Climate and renewable energy advocacy

The reality of fossil fuel dependency and the scale of the decarbonization challenge is such that the necessary solutions or policies are not always in place where they are needed. This means that brands need to use their voices to advocate for appropriate policies to advance a just energy transition, and to support mandatory disclosure and due diligence legislations that will help create a level playing field. 

Advocacy by fashion brands, as well as other sectors, has already delivered important outcomes: In March 2025, the government of Vietnam updated a decree enabling direct power purchase agreements (DPPA) between large electricity consumers and renewable energy generators^[1], opening the way for brands and large manufacturers to negotiate important clean energy projects that support their climate targets. 

However, political undercurrents are impacting fashion’s external positioning, and engagement from brands shows signs of waning. According to the Business of Fashion and McKinsey’s 2025 State of Fashion, only 18% of fashion executives consider sustainability as a top-three risk for growth in 2025, a decline from 29% in 2024^[2]. This concerning trend comes during a corporate pushback on ‘DEI’ initiatives led by the US government, and significant retreat from climate and environmental initiatives and increasing global protectionism.

Where policy barriers remain to access to scalable renewable electricity supply, advocating for emission reduction targets and renewable energy policy from government decisionmakers, where guided by local civil society and supply chain partners, must be central to the overall strategy for successfully shifting manufacturing from coal to clean energy. When many companies within one sector support initiatives and advocate collectively for appropriate policy development, they can trigger the large-scale change needed to decarbonize the grid and stop new fossil fuel investments.

In 2023, this Scorecard reported on how advocacy from the international garment sector and other companies supported the development of direct power purchase agreement (DPPA) mechanisms in Vietnam. What was then in its pilot stage is moving towards being realized, opening up new opportunities for companies to invest in and access renewable energy. In a clear sign of progress as a result of climate advocacy, in November 2024 H&M Vietnam became the first brand to enter into a Memorandum of Understanding for green energy supply under Vietnam’s Direct Power Purchase Agreement (DPPA) mechanism, recently expanded to increase access by smaller corporations, enabling the company to procure clean energy at competitive rates^[5]. 

H&M Group offered several other best practice examples for its direct renewable energy advocacy efforts, especially in Asia. This includes engaging on the National Solar Roadmap 2041 and Power System Master Plan (PSMP) in Bangladesh. In addition, the company shares that it has engaged with the Indonesian government, state-owned electricity companies, and local manufacturing suppliers to support the adoption of cleaner energy^[6], among numerous other examples across China, India, and beyond.

Nike was also active as part of the Asia Clean Energy Coalition (ACEC), Clean Energy Demand Initiative and Corporate Clean Energy Alliance, also instrumental in advocating for renewable electricity policies in Vietnam. The brand previously worked with the Clean Energy Investment Accelerator 2023, to help facilitate a bundled Renewable Energy Certificate agreement between Indonesia’s state-owned electricity company and local manufacturing suppliers^[7].

Smaller companies are equally able to speak out in support of strong climate policies. Eileen Fisher advocated for stronger climate legislation in partnership with Ceres BICEP (Business for Innovative Climate and Energy Policy), and is a vocal supporter of the New York Fashion Act, which is a powerful act of advocacy in favour of mandatory reporting and climate action. Patagonia continues to be vocal against poor environmental practices. Most recently, it has spoken out against oil and gas drilling on public lands^[8], backed renewable energy policies in California, and supported the California Fashion Act. ^[9]

Despite impactful examples, however, the research found few, if any, advocacy engagement from the majority of brands. In the face of waves of rollbacks of climate legislation, anti-DEI sentiment and slow movement by governments, the fashion sector must step up its collaborative advocacy efforts working with peer brands and manufacturers and consulting with local civil society organizations to increase access to renewable energy, oppose fossil fuel developments and support a level playing field for climate reporting and action across the industry.

In its 2023 report for non-government actors, Integrity Matters: Net Zero Commitments by Businesses, Financial Institutions, Cities and Regions, the UN High Level Expert Group on Net Zero recommended a series of governance actions that corporations should implement to support internal alignment with a net zero transition. In alignment with that criteria, the scorecard evaluated which companies tied executive compensation to environmental performance and if any were tied to indicators of reducing emissions across Scopes 1-3; which brands report a governance structure related to leading a climate transition; and which brands have set an internal price on carbon.

Just under half (20/42) of brands disclosed information that indicates they currently tie executive compensation to climate targets, including Asics, Burberry, Capri Holdings, H&M Group, Hugo Boss, Kering, LVMH, Mammut, PUMA and VF Corp. PUMA reports that all leaders, from the CEO to Team Heads, have defined targets covering areas like human rights, climate action, and plastics which account for 5% of the total bonus, including 1.25% specifically for climate action^[15].

Positively, nearly 90% of brands (37/42), indicated a governance structure that can help support ESG or sustainability goals, although fewer explicitly mentioned governance in relation to the climate transition itself. Tellingly, brands with strong examples of sustainable governance were also leaders across other aspects of the Scorecard: 

• Levi Strauss & Co. has multiple Board committees overseeing climate-related and sustainability issues, including the Nominating, Governance & Corporate Citizenship Committee, Compensation and Human Capital Committee, Audit Committee, and Finance Committee^[16]. 
• Hugo Boss discloses that its Managing Board oversees sustainability, including climate issues. Its Sustainability Committee, chaired by the CFO in the reporting year, regularly discusses climate-related matters and updates the Managing Board on progress toward sustainability goals^[17]. 

Setting an internal price on carbon is a powerful mechanism to encourage energy efficiency savings by making all departments responsible actors in the goal to decarbonize, as well as encourage carbon accounting across the life cycle of products. Just three companies had set an internal price on carbon that aligns with HLEG criteria: Allbirds, H&M Group and Kering Group.  In a strong example, Kering has done so through its Environmental, Profit & Loss (EP&L) since 2012 and has measured and quantified its environmental impact across its entire value chain through its EP&L. This led to a price per ton of CO2 equivalent, revised periodically (86,4 euros per ton of CO2e in 2023)^[18].

There are also clear cases of corporate misalignment with environmental and social interests, a clear failure to act, or membership with organizations or industry associations that do not align with a rapid and just transition. For example, neither Abercrombie & Fitch nor Columbia Clothing have signed the International Accord, despite public calls for it to do so by groups like the Clean Clothes Campaign^[23]. Outdoors brand REI was recently in the news for its endorsement of a federal politician with deep ties to the oil and gas industry who has supported fossil fuel on public lands^[24].

Despite a turbulent political landscape, companies must:

• Ramp up collaborative advocacy efforts in key manufacturing hubs by working with peer brands and with suppliers to increase access to renewable energy through the correct infrastructure, oppose fossil fuel developments and support the development of ambitious renewable energy policies.
• Ensure governance and internal policy aligns with climate action. In addition to linking executive compensation to climate targets and a thorough governance structure for sustainability functions, companies must work to ensure alignment between the trade associations of which they are members and their own corporate climate targets in place.