Fashion Industry Struggles with Fossil Fuel Dependence and Transparency

Editorial TeamEditorial Team
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August 13th, 2024
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3:05 PM

Despite the pressing climate crisis, fashion brands are lagging in reducing fossil fuel use across their supply chains, according to a new report from Fashion Revolution. The "What Fuels Fashion" report, a special edition of the Fashion Transparency Index, scrutinizes 250 major fashion brands and retailers, each with annual revenues exceeding $400 million. The report reveals that these brands continue to heavily rely on fossil fuels at every production stage, and their reduction targets are insufficient to meet global climate goals.

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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.