Six ways brands can speed up decarbonisation in fashion

Only 37% of brands are on track to reach their 2030 targets

With only 37% of brands on track to reach their 2030 targets, McKinsey identified six ways fashion brands can accelerate their decarbonisation goals. 

“The remaining 63% of brands in our analysis will need to accelerate their abatement action if they are to reach their 2030 targets,” McKinsey noted.

Of this, 23% will need to increase their abatement progress by up to ten percentage points a year, while the other 40% need to increase their abatement progress by more than ten percentage points a year to reach their 2030 targets

“The need for renewed action is urgent, as 40 percent of brands have increased their emissions intensity since making their sustainability commitments.” the report read. 

“An increase in emissions intensity can be caused by a mix of factors, such as higher sales of trendy oversize products, overproduction caused by demand management challenges, and an increased reliance on air- and truck-based transportation due to supply chain disruptions.”

In this light, McKinsey  recommended fashion brands to create commercial value, focus on material transition and tier-2-supplier energy transition, and build a carefully prioritized, robust road map. 

The report also noted that brands should get granular on data, boost execution and transformation management, and make collaborations action oriented.