Despite efforts to reduce emissions, the fashion industry is on a trajectory that will miss the 1.5-degree pathway to mitigate climate change set out by the Intergovernmental Panel on Climate Change (IPCC) by 50 per cent, according to the ‘Fashion on Climate’ report, the result of a multi-year partnership between Global Fashion Agenda (GFA) and McKinsey & Company.
The apparel and footwear industry was responsible for some 2.1 billion tonnes of carbon dioxide emissions in 2018, about 4 per cent of the global total. This industry emits about the same quantity of carbon dioxide per year as the economies of France, Germany and the United Kingdom combined.Despite efforts to reduce emissions, the fashion industry is on a trajectory that will miss the 1.5-degree pathway to mitigate climate change set out by the Intergovernmental Panel on Climate Change by 50 per cent, according to the 'Fashion on Climate' report, the result of a multi-year partnership between Global Fashion Agenda and McKinsey & Company.#
If no further action is taken over the next decade beyond measures already in place, the industry’s carbon dioxide emissions will likely rise to around 2.7 billion tonnes a year by 2030, reflecting an annual volume growth rate of 2.7 per cent, the recently released report said.
This would more than double the maximum emissions required to align with the 1.5-degree pathway. To align with that pathway over the next 10 years, the industry would need to reduce annual emissions to around 1.1 billion tonnes, around half of today’s figure—referred to as ‘accelerated abatement’.
Brands and retailers in collaboration with their value chain partners are the primary drivers of accelerated abatement. Together they can drive coordinated decarbonisation efforts and create opportunities for consumers to make sustainable consumption choices.
GFA and McKinsey analysis identified three priority action areas for the industry. These are reducing emissions from upstream operations and brands’ own operations, and encouraging sustainable consumer behavior.
Sixty one per cent of the accelerated abatement could be delivered by decarbonising materials production and processing, minimising production and manufacturing waste, and decarbonising garment manufacturing. Improvements in energy efficiency and a transition from fossil fuels to renewable energy sources could deliver about a billion tonnes of emissions abatement in 2030.
Improving material mix (for instance, through greater use of recycled fibre), increased use of sustainable transport, improvements in packaging (with recycled and lighter materials), decarbonising retail operations, minimising returns and reducing overproduction (only 60 per cent of garments are currently sold without a markdown) are main drivers of emissions abatement within brands’ operations. Following these measures could result in 308 million tonnes of carbon dioxide equivalent abatement in 2030, according to the report.
The adoption of a more conscious approach to fashion consumption, changes in consumer behaviour during use and reuse, and the introduction by brands of radically new business models could contribute 347 million tonnes of emissions abatement in 2030.
The main levers in this effort are an increase in the uptake of circular business models promoting garment rental, resale, repair and refurbishment, a reduction in washing and drying, and an increase in recycling and collection to reduce landfill and move the industry toward an operating model based on closed-loop recycling.
Approximately 55 percent of the actions required for accelerated abatement can be delivered at net cost savings on an industry-wide basis. The remaining actions will require incentivisation in the form of consumer demand or regulations to deliver abatement, said the report.
Additionally, around 60 per cent of the abatement will require upfront capital, where brands and retailers will need to support and collaborate with value chain players to invest for the long-term benefit of society and the environment.
Around 90 per cent of the accelerated abatement can be delivered below a cost of around $50 per tonne of carbon dioxide emissions.
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