ESG Enforcement Tracker

Key facts:

Prosecutors in Milan are investigating the supply chains of a number of fashion brands, following reports of worker exploitation.

In June 2024, a Milan court appointed a commissioner for a year to oversee Manufactures Dior SRL, an Italian subsidiary of Christian Dior, which is responsible for producing Dior handbags.

According to the court ruling, the company failed to take appropriate steps to verify the working conditions and technical capability of the companies, with which it had contracted.

Between March and April 2024, Italian police carried out a number of inspections at four of the company’s suppliers, Pelletteria Elisabetta Yang SRL, New Leather Italy SRLS, AZ Operations SRLS, and Davide Albertario Milano SRL. The working conditions were held to be unethical and exploitative, resulting in the special measures.

The appointment of a special commissioner allows the subsidiary to address and rectify supply chain issues while continuing operations.

According to the press coverage, this is a further example of the Italian courts proactively taking action against companies in the fashion industry for failing to adequately oversee its supply chains.

The court has sent a proposal to Italy’s Chamber of Fashion and other associations with guidelines to exert better control over the Italian supply chain.

The main investigation continues.