Despite loud calls to make the fashion industry more sustainable—and ambitious commitments from brands—the sector’s climate impact just hit record highs, jumping over 7 percent from the year prior.
After several years of flat—and even declining—environmental impact for the fashion industry, this sudden spike is a true wake-up call. Fashion’s climate footprint already drives a significant portion of global warming, making up anywhere from 1.7 percent to 8 percent of the world’s emissions, depending on how the industry’s footprint is measured—whether that’s production alone or the full supply chain from raw materials to end of life. As the sector expands, so does its impact, driving consequences that extend far beyond its supply chain. These increasing emissions have knock-on effects for the climate, customers, and communities.
Fashion’s surging environmental impact will exacerbate climate disruptions that are already reshaping every fabric of our lives, from the foods we eat to where we live to the air we breathe. The heightened risk of extreme storms, dangerous heat, wildfires, and other climate disasters makes production unpredictable and potentially more costly. A warming planet also means that sourcing materials like cotton and silk for clothes will be harder to find and more expensive.
The cost of inaction is enormous, measured not only in environmental damage but in the billions of dollars in lost productivity, disrupted supply chains, and rising resource costs that will hit the industry if we fail to act. Simply put, climate change means that business as usual is no longer an option for the fashion industry.
Many of the countries that are essential to the apparel industry—India, Bangladesh, Vietnam, Pakistan, Indonesia—are on the frontlines of climate change, experiencing heatwaves, flooding, and resource scarcity. In these regions, the cost of inaction is steepest, and continued emissions increases will be catastrophic to businesses, the environment, and people.
However, there are innovations in production and proven energy efficiency practices that offer hope, cutting the climate footprint of the apparel sector while reducing costs and improving worker well-being. Take heat pumps, for example, which transfer heat instead of generating it. This allows factories to offer an all-in-one solution: the heat needed for production and cooling for worker safety, without the emissions associated with fossil-fuel boilers.
Despite being more economically and environmentally efficient than fossil-fuel tech in the long-term, the upfront costs for these solutions may currently be prohibitive for manufacturers.
This reflects the crux of the fashion industry’s problem: while manufacturing is the most emissions-heavy part of apparel production, brands hold the capital needed to actually decarbonize it.
To create a sustainable fashion industry, we need decisive, coordinated action, including pooling funds for collective investment and brands putting their money where their mouth is, closing the gap between public climate commitments, and on-the-ground implementation. Apparel Impact Institute is working with key industry stakeholders to pool capital and collectively deploy solutions like heat pumps across supplier facilities. When the industry invests together, the sector can move faster toward its goal.
Looking ahead, we can learn from successes across the value chain. Between 2019 and 2024, H&M succeeded in reducing their indirect emissions by nearly a quarter by investing in circular materials and increasing renewable energy usage throughout its operations. Alongside Bestseller, H&M Group is developing an offshore wind energy project in Bangladesh, one of their major supplier hubs, creating the infrastructure needed to successfully reduce their environmental impact.
Beyond brands, some of the most compelling momentum comes from suppliers producing materials and products. Artistic Milliners, a supplier partner of apparel giants like Levi’s, recently invested over $100 million in renewable energy, adding over 100 MW of wind power to Pakistan’s national grid—enough energy to power nearly 20,000 American homes for an entire year. Their investment has had an incredible impact, cutting the supplier’s most measurable footprints by over 50 percent within three years.
Clearly technology and ambition are not the barriers: there are many factories that are eager to go green and solutions ready to make this possible. However, suppliers need access to affordable capital, long-term brand commitments, and the technical support to implement these solutions at scale.
Looking ahead, brands, retailers, financial institutions, and manufacturers must move away from sustainability as a side project and instead embrace collective action that drives decision-making across the entire value chain. Consumers can also support greener fashion by looking for certifications like bluesign or Global Recycled Standard.
With proven, commercially viable solutions ready for scale and clear potential for success, the industry has every opportunity to reverse its growing carbon footprint. One thing is for sure: If we work as a coalition, fashion can become a powerful driver of climate progress instead of climate risk.
Lewis Perkins is president of Apparel Impact Institute (Aii).
The views expressed in this article are the writer’s own.
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