A new report from The Economist Intelligence Unit (EIU)

Arguably the fashion and textile industry is unsustainable in its current form. It makes a significant contribution to the global economy, but it uses a disproportionately large amount of natural resources; its waste products pollute rivers and oceans; and when garments and footwear reach the end of their lives, most are burned or placed in landfill. While some multinational brands have benefited from the wave of globalisation—increasing revenues and profits by outsourcing the growth of raw materials and basic production tasks—this practice also has its risks. Firms with long and distant supply chains have traded the traceability of their inputs for lower overheads, and weaker labour laws in many production destinations have left workers and employees with fewer protections.

Our new report, Is sustainability in fashion? Industry leaders share their views, sponsored by the U.S. Cotton Trust Protocol, draws on expert insights and observations of key decision-makers at leading brands about the sustainability challenges the fashion industry faces today, and examines how to change the industry for the better in the future.

Read the full report here

Key Findings:

• Although many forces are driving progress towards sustainability, brands play a critical role. No firm has a perfect track record, but the majority of executives we surveyed identified sustainability as a key strategic priority for their organisation and are taking action to improve their organisation’s sustainability practices.

• The next generation of consumers are another key driver of the sustainability agenda. 52% of our respondents believe that consumers are driving the increased focus on sustainability issues in the fashion & textile industry. 

• Brands understand that data can help them to measure progress towards sustainability targets. However most do not collect enough data and industry standardised data collection practices are needed. 

• Standards, systems and certifications are helping brands to demonstrate their commitment to sustainability to consumers.

• Brands recognise that  technology and innovation will transform the industry. Innovations such as block chain are improving supply chain traceability and retail stores are using innovative methods  to reduce inventory waste.

• Costs are a major barrier to improving sustainability practices especially given downturns in consumer demand resulting from the COVID-19 induced recession. However, brands insist that their sustainability agendas are resilient and that they will continue to advance their sustainability agendas despite the difficult operating environment.

Many players recognise the scale of the industry’s sustainability problem and have already made substantial commitments to reduce their environmental impact. However, we find that more work is needed to enable radical transformation across the industry. Our research illustrates the ambitions, frustrations, confidence and anxieties of the industry’s leading executives at a time of extreme disruption.

Read the full report to find out more.