Key Takeaways
- Fashion Revolution’s report reveals that only 7% of brands are working towards electrifying high-heat processes in manufacturing.
- Ninety brands received zero scores for traceability, raising concerns about accountability and ESG compliance in the fashion industry.
- Only 6% of brands disclose investments in renewable energy, limiting transparency in climate finance and decarbonisation efforts.
Renewable Energy as a Key to Decarbonisation
Fashion Revolution has released its second edition of *What Fuels Fashion?*, an essential report evaluating the energy and decarbonisation strategies of 200 of the world’s largest fashion brands, which generate over $2.7 trillion in annual revenue. The report assesses brands on 70 indicators across areas such as accountability, energy procurement, and just transition. It highlights significant gaps in transparency and the urgent need for action to mitigate climate impacts.
The report identifies renewable energy for manufacturing as the most critical factor for reducing supply chain emissions. Unlike heavy industries, the fashion sector faces fewer technical barriers to electrification. Existing technologies, like heat pumps and electric boilers, can easily replace fossil-fuel-based thermal processes. Despite this, only 18% of brands have disclosed plans for phasing out coal from textile processing, and a mere 10% have set renewable electricity goals.
Accountability and Traceability Issues
A concerning 90 brands scored zero on traceability measures, with 59% of these brands publicly listed, creating a major accountability deficit for investors. This lack of supplier visibility hampers the ability to assess climate risks and fund effective decarbonisation initiatives. While 55% of brands claim verification under Science-Based Targets initiatives, only 29% provide proof of emission reductions from the baseline.
Effective collaboration with suppliers is lacking: only 20% of brands include them in climate target discussions. Tailoring decarbonisation strategies in partnership with suppliers could fortify these plans against climate shocks, yet few brands are making these connections.
Challenges in Energy Disclosure
While 60% of brands disclose energy sourcing in their operations, only 11% do so for their supply chains. Many rely on Renewable Energy Credits, which may obscure actual fossil fuel use, making it easy for brands to misrepresent their climate commitments.
Investments in renewable energy and efficiency remain minimal; just 6% of brands report financial commitments to these areas. The failure to provide ongoing operational support for suppliers also obstructs genuine progress in decarbonisation.
The report underscores the gap between the fashion industry’s aspirational communications about innovation and the outdated practices of fossil fuel reliance. As the availability of renewable energy increases, brands need to urgently confront their dependency on unsustainable fuels to protect both workers and communities.
The average brand score in the report is only 14%, with 39 brands receiving a score of 0%. Notable low performers include brands like Aeropostale and Forever21, while H&M leads with a score of 71%.
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