Fashion has a carbon problem. The industry is responsible for approximately 10% of global greenhouse gas emissions, surpassing the combined emissions from all international flights and shipping freight. With complex, opaque supply chains and a fast-paced production model, prioritising volume over value, fashion contributes significantly to environmental degradation. It is also increasingly vulnerable to climate-related disruptions.

Pressed for change: fashion’s climate reckoning

What if this problematic supply chain could be transformed into fashion’s greatest asset? Brands proactively addressing supply-chain emissions — particularly Scope 3— can convert regulatory and reputational risks into strategic advantages. The opportunity lies not merely in reducing harm but in leading a market where consumers increasingly demand better.

There are multiple benefits for fashion companies that build a more sustainable business model. These include lower production costs through resource efficiency, stronger supplier relationships, reduced exposure to regulatory and investor risk, increased access to sustainable finance, deeper customer loyalty, and the opportunity to be a leader in a burgeoning market that rewards climate-aligned innovation.

Behind the seams: fashion’s Scope 3 reality

Scope 3 emissions encompass the whole value chain, from raw material extraction to manufacturing, logistics, product use and end-of-life disposal. Addressing Scope 1 and 2 emissions (direct operations and purchased energy) is necessary but insufficient; the bulk of emissions — and the potential for impact — lies within Scope 3. This is especially true for the apparel sector, where 90-95% of total emissions are generated.

Consider raw materials. Producing a standard cotton T-shirt requires about 2,700 litres of water and emits approximately 4.3kg of CO₂ equivalent. In contrast, other materials like recycled cotton and hemp require significantly less water and have a far lower carbon footprint. Despite this, many brands favour virgin cotton due to cost and familiarity. Quantifying these trade-offs at the material level enables smarter decisions that reduce emissions without compromising quality. By switching to blends of recycled cotton, hemp and bamboo, companies can lower emissions intensity and enhance durability, advancing sustainability and customer value.

But emissions aren’t the only risk embedded in materials. Cotton, leather and viscose also carry biodiversity, and water and land-use impacts that are increasingly under scrutiny. The fashion sector’s Scope 3 footprint is both carbon and nature-intensive — both are coming into scope.

Made to measure: data is the catalyst for sustainable change

Without data, Scope 3 emissions are unmanageable; with data, they become actionable. By implementing rigorous systems for the collection and management of data, companies can produce credible and auditable data frameworks that enable benchmarking, scenario modelling and supply-chain optimisation. By mapping emissions by raw material, product and supplier, companies can focus investments on the highest-risk categories and explore the benefits and trade-offs of new materials across multiple dimensions.

Some brands are going further, using software to create digital twins to model raw materials and supply chains before production begins. This enables design teams to simulate fibre swaps or regional sourcing shifts — cutting carbon with the same precision as cost. This strategic approach meets internal targets, and improves brand equity and market resilience.

Double fold: partnering for climate impact

Scope 3 emissions are inherently shared; the emissions embedded in a product originate from suppliers’ fields, factories and supplier freight routes. Collaboration is, therefore, essential. Brands that work with suppliers to access renewable energy, improve energy efficiency or transition to lower-impact materials benefit from more stable production, fewer climate disruptions and enhanced ESG disclosures. Incentives, education and co-investment can accelerate a company’s transition to achieving its climate and nature goals. Shared suppliers mean shared responsibility. Pre-competitive platforms like the Sustainable Apparel Coalition are helping brands align expectations and pool resources — accelerating decarbonisation while avoiding duplication.

Styled by demand: the market’s shift to sustainability

Sustainability is no longer a niche demand, it’s fast becoming a mainstream market shift. According to Deloitte, 34% of consumers state that their trust in brands would improve if an independent third party recognised the brand as ethical and sustainable. Additionally, the UK’s re-commerce economy — encompassing resale, rental and repair—is worth nearly £7bn ($9.35bn), reflecting a significant consumer shift towards sustainable shopping habits.

Brands like Nudie Jeans and Patagonia are capitalising on this trend. Nudie offers free repairs for life and resells second-hand denim, embedding circularity into its business model. Patagonia integrates environmental activism with product durability and reuse. These companies are not just reducing emissions; they’re deepening customer loyalty, entering new markets and future-proofing their business models. Circular strategies, such as well-executed repair or resale programmes, not only divert waste but also communicate brand values and invite customers to participate in sustainability.

All change: securing fashion’s future

The future of fashion lies not in fleeting trends but in a fundamental shift from extractive to regenerative practices; from opacity to transparency; and from risk to resilience. Brands that quantify, manage and reduce their Scope 3 emissions aren’t merely complying with regulations, they’re positioning themselves for market leadership. The supply chain, once a source of reputational risk, can become a source of commercial advantage. The brands that decarbonise their supply chains won’t just cut carbon, they’ll shape a business model their customers trust, investors back and the planet can afford.

By Just Style