Consumers the world over plan to switch brands if another brand acts more environmentally.
But the fashion industry is still far from sustainable. Fashion companies are not implementing sustainable solutions fast enough to counterbalance the negative environmental and social impacts of the rapidly growing fashion industry. Companies in the first quartile slowed in their trajectory this year due to increased challenges in scaling up proven measures into deeper tiers of their supply chains, in inventing and scaling transformative technologies and in achieving tangible results from collaborative initiatives. The required resources, capabilities, funding and advanced technologies in the aforementioned areas are not yet fully established.
Nevertheless, efforts are visible. Companies are investing in supplier relationships, supply chain traceability, an improved material mix and changes to their business model towards circularity. In the third performance quartile he largest year-on-year improvements were mainly driven by small mid-price and medium-entry-price players by adopting sustainable strategy development and governance, by setting targets in energy, chemicals and water savings, and by aligning association affiliations.
The fashion industry must overcome its roadblocks to achieve more substantial improvements that lead to a systemic change. Solving the challenges of scaling and innovating disruptive technologies is a necessity for future progress.