RepRisk data finds two-thirds of fashion supply chain risks worldwide are social

• Among all sectors, retail is by far the most exposed to supply chain risk, with incidents more than doubling globally since 2020 and rising by 22% in the past year alone.
• Over the past five years, social risks have accounted for about two-thirds of all incidents globally in each fashion segment: fast, premium, and luxury.
• Human rights and poor working conditions drive the majority of social risk incidents in the global fashion sector.

ZURICH, July 8, 2025 /PRNewswire/ -- Today, RepRisk, the world's most respected DaaS company for reputational risks and responsible business conduct, reveals that, over the past five years, two-thirds of all supply chain risk incidents in the fashion sector have been tied to social issues. The first issue of RepRisk's Anatomy of Supply Chain Risks series also shows that human rights and poor working conditions are the primary drivers of social risk incidents in the global fashion sector (see figure below).

"Fashion's supply chains have never been easy – and today's global pressures make them even tougher. It is time for transparency!" commented Philipp Aeby, CEO and Co-founder at RepRisk. He continued," Daily monitoring powered by data that effectively combines human intelligence with AI – through fine-tuned models trained on human-labeled data – enables fashion and other companies not only to build resilient value chains but also to maintain stakeholder trust and drive long-term performance."

With 791 out of 16,968 unique global supply chain risk incidents, the fashion sector accounts for 5% of the total. Retail stands out as the sector most exposed to supply chain risk, with global incidents more than doubling since 2020, accounting for 8,923 risk incidents over the past five years and increasing by 22% in the past year. The financial services sector follows as the second most risk-prone, with incidents rising 32% since 2020 and a 3% increase over the past year. Following closely is the food and beverage sector, which has seen a 16% increase since 2020 and a 5% rise over the past year.

In today's global economy, supply chains are not just operational backbones – they are strategic assets that directly impact business continuity, profitability, and corporate reputation. Supply chains are facing heightened pressure as a convergence of global challenges reshapes the risk landscape. Climate change, the energy transition, trade tensions, and geopolitical conflicts are not isolated issues – they intersect and amplify each other, exposing vulnerabilities across industries and regions.

Notes to editors

RepRisk captures supply chain risks by intersecting two of the 28 issues covered in its research scope and rule-based methodology: the cross-cutting issue of supply chain and any other issue. From May 1, 2024 to April 30, 2025, 3,958 business conduct risk incidents in supply chains were linked to 6,596 companies globally. 87% of implicated firms were private, versus 13% that were publicly listed. Over the full analysis period from May 1, 2020, to April 30, 2025, a total of 16,556 supply chain risk incidents were identified globally.

RepRisk offers the largest and most comprehensive dataset, covering 100+ risk factors across 350,000+ entities globally (public and private companies, and related projects), and takes an objective, rules-based 'outside-in' approach – irrespective of information published by companies. Every day, RepRisk analyzes 2.5 million documents from 150,000 sources across 23 languages to deliver relevant risk insights.

About RepRisk

RepRisk is the world's most respected Data as a Service (DaaS) company for reputational risks and responsible business conduct. Since 2007, RepRisk's data has been trusted by the world's leading banks, investment managers, Fortune 500 companies, sovereign wealth funds, and organizations such as the OECD and UN. Combining advanced AI with deep human expertise, and a proven methodology at the core, RepRisk's solutions bring peace of mind, enabling clients to 'know more, be sure, and act faster'. Our pioneering solutions help to strengthen due diligence processes across ESG topics, such as biodiversity, deforestation, human rights, and corruption, empowering clients to identify, monitor, and mitigate reputational, compliance, and financial risks. Headquartered in Zurich, and with offices in Toronto, New York, London, Berlin, Manila, and Tokyo, we stay close to clients and bring an independent lens to the industry. United by our shared belief in the power of data, our 400 people are proud to be setting the global standard for business conduct data and driving positive change through transparency. Visit us at reprisk.com and follow us on LinkedIn.

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SOURCE RepRisk