On April 6, 2024, the court of Milan placed Giorgio Armani Operations, one of the main industrial branches of the Armani Group, under judicial administration. The allegations concern failure to control the working conditions of subcontractor companies involved in the production of luxury items, such as bags and belts.

These small companies, mainly located on the outskirts of Milan, are accused of labor exploitation and serious violations of workers' rights. The case has raised new concerns about greenwashing practices in the fashion industry, highlighting the importance of responsible and transparent management of supply chains.

According to investigations, the subcontractor companies exploited underpaid labor, mainly consisting of Chinese workers, waged between 2 and 3 euros per hour for work shifts that reached 10 hours a day, seven days a week. The working conditions in the warehouses were unethical: employees lived inside the workshops, often in spaces lacking adequate safety measures and under constant surveillance. Not only were the workers exploited, but they were also exposed to hazardous chemicals, increasing the risk of workplace accidents.

This scenario highlights how a non-transparent subcontracting chain can fuel exploitation and human rights violations, undermining trust in major brands that fail to exercise strict control over all stages of their production chain.

The Giorgio Armani case demonstrates the need for a deeper and more systematic intervention to ensure that companies comply with ethical standards throughout the supply chain.

Regg3, with its regenerative approach, can play a crucial role in this context as a facilitator between companies, offering tools to assess and improve the social and environmental impact of their activities. This includes:

• Identifying opportunities: through systematic mapping of territorial and sectoral contexts, Regg3 helps identify opportunities for positive impact investment.
• Impact assessment and reporting: Regg3's model provides continuous assessment of business practices in terms of social and environmental impact, ensuring constant monitoring and greater transparency.
• Creating synergies: by promoting collaborations between sustainable and non-sustainable companies, Regg3 helps develop a regenerative economy where activities can mitigate their negative impact.

In this way, Regg3 can prevent cases of greenwashing, supporting companies in creating long-term economic, social, and environmental value.