The fashion business has been facing challenges although some incremental improvement has been seen in several sector leaders. Large fashion companies have been hit. A recent report from the Business of Fashion found out on Tuesday 30 largest companies in the industry are put at risk as they fail to fulfil the social and environmental targets of the Paris climate agreement and UN Sustainable Development Goals.
According to Sarah Kent, chief sustainability correspondent of The Business of Fashion told Reuters, some frontrunners are progressing in small steps, yet, essentially the prospects for the fashion business sound underperformed. Fashion brands are under pressure from consumers and regulators, which could show they are doing a better job environmentally. Particularly, there is a high-standard scrutiny among young generations.
The Business of Fashion Sustainable Index 2022, in its fresh annual report, put forward its study of the companies’ information, which has been publicly available, in three topics including luxury, sportswear as well as high street fashion.
On top of the report stands Puma, gaining 49 points out of 100. Kering Luxury goods company, which was the top icon in 2021, comes second.
Levi Strauss, H&M Group and Burberry, which was added to the study list this year, were ranked next.
All new participants in the analysis gained the lowest points; sportswear and high street fashion companies stood at the bottom.
According to Kent, the progress is slow; there is no huge radical transformation which we expect to see over the upcoming 8 years and move from the place we are now to a position “that is not going to blow through the ambitions of the Paris climate agreement.”
The report said, “The risk is that companies could lose their cultural relevance and destroy long-term value, as regulators and consumers become increasingly critical of inflated claims.”
The companies in the business, totally, ranked highest in lowering emissions in parts like workers’ rights and materials. Reduction of waste was regarded as the least progress.
Some alternative fashion models are required to develop in the market, according to this report.
This is a very big challenge for any fashion executive: how do you keep your shareholders happy and show that you can drive financial growth without production growth, without making more goods from more extracted materials and thereby creating more waste?, Kent said.
This year’s report involved a broader scope, the number doubled from 15 in 2021.