August in Fashion, Condensed.
Fashion's sustainability retreat, why counterfeit fashion is harmful, and will impact investors turn their back on fashion?
Hello there,
The fashion industry is slowly learning that there are consequences for inaction. That seemed to be the key takeaway of a number of stories in August, including my own. I wrote about it from the impact investment angle, after Dutch firm ASN divested €70 million from 12 fashion companies, including Puma, Inditex, NEXT and H&M. ASN nixed its fashion portfolio because of a perceived lack of progress on ESG initiatives — and it hopes other investors will follow suit.
Elsewhere, Rachel Cernansky at Vogue Business highlighted that certain next-gen material start ups are now avoiding fashion partnerships in favour of automotive and furniture (read below). The reason? Fashion doesn’t order the volumes these businesses need to push past the dreaded pilot fatigue and scale commercially.
Straight talker Ken Pucker issued a stern statement on BoF: Beware Fashion’s Sustainability Retreat. Ominous!
It certainly feels like the industry’s ESG journey is in the decidedly not-fun phase. Bold statements, ambitious targets and idealistic visions of the future have replaced by looming 2025 and 2030 commitment deadlines, compliance paperwork stacked to the ceiling of every sustainability manager’s desk and warnings from legislators that the laws are coming, ready or not.
Despite this, most major brands still don’t have invest enough in finances, resources or people to get the job done. In July, Nike laid of 20% of employees that primarily worked on sustainability — talk about a retreat!
Is it any wonder the innovators and investors are slowly backing away from fashion? The industry is going to need $1.04 TRILLION in funding to hit net-zero targets, but currently it’s on a trajectory to overshoot the 1.5°c limit by 50%. I think ASN’s move is bold and interesting, but as Leslie Johnston from Laudes Foundation told me for this story: “At the end of the day, for the change that we want to see in fashion, we need more finance and not less.”
Will the industry continue its sneaky retreat? Or will it take ASN’s divestment announcement as a wake up call to get moving or risk losing what they care about most — shareholder value.
See you next month,
Meg
Things I Did Write
Will Impact Investors Turn Their Back On Fashion? for Vogue Business
A Dutch impact investment firm has divested from all 12 fashion companies in its portfolio, hoping to send a signal about the industry’s lack of progress against sustainability targets. It’s a divisive move.
Things I Didn’t Write
Overconsumption: Can We Ever Put The Genie Back In The Bottle? by Bella Webb for Vogue Business
Legislation Shouldn’t Exacerbate Supply Chain Inequities, Garment Manufacturers Say by Jasmin Malik Chua for Sourcing Journal
Nike’s Private Jet Emissions Are Up Despite Vows To Cut Carbon by Rob Davis, Agnel Philip, Alex Mierjeski and Matthew Kish for The Oregonian
Counterfeit Fashion Is Harmful, and It Gets Worse During the Olympics by Alyssa Hardy for Teen Vogue
Say Less To The Dress: Why I’m Cutting Back On Secondhand Clothes Shopping Abigail Austin for the Guardian
Next-Gen Material Startups Are Deprioritising Fashion by Rachel Cernansky for Vogue Business
The Care-Label Queen: How Andrea Cheong Will Stop You Buying Bad Clothes by Sirin Kale for the Guardian
Beware Fashion’s Sustainability Retreat by Ken Pucker for the Business of Fashion
The To-Do List
Say No To Shein Campaign and Petition
Shein has plans to IPO on the London Stock Exchange after being rejected from the New York Stock Exchange by US lawmakers. The campaign and petition below seek to block Shein’s attempted listing in the UK “pending a thorough investigation into Shein’s labour practices, environmental impact and tax arrangements.” Learn more about Say No To Shein here.
The Wear It Kind Directory by Four Paws International
Animal welfare organisation Four Paws has created the Wear It Kind Directory with over 200 fashion brands evaluated on their use of animals products. You can also search for brands leading in next-gen material adoption.
An Apparel Supplier’s Guide to Key Sustainability Legislation in the EU, US and UK
Legislation is coming! This is a great comprehensive guide to catch you up on the big pieces on the way for fashion.