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New ACT tool to help fashion brands align with low-carbon goals

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New ACT tool to help fashion brands align with low-carbon goals

The new tool will help fashion and luxury brands evaluate their alignment with low-carbon goals. Credit: Prayoga Nugroho/Shutterstock.

This tool, named the ACT Fashion (Luxury, Mass, Premium) methodology, serves as a process to evaluate the level of commitment and realism in the climate strategies of companies within the industry. 

The purpose of the assessment is to evaluate a company’s past, present, and projected future performance in order to determine its level of maturity in transitioning to a low-carbon economy. 

The fashion sector is reported to contribute roughly 2-8% of the world’s greenhouse gas emissions (GHG). Fashion brands typically have the largest portion of their GHG footprint in Scope 3 emissions. 

Over recent decades, the industry’s greenhouse gas (GHG) emissions have risen significantly and are expected to continue increasing due to industry growth and prevailing trends, such as fast fashion and rising consumption in emerging markets. 

How it works: 

A company fills out an Excel data collection tool with its relevant data and submits it along with any supporting documentation for analysis.  

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Analysts then engage in a back-and-forth process with the company to review the data, develop a scoring assessment, and finalise the evaluation. This includes reviewing and cross-checking scores in areas such as material investments, target setting, efforts to address Scope 3 emissions, and supplier engagement. 

The development of the ACT Fashion methodology was spearheaded by Paris Good Fashion and adhered to the guidelines set forth by the ACT Guidance.  

A steering committee comprising brands such as LVMH, Chanel, Richemont, Etam Group, Galeries Lafayette Group and Lacoste, Climate Chance, WBA, and ADEME, was integral to this process. Technical assistance was provided by the ACT Initiative and funding from ADEME and Le Défi Mode. 

Initially subjected to public scrutiny through a consultation that attracted 180 participants, the methodology was subsequently put into practice by 12 volunteering firms. This step transformed theoretical concepts into practical applications. 

Insights from this practical application have been compiled into a comprehensive report. In addition to refining the methodology, this report shed light on commendable practices and identifies areas where businesses need to focus their efforts for improvement. 

The ACT Fashion methodology employs low-carbon scenarios consistent with a 1.5°C target. Two GHG emissions reduction pathways are used to establish company benchmarks: 

  • The SBTi Absolute Contraction Approach 
  • The CRREM Building (Sectoral Decarbonization Approach) for retail activities 

Assessments conducted using the ACT Fashion methodology must specify which scenario was utilised.  

Furthermore, assessments can incorporate any other scenario deemed sufficiently stringent and compatible with a 1.5°C target.


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