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How to increase revenue while reducing emissions in the fashion industry? Wildly complex visual but an important one. The fashion industry stands at a pivotal crossroads. With the urgent need to reduce greenhouse gas (GHG) emissions, many wonder if sustainability and profitability can truly go hand in hand. The good news? 55% of the levers required to cut 1.7 billion tonnes of GHG emissions by 2030 actually generate cost savings. Take logistics, for example. By shifting to 90% sea and 10% air transport, the industry could save over $600 per tonne of GHG emissions abated. Even simple changes like reducing polybag use and limiting corrugated boxes to three-ply can deliver significant savings. Furthermore, cutting e-commerce return rates from 35% to 15% through data-driven consumer insights could save nearly $360 per tonne of GHG emissions abated. However, not all sustainability efforts are cost-neutral. For instance, the use of sustainable materials like recycled polyester (rPET) may add costs—around $60 per tonne of GHG emissions abated. But it’s important to remember that 89% of abatement can be achieved at a cost of less than $50 per tonne—a relatively modest investment for long-term impact. This data-driven approach, visualized through an industry-level cost curve, helps brands understand the economic viability of various decarbonisation strategies. The curve reveals the potential savings and costs, encouraging brands to develop their own tailored sustainability roadmaps. The message is clear: Sustainable practices aren't just good for the planet - they're also increasingly good for business. As we move towards 2030, the fashion industry has a unique opportunity to lead the way in both reducing emissions and enhancing profitability. Excited we launched today the Fashion Masterclasses which allow for anyone interested in the ROI on sustainability to learn more on how to turn sustainability success in economic one. Visual: McKinsey & Company Sign up here: https://lnkd.in/dKa5iRQr #Sustainability #Fashion #Industry #GHGEmissions #CostSavings #SustainableFashion #ClimateAction #BusinessStrategy #fashion #sustainable #esg Visual: Global Fashion Agenda / McKinsey & Company

Fashion's sustainability report card?  More greenwashing than green Just read Kearney's 2024 Circular Fashion Index. It's a reality check on the industry's eco-efforts. Key findings that raise an eyebrow (or two): 📊 By the Numbers Industry average: 3.20/10.  Only 25 out of 235 brands scored above 5/10.  Top 10 leaderboard? Mostly unchanged. Seems like sustainability isn't as high as we thought. 🔍 A Closer Look Most brands are stuck in linear thinking.  For example, the cotton vs. polyester debate rages on, but here's the thing: neither is a clear winner for the planet.  The true paradigm shift? Rethinking product design from the ground up within the context of a circular economy. 👀 Looking Ahead: Sustainability regulations will push the industry towards real change – whether it's ready or not. I think the days of paying lip service to sustainability are numbered. The industry as a whole has to walk the walk, not just talk the talk. Read the report ➡ https://bit.ly/4ezdDjS See the regulatory changes coming into effect in Q4 2024 👇 What do you think is the biggest obstacle preventing fashion brands from achieving higher sustainability scores? #SustainableFashion #CircularEconomy #KearneyCFX2024 Data and image source: Kearney’s 2024 Circular Fashion Index PS 💫 Follow me for unfiltered insights on the business of fashion, beauty, and style.

Translating fashion’s decarbonization commitments into action has proved difficult, but the industry can reach its target. In our new analysis, I had the opportunity to coauthor, the most fashion brands could reduce their GHG emissions by more than 60 percent for less than 1 to 2 percent of their revenues. The way forward is complex, but we identified six challenges fashion brands can address to become more sustainable from keeping sustainability a core priority even when times are tough to providing more supply chain transparency, among others. Check out the challenges and actions that can help accelerate decarbonization in fashion: https://lnkd.in/daqixi6z  

Sustainable Style: How fashion can afford and accelerate decarbonization. Today, the global fashion industry accounts for an estimated 3% to 8% of total greenhouse gas (GHG) emissions, and the industry’s emissions are expected to increase by about 30% by 2030 if no further action is taken. Fashion brands, big and small, like many other industries, have made ambitious, public commitments to creating more sustainable apparel by 2030. But keeping pace with their decarbonization commitments has been a challenge across the industry. About two-thirds of brands, according to a new McKinsey & Company analysis, are behind on their own decarbonization schedules, and 40% have seen their emissions output increase since making their sustainability commitments. While translating fashion’s decarbonization commitments into action has proved difficult, my colleagues Jonatan Janmark, Karl-Hendrik Magnus, Ignacio Marcos, and Evan Wiener outline, in this 'Insights to Impact' report, what the industry can do to reach its targets. https://lnkd.in/e89xnTm6 #sustainable #inclusive #growth

🌍 Transforming Fashion for a Sustainable Future 🌱 The fashion industry, renowned for its creativity, also carries a heavy environmental and social footprint. Responsible for significant global greenhouse gas emissions and resource consumption, it's imperative for the industry to pivot towards sustainable practices. Key Takeaways: 🔄 Circularity & Sustainability: Emphasizing the need to design out waste, keep materials in use, and adopt practices that reduce environmental impact and promote social well-being. ♻️ Carbon Management: Highlighting innovative carbon management practices, such as Kering’s Environmental Profit & Loss (EP&L) account and Nike’s commitment to renewable energy. 🌟 Net-Zero Initiatives: Strategies to achieve net-zero emissions by transitioning to renewable energy sources, implementing energy-efficient measures, and enhancing carbon sequestration. 💡 Consumer Role: The importance of educating consumers about sustainable fashion choices and promoting sustainable consumption habits. Engaging in consumer activism and supporting policies that encourage transparency and accountability. 📜 Regulatory Frameworks: The critical role of robust regulations like the Ecodesign for Sustainable Products Regulation (ESPR) and the New York Fashion Act in driving industry-wide change. 🌐 Global Collaboration: Encouraging international cooperation to harmonize sustainability standards and practices across regions. Investing in sustainable technologies, improving supply chain transparency, and adopting comprehensive regulatory frameworks are vital steps. By fostering innovation and collaboration among policymakers, corporations, and consumers, we can transform the fashion industry into a model of sustainability and creativity. 🌿✨ #SustainableFashion #CircularEconomy #NetZero #FashionRevolution #EcoFriendly #Sustainability #ClimateAction #GreenFashion #InnovativeSolutions

“While the key concepts of a circular fashion economy are worth striving for, they are neither sufficient nor perhaps even realistic. We want a fashion system that does not pollute or cause harm to the environment or people, minimises or eliminates waste, is resilient, and that regenerates and restores the environment.” The global fashion industry is failing to make any sufficient progress on sustainability, despite spending some $20-30 billion annually on tech innovations to tackle sustainability challenges. In this texfash.com article, Forum's Principal Sustainability Strategist Karen Sim explores the barriers hindering the fashion industry's sustainability efforts, and explains how system thinking and collaboration among value chain actors can help: https://ow.ly/6Y2i50SSNqL Find out about Forum’s Enabling Systemic Circularity in Fashion Programme: https://ow.ly/Itel50SSNrw Karen is also speaking at Be The Change Summit hosted by the Singapore Fashion Council on 15 August - book your place here: https://ow.ly/SlMm50SSNqO

The fashion industry is failing to meet its decarbonization commitments. According to a recent McKinsey & Company analysis, fashion companies are behind on their own decarbonization schedules, with 40 percent of companies seeing their emissions output increase since making their sustainability commitments. While the commitments are welcome, work needs to be done if they are to meet the obligations set. We're in a time when customers are expecting fashion brands to be ethical and ensure that their items are sourced, created and sold in a manner that is environmentally friendly, something that is becoming a brand differentiator for specific audience groups. Here are six areas that fashion companies need to be aware of and which will shape their decarbonization journey: 1.    Keeping sustainability a core priority even when times are tough 2.    Putting sustainability at the heart of the business 3.    Charting a decarbonization path is complex 4.    The fashion industry needs more supply chain transparency 5.    Implementation is consistently underestimated 6.    The supplier landscape is fragmented Fashion companies must leverage their data and that from across their supply chain to better redesign their business so it can meet their environmental obligations. #fashionindustry #decarbonization #esg #supplychain #businesstransformation https://lnkd.in/ew7bgE9Y

The “State of Fashion 2025” report by The Business of Fashion is out today! The report highlights the fashion industry’s ongoing challenges, including economic uncertainties, geopolitical tensions, and evolving consumer values. A significant focus is on sustainability, particularly the role of decarbonisation and its return on investment (ROI). Decarbonisation in Fashion: The fashion industry is a notable contributor to global greenhouse gas (GHG) emissions, accounting for approximately 2% of the total. To align with the Paris Agreement’s 1.5°C pathway, the industry must implement substantial emission reduction strategies. Key measures include: • Energy Efficiency: Enhancing energy use in manufacturing and supply chain operations. • Sustainable Materials: Adopting eco-friendly materials and reducing reliance on virgin resources. • Supply Chain Optimisation: Streamlining logistics to minimise carbon footprints. Implementing these strategies can lead to significant emission reductions. For instance, a McKinsey analysis indicates that nearly 90% of necessary actions for accelerated abatement would cost less than $50 per metric ton of GHG emissions abated, with about 55% resulting in net cost savings for the industry. #decarbonisation #sustainablefashion ROI on Sustainability: Investing in sustainability offers both environmental and financial benefits: • Cost Savings: Energy-efficient processes and waste reduction can lower operational expenses. • Consumer Demand: There’s a growing preference for sustainable products, potentially boosting sales and brand loyalty. • Regulatory Compliance: Proactive sustainability measures can help companies stay ahead of tightening environmental regulations, avoiding potential fines and reputational damage. Latest Trends in Fashion Sustainability: Recent developments in the fashion industry’s sustainability efforts include: • Circular Business Models: Brands are increasingly adopting rental, resale, and repair services to extend product lifecycles and reduce waste. Initiatives like the Ellen MacArthur Foundation’s Fashion ReModel encourage such practices. • Technological Innovations: Companies are investing in technologies like waterless dyeing and AI-driven supply chain optimisation to enhance sustainability. • Regulatory Measures: Governments are introducing policies to promote sustainable practices, such as Australia’s Seamless Clothing Stewardship scheme, which imposes fees on new garments to fund recycling initiatives. Personal Bonus: Another interesting read is the “Unlocking the Trillion-Dollar Fashion Decarbonisation Opportunity” report. It estimates that 47% of CO₂ reductions can come from implementing existing solutions, while 39% can come from scaling innovative solutions, and 14% from other measures, including reducing overproduction and improving material efficiency. Have a read! #fashiontrends #sustainablepractices #sustainabilityroi #fashionindustry

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GREEN FRIDAY – SUSTAINABILITY in ACTION A McKinsey & Company article to reflect upon – Where are we? What can we do next? If not now, when? Six CHALLENGES fashion brands can address to become more sustainable 1. Keeping sustainability a core priority even when times are tough 2. Putting sustainability at the heart of the business 3. Charting a decarbonization path is complex 4. The fashion industry needs more supply chain transparency 5. Implementation is consistently underestimated 6. The supplier landscape is fragmented Six ACTIONS can help accelerate decarbonization in fashion 1. Create commercial value from your sustainability strides 2. Focus on the big two: Material transition and tier-two-supplier energy transition 3. Build a carefully prioritized, robust road map 4. Get granular on data 5. Boost execution and transformation management 6. Make collaborations action oriented #greenfriday #sustentabilidade #futuro #economiacircular #climateaction #choice #sustainablefuture #fashiondecarbonization