The report highlights several key issues. Notably, only 3% of brands disclose financial support for workers impacted by the climate crisis, with many shifting the costs of transitioning to renewable energy onto factories, thereby overburdening workers and communities. The findings indicate a significant transparency gap, with just 43% of brands open about their energy procurement and a mere 10% disclosing supply chain-level energy practices.
Moreover, the report criticizes the industry's approach to decarbonisation, noting that 94% of major brands fail to disclose investments in supply chain decarbonisation, and only 6% contribute to joint climate funds. The lack of long-term investment and fair purchasing practices exacerbates power imbalances between brands and suppliers.
Despite some progress, such as Puma's ambitious new greenhouse gas reduction targets, the overall industry performance remains lackluster. Only four out of 250 brands have set emissions reduction targets aligned with UN goals, and many companies are yet to establish coal phase-out or renewable energy targets. With the 2030 deadline for limiting global warming approaching, the report underscores the urgent need for collective action and systemic change within the fashion industry.