Big fashion brands urged to invest ‘modest’ 2% of revenue into just transition

The world’s biggest fashion brands are being urged to invest at least 2% of their annual revenue into a just transition away from fossil fuels, according to a report.

Fashion Revolution, a global activism movement, analysed 250 major brands and retailers with a turnover of 400 million US dollars (£313 million) or more based on the extent to which they are publicly sharing climate-related targets and actions.

The findings in its annual transparency index report show nearly a quarter of the world’s biggest brands disclose nothing on decarbonisation, meaning there is no opportunity for scrutiny and accountability.

This is despite fashion remaining one of the most polluting industries globally.

The analysis found only four out of 250 brands have emissions reduction targets that meet the Paris Climate Agreement to limit warming to 1.5C above pre-industrial levels.

Less than half of the brands – 177 of 250 – were found to have publicly shared their decarbonisation targets.

Of these, 42 brands reported their emissions had increased.

The report also warned that brands are not investing in a fair transition away from fossil fuels but instead shifting the costs of climate mitigation and adaptation on to factories in their supply chain.

These are often in developing countries with weak social protections and poverty wages in garment production.

Only 3% – just seven brands – shared efforts to financially support workers affected by the climate crisis, the paper said, adding that events like heatwaves, monsoons and droughts are devastating their livelihoods.

The team behind the report said big fashion can “certainly afford” to invest 2% of revenue on clean, renewable energy, supporting supply chain workers and curbing their impact on the climate crisis.

Speaking about calculating this figure, Ciara Barry, policy and campaign manager at Revolution Fashion, said: “We have really considered it and it’s actually quite fair and conservative.

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“Fashion brands are profitable,” she added, before urging brands to “put money where their emissions are”.

Liv Simpliciano, policy and research manager at Fashion Revolution, said many of the brands analysed are turning over billions each year.

“Our ask is modest,” she said.

“This isn’t a question of feasibility. It’s a matter of willpower.”

Elsewhere, the report warned that clothes branded as “sustainable” due to the materials not deriving from fossil fuels might still be made in factories powered by fossil fuels.

Most big fashion brands (89%) do not publicly share how many clothes they make annually, the paper said.

This means the potential extent of waste being produced each year is not clear.

Ms Simpliciano said: “We should all be absolutely outraged that there’s such a lack of transparency in how brands are tackling the climate crisis.

“It’s evident for the majority of them that it’s not a priority.”

Long-term supplier relationships and financial investments are essential for a clean, fair and just energy, the report said, adding that the industry’s current prioritisation of short-term profit is at odds with supply chain decarbonisation.

The report said: “It will not be possible for fashion brands to meet climate targets without publicly available, clear and credible strategies towards achieving them.

“The findings send a clear message: major fashion brands are evading accountability for their emissions, indicating that the climate crisis is not a priority for them.”

Key statistics from the report include:

– 94% of big fashion brands fail to disclose how much they are investing in supply chain decarbonisation.

– 86% of the 250 companies do not have a public coal phase-out target.

– 94% do not have a public renewable energy target.

– 92% do not have a public renewable electricity target for their supply chains.

– Less than half (43%) of brands are transparent about their energy procurement at the operational level.

– Only 10% publicly share energy procurement details at supply chain level.

– No major fashion brand discloses hourly matched supply chain electricity use, meaning big fashion’s zero-emissions claims may be disconnected from grid realities.

– Nearly half (45%) fail to disclose how much they make or the raw material emissions footprint of what is produced.

– 58% of brands disclose sustainable material targets.

– 6% disclose contributions, often to joint climate funds like the Fashion Climate Fund and Future Supplier Initiative. But these funds offer loans for infrastructure like solar panels, burdening suppliers with debt to meet brand climate targets.

– The report said 32 major brands scored 0% in its transparency calculations, including Max Mara, Reebok, Roxy, Tom Ford and DKNY.

– The highest scoring brands included Puma, Gucci, H&M, Adidas, Hermes and Lululemon.