Fashion brands failing to prioritise climate crisis and just transition, finds new report
A report from Fashion Revolution released in August 2024, entitled "What fuels fashion?" shows that the fashion industry is falling short on addressing the climate crisis, and ensuring a just transition for supply chain workers.
Key findings include:
- Nearly a quarter of the world’s biggest fashion brands disclose nothing on decarbonisation, signifying that the climate crisis is not a priority for them. Only four out of 250 have ambitious emissions reduction targets that meet the level of ambition called for by the United Nations. Meanwhile, of the 117 out of 250 brands with decarbonisation targets, 105 brands disclose updates on their progress – but 42 brands report increased scope 3 emissions against their baseline year. With the 2030 deadline to limit global warming to 1.5°C approaching in tandem with record-breaking heat waves, the industry faces a critical challenge.
- The fashion industry is lagging significantly in achieving climate targets and reducing emissions, with 86% of companies lacking a public coal phase-out target, 94% without a public renewable energy target, and 92% without a public renewable electricity target for their supply chains. Less than half (43%) of brands are transparent about their energy procurement at the operational level, and even fewer (10%) at supply chain level. Additionally, no major fashion brand discloses hourly matched supply chain electricity use. As a result, big fashion’s zero-emissions claims may be disconnected from grid realities, creating a false sense of progress against climate targets.
- The fashion industry is evading accountability both for churning out excessive amounts of clothing and the associated emissions released into the atmosphere. Most big fashion brands (89%) do not disclose how many clothes they make annually. Alarmingly, nearly half (45%) fail to disclose neither how much they make nor the raw material emissions footprint of what is produced, signalling the industry prioritises resource exploitation whilst avoiding accountability for environmental harms linked to production. The fashion industry wants to have its cake and eat it too.
- So-called ‘sustainable’ clothes may still be produced using fossil fuels. The fashion industry’s climate impact has largely been scrutinised through the lens of the materials used in our clothes, rather than the manufacturing processes behind them. While 58% of brands disclose sustainable material targets, only 11% reveal their supply chain’s energy sources, meaning ‘sustainable’ clothes might still be made in factories powered by fossil fuels.
- Suppliers need funding, not debt. Despite being the largest emitters with the greatest financial responsibility to decarbonise, nearly all (94%) big fashion brands fail to disclose how much they are investing in supply chain decarbonisation. Only 6% disclose contributions, often to joint climate funds like the Fashion Climate Fund and Future Supplier Initiative. These funds offer supplier loans for infrastructure like solar panels. However, burdening suppliers with loans to meet brand climate targets is unfair and perpetuates existing power imbalances between fashion brands, their suppliers and the people who make our clothes.
- Long-term investment is key to decarbonising fashion’s supply chains. The industry’s prioritisation of short-term profit is at odds with supply chain decarbonisation. A clean, fair, and just energy transition must be driven by fashion embracing long-term supplier relationships and financial investments through fair purchasing practices. Vertically integrated brands and specialised segments like sportswear outperform others due to greater leverage and commitment to long-term improvements. The renewable energy transition in fashion hinges on systemic changes that prioritise collective brand action, responsible purchasing, and investment in a stable supply base.