Stock Groups

Fashion industry risks falling short of green goals, Business of Fashion report says -Breaking

[ad_1]

© Reuters. FILE PHOTO – People are seen standing next to a window in the fashion shop in Tokyo’s shopping district, Japan. May 30, 2016. REUTERS/Thomas Peter/File Photo

PARIS, (Reuters) – The 30 most prominent fashion businesses are in danger of not meeting social and environment targets of the Paris climate deal and UN Sustainable Development Goals. This is despite some incremental improvement by sector leaders. A report released Tuesday by the Business of Fashion.

Consumers and governments are increasingly pressing fashion brands to demonstrate that they care more about the environment. This is especially true for younger generations.

“You’ve got some front runners making small steps of progress but fundamentally the big picture is that the industry is wildly underperforming,” Sarah Kent, chief sustainability correspondent of The Business of Fashion, a key fashion industry trade publication, told Reuters.

The Business of Fashion Sustainability Index 2022 was its second annual report. This index analysed public information regarding environmental goals and policies of fashion companies across three different categories: sportswear, luxury and street.

Puma scored 49 out of 100 points, which was followed by the leader last year. Kering (EPA:), who remained at the top of the luxury player rankings. Levi Strauss (NYSE:), H&M Group and Burberry — a new addition to the study this year– were next in the rankings.

Kering, Puma and H&M said that they couldn’t provide any immediate comment. Levi Strauss, H&M and Burberry did not immediately reply to a request for comment on the report.

“There are signs of progress but it’s largely incremental,” Kent said. “We’re not seeing the big transformational leaps that we really do need to see over the next 8 years in order to get from where we are today to an industry that is operating at a level that is not going to blow through the ambitions of the Paris climate agreement.”

As regulators and customers become more demanding, companies run the risk of losing their cultural relevance.

The companies scored the highest overall in progress on reducing carbon emissions, while making the fewest progress in decreasing waste.

According to the report alternative business models are required in the industry.

“This is a very difficult problem for executives of fashion companies. How can you please shareholders without generating more production? Kent said.

This year’s report had a wider scope than last year, which resulted in lower overall scores. It also doubled the number companies compared to 2015.

Kent stated that “More businesses meant worse outcomes almost everywhere”

[ad_2]