The AGEC law (Anti-Gaspillage pour une Économie Circulaire) was introduced in France in 2020 with the goal of enhancing transparency around products that generate waste and promoting circularity. This regulation marks a significant step toward addressing the challenges of circular economy and sustainability by raising consumer awareness, encouraging producer responsibility, and fostering a more sustainable consumption model.
Key Objectives of the AGEC Law
The AGEC law is structured around four main pillars:
- Reducing Waste and Promoting Reuse, Recycling, and Repair
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- Encouraging donations to charitable organizations.
- Mandating that unsold products be donated or recycled instead of destroyed.
- Providing Better and More Transparent Information
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- Requiring labels that inform consumers about a product’s recyclability and the presence of hazardous substances.
- Obliging companies to declare the percentage of recycled materials in their products.
- Phasing Out Single-Use Plastic Packaging by 2040
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- Gradual elimination of non-recyclable plastic packaging.
- Promoting sustainable alternatives to plastic packaging.
- Improving Resource Management from Design to Disposal
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- Promoting eco-design to facilitate recycling and reuse of materials.
- Supporting innovation to develop new sustainable materials.
Specific Requirements for the Fashion Industry
As of January 1, 2023, the AGEC law introduced specific measures for the fashion and textile industries. Companies are now required to transparently manage and communicate key product information, including:
- Recycled Materials
Companies must disclose the percentage of recycled materials used in products. - Traceability
Information about the country where weaving, dyeing, printing, and assembly take place must be provided. For footwear, details about stitching, assembly, and final construction are also required. - Recyclability
Companies must report the actual ability to recycle a product’s waste into identical or similar products, and whether the product contains substances that could interfere with the recycling process. - Hazardous Materials
Disclosure is required for any hazardous substances present at concentrations above 0.1%. - Plastic Microfibers
Products containing synthetic fibers in quantities exceeding 50% by weight must include this information.
Penalties for Non-Compliance
Starting January 1, 2023, any violation of the AGEC law can result in fines of up to €15,000 for legal entities, in addition to penalties for deceptive marketing practices. Products whose last stock unit was placed on the market before January 1, 2023, are exempt.
Implementation Timelines
The obligation to provide information on the environmental characteristics of purchased products is being phased in:
- From January 1, 2023: For producers with an annual turnover exceeding €50 million and at least 25,000 units of products sold in the domestic market.
- From January 1, 2024: For producers with an annual turnover exceeding €20 million and at least 10,000 units sold.
- From January 1, 2025: For producers with an annual turnover exceeding €10 million and at least 10,000 units sold.
Implications for the Fashion Industry
The introduction of the AGEC law has significant implications for the fashion sector, which is one of the most affected industries.
- Increased Transparency: brands must adapt to provide detailed and transparent information about materials and production processes.
- Innovation and Sustainability: companies are driven to innovate, developing recyclable materials and more sustainable production methods.
- Extended Producer Responsibility: businesses must assume greater responsibility for the entire life cycle of their products, from design to post-consumption.
Francesca Rulli, CEO of Process Factory (YHub Group) and creator of the 4sustainability system, explains: “Traceability is the first step toward real sustainability. Without a detailed understanding of the supply chain, it is impossible to guarantee the ethical and sustainable nature of products. In some respects, the AGEC law anticipates the requirements of the Digital Product Passport: its logic is to share information about the supply chain and the proportion of material recovery through recycling processes. The AGEC law also offers a way to ‘test’ upcoming EU regulations and assess companies’ readiness. The widespread use of technologies and platforms for traceability and information collection is fundamental to ensuring the robustness and reliability of data.”
Essential Steps for AGEC Compliance
To meet these challenges, companies must collect the required product information in collaboration with their suppliers. The ultimate goal is to provide consumers with easily accessible product data for up to two years after the last unit is sold.
The key steps for building an information management system include:
Selecting a data collection method
Choosing the appropriate technology or platform that can manage complex information and adapt to changing regulatory requirements.
Mapping processes and suppliers
Identifying all the processes and suppliers involved in creating each product.
Collecting information collaboratively
Ensuring a continuous and collaborative flow of data collection across the supply chain.
Defining a control procedure
Establishing a robust method for verifying the accuracy of the collected data.
Feeding the required information format
Automatically preparing the consumer-facing product information in the correct format.
In Summary
The AGEC law presents a significant challenge for businesses, providing a preview of the upcoming Digital Product Passport and tying into broader sustainability due diligence topics, such as the CSDDD. Every company must gain a deep understanding of the origins of its products and their environmental impact, in terms of both materials used and production processes.
This collaboration with the supply chain also opens new communication opportunities. Some brands and supply chain companies, through platforms like The ID Factory, have gone beyond simply geolocating processes. They now provide visibility on their suppliers, their sustainability performance, and certifications. This integration of supplier evaluation with lifecycle impact management—using platforms such as Ympact and the 4sustainability framework—creates a comprehensive view of the environmental impact of each product.
