Report: Nearly 25% of world’s biggest fashion brands disclose nothing on decarbonization

Report: Nearly 25% of world’s biggest fashion brands disclose nothing on decarbonization
04 / 08 / 2024
By Marwa Nassar - -

* Big fashion brands must urgently invest at least 2% of their annual revenue into transition to renewable energy

* Long-term investment is key to decarbonizing fashion’s supply chains

* Puma, Gucci, &M among top scoring brands

* Extreme weather could cost nearly 1 million jobs in the sector

* Only 3% disclose efforts to financially support workers affected by climate crisis

Nearly a quarter of the world’s biggest fashion brands disclose nothing on decarbonization, 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, according to a recent report by Fashion Revolution.

The report – entitled “What Fuels Fashion – said 117 out of the 250 brands with decarbonization targets, 105 brands disclose updates on their progress – but 42 brands report increased scope 3 emissions against their baseline year.

Within this context, highest scoring brands in 2024 include  Puma – 75%, Gucci – 74%, H&M – 61%, Champion – 58%, Hanes – 58%, Calzedonia– 52%, Intimissimi – 52%, Tezenis – 52%, Decathlon – 51%, ASICS – 50%, lululemon – 50%, Hermès – 49% and Adidas – 49%.

Lowest scoring bands in 2024 include Aeropostale, BCBGMAXAZRIA, Beanpole, Belle, Billabong, Bosideng, Celio, DKNY, Fabletics, Fashion Nova, Forever 21, Heilan Home, KOOVS, Longchamp, Max Mara, Metersbonwe, Mexx, New Yorker, Nine West, Quicksilver, Reebok, Revolve, Roxy, Saks Fifth Avenue, Savage X Fenty, Semir, Smart Bazaar, Splash, Tom Ford, Tory Burch, Van Heusen, and Youngor.

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 prioritizes 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 scrutinized 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 decarbonize, nearly all (94%) big fashion brands fail to disclose how much they are investing in supply chain decarbonization.

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 clothes.

Long-term investment is key to decarbonizing fashion’s supply chains. The industry’s prioritization of short-term profit is at odds with supply chain decarbonization. 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 specialized segments like sportswear, outperform others in this research due to greater leverage and commitment to long-term improvements. The renewable energy transition in fashion hinges on systemic changes that prioritize collective brand action, responsible purchasing, and investment in a stable supply base.

While extreme weather could cost nearly 1 million jobs in the sector, Fashion Revolution also reveals that most big fashion brands are not protecting their supply chain workers. Only 3% (just seven brands) disclose efforts to financially support workers affected by the climate crisis.

This is critical given the weak social protection in garment-producing countries and the poverty wages and high debt levels of these workers. Frequent climate events like heat waves, monsoons, and droughts are devastating their livelihoods. Fashion Revolution says that big fashion must urgently provide compensation mechanisms for these workers, not as charity but as a matter of justice.

“By investing at least 2% of their revenue into clean, renewable energy and upskilling and supporting workers, fashion could simultaneously curb the impacts of the climate crisis and reduce poverty and inequality within their supply chains. Climate breakdown is avoidable because we have the solution – and big fashion can certainly afford it.” Said Maeve Galvin, Global Policy and Campaigns Director at Fashion Revolution.

 

 

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