Exploring sustainable fashion: The ESG implications of our wardrobe choices

In recent years, the fashion industry has come under increasing scrutiny for its environmental and social impacts. More people are wanting eco-friendly and ethical clothing, and with this trend many brands have adopted green fashion.

This shift toward conscious consumers has pushed the fashion industry to reconsider its impact on the environment, including the materials it uses and the processes involved in creating clothing. In this blog, we will guide ESG managers and sustainability fashion consultants as they navigate how to incorporate sustainability into the fashion industry.

Understanding sustainability in fashion

Sustainability in fashion focuses on creating ethically produced, eco-friendly clothing. This minimizes harm to the environment and people. In particular, it involves using sustainable materials, reducing waste, and ensuring fair labor practices.

 Here are some key ESG (Environmental, Social, and Governance) factors driving this change:

• Environmental factors include cutting down waste, using eco-friendly materials, and lowering GHG emissions.
• Social factors focus on fair wages, safe workplaces, and helping communities involved in making the products.
• Governance includes making ethical choices, being transparent, and taking responsibility at every level of the business.

Environmental impact of fashion

With the rise of fast fashion, the fashion industry’s impact on the environment is increasing. Here's how:

The fashion industry contributes around 10% of global carbon emissions, and if this situation doesn't change, fashion’s share of the global carbon footprint could jump to 26% by 2050.

Fast fashion brands churn out clothing quickly and for low prices, but the environment shoulders a huge cost. The constant stream of mass-produced, low-quality clothing pushes people to overbuy and producing these clothes harms the environment in the following ways:

• Fast fashion companies produce clothes on mass to meet consumer demand and keep up with trends. Mass production uses up a significant amount of resources, such as water, cotton, oil, and timber.
• The production of synthetic fabrics, like polyester, nylon, acrylic and rayon requires a large amount of energy, leading to higher GHG emissions. Synthetic fibres also release microplastics that pollute eco-systems and harm soil and water quality.
• Due to unsustainable production practices and cheap materials, a lot of these clothes are non-biodegradable.

The fashion industry is the second-largest water consumer in the world. Cotton farming, for example, uses huge amounts of water and to make just one cotton t-shirt, it takes about 2,700 liters. This heavy water use isn't sustainable which is why there's a need to start looking at water-efficient alternatives and better practices.

Furthermore, every second, the equivalent of one garbage truck full of clothes is either burned or tossed into a landfill and most of these clothes are made from synthetic materials. For example, polyester clothes aren’t biodegradable and can take hundreds of years to break down. Meanwhile, they release harmful chemicals into the soil and water.

Ethical impact of fashion

The fast fashion industry employs around 75 million factory workers globally, with less than 2% earning a living wage, leaving many below the poverty line. Employees often work for up to 16 hours a day, seven days a week. Also, fast fashion production uses 8,000 synthetic chemicals, some linked to cancer, regularly exposing factory workers to harmful fumes.

A lot of factories are based in developing countries like Nigeria, Sri Lanka, and Sudan, where labor laws are weak. It allows brands to focus on profits rather than on the well-being of their workers. Many garment workers, especially women and children, are left working long hours for barely any pay in dangerous environments.

What are the benefits of sustainable fashion?

Brands can reap the following benefits by adopting sustainable fashion practices:

Navigating environmental regulations

Adopting sustainable practices allows fashion brands to comply with environmental laws and avoid fines and legal issues. When brands reduce their environmental footprint and adhere to regulations, they contribute to a healthier planet and mitigate non-compliance risks. This protects their operations and reputation.

Building a strong brand image

Consumer awareness of environmental issues is growing. So, brands that embrace eco-friendly practices can improve their image and attract a loyal customer base. If they promote their commitment to sustainability, they can establish themselves as leaders in ethical fashion, giving them a competitive edge.

Efficiency and innovation

Optimizing energy use, reducing resource consumption, and cutting down on waste helps businesses lower operational expenses. For example, using renewable energy sources can reduce electricity bills, while adopting efficient production techniques can decrease material waste.

Supporting workers and communities

Ensuring fair wages and safe working conditions helps brands improve the quality of life for garment workers. This focus on ethical practices leads to consumer loyalty, as shoppers are increasingly inclined to support brands that prioritize sustainability and social responsibility, reinforcing positive brand associations.

Key areas of focus for sustainable fashion

Here are some essential practices and strategies that drive sustainability in the fashion industry, emphasizing environmental protection, ethical production, and innovation for long-term impact:

1.  Sustainable materials and sourcing

Sustainable fashion emphasizes the use of eco-friendly materials such as:

• organic cotton
• recycled fabrics
• vegan leathers

Brands are encouraged to seek sustainable suppliers and materials, cutting down on harmful chemicals and non-renewable resources. Sourcing responsibly helps companies lower their environmental impact and attract customers who care about being conscious shoppers.

2.  Circular fashion & slow fashion

Brands are increasingly embracing circular models.They focus on sustainability strategies that promote the following:

• reuse
• repair
• resale
• upcycling

This shift from fast fashion to slow fashion values longevity, quality, and sustainability, helping to cut down on the endless cycle of production and waste. Encouraging a mindset that values thoughtful consumption helps brands create products that last longer and connect with consumers on a deeper level.

3.  Supply chain optimization

Making supply chains more efficient is key to cutting down emissions and boosting sustainability. In sustainable fashion, optimizing supply chains involves choosing sustainable materials and fine-tuning their transportation routes to offset carbon.

Plus, ensuring fair labor conditions and being transparent about supply chain activities is important. The goal is to create a truly ethical and sustainable system that goes beyond surface-level changes.

4.  Energy efficiency and carbon footprint reduction

Using energy-efficient equipment and renewable energy sources in manufacturing is essential in sustainable fashion. Brands can invest in carbon management technology like Zuno Carbon, enabling them to effectively identify emissions hotspots and monitor their ESG performance. This focus on energy efficiency and carbon management is crucial for brands aiming to enhance their sustainability efforts while reducing their environmental impact.

5.  Waste reduction and circularity

Sustainable fashion emphasizes recycling programs and zero-waste design ideas to help reduce textile waste throughout the production process. Teaming up with organizations to reclaim and repurpose waste materials can turn old textiles into valuable resources.

This approach helps create a culture of circularity, where nothing goes to waste, and everything gets a second chance.

The role of ESG managers and sustainability consultants in fashion

ESG teams, including managers and sustainability fashion consultants, should make sure their practices are on point to help fashion companies improve their environmental and social impact, while maintaining good governance practices. Here are the key steps they must undertake:

1.  Auditing and assessing ESG performance

ESG managers should audit and assess ESG performance and impact to ensure their brands are making meaningful strides in sustainability. Using resources like the Global Reporting Initiative (GRI), Carbon Disclosure Project (CDP), and Sustainability Accounting Standards Board (SASB) can help them effectively evaluate how much progress they are making vs sustainability targets.

2.  Developing and implementing sustainability strategies

Another step that ESG managers should take is to create custom sustainability roadmaps for fashion brands that align with their growth goals. These roadmaps should integrate circular models, which focus on reducing waste by keeping products and materials in use for longer. Plus, they should set clear sustainability targets, such as:

• reducing carbon emissions
• minimizing water usage
• incorporating recycled or renewable materials

3.  Stakeholder engagement

Good communication and education eventually help get everyone on board with sustainable practices in a company. ESG managers should promote training teams about these practices and ensure all teams from design and production to marketing are on the same page.  

They should also make it a point to share ESG goals openly with stakeholders, consumers, and investors. This creates a culture of accountability and involvement.

4.  Navigating sustainability certifications

Finally, ESG managers should guide brands in understanding sustainability certifications. They should ensure the company meets or exceeds legal requirements in all operating regions.

ESG managers should also stress the importance of third-party verification for credibility. This helps brands stand out as sustainability leaders. By obtaining certifications like OEKO-TEX, Global Organic Textile Standard (GOTS), and B Corporation certification, brands can demonstrate their commitment to ethical practices, which resonates with conscious consumers.

Case studies: Sustainable fashion brands leading the way

Some brands are stepping up by using eco-friendly materials, keeping their supply chains responsible, working towards being carbon neutral, reducing water, and implementing responsible waste management. Brands like Stella McCartney and Reformation are great examples of how sustainable fashion can lead to positive environmental change. Here's how:

1.  Stella McCartney

Stella McCartney, a UK-based fashion company, is well-known for being committed to eco-friendly practices. The brand focuses on using materials that are good for the environment to keep its ecological footprint low, such as:

• Savian: A plant-based, vegan, and biodegradable alternative to animal and synthetic furs, sourced from Genetically Modified Organism-free inputs like nettle, hemp, and flax.
• NATIVA™️ wool: Sourced through regenerative farming, enhancing biodiversity, regenerating soil, and sequestering carbon.
• Kelsun™ (Seaweed fabric): A bio-based material with a lower environmental impact than conventional fibers.
• VEGEA: A grape-based vegan alternative to animal leather.
• Bananatex®: Waterproof, plastic-free fabric from Abacá banana plants, grown without pesticides or fertilizers.
• Mylo™: A vegan leather alternative made from mycelium, the root-like structures of fungi.

Ditching traditional leather and fur shows how Stella McCartney shows off a modern take on luxury fashion that puts animal welfare and the planet first. Moreover, the brand only teams up with suppliers committed to high sustainability standards, such as:

• Chargeurs Luxury Materials: Creators of NATIVA™, they focus on maintaining a controlled carbon trajectory and a responsible approach to production.
• Keel Labs: Producers of seaweed fabric, they are pioneers in innovation, exploring the ocean's potential to drive sustainable development.
• Bolt Threads: Partners in growing Mylo™, a vegan leather alternative- they emphasize sustainable material innovation.

Plus, their initiatives go beyond just the materials they use. They also focus on packaging, energy use, and cutting down waste. For example, the brand exclusively uses packaging paper that is FSC-certified or contains at least 50% recycled content. It eliminated PVC in 2010 and, in 2018, signed the Ellen MacArthur Foundation’s New Plastic Economy Global Commitment to ensure all plastics used by 2025 are recycled, recyclable, or compostable.

Furthermore, since 2013, all new Stella McCartney stores have been lit with energy-efficient LED lighting, using 75% less energy and lasting over 25 times longer than traditional bulbs. The Old Bond Street flagship store and London head office are run entirely on renewable energy from Ecotricity.

2.  Reformation

Reformation, a US-based sustainable fashion brand, is creative with how it produces its clothes while also taking care of the environment.

Reformation tracks its carbon and water footprint using RefScale, assessing how its products reduce environmental impacts compared to typical U.S. clothing. Since 2015, it has been 100% carbon-neutral and partners with Climate Neutral for certification. The brand recycles about 75% of its waste, aiming for over 85%. Moreover, six California retail stores are certified as green businesses, emphasizing energy savings and water efficiency.

Reformation emphasize slow-impact materials, ranking fabrics on an A-E scale, where A indicates rapidly renewable fibers and B signifies mainly natural or recycled materials.The brand aims for 75% of its products to use A or B-rated fabrics. It also uses a color-coded system for supplier audits to ensure adherence to fair labor conditions, targeting a "Green" rating for 75% of Tier 1 facilities. In 2021, Reformation updated its audit protocol, achieving 51% green ratings.

It is vital that fashion brands recognize the importance of sustainability. It's crucial for long-term success and environmental responsibility. ESG managers and sustainability fashion consultants need to push for innovation, keep everything transparent, and make sure brands are making a real impact.

Streamlining emissions tracking and ESG data management can significantly assist ESG managers by reducing the complexity of sustainability efforts. Zuno Carbon facilitates this process by centralizing ESG data, simplifying collaboration, and helping set decarbonization targets aligned with the Science Based Targets initiative (SBTi).