Fashion Industry’s Climate Commitments Are Slowing, Report Finds
As a largely disappointing COP30 concluded in Belém, Brazil, at the end of November, the Fashion for Climate initiative released its annual report on December 16th, assessing the sustainability progress within the global fashion industry. Titled “From Commitments to Transparency,” the report reveals that momentum in the industry’s efforts is… slowing down.
Seven years after the launch of the Fashion Industry Charter for Climate Action, climate commitments are now commonplace, widely discussed, and incorporated into strategic planning. However, the shift towards genuine sustainability remains incomplete and inconsistently applied, particularly when it comes to translating pledges into tangible reductions in greenhouse gas (GHG) emissions.
The Charter’s goal is clear: to achieve carbon neutrality by 2050, with substantial progress required by 2030 to align with the ambition of limiting global warming to 1.5°C. To facilitate this, the Charter organizes action around commitments covering all GHGs, following the internationally recognized Scopes framework. Scope 1 encompasses direct emissions from sources like combustion and industrial processes, Scope 2 covers indirect emissions from purchased electricity, and Scope 3 includes all other indirect emissions, most notably those originating from the supply chain – from raw material extraction to product end-of-life.
The newly published report analyzes data submitted by 69 signatory companies for the year 2024, yielding mixed initial results. Progress on Scopes 1 and 2 is relatively encouraging, with nearly 60% of the companies analyzed currently on track to meet their reduction targets. This improvement is driven by increased use of renewable electricity, energy efficiency programs, and the phasing out of coal.
Several companies offer concrete examples of this positive trend. Japanese manufacturer YKK, for instance, has reduced its Scope 1 and 2 emissions by 57% since 2018, achieving this through the complete elimination of coal-fired boilers and powering over 60% of its facilities with renewable energy. Crystal International Group demonstrates the rapid impact of energy efficiency, having significantly reduced its carbon intensity in just one year through over 200 targeted projects at its factories.
In stark contrast, Scope 3 emissions, which constitute the vast majority of the fashion sector’s carbon footprint, remain a significant challenge. The report indicates that only 30% of signatories are currently on a path consistent with their stated objectives. This difficulty arises from the inherent complexities of the fashion industry: its reliance on globalized supply chains, the large number of suppliers involved, and unequal access to low-carbon technologies and financial resources.
The report also notes improvements in transparency, although these remain uneven. While 80% of companies now report emissions across all three Scopes, many still struggle to provide comprehensive and comparable data, particularly for Scope 3. Fashion for Climate emphasizes that without reliable data, effective decarbonization efforts are impossible. However, some initiatives offer promising solutions. Adidas, for example, has developed its internal EPIC eco-design tool, which measures a product’s carbon footprint throughout its entire lifecycle, demonstrating how measurement can be a key driver of transformation when integrated into the design process.
Finally, the report highlights a widening gap between “leaders” and “beginners.” Leaders are characterized by validated targets, detailed transition plans, adoption of renewable energy, and active supplier engagement. Beginners are still focused on measurement and reporting. This disparity presents a significant risk; without stronger collaboration, increased financial support, and the sharing of best practices, the industry’s collective progress will be insufficient, the report concludes.
