Fast Retailing and SHEIN are the only brands not to set a clear public target to phase out thermal coals. It scores poorly in the essential criteria of progress towards decarbonizing by 2030. The retailer’s manufacturing emissions are not on track to fall by the benchmark of 55% by 2030. Neither does it provide any evidence of increasing supply chain renewable electricity or phasing out thermal coal. While Fast Retailing does report engaging with the majority of its suppliers to promote energy efficiency and renewable electricity, it provides no detail on fair financing for suppliers and only vague references to supportive procurement practices.
Total Score
14/100 / 100
Emissions
1.96%
About the Clean Energy Analysis
The 2024 Clean Energy Close-Up builds on the foundation of the 2023 Scorecards. It provides an in-depth analysis of the tangible progress of 11 of the most influential global fashion brands. Their performance is measured against the runway to an equitable fossil fuel phase-out by 2030 on criteria related to energy efficiency and renewable energy, drawing in data shared publicly by manufacturers in their supply chains.
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Score Breakdown
Score
2/10
| Target | Brand Commitment | Meets Benchmark |
| Stores and offices GHG Emission reduction target (Scope 1 & 2) | 90% reduction from 2019 levels by 2030[14] | ✔ |
| Stores and offices Renewable Electricity target (Scope 2) | 100% by 2030 | ✔ |
| Manufacturing emissions target (Scope 3) | 20% reduction from 2019 levels by 2030 | ❌ |
| Manufacturing Renewable Energy target (Scope 3) | None | ❌ |
| Public commitment to phase out thermal coal and transition to electrification/avoid harmful biomass | None, but signatory of UN Fashion Charter[15] | ❌ |
Score
3/10
Fast Retailing publishes data about its own operations through CDP and on its website, but does not publish any data on energy and electricity consumption and sourcing in its supply chain. It should increase transparency in these key areas. The company needs to share significantly more detail on the type and value of financial supply chain investments in order to show clear accountability to its targets and prove the impact of its supply chain programs.
Score
3/40
Although Fast Retailing’s absolute emissions have fallen since 2019, comparing its emissions against a 55% absolute emissions reduction benchmark shows that the company is not currently on track. Brand data reveals a slight increase in emissions in the past year, despite a fall in revenue.
Fast retailing did not provide evidence of the extent of its supply chain transition to renewable electricity, or phasing out coal-fired boilers and transitioning to electrification.
In its own operations, Fast Retailing reports that it has achieved 42.4% renewable electricity as of 2022. However, this was achieved primarily through the purchase of EACs.[16]
Score
6/40
Step 1: There is some evidence of support through non-financial resources to reduce reliance on fossil fuels by energy efficiency measures and by transitioning to renewable energy, but it remains limited compared with Fast Retailing’s competitors. This includes training carried out in conjunction with the Sustainable Apparel Coalition and Higg FEM’s requirements on reporting and providing information on the Higg Index. [17]
Step 2: It is not clear if Fast Retailing has provided financial support in the past on energy efficiency or renewable energy efforts in the supply chain. The company states they consider extending financial support when requested by partner factors but provide no further detail. [18]
Step 3: Fast Retailing reports that some limited climate requirements are a condition of contracts with suppliers; the company requires disclosure on GHG emissions and other information for Higg FEM.
No clear examples with details on programmes or success stories are provided surrounding supporting suppliers with coal phase-out. It says they are ‘formulating plans on elimination with suppliers’. [19] Concerningly, some of Fast Retailing’s suppliers burn biomass for energy, although in correspondence with Stand.earth, the company has acknowledged issues related to burning biomass. [20]
Fast Retailing has demonstrated evidence of on-site solar for suppliers, but only provides one specific example from Shenzhou International Group Holdings who provide a note saying, “In 2020, we started using solar power generation across the board to promote local production and consumption of clean energy.”[21]
There is no public evidence that the company has engaged in energy advocacy efforts. Fast Retailing cites its signatory status of the UNFCCC and participation with the Sustainable Apparel Coalition.[22]
Supply Chain Movement
Two of Fast Retailing’s key suppliers are Shenzhou International Group Holdings and Toray Industries. Shenzhou International has strong public emissions reduction and renewable energy targets, which is positive. This includes a target to reduce its absolute Scope 1 and Scope 2 GHG emissions 42% by 2030 from the base year 2020. It aims to transition to 50% or more green electricity for garment factories and 20% or more for Tier 2 factories by 2025. However, despite the very short time frame, the group does not report how much renewable energy it currently uses. While Shenzhou International reports almost entirely eliminating coal burning from garment factories, it also reports burning biomass as a replacement. Toray Industries uses a weaker intensity-based emissions reduction target of reducing emissions per unit of revenue over 50% by 2030, and a renewable energy target to “employ zero-emission power sources at a rate equivalent to or better than the targets in each country by fiscal 2030”. However, the company reports a current renewable energy ratio of just 2%.