Fashion brands and retailers are ramping up their efforts to lower their carbon emissions as pressure from global stakeholders increases and regulatory measures come into play. But which brands are the leaders and which are the laggards?

According to a new report from GlobalData, Nike has achieved the largest emissions reductions among fashion companies over the past two years.

Nike’s Scope 1& 2 emissions on a metric tons CO2e (millions) basis have fallen from 0.26 to 0.07 and since 2021, its emissions have halved.

Inditex is also in the top 10 in the fashion industry, its emissions falling 28% to 0.43m metric tons CO2e from 2021 to 2023.

Primark came in eighth position with a 17% fall between 2021-2023 to 0.10m metric tons CO2e.

While Gap came in tenth place with a 14% fall during the period to 0.12m metric tons CO2e.

The top 20 featured brands including Target, Fast Retailing and TJX.

H&M, also in the top 20, saw a more modest change of 2% between 2021-23, but as the data demonstrates, the retailer’s baseline in 2017 already was considerably lower than the others at 0.064m metric tons CO2e.

Scope 3 reporting rises

What was interesting to note is how many more brands have now started reporting on Scope 3 emissions.

In 2017, Inditex, Primark, H&M, Fast Retailing and Adidas were among those not disclosing Scope 3 data. By 2021, all those began to report Scope 3 data.

In its report, GlobalData notes regulatory pressure in the form of emissions pricing and fossil fuel phase-outs is putting pressure on retail and apparel companies and their supply chains to reduce their greenhouse gas (GHG) emissions.

Three ways fashion brands and retailers can reduce emissions

Sustainable materials & resale: The fast fashion industry is built on virgin materials that are quick and cheap to produce but take years to biodegrade and release microplastics into the environment. Materials like leather, cotton, polyester, and econyl can all be recycled and repurposed to reduce waste in landfills, which helps reduce GHG emissions.

Last mile delivery: The need to deliver goods directly to consumers’ homes rather than stores or collection points has increased in tandem with the growth of ecommerce. Reducing emissions from last-mile delivery through methods like fleet electrification requires substantial upfront investments. Retailers must balance consumer demands for fast and cheap deliveries with reducing their carbon footprint.

Green building technologies: Green buildings are designed with eco-friendly materials and energy-efficient technologies like heat pumps. Few retail and apparel companies have made significant investments in green building technology, but there have been some key investments by well-known brands like IKEA and Hermés.

How are fashion brands lowering their emissions?

Nike Grind programme: Nike unveiled its Grind programme which involves repurposing leftover manufacturing scraps and textiles collected from Nike factories worldwide.

The materials include rubber, polyurethane (PU), and ethylene-vinyl acetate (EVA) foam, leather, textiles, and thermoplastics. Materials are either leftover manufacturing materials that cannot be used for future Nike products or from end-of-life footwear, which is Nike footwear unsuitable for sale (samples, defective products) and worn-out athletic shoes. Nike Grind reuses or repurposes materials into various products. These include surfaces for running tracks, walkways, outdoor and indoor courts, and new trainers with a percentage of Nike Grind rubber. Work and home products include carpet padding, rubber flooring, and floor underlayment. However, down-cycling usually produces lower quality products that degrade quickly, meaning the inevitability of waste going to landfill is only delayed. 

The Nike Grind programme has been running since 1992. According to Nike, the program has helped divert 97% of Nike’s waste from landfills with a future aim of 100%.

Resale initiatives: Resale initiatives are the most common among brands trying to lower emissions.

Zara entered the UK resale market in October 2022 with the launch of its Zara Pre-Owned platform to improve its commitment to circularity. Since then, it has expanded into other markets, such as France and Spain. It is a peer-to-peer platform to buy and sell, offering sellers convenience by enabling them to scan items’ barcodes to autogenerate listing details. However, prices are typically higher than on other resale sites like Vinted and Depop, which will deter some shoppers. The resale platform sits alongside donations and repair services.

Ultra-fast fashion giant Shein launched the Shein Exchange resale app in October 2022. However, given Shein’s ultra-affordable price points, the condition of items on the site may be called into question. Shein announced in June 2024 that it was expanding the app to Europe, launching first in France, then the UK and Germany. This followed a successful US launch. In 2023, the platform gained 4.2m new users in the US.

In 2022, Hugo Boss launched its pre-loved platform in line with its commitments to become more circular. The platform relies on customer donations (who receive store credit in return), with items inspected and listed by the brand. This ensures that only products in very good condition are eligible for resale, giving shoppers more confidence in the platform and aligning with the brand’s premium image. Though currently only available in France, Hugo Boss stated upon launch that it aims to expand the platform to service the UK, the US, and Germany in 2025.

Adoption of green materials and number of material innovators is on the rise

Syre: In Q2 2024, textile recycling start-up Syre raised $100m in a funding round led by TPG Rise Climate and supported by H&M Group. Syre aims to drive the green transition of textiles, focusing on apparel, car textiles in the automotive industry, and home interiors. Syre uses technology developed by Premirr to transform post-consumer waste into circular polyester.

Unspun: In Q3 2024, Unspun, a developer of 3D weaving technology, raised $32m. The funding will help Unspun develop its 3D weaving technology, Vega, which can weave thousands of yarns into garments in minutes. This allows for zero-waste, on-demand manufacturing, and shorter supply chains.

Circ: In Q1 2023, textile recycler Circ raised $25m. Circ breaks down polymers used in textiles and separates the individual fibres to be used in new clothing. European ecommerce retailer Zalando, packaging company Avery Dennison, and Korean manufacturer Youngone participated in the round.

Evoco: In Q1 2023, plant-based material developer Evoco raised $12m. The investment was led by the Circular Innovation Fund, Export Development Canada, and The Steward Group. Evoco was founded in 2017 and develops sustainable materials, including a patented eco-foam called FATES, which is 80% plant-based. Evoco has partnered with established brands in the footwear industry, such as Vans, Keen and Timberland.