In the last year, apparel firms’ focus on climate change in reports surpassed ESG and Covid concerns, per GlobalData’s recent study.
Amid scorching temperatures worldwide, the climate crisis has again captured global attention, prompting a renewed scrutiny of the fashion industry’s environmental impact.
The United Nations has recently confirmed that July of this year is on a trajectory to be the hottest month ever recorded, further underscoring the urgency of addressing climate change.
The emphasis on climate change has been especially pronounced within the apparel industry, with last year’s COP27 witnessing key players like H&M Group joining forces with other global corporations to advocate for decarbonization and climate-conscious policies in alignment with the Paris Agreement.
This growing emphasis is corroborated by GlobalData’s analysis, which tracked a surge in the usage of the term ‘climate change’ in company filings within the apparel sector during the third quarter of 2022.
GlobalData’s analytics, spanning from August 2022 to August 2023, reveal that references to ‘climate change’ spiked 21-fold during this period, overshadowing the nine-fold rise in ESG mentions and an eight-fold increase in Covid-related references.
As underscored by a recent joint report by the United Nations Climate Change and CDP, the fashion industry is taking steps to rectify its significant environmental footprint.
Although progress has been made, the industry acknowledges much work to be done.
Signatories of the Fashion Industry Charter for Climate Action have taken strides towards transparency, with 89% of companies publicly reporting their advancements.
UK Research and Innovation (UKRI) is investing £7 million ($8.9 million) in various sustainability research projects within the fashion and textiles sector.
Collaborating with industry experts, UKRI aims to amass crucial data and knowledge that will steer the industry toward sustainable circular business models.