Supply chains of over 100 fashion brands linked to oil, gas fracking in Texas

Dive Brief:

• The supply chains of over 100 fashion brands are linked to oil and gas fracking in the Permian Basin in Texas, due to their sourcing of fossil-fuel derived synthetic fibers, according to a new report from climate group Stand.earth.
• The report found 107 fashion companies using textile materials that rely on petrochemicals. Of these, 57 have explicit policies to phase out or reduce virgin polyester, which Stand.earth said was necessary to reduce the sector’s carbon footprint. Brands that have such transition policies in place include Ralph Lauren, Puma, Levis Strauss & Co., H&M, Marks and Spencer, Lululemon, The Gap and Adidas.
• The environmental organization also released a “Fracked Fashion Map” — an interactive tool connecting the Texas-linked supply chain to numerous countries, garment production and the 107 fashion brands. Stand.earth said the map serves as a visualizer and represents the supply chain links that tie a brand’s polyester clothing to fracking.

Dive Insight:

Of the over 100 brands whose supply chains have ties to Texas-based fracking, Inditex — the parent company behind Zara, Massimo Dutti and Bershka — was identified as one of the largest purchasers of synthetic fibers by volume. Meanwhile, activewear apparel retailer Lululemon was found to use synthetic fibers generated from fossil fuels for more than 72% of its apparel and footwear products, per the report.

Petrochemical-generated synthetic fibers — such as polyester, nylon and acrylic — are expected to make up for 73% of global apparel production by 2030, according to a report by the Changing Markets Foundation, despite these fibers having links to exacerbated climate change, health risks and increased waste. Stand.earth said synthetic fibers also make up a big portion of the raw materials used by the fashion and garment industry to manufacture and produce items.

“As international fashion brands increasingly rely on these materials, the environmental and social toll of fracking becomes a critical concern,” Stand.earth said in a press release Thursday.

The fashion industry and its supply chain are the world’s third largest polluter, according to a 2021 World Economic Forum report. The sector emitted almost 10% of the world’s greenhouse gas emissions annually — more than those generated by international flights and maritime shipping combined, per a study from the European Parliament.

Sustainability leaders, industry stakeholders and academic experts alike have previously called on the fashion sector to adopt practices that can help curb its vast carbon footprint.

Stand.earth constructed its Fracked Fashion Map using companies’ 10-K filings, supplier disclosure documents, customs records, export and import data, investor presentations and company and government websites. Users can sort through brands and parent companies linked to fracking in Texas.

The climate group focused on the Permian Basin as a starting point for its interactive tool because it said the area represents the highest potential generated emissions from any proposed or existing oil- and gas-related extraction plant. The Permian Basin currently has the capacity of emitting 27.8 gigatons of carbon dioxide, per Stand.earth’s Dec. 12 report.

The interactive tool’s supply chain network originates from six companies leading fracking in the area: Chevron, Oxy, Diamondback Energy, Pioneer, EOG Resources and Devon Energy. 

Stand.earth estimated that, when combined, these fossil fuel giants produce ethane and other hydrocarbons — such as natural gas liquids — at almost twice the rate of the average natural gas liquids yield in the Permian Basin. Extracted ethane is then sold to the petrochemical industry, both domestically and abroad, and then converts ethane into ethylene, a key building block of polyester and most single-use plastics.

Stand.earth said the report and interactive tool “demonstrates that the fashion industry is contributing to the growth of the fracking-derived petrochemical industry through its sourcing of virgin polyester.”

“The fashion industry is on track to become a major player in driving the expansion of fracking,” Devyani Singh, an investigative researcher for Stand.earth Research Group, said in a release. “This investigation puts a spotlight on the gap between what apparel companies say and what apparel companies actually do.”