recycling and creates unnecessary plastic waste instead of reusing post-consumer materials. It highlights the importance of true transparency and verification in the supply chain.
What recent tendencies in compliance regulations should businesses be aware of, and how do they impact operations?
Compliance plays a crucial role in supporting sustainable development, but in some cases, even regulations can have unintended negative impacts on production. For example, new standards can lead to the destruction of existing stock if it no longer meets updated requirements. An example is the relatively new requirements for hangtags to include waste sorting information for multiple countries. Since each country has different waste sorting systems, a single universal symbol is not sufficient, requiring multiple symbols to be displayed. As a result, the hangtags need more space for text and symbols, which in turn requires additional material, making them larger and less resource-efficient.
To prevent negative impact, we prepare our clients for upcoming regulations or provide solutions to redesign the existing stock to make it compliant.
How do we ensure that our clients are compliant and proactive in identifying and managing potential risks?
We always explore alternative approaches to product development for our clients and stay proactive by addressing potential issues before regulations demand changes. By identifying areas for improvement early on, we can ensure compliance and lead the way in managing risks more effectively.
We also offer innovative solutions like digital product passports. This tool enhances traceability and oversight of suppliers, products, and data. Transparency is crucial for adapting to new regulations, and we are dedicated to ensuring our clients can meet these challenges effectively and ahead of time.
For more on our approach, view our latest Digital Solutions news
Lastly, with all these horror stories in mind, what final piece of advice would you give to companies regarding compliance?
My final advice is to focus on clear communication and work to mature your supply chain. It can be difficult to fully understand each other across the supply chain, especially when dealing with different cultures and stages of development in various countries. Transparency is essential – trace everything, from raw materials to suppliers. Nothing should be assumed; thorough verification is necessary to ensure both compliance and sustainability. At STUDIO 9, we are here to support you on this journey, providing the tools and expertise needed to enhance efficiency and ensure a transparent and resilient supply chain.
