We analyzed the progress of 11 influential fashion companies to see if they are on the path to equitably phase out fossil fuels from their supply chains and transitioning to renewable energy by 2030. 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.
2024 Clean Energy Close-Up
The 2024 Clean Energy Close-Up builds on the foundation of the 2023 Scorecards and provides an in-depth analysis of the tangible progress of 11 of the most influential global fashion brands.
Energy Close up of 11 Influential Fashion Companies
Key Findings
Median score of the 11 brands analyzed
20.5/100
H&M scored the highest and is the only company that met the benchmark of committing to 100% renewable electricity in the supply chain by 2030
59/100
SHEIN got the lowest with just 2.5 points thanks to skyrocketing emissions
2.5/100
Nine out of 11 brands have no public targets to increase renewable electricity in their supply chains
9/11
16 manufacturers reported using biomass as a coal replacement fuel
16
Scope 3 GHG Targets by Company
Progress Towards 2030
The benchmark for keeping global heating below 1.5°C according to the UN’s 2019 Emissions Gap report was an emissions reduction of at least 55% by 2030, compared with 2018 levels.
Against this benchmark, only H&M Group, Levi Strauss & Co and PUMA appear to be sufficiently on track. This shows clear progress compared with previous scorecards. However, the remaining brands have reported an insufficient emissions reduction since 2019. In stark contrast, Lululemon’s emissions doubled since its baseline year of 2019.
As the runway to 2030 gets shorter, companies’ emissions need to rapidly decrease as climate and energy programs begin to demonstrate impact.
How the 11 brands scored in the Progress Towards 2030 category
Fast, Fair and Final: Reframing the Energy Transition within Collective Responsibility
A just transition is increasingly recognized as an essential part of a climate transition plan that is fast, fair and final. In 2022, the UN High-Level Expert Group on Net Zero included a Just Transition as one of its key recommendations for meaningful climate transition plans.
Companies that authentically support and advocate for a just energy transition will adopt several measures. Starting with but not limited to:
- Brands must publish a roadmap with a transparent, time-bound and specific energy transition plan for their entire supply chains, and report annually on progress and actions.
- Financial support, including supportive procurement policies to advance an effective transition, is essential for a fossil fuel phase out that is both rapid and fair.
- Fashion brands must prioritize, promote and advocate for an energy transition that will result in an effective fossil fuel phase out, rather than mask ongoing emissions growth with carbon accounting.
- Collaborate with others, both inside and outside the supply chain, to avoid false solutions and create transition plans that are effective and locally appropriate.
An energy transition away from fossil fuels in the fashion sector is crucial to meeting brands’ commitments to the Paris Agreement on Climate Change. However, its effectiveness hinges on the principles of justice and equity.
Workers’ Role in a Just Transition
Without worker inclusion, it’s not a Just Transition, it’s just a transition. Climate plans must address climate adaptation and the needs of workers, such as keeping factories cool during heat waves, making sure communities benefit from new renewable energy, and avoiding pushing more harm onto marginalized people.
