Report Reveals that Nearly a Quarter of the World's Biggest Fashion Brands Disclose Nothing on Decarbonization

Fashion Brands & Lack of Transparency on decarbonization Efforts

Despite ample pressure from activists, transparency is far from standard practice in the fashion industry. Yet, if there is something brands are remarkably tight-lipped about, it is their adherence to climate and energy-related policies. This lack of transparency and commitment is what emerges from the report 'What Fuels Fashion?' a special edition of Fashion Revolution's 'Fashion Transparency Index.'

The 'What Fuels Fashion?' report focuses on five themes: accountability, decarbonization, energy procurement, financing decarbonization, Just Transition, and advocacy. The industry approach to these is assessed in the report by zooming in on the publicly disclosed information shared by 250 of the world's largest fashion companies.

The authors' choice to include only info and data in the public domain is no coincidence. That is the type of information that shareholders can use to drive the change needed in the industry.

Transition away from fossil fuels is needed, but big brands are still falling short

The amount of greenhouse gas emissions (GHG) produced by the fashion industry is enormous: about 2.1 billion tonsin 2018. At its current pace, this sector is on its way to keeping its emissions nearly double what's needed to remain within the 1.5-degree pathway. In spite of this, the report revealed how breaking away from the cause of this issue, fossil fuels, is not a priority for these big fashion brands.

Of the 117 fashion companies with publicly disclosed decarbonization targets, merely 105 disclose their progress toward their goals. 24% of the major fashion brands don't disclose anything on decarbonization, with 60% scoring 0% in the 'What Fuels Fashion?' report decarbonization section. In addition, less than 1% of these top brands disclose a target to electrify all energy-intensive manufacturing processes where feasible across the supply chain.

These data paint a grim picture, as according to the SBTi's Corporate Net-ZeroStandard, a climate-science-based framework for corporate net-zero, most businesses will have to reduce their GHG emissions by at least 90% to achieve net zero.

Transparency in terms of energy consumption is also lacking. 95% do not disclose an energy consumption breakdown by country in the supply chain, and 96% do not share a breakdown of energy consumption by supply chain process. With coal being the most carbon-intensive fossil fuel, a phaseout from it is a crucial part of progress toward climate targets, but just 14% of fashion brands disclosed commitments to phasing out coal in their supply chain.

The industry, though, does not support the fossil fuel industry just through its energy consumption but also via the materials it utilizes. According to the Changing Markets Foundation, synthetic fibers, ubiquitous in the fast fashion industry, make up 1.35% of global oil consumption. In this context, just 33% of these fashion companies share the breakdown of the fibers they source annually.

What is needed for decarbonization and a just transition?

The climate crisis directly impacts workers. By 2030, it is estimated that the total working hours worldwide could decrease by 2.2% because of climate crisis-induced high temperatures. The extreme weather caused by the climatecould also prevent the creation of 1 million new jobs in the apparel industry, according to a report by the GLI and Schroders.

The colonial, profit-driven business model of big fashion brands contributes to a climate crisis that directly impacts the livelihoods and well-being of workers, including garment ones. In the face of the climate crisis's burden on garment workers, only 3% of the companies analyzed in the report disclose what they are doing to compensate workers impacted by the climate crisis economically.

From the 'What Fuels Fashion? 'report, it is clear that the fashion industry has to decarbonize in a socially sustainable way across its value chain. The report asks large fashion brands to invest at least 2% of their yearly revenue into decarbonization and Just Transition efforts to achieve this goal. «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, the Global Policy and Campaigns Director at Fashion Revolution, to the press.

About the Author

Roberta Fabbrocino is a journalist specialized in climate change and sustainability-related topics. Her articles have been published in several international eco-publications. Roberta also works as a content writer for sustainable companies.