Launch of the “Pulse of the Fashion Industry” Report, to highlight the opportunity of pursuing profit and growth while creating new value for society and world economy through sustainability performance.
Today, the Global Fashion Agenda, in collaboration with The Boston Consulting Group, publishes an in-depth assessment of the fashion industry’s environmental and social performance – this first edition of the Pulse of the Fashion Industry report. This new report will be introduced at this week held Copenhagen Fashion Summit.
Today’s Facts: In the past decade, the global fashion industry has been an engine for global development and made progress on sustainability. Awareness is growing and individually, companies are optimizing business practices to limit their negative impact. But with current trajectories of production and consumption, pressures on natural resources and social conditions will intensify by 2030 to the point of threatening industry growth itself.
The Report: The Pulse of the Fashion Industry report draws on the Sustainable Apparel Coalition’s Higg Index and a survey of more than 90 senior managers responsible for sustainability issues and a variety of other sources, it offers the first comprehensive common fact base on the health of the industry – with a “Pulse Score” by type of company, size, region and stage in the value chain.
A few highlights:
- As of today, the sustainability “Pulse” of the industry is weak – scoring only 32 out of 100
- Company size, far more than price positioning, correlates with a higher Pulse score: most large fashion brands show progress, but the great mass of small to midsize firms representing around half of the market-a blind spot in the industry have done little to improve their impact
- Apparel consumption is projected to rise by 63%, to 102 million tons in 2030, increasing the need for the fashion industry to address its environmental and social footprint
- With population growth and planetary boundaries reaching their limits, the industry will face strained resources, putting profitability at risk
- There are proofs-of-concept that sustainability initiatives can present a viable business case for individual businesses already today
Business Opportunities: “Improving fashion industry’s environmental and social performance would not just advance the industry’s commercial prospects, it would also add as much as €160 billion by 2030 in annual value to the world economy. To point the way toward a better fashion industry, the report lays out the “Landscape for Change”. Yet it also shows that even if most of the industry implemented today’s best practices individually, it would not be enough to capture this value and close the gap.” reveals the Global Fashion Agenda source.
Collective Effort is Key: To enhance the industry’s current and future position – and forestall excessive regulatory intervention, the fashion industry should move beyond fragmented individual actions with incremental results. Through collective efforts the industry can unite around an agenda for change, drive the needed systemic change and work jointly on disruptive innovation. By consolidating existing initiatives and fostering groundbreaking innovation, fashion can collectively galvanize change at scale.
The Call: The fashion industry has a clear opportunity to act now, pursuing profit and growth while also creating new value for society and therefore for the world economy. It comes with an urgent need to place environmental, social and ethical improvements on management’s agenda.
source: Copenhagen Fashion Summit