Core Insights - There is a significant gap between the industry's intentions regarding traceability and their actual actions, with 63% of executives recognizing it as a strategic advantage but only 44% actively tracing goods [2]. Group 1: Industry Intentions and Actions - 63% of industry executives view traceability as a strategic advantage, yet only 44% are actively tracing goods, indicating a disconnect between intention and action [2]. - 56% of executives either have a plan but are not tracing goods or have no plan at all, highlighting a lack of proactive measures in the industry [2]. Group 2: Key Drivers of Traceability - The primary motivation for traceability investments is to protect brand reputation, cited by 40% of respondents, followed by consumer demand for transparency and regulatory pressures [3]. - The need for compliance preparedness is becoming increasingly critical as regulations evolve [3]. Group 3: Legislative Impact - The Uyghur Forced Labor Prevention Act (UFLPA) has significantly influenced the industry's approach to traceability, making it a business necessity rather than a luxury [4]. - U.S. Customs and Border Protection reported a 25% increase in shipment detentions between 2023 and 2024, with apparel, footwear, and textiles seeing a 33.4% rise in detentions, underscoring the urgency for compliance [4]. Group 4: Global Regulatory Landscape - The crackdown on forced labor is not limited to the U.S.; the UK and EU are also implementing stringent regulations, such as the Transparency in Supply Chain Act and the Forced Labour Regulation [5]. - Companies are facing increasing due diligence requirements from regulations like the Corporate Sustainability Due Diligence Directive (CSDDD) and the Corporate Sustainability Reporting Directive (CSRD) [5]. Group 5: Supply Chain Visibility - Upcoming EU legislation will require digital product passports, necessitating companies to have comprehensive knowledge of their supply chains [6]. - Only 46% of surveyed companies have visibility into Tier 4, the raw material stage, indicating a significant gap in supply chain transparency [6]. - Cotton is the most commonly traced raw material, reflecting heightened scrutiny in this area due to regulations like the UFLPA [6].