Why It’s So Hard to Track the Fashion Industry’s Emissions

May 16, 2024 at 11:47 AM
Unraveling the Complexities of Fashion's Carbon Footprint Reduction Efforts

Unraveling the Complexities of Fashion's Carbon Footprint Reduction Efforts

As the fashion industry grapples with its environmental impact, the spotlight intensifies on the sector's efforts to significantly reduce its greenhouse gas emissions. With a labyrinthine supply chain that spans the globe, each garment carries with it a legacy of carbon emissions, from the cultivation of raw materials to the final retail experience. However, the journey towards sustainability is fraught with complexities, as companies navigate the murky waters of carbon accounting and strive to align with evolving regulations and consumer expectations.

Peeling Back the Layers of Fashion's Environmental Commitments and the Roadblocks to True Sustainability

The Intricacies of Fashion's Supply Chain and Emissions

Consider the journey of a single piece of apparel. From the cotton fields to the spinning mills, and from the bustling textile factories to the gleaming storefronts, each step in the creation of clothing is a potential source of carbon emissions. The fashion industry's supply chain is a vast and intricate network, with each node contributing to the sector's substantial environmental footprint.

For instance, the cultivation of cotton, a common textile material, involves not only the use of agricultural machinery but also the application of fertilizers and pesticides, all of which contribute to the emission of greenhouse gases. The subsequent stages of yarn spinning, fabric weaving, and garment manufacturing further amplify the carbon output, making the fashion industry a significant player in global emissions.

The Carbon Accounting Conundrum in Fashion

Accurately measuring and reporting emissions within the fashion industry is a daunting task. Companies like PVH Corp., which owns prominent brands such as Tommy Hilfiger and Calvin Klein, have faced challenges in maintaining consistent carbon accounting practices. Changes in calculation methods can lead to discrepancies in reported emissions, complicating the assessment of true progress in emission reduction.

Similarly, other major retailers have struggled with the intricacies of carbon accounting. Kohl's Inc. and L.L. Bean Inc., for example, have only recently begun to track and report their indirect emissions, revealing the industry's broader struggle with establishing a clear and comparable emissions baseline.

Evaluating the Emissions Trajectory of Major Apparel Companies

Despite the challenges, efforts to quantify the carbon footprint of the fashion industry are underway. Bloomberg Green's investigation into the emissions of 38 apparel companies with substantial annual revenues uncovered a mixed picture: while some companies reported reductions in emissions, others saw increases.

The inconsistency in emissions tracking and reporting hinders the ability to gauge the industry's overall progress. The lack of a standardized approach to carbon accounting means that even as some companies make strides in reducing their emissions, the overall picture remains blurred.

The Role of Science Based Targets in Fashion's Emission Goals

Many fashion companies are turning to the Science Based Targets initiative (SBTi) for guidance on setting and achieving emission reduction goals. This UN-backed nonprofit provides a framework for companies to align their carbon reduction efforts with the latest climate science.

Companies like Patagonia Inc. are leveraging SBTi's targets to drive their sustainability strategies, although the initiative does not prescribe specific pathways to achieve these goals. The onus remains on companies to innovate and implement effective measures to reduce their carbon footprints.

The Scope 3 Emissions Challenge in the Fashion Industry

Scope 3 emissions, which encompass indirect emissions from a company's supply chain, pose a significant challenge for the fashion industry. These emissions often dwarf the direct emissions from a company's owned operations and can account for the majority of a fashion brand's carbon footprint.

Addressing Scope 3 emissions requires a deep dive into the supply chain, from the production of raw materials to the end-of-life disposal of garments. However, many companies are still in the early stages of identifying and reporting these emissions, highlighting a critical area for improvement in the industry's sustainability efforts.

Strategies for Reducing Emissions in Fashion's Supply Chain

Fashion companies are exploring various strategies to reduce their supply chain emissions, including the adoption of sustainable materials and the transition to renewable energy sources. Brands like Burberry Group Plc and Gap Inc. have reported emission reductions by working closely with their suppliers to improve energy efficiency and shift away from fossil fuels.

Levi Strauss & Co. has also seen significant emission reductions through supplier engagement, with key suppliers committing to move away from coal and invest in renewable energy. These collaborative efforts are essential for driving change across the industry's extensive supply chain.

The Emerging Regulatory Landscape for Emissions Disclosure

The fashion industry is facing increasing regulatory pressure to disclose emissions data. In the European Union, large companies are now required to report their direct and significant indirect emissions, while the US Securities and Exchange Commission has proposed rules for large public companies to disclose their carbon footprints.

These regulatory developments signal a shift towards mandatory emissions reporting, which could lead to greater transparency and accountability in the industry's sustainability efforts.

Circularity: Fashion's Ambitious Goal and Its Obstacles

Circularity represents a visionary goal for the fashion industry, aiming to keep garments in use for longer and out of landfills. The concept involves repairing, reselling, and recycling clothing to create a closed-loop system that minimizes waste and emissions.

However, the path to circularity is fraught with challenges, including the profitability of resale models and the scalability of recycled materials. As the industry pursues this ambitious goal, it must navigate these obstacles to make circularity a practical reality.

The Impact of Production Levels on Fashion's Carbon Emissions

One of the most direct ways to reduce the fashion industry's carbon emissions is to decrease production levels. Companies like Gap have acknowledged the role of lower inventory volumes in their emission reductions, while others have seen emissions rise in tandem with business expansion.

Reducing production is a difficult proposition for an industry driven by growth, but it underscores the need for a more sustainable approach to fashion that prioritizes environmental considerations alongside economic objectives.