At the opening panel of the 2026 OECD Forum on Due Diligence in the Garment and Footwear Sector, stakeholders from government, industry, labour and international organisations explored how the garment and footwear sector can remain responsive to disruption while upholding robust due diligence. Contributors from the OECD Centre for Responsible Business Conduct, the German Federal Ministry for Economic Cooperation and Development, IndustriALL Global Union, the Royal Government of Cambodia, Sapphire Diamond Fabrics Limited and VF Corporation converged on a central point: disruption has become a permanent feature of global value chains and resilience depends on trust-based, system-wide approaches rather than ad hoc reactions.

The discussion framed due diligence not simply as a compliance obligation but as a potential “shock absorber” when embedded into core business practice. Participants stressed that companies with mature risk management systems and strong industrial relations tend to navigate volatility more effectively, particularly when early warning mechanisms are linked to meaningful engagement with suppliers and workers.

A strong thread throughout the panel was the growing recognition that voluntary initiatives alone are insufficient. Legislative frameworks and binding agreements were described as critical for creating predictability and trust across the value chain. Experience following the collapse of Rana Plaza and the subsequent Bangladesh Accord on Fire and Building Safety, now continued through the International Accord for Health and Safety in the Textile and Garment Industry, was cited as evidence that enforceable commitments can stabilise sourcing relationships during crises. At the same time, speakers noted the need for clearer implementation guidance and stronger on-the-ground support.

From the labour perspective, functioning industrial relations systems were portrayed as the backbone of supply chain resilience. Effective collective bargaining and professional grievance mechanisms can surface risks early and support longer-term planning. Particular concern was raised about warning signs such as the outsourcing or quiet reduction of certain categories of workers during downturns. Ensuring that wages are properly reflected in product costing was also highlighted as essential to prevent workers from absorbing the impact of market shocks.

Producing-country experience reinforced the importance of coordinated public policy. Targeted vaccination strategies and worker-focused support during the pandemic helped maintain factory operations, while continued dialogue with brands and international partners proved important in navigating subsequent geopolitical tensions. Ongoing investment in social dialogue, freedom of association and industry capacity remains a priority.
Manufacturers described a markedly more volatile operating environment than before the pandemic. With visibility often limited to a single season, suppliers face growing difficulty in maintaining stable employment and justifying major investments in decarbonisation or renewable energy. Audit fatigue emerged as a significant concern, with some facilities reporting hundreds of audit days per year alongside expanding data requests. There was a clear call to redirect at least part of this effort toward worker wellbeing and operational improvements, supported by longer-term sourcing commitments.

From the brand perspective, disruption (from logistics bottlenecks linked to the Suez Canal to sudden tariff shifts) is now a constant feature of global operations. Tariff volatility in particular continues to place significant pressure on margins and sourcing strategies. Companies emphasised that suppliers with robust management systems and respect for labour rights are consistently better positioned to weather these shocks.
Overall, the panel pointed to a gradual but important shift in the sector’s understanding of resilience. Agility alone is no longer sufficient. Instead, the industry is being pushed toward deeper, more institutionalised forms of cooperation in which due diligence, binding commitments and social dialogue work together to maintain both production continuity and worker protection in an increasingly unstable global environment.