The Climate Of Business #119: Week in review: Climate fines, €800bn to meet targets, and landmark court ruling on climate

Climate Change Reality

• Great Barrier Reef suffering ‘most severe’ coral bleaching on record as footage shows damage 18 metres down (The Guardian)
• Europe needs €800bn to meet 2030 climate targets, says industry (Financial Times )
• Loss of primary forests in the tropics fell by 9% last year compared to 2022 (World Economic Forum )
• UK food production at threat after extreme flooding (BBC )
• Mexico City’s Metro System Is Sinking Fast. Yours Could Be Next (WIRED )
• More than 100,000 evacuated after flooding hits Russia and Kazakhstan (Euronews )

• No bathtubs or ice buckets as hotels seek to save water in French eastern Pyrenees (Euronews )
• Australia could reach an ‘ambitious’ emissions cut of up to 75% by 2035, advisers tell Labor (The Guardian )
• Relentless stretch of heat records in March unnerves climate scientists (Financial Times )
• Texan skyscrapers go dark to save birds' lives (BBC )

Business Climate Reality

• Climate target organisation faces staff revolt over carbon-offsetting plan (The Guardian )
• EU Policy: Can Single European Sky slash aviation emissions by 10%? (Euronews )
• Water company pays ￡150k for sewage discharge (BBC )
• Shell appeal against landmark climate ruling kicks off in Dutch court (Financial Times )
• Europe Rules That Insufficient Climate Change Action Is a Human Rights Violation (WIRED )

• World’s coal power capacity rises despite climate warnings (The Guardian )
• Wall Street turns to ‘solar grazing’ sheep in its push to go green (Financial Times )
• EU Policy: European Parliament approves energy market overhaul (Euronews )
• The world is facing a 70% supply shortfall in low-carbon buildings (World Economic Forum )
• There are now more than 2,500 climate lawsuits globally (BBC )

Reality Check

The fashion industry is at a crucial crossroads, facing significant environmental and social challenges. It contributes notably to climate change, responsible for about 4-8% of the world’s greenhouse gas emissions. This issue is compounded by the fast fashion model, which encourages the quick production and replacement of cheap clothing, escalating the use of non-renewable resources like oil-based polyester, which now exceeds cotton as the primary textile. The dependence on synthetic fibres in fast fashion also plays a major role in microplastic pollution, posing threats to marine life and further environmental harm.

Additionally, the industry’s rapid expansion has fueled an increase in plastic production, with fashion responsible for a fifth of the global annual plastic output. This highlights the critical need for the fashion sector to adopt more sustainable practices, focusing on reducing its carbon footprint, cutting waste, and moving away from non-renewable resources.

In response, a shift towards sustainable fashion is gaining vast momentum, with consumers showing a preference for environmentally friendly and ethically made clothing. Efforts from global fashion brands? demonstrate the industry’s capacity for positive transformation. For instance, Zara pledged to use recycled materials and organically grown cotton by 2022. However, the continued prevalence of fast fashion underscores the ongoing challenges and need for transformation.?

Download Plan A’s free whitepaper: Sustainability in fashion according to the GHG protocol.

The ESG & Sustainability regulations affecting fashion companies in 2024 and beynd

1. Extended Producer Responsibility on Textiles: The Extended Producer Responsibility (EPR) aims to reduce industry waste. The regulations also aim to hold brands accountable for the environmental impact of their items.
2. Corporate Sustainability Due Diligence Directive: The Corporate Sustainability Due Diligence Directive (CSDDD) ensures that environmental and human rights due diligence is enacted across the whole supply chain of businesses.
3. Corporate Sustainability Reporting Directive: The Corporate Sustainability Reporting Directive (CSRD) mandates that businesses of all sizes report their environmental and social activities, which are then subject to audits.
4. Eco-Design for Sustainable Products Regulation: The Eco-Design for Sustainable Products Regulation (ESPR) aims to maximise sustainability through a focus upon the areas of resource use, repairs and circularity. This regulation mandates a ‘Product Passport’ being included with items to ensure consumers are able to make informed decisions.?

Plan A’s in-house policy experts have created a comprehensive guide to ESG and sustainability regulations in fashion for 2024 and beyond. Read it here.?

How can fashion companies adapt to the evolving landscape of sustainability?

The future of fashion lies in its ability to adapt and evolve towards sustainability, balancing economic success with environmental stewardship and social equity. Accordingly, the path forward requires a concerted effort from all stakeholders, including businesses, consumers, and regulators, to foster a sustainable fashion industry. Sustainability in the fashion industry involves embracing innovative materials, improving supply chain transparency, promoting fair labour practices, and encouraging sustainable consumption habits.

5 steps that fashion businesses can take today to lead the way toward sustainable transformation include:

1. Utilising sustainability software: Plan A’s comprehensive sustainability solutions platform takes a holistic approach to ensure businesses within the fashion industry can mitigate the non-financial and financial risks that will inevitably increase with forthcoming policy implementation, with studies showing that high to severe ESG incidents lead to a 6% loss of market capitalisation on average.?

Book a demo with Plan A’s sustainability software today to ensure readiness for upcoming ESG regulations, and to realise the vast ROI potential of implementing sustainability within your business.

2. Analysing their supply chain: Supply chain analysis allows businesses within the fashion industry to identify any risks or opportunities related to sustainability and ESG.

3. Undergoing a life cycle analysis: A life cycle analysis (LCA) is a valuable scientific environmental impact assessment method that allows fashion businesses to measure the environmental footprint of their products.?

4. Implementing more circular practices: Following a life cycle analysis, fashion businesses must prioritise the implementation of circular practices - with a key focus on reusing and recycling.?

5. Utilising more sustainable packaging: The European Union’s ban on single-use plastic packaging means it is ever-so vital for fashion businesses to integrate sustainable packaging alternatives into their value chain. The Sustainable Packaging Coalition offers a criteria for sustainable packaging that fashion businesses should follow.

Access Plan A’s free, on-demand sustainability crash course for the fashion industry. This course is s must for CEOs, founders, sustainability officers and finance managers looking to make?

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