Beyond the first tier: Mapping your full supply chain

For decades, luxury fashion companies have guarded their supply chains as closely as their design archives. However, recent economic and political events – including global conflicts, trade tariffs and currency fluctuations – have highlighted the urgent need for resilient supply chains.

As expectations around environmental and social performance intensify, companies are finding that guarding their supply chain  from view is no longer a competitive advantage. It is a profound business risk. The challenge now lies in mapping these complex networks beyond direct business partners (sometimes known as Tier 1). But in moving from secrecy to transparency, companies need to be mindful to do it in a way that is credible, proportionate, and aligned with the organisation’s operating model.

Ending the culture of secrecy

The traditional culture of secrecy around sourcing and artisanal partnerships is increasingly at odds with stringent regulatory demands and shifting stakeholder expectations for greater supply chain visibility.

For luxury fashion brands, disclosing manufacturing partners and material origins is now a baseline requirement for maintaining market confidence, mitigating geopolitical risk, and defending corporate reputation. To get started, we recommend following some initial key steps to help map your supply chain:

• Identify your direct (Tier 1) suppliers and their partners. Work closely with your procurement team and engage your suppliers to determine their locations and business relationships. 
• Collate and organise supplier data. Gather information on locations, labour conditions, policies and certifications. Take time to organise the data at the outset, so it can be monitored, is easy to keep up to date and provides a foundation for future reporting. 
• Assess key risks. Identify hotspots for sustainability issues at the country, sector, or site level and prioritise action areas. Partner with suppliers in key hotspots to amplify the impact of any initiative.
• Monitor and strengthen supplier performance: Regularly review your supply chain, embedding strict due diligence processes and sustainability requirements into all supplier contracts. Work with suppliers to collect data on practices and performance, boosting product traceability.

For further insight on how luxury fashion brands stack up on their reporting of supply chain issues, take a look at our 2025 Luxury Fashion Sustainability Benchmark. 

What is a Digital Product Passport?

As regulatory requirements expand, new tools are emerging to support verifiable transparency. The Digital Product Passport (DPP) is a prime example. 

Under the EU’s Ecodesign for Sustainable Products Regulation, a DPP must accompany all apparel items, , documenting their environmental journey from raw material extraction to the shop floor. It functions as a digital identity card, storing data on material composition, origin, environmental footprint and the potential for an item to be repaired, reused or recycled. 

For luxury fashion companies, the introduction of DPPs is not just a compliance exercise. It is an opportunity to demonstrate commitment, guarantee craftsmanship and document environmental stewardship, building trust with consumers. It also has clear business benefits. Embracing efficiency and circular resource use is increasingly important to control costs and maintain commercial advantage. 

Working with suppliers on real-time data

Achieving full supply chain visibility requires a fundamental shift in how luxury fashion companies engage with their partners. The traditional model of annual, tick-box supplier audits is becoming insufficient for managing modern sustainability risks. Companies must move toward active, real-time monitoring of water usage, energy consumption and labour conditions across the entire value chain.

This transition requires investment in shared data systems and collaborative, long-term supplier relationships. When working with suppliers, keep these practical steps in mind:

• Focus on the detail: Granularity is key to data that can be used for both external reporting and internal business decisions. You need precise metrics on environmental and social impacts at the facility level to support accurate disclosures.
• Prioritise action over perfection: Do not wait for perfect data to begin working with your suppliers. Continuing to act and engage on the issues that are material to your business will help to reduce business risk and lessen negative impacts.
• Increase cross-functional collaboration: Supply chain risk cannot be siloed within the sustainability or procurement teams. Intensify your efforts to collaborate with and engage senior colleagues, particularly those in finance, to assess the financial impact of supply chain vulnerabilities.

Mapping your full supply chain is a complex but necessary evolution. By building data systems that produce traceable, verifiable information, luxury fashion companies can establish supply chain approaches that are credible today and adaptable as expectations continue to evolve.

How Context Sustainability can help luxury fashion map the full supply chain 

Context Sustainability supports companies in mapping out their entire value chain, helping inform strategy, risk management and double materiality assessment. Our team can assist with clear stakeholder engagement plans with direct and indirect suppliers to ensure that you are continuously monitoring and improving supplier performance. We help our clients with target setting to address the most pressing supply chain issues that link with existing frameworks and standards.