Fashion Industry Fails to Meet Decarbonization Targets

A recent report by environmental advocacy group Stand.earth revealed that leading fashion brands continue to rely heavily on fossil fuels, hindering their progress toward decarbonization. The 2024 Clean Energy Close Up report analyzes the performance of 11 influential global fashion brands in reducing emissions and transitioning to renewable energy.

Despite the urgency of the climate crisis, most brands scored below 25 out of 100 possible points, indicating a lack of action and progress toward their 2030 emissions reduction targets. Notably, only Levi's, Puma, and H&M are currently on track to achieve a 55% reduction in manufacturing emissions by 2030.

Fast-fashion giant Shein emerged as a major concern, increasing its absolute emissions by almost 50% in a single year. Its rapid growth threatens to undermine the decarbonization efforts of other brands. The report also highlights the issue of "greenwashing," where companies market their products as environmentally friendly while concealing their actual emissions. Stand.earth's complaint against Lululemon, alleging misleading environmental claims, has prompted an official inquiry by the Canadian Competition Bureau.

According to the report, signs of progress are limited but encouraging. Puma, for example, reported significant growth in clean energy last year, building in 27.4% of its electricity usage with renewables across its two key supplier tiers. However, the brand needs to report more details on its on-site power generation and power purchase agreements to prove that growth is tangible.

"Brands’ failure to take responsibility for their emissions by funding and enabling the transition to renewables, while continuing to make more stuff, will mean more fossil fuel dependence in the Global South where their products are made, and cause harmful health and climate impacts for decades to come,” said Rachel Kitchin, Senior Corporate Climate Campaigner, Stand.earth, and the report’s lead author. 

The report recommends that brands take several steps to improve their sustainability performance, including financing the renewable energy transition in their supply chains, being more transparent about who their suppliers are and where they are located and reducing their overall production of clothing.