Summary
- The fashion industry is believed to contribute up to 8% of worldwide emissions
- The Sustainable Apparel Coalition aims for a 45% emissions decrease by 2030
- Brands part of the Fashion Pact commit to achieving 100% renewables in their operations by 2030
- However, 96% of emissions stem from supply chains and consumer use, trending upward
- Suppliers’ climate targets are hindered by procurement strategies prioritizing cost over sustainability
In the midst of rising global temperatures, industries, including fashion, are falling short in reducing greenhouse gas emissions. Despite numerous labels and commitments, the fashion industry’s progress in curbing carbon emissions remains inadequate. The fashion industry contributes around 2% to 8% of global emissions, depending on factors such as energy sources and consumer behaviors (whether consumers washing and drying their clothes is taken into account).
While the technology to significantly reduce emissions exists, it needs to be complemented by material efficiency and reduced over-production. McKinsey’s analysis suggests that merely decreasing discounted stock by 15% could lead to a 10% emissions reduction with minimal impact on value.
There’s no shortage of industry groupings that could move the sector forward, although with many of the same members. The 160 brands who’ve signed up to the Fashion Pact have pledged to have 50% renewables in their own operations by 2025, and 100% by 2030.
The collective target is attainable, largely due to the efforts of approximately one-third of members who reached the target in 2020. Additionally, several preliminary initiatives are underway to create more environmentally friendly raw materials. The Sustainable Apparel Coalition (SAC) has outlined a decarbonization strategy to achieve a 45% emissions reduction within the industry by 2030. Starting this year, the SAC is asking brands and retailers to commit to setting science-based targets, a step already taken by around half of them.
Setting a science-based target “should be non-negotiable for this industry”, says Richard Wielechowski, who heads the textiles program at financial think-tank Planet Tracker. But, he adds, then comes the challenge of delivering. The Science Based Targets initiative (SBTi) requires emissions reductions of at least 4.2% a year to stay on a pathway aligned with keeping global heating within a limit of 1.5 degrees Celsius.
Initiatives like Ad Net Zero and Fashion Pact are aiming to drive change, with targets set for renewable energy integration. However, the industry’s carbon emissions largely stem from the supply chain, making it challenging to address. Some 96% of the total emissions of the fashion brands are in Scope 3, which occurs in the industry’s supply chain, and in their products’ use and eventual disposal. Manufacturers are encouraged to adopt science-based targets, but smaller enterprises lack the resources for such commitments.
However, the SAC has agreed that manufacturers must set targets only for Scope 1 and 2 emissions – those under their direct control or from the generation of electricity which the company consumes.
Some of the big manufacturers, like YKK, have set science-based targets, but Andrew Martin, SAC’s executive vice president, says many small to medium enterprises (SMEs) do not have the knowledge, skills or resources to set them. It plans to support them to do so, but Martin notes that “many manufacturers have a very limited ability to influence their Scope 3, which is largely determined by brand choices.”
The supply chain’s tiers present distinct challenges, with emissions concentrated in fabric production and treatment. Innovations in renewable energy and efficient processes are sought to mitigate these challenges. However, comprehensive data transparency and harmonized regulations are needed to drive industry-wide change.
One brand that has been transparent about its commitments is Swedish fast fashion chain H&M, which is now considered a sustainability leader on many indices. It ranked sixth on Fashion Revolution’s latest Fashion Transparency Index, scoring 71%.
H&M’s target is a 56% reduction in Scopes 1 and 2; as well as a 56% reduction in Scope 3 emissions by 2030, compared with a 2019 baseline. As is the case in most companies, H&M’s Scope 3 emissions are 90 times emissions in its own operations. Its latest report, for 2022, shows it’s so far cut them by 7% to around 5.6 million tonnes, compared with its 2019 baseline. And this progress doesn’t include the consumer use phase, which adds another 1.4 million tonnes.
H&M’s transparent commitments highlight a shift toward sustainability, yet there’s a lack of quality data for comprehensive industry comparisons. Efforts are underway to map supply chains and collaborate for positive changes. However, obstacles such as foreign-exchange risks and due diligence hinder investments in crucial areas.
Collaborative approaches are crucial for the industry’s carbon reduction. Sustainability targets must involve supply chains, as most emissions occur there. Pressure from investors and public commitments are necessary catalysts for change. Brands should share risk with suppliers, fostering investments in sustainable practices.
Achieving net-zero emissions in the fashion industry will demand significant investment. Initiatives like green bonds and blended finance are being explored, yet the industry requires a comprehensive approach involving stakeholders, governments, and investors.
In a changing landscape, the challenge for brands lies in creating fewer, higher-quality products. The road to reducing emissions is complex, demanding collaboration, innovation, and a reimagining of production practices.
Source: Reuters
