The fashion industry is at risk of failing its sustainability targets, according to a report by The Business of Fashion. The report reveals that despite some progress from a few leading companies, the industry as a whole is underperforming in terms of its social and environmental goals set by the Paris climate agreement and the UN Sustainable Development Goals.
Puma topped the report, scoring the highest with 49 out of 100, followed by last year’s leader in luxury fashion rankings, Kering. Other companies that ranked well include Levi Strauss, H&M Group, and Burberry, which was newly added to this year’s study. On the other hand, the sportswear and high street fashion sectors had the lowest-scoring companies.
The pressure for fashion brands to demonstrate their commitment to sustainability has increased, with consumers and governments demanding more action. Younger generations, in particular, are highly concerned about the environment and are urging companies to take meaningful steps.
The Sustainable Index 2022, an annual report by The Business of Fashion, analyzed publicly-available information from companies in the luxury, sportswear, and high street fashion categories. While there are some signs of progress, the industry still lacks the transformative changes needed to achieve the goals set by the Paris climate agreement and other industry targets in the next eight years.
The report warns that companies risk losing their cultural relevance and long-term value if they do not address sustainability concerns. Regulators and consumers are becoming more skeptical of greenwashing, making it crucial for companies to take concrete actions. The report also highlights that reducing emissions has shown the most progress, while reducing waste has seen the least improvement.
According to the report, the fashion industry needs to develop alternative business models. Executives in fashion companies face the challenge of balancing shareholder satisfaction and financial growth with the need to reduce production and waste.
Compared to last year, this year’s report included double the number of companies, resulting in lower overall scores. This indicates that more companies are failing to meet sustainability targets.
It is evident that the fashion industry has a long way to go to achieve its sustainability goals. Incremental improvements are not sufficient to address the environmental impact of the industry. Fashion brands must prioritize sustainability in all aspects of their operations, from sourcing materials to production processes and waste management. Consumers are demanding transparency and accountability, and companies must take meaningful action to address these concerns. By making significant changes to their business models and adopting sustainable practices, fashion companies can protect the environment and secure their long-term success in an increasingly conscious market.
Useful links:
1. UN ActNow Campaign
2. Fashion Revolution
