Major brands are failing to say what fuels fashion, with new research urging companies to invest 2% of their annual revenue in support of a ‘just transition’

A new report from Fashion Revolution finds that of the 250 leading global fashion brands studied, less than half are publishing data on where their energy is sourced.
Published
August 8, 2024

Lack of transparency around fashion industry’s carbon footprint

A new report entitled ‘What fuels fashion’ has revealed that the scale of fashion’s carbon footprint is likely being masked, as brands fail to offer transparency around their emissions and sustainability practices. Presently estimated to be responsible for anywhere between 2-8% of global greenhouse gas emissions[i], the $2.4 trillion fashion sector[ii] has been criticised in new research which found that scope 3 emissions are continuing to rise, despite the introduction of SBTi targets.

The research conducted by Fashion Revolution, found that of the 250 leading fashion brands studied – all of whom had a turnover of $400 million or more – just 47% had introduced SBTi-validated targets, up from 34% in 2023. Of these 117 brands, 105 provide updates on their progress, with 42 brands reporting increased scope 3 emissions versus their baseline year. Concerningly, almost a quarter of the world’s 250 biggest fashion brands were found to disclose nothing relating to decarbonisation, which the researchers say signifies that the climate crisis is simply not a priority for them.

What fuels fashion? Brands urged to come clean on energy use

Fashion Revolution’s study exposed a lack of disclosure relating to fossil fuel use, where only 43% of companies studied were found to be transparent about their energy procurement at the operational level, with even fewer (just 10%) at supply chain level. It also found that the fashion industry lags behind other sectors with regards to achieving climate targets and reducing emissions: 86% of companies lack a public coal phase-out target, 94% a public renewable energy target, and 92% fail to provide a public renewable electricity target for their supply chains.

Further, the research draws attention to ongoing issues with waste in the fashion sector, where shockingly 89% of the brands surveyed still fail to disclose how many clothes they make annually. In addition, almost half (45%) disclose neither how much they make, nor the raw material emissions footprint of what is produced. The researchers suggest this signals that the industry prioritises resource exploitation, whilst avoiding accountability for environmental harms linked to production.

To support sustainable manufacturing in the fashion sector, the researchers call on big fashion brands to urgently invest at least 2% of their annual revenue into a Just Transition, away from fossil fuels. Maeve Galvin, Global Policy and Campaigns Director at Fashion Revolution said:

“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.”[iii]

References

[i] UN Alliance For Sustainable Fashion addresses damage of ‘fast fashion’ (unep.org)

[ii] Ibid

[iii] FINAL-UNDER-EMBARGO-UNTIL-1PM-BST-1ST-AUGUST-2024-WHAT-FUELS-FASHION-REPORT-FASHION-REVOLUTION-1-3-1-copy.pdf (fashionrevolution.org)

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Lauren Foye
Head of Reports

Lauren has extensive experience as an analyst and market researcher in the digital technology and travel sectors. She has a background in researching and forecasting emerging technologies, with a particular passion for the Videogames and eSports industries. She joined the Critical Information Group as Head of Reports and Market Research at GRC World Forums, and leads the content and data research team at the Zero Carbon Academy. “What drew me to the academy is the opportunity to add content and commentary around sustainability across a wealth of industries and sectors.”

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