Driving the apparel sector just transition

The fashion industry stands at a crucial turning point. As climate and social crises escalate, brands face an urgent choice: embrace a just transition to sustainable practices or continue down an unsustainable path. UN Environment Program director Inger Andersen recently stressed, “Crunch time is coming”, underlining the need for decisive action.  

Fashion brands have made public announcements, and set ambitious climate targets and net-zero commitments. But how can the sector turn bold commitments into real impact, and ensure this transformation benefits not only brands but the 300 million people who sustain the sector? 

A just transition aims to create a sustainable, inclusive fashion industry that safeguards the livelihoods of its 300 million workers. Achieving this requires policies, progress tracking, equity, accountability, education, smart finance, workers’ rights and circular systems. Clear solutions are emerging, but bold leadership is essential to drive collaboration and innovation. 

Policy catalysing change 

Without meaningful incentives, brands remain comfortable in the status quo, skirting real sustainability efforts. Only comprehensive, enforceable policies can hold them accountable and ensure transparency. 

The European Union’s 16 legislative proposals—covering sustainable design, chemical use and waste management—set a much-needed high bar, notably through the Eco-Design for Sustainable Products Regulation (ESPR). By mandating digital product passports, the ESPR supports recycling and acknowledges that 80% of a product’s environmental footprint is locked in during design. 

But high standards must ensure human impacts are integrated, such as worker rights and health. This requires policies that tackle sustainability holistically, pushing brands to adopt circularity without sacrificing the wellbeing of the millions in their supply chains. If the EU’s model is truly to lead, it must ensure these standards continue to evolve and uplift people as well as the planet.

Tracking progress  

Despite some progress, the fashion industry remains far from meeting the 1.5C climate target, with fewer than half of brands disclosing verified Science-Based Targets initiative (SBTi) carbon goals across their supply chains. To achieve net-zero by 2050, fashion must reduce emissions by 90% and neutralise the rest. A comprehensive approach, with short-, medium- and long-term targets, is crucial. The slow progress on biodiversity’s COP15 – specifically subsidy reform – demonstrates how easily global climate goals can stall without strong implementation. 

Decathlon is a rare example of a brand setting both short-term and long-term goals. With a commitment to carbon neutrality by 2050, it plans a 20% emissions reduction by 2026, based on 2021 levels, and a 6% reduction in ecosystem impact. Anna Turrell, chief sustainability officer at Decathlon, told Innovation Forum on the Monday Briefing: “As a company with a net-zero commitment and absolute emissions reduction targets, we know that we need to do business differently.” This highlights the need for the entire industry to adopt similar multi-tiered strategies. 

Rebalancing supply chains 

The fashion industry’s power imbalance prevents true progress. As researchers Hakan Karaosman and Donna Marshall point out in Sourcing Journal, fashion giants dominate – stifling supplier collaboration and fair climate action. To foster real change, brands and suppliers must co-define challenges and share solutions. 

The first step toward a just transition is responsible purchasing, which provides suppliers with the stability and financial security to invest in climate mitigation and adaptation. However, true systemic change is needed to achieve a just transition, which requires addressing fragmented supply chains and rebalancing governance structures in collaboration with supply chain communities. 

PVH Corp’s Forward Fashion approach highlights this shift. Launched five years ago, it focuses on building partnerships with approximately 300 manufacturers across 30 countries. By prioritising transparency and a more coordinated, granular supply chain, PVH is helping suppliers align with long-term sustainability goals, showing that responsible purchasing alone is not enough – the industry must embrace broader systemic change to drive lasting impact. 

Education and accountability 

As consumer concern grows over greenwashing and the industry pendulum swings towards “greenhushing” – silence around sustainability for fear of backlash – radical transparency is essential. Collaborating with policymakers, peers and consumers can encourage more sustainable purchases while educating consumers about their garment's environmental journey. 

Primark’s Durability Framework, developed with WRAP, is one example of this shift in the right direction. The initiative includes updated design standards informed by research from the University of Leeds and public repair workshops, pushing consumer engagement. Primark’s framework has tiered compliance levels (foundational, progressive and aspirational), creating room for growth and continual improvement. 

Closing funding gap 

Bridging the annual $20-30bn funding gap for decarbonising fashion supply chains requires smart solutions, including blended finance. Around 55% of necessary actions could bring net cost savings, yet 60% will require upfront investment. The key questions remain: who reaps the benefits, and how are risks shared? 

The Fashion Pact’s Future Supplier Initiative, launched with DBS Bank and brands including Bestseller, Gap and H&M, offers one model. By pooling funds for energy efficiency and renewable initiatives in manufacturing hubs such as Bangladesh, FSI aims to scale financial support to other regions. 

Worker rights 

Record-breaking heatwaves in 2024 across south and southeast Asia highlighted the severe impacts of climate change on garment workers, the industry’s most vulnerable stakeholders. Even with global warming limited to 1.5C, urgent action is needed to protect these workers, from ensuring living wages to improving unsafe working conditions. A Re/make report found that 93% of fashion brands fail to provide adequate wages, risking the welfare of those on the front lines of the climate crisis. 

In Bangladesh, the Bangladesh Apparel Exchange is working with governments, nonprofits, and brands including H&M to address wage equity and strengthen worker protections, demonstrating the need for industry-wide collaboration to safeguard those most affected by climate change. 

A circular future  

Current make-take-waste models are unsustainable, even with improvements in production processes. A true shift to circularity is essential, focusing on eliminating overproduction, circulating resources and regenerating natural systems. However, turning this vision into action remains challenging. The Circular Economy Foundation’s 2024 report highlights a troubling trend: while "circularity" has become a buzzword, material circularity has declined by 21% in recent years. 

Burberry’s ReBurberry initiative offers a step in the right direction. In 2024, the company will provide repair services at over 380 stores across 33 countries, aiming to extend the life of around 43,000 products. This underscores the potential of circular models to reduce environmental footprints – research from WRAP shows that extending a garment's lifespan by just nine months can cut its environmental impact by 20-30%. Initiatives like these are part of the broader puzzle needed to rebuild more sustainable systems. 

Bold leadership 

The fashion industry stands at a critical juncture: continue down a broken path or seize its potential as a force for good. There is no one-size-fits-all solution to the climate crisis; we need adaptable, versatile leadership. Emerging leaders across luxury, fast fashion, and boutique sectors are already making strides. These changemakers must advocate for open-source, holistic solutions and foster collaborative innovation. 

Only through implementation and continuous feedback can we ensure that our climate actions also benefit the communities that rely on the fashion industry. The stakes are high, and the path forward demands collective commitment and decisive action. 

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