For the outdoor industry, sustainable business practices have moved from nice-to-have initiatives to strict legal requirements. Brands are navigating an increasingly complex system of laws across the United States, Canada, and the European Union (EU) that cover everything from greenhouse gas emissions reporting to green marketing claims.
This blog post aims to provide a broad overview of sustainability compliance obligations for the outdoor industry, along with actions for meeting those requirements. But before we get into it, we need to start with a short disclaimer. This content is for informational purposes only and should not be construed as legal advice. Readers should consult with qualified legal counsel to ensure compliance with all applicable laws and regulations.
Climate Accountability: Confusion in California
California is the only state in the U.S. that has enacted climate disclosure laws. The laws mandate companies with over $500M in annual revenue to disclose their climate-related financial risk (SB 261) and mandate companies with over $1B in annual revenue to disclose their scope 1, 2, and 3 emissions (SB 253). Lawsuits challenging the constitutionality of these laws have upended the enforcement timeline. Here’s the latest:
- Climate-related risk reporting (SB 261): Under the original regulatory timeline, covered entities were supposed to submit their climate-related risk reports on January 1, 2026. However, the Ninth Circuit Court of Appeals granted an injunction pending appeal for SB 261, effectively pausing the enforcement of the law. Oral arguments were heard in January. Until the Ninth Circuit releases a decision following those arguments, reporting for this law is paused.
- Greenhouse gas emissions disclosure (SB 253): The Ninth Circuit did not grant an injunction pending appeal for SB 253. Enforcement of this law is still proceeding as scheduled, which means that covered entities should be preparing to report their scope 1 and 2 emissions in August of this year, and prepare to report their scope 1, 2, and 3 emissions in 2027. This schedule is subject to change, pending the ongoing lawsuit challenging SB 253, in addition to SB 261.
Chemistry: PFAS Regulations Expand in Scope Across the U.S.
Chemistry is the backbone of performance gear, providing the waterproofing and durability outdoor enthusiasts expect. However, concerns about the harm of per- and polyfluoroalkyl substances (PFAS) have led to a wave of bans and reporting requirements, including:
- Bans on products with intentionally added PFAS: Several states have already enacted bans on the sale of textiles and apparel containing intentionally added PFAS.
- Mandatory disclosure labels: Many jurisdictions require a visible label stating that products contain PFAS when on sale in retailers and online.
- Reporting requirements: Many states require companies to report products that have intentionally added PFAS. The U.S. government also has a one-time backward looking reporting requirement under TSCA, however, there are proposed changes to this requirement that would significantly reduce and/or eliminate reporting requirements for most outdoor companies.
Extended Producer Responsibility (EPR): Shifting Responsibility of Products’ End-of-Life
Governments are increasingly holding producers responsible for the waste their products and packaging create, and are turning to Extended Producer Responsibility (EPR) programs. EPR assigns producers financial or operational responsibility for the collection and recycling of their goods, which often entails:
- Stewardship organization enrollment: Producers can be required to join a Producer Responsibility Organization (PRO) and pay fees based on the volume and material type of their packaging.
- Textile recovery registration: California became the first state in the U.S. to enact a textile EPR program. Brands doing business in California will soon be required to register with a PRO and pay fees to fund the repair, sorting, and recycling infrastructure for apparel and textile articles.
- Eco-modulated fees: Many EPR programs are implementing “eco-modulation,” meaning fees are adjusted based on the product’s sustainable attributes.
Green Claims: Eliminating “Greenwashing”
Vague claims like “sustainable” or “eco-friendly” are facing global unprecedented scrutiny. Multiple U.S. states and other countries have introduced guidelines to ensure environmental marketing messaging is accurate. While laws differ, outdoor companies generally need to:
- Substantiate all sustainability claims: Under current federal guidelines, brands must be able to prove any environmental claim they make with reliable evidence.
- Adhere to state-level laws: While every state has laws prohibiting deceptive conduct, many have made “greenwashing” (the act of making false or misleading claims about the environmental benefits of a product) a violation of consumer protection laws.
- Disclose carbon offset processes: California now requires companies that use “net zero,” “carbon neutral,” or similar terminology to disclose on their website how those claims are achieved (CA AB 1305).
Ensure Your Outdoor Brand is Compliant in 2026
As new laws take effect, OIA is here to help outdoor companies implement sustainable business practices and remain compliant. We recently released an updated version of our “Guide to Comply” exclusively for OIA members. This 20+ page resource covers the specific regulations impacting the outdoor industry in 2026.
In addition to this guide, our Support Plus and Leadership members get access to our Sustainability Policy and Reporting Task Forces. These groups provide time-sensitive alerts as new legislation emerges and a place to discuss compliance challenges with peers.
If you’re ready to learn more about the benefits of becoming an OIA member, get in touch with us.
References:
https://calrecycle.ca.gov/epr/textiles/
https://www.persefoni.com/blog/ab-1305
https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202320240AB1305
