While the increased focus on sustainability throughout the supply chain could be reason for concern, woolgrowers should be optimistic about the opportunities.
That was the message from Woolmark company's marketing and communications general manager Laura Armstrong, who spoke at the Women in Wool lunch at the Australian Sheep & Wool Show at Bendigo.
More and more regulation is coming into the fashion sector, which has been named the third most polluting industry in the world, following years of predominantly self regulation.
Among those touted are the New York Fashion Act, which is calling on large fashion companies to be responsible for worker and environmental exploitation.
"They want to eliminate waste and curb - or even remove - fast fashion," Ms Armstrong said.
In the European Union, which has introduced a number of regulations in recent years on this topic, is the Corporate Due Diligence Directive, which would ask any large company to declare the impact of its full supply chain.
"Transparency and traceability is the new normal," Ms Armstrong said.
One of the biggest challenges, she said, is that lawmakers and academics are basing much of their sustainability advice using "average science and methodology sets".
"They are well intended but they are using average datasets and Australian woolgrowers are far from average," she said.
"They've got methodologies now that say a synthetic jumper is better than a wool jumper - it's crazy."
As a result, much of Australian Wool Innovation and Woolmark's marketing campaign has been focused on collating the data and science to show a realistic view of the industry, she said.
But it is not just in legislation where the conversations are changing.
"We've got shifting landscape in terms of laws and a shifting consumer mindset," Ms Armstrong said.
"Gen Z - those under 25 - they want something different, they want something better.
"For them that means better environment, better social factors and better working experience - that's not crazy, that's progress."
Ms Armstrong said part of this was an increased focus on sustainability.
"Sustainability is not a buzz term anymore," she said.
"It is a fundamental pillar of how consumers perceive and make decisions now and for the future.
"We need to respect that whenever we build our marketing strategies."
Ms Armstrong said an important step will be increasing consumer awareness about the importance of fibres.
She said buyers looking at a new item of clothing will consider a range of factors including style preferences, budget and if the item is available in their size.
"It is very rare that fabric composition comes into the thinking process," she said.
"We have to give people a reason to stop, care to check the label and make a decision also based on fabric composition."
As a result of this research, the Woolmark Company developed its 'wear wool, not fossil fuel' campaign.
"The campaign is a lot more pointed than our usual approach but we have lawmakers sitting there making legislation with misinformation," Ms Armstrong said.
"We have to get to the point, it's important we're strong in our campaigns."
She said follow-up after the campaign launched showed more than 80 per cent of consumers they spoke with after viewing the campaign said they would consider wearing wool more often after watching the ad, while 75pc would consider wearing synthetics less and 85pc consider wool good for the environment.
"There is a huge level of disruption right now, is a state of flux but it is not something to worry about," Ms Armstrong said.
"We see this as a massive opportunity because Australian wool is ticking every single box from a government point of view and a consumer point of view.
"We are natural, biodegradable, renewable, we are the most recycled apparel fibre on earth."
She said farms also had natural capital, which could help store carbon, renew biodiversity and had natural ecosystems - further box ticking.
She said the big focus in the future was data, science and certifications that could held defend the wool story.
"To be successful, we need people to embrace their sustainability," she said.
But Ms Armstrong says the focus should be on the opportunities rather than the change.
"It does feel a little scary but we could not be more optimistic," she said.