Barclays: Fashion sustainability worth over $100 billion
20/01/2020
“Green is the new black”, as reported by Bloomberg, said the fashion industry accounts for 8% of global greenhouse-gas emissions, which tops the emissions of international flights and maritime shipping combined.
Report authors, led by Anushka Challawala and Hiral Patel, wrote that the industry’s wasteful practices are creating environmental and social concerns that can no longer be ignored.
Environmental, social and governance (ESG) funds have increased dramatically in recent years and more investors are turning to green bonds, as investors’ concerns have become more prominent.
The report highlighted profit risk from growing input costs and imminent regulation, as popular opinion shifts and consumers grow increasingly concerned about climate change and micro-plastic pollution.
As pointed out by Barclays, conventional cotton and virgin polyester comprise about 85% of total fibres in today’s apparel; the report sees value in a higher proportion of sustainable materials. It also proposes making the processing and manufacturing of clothing more resource efficient and reducing post-consumer waste.
Waste, a problem exacerbated by fast fashion and overconsumption, leaves certain groups particularly vulnerable because of their business model’s reliance on low prices and rapid turnover. At the same time, the report highlights brands focusing on physical locations, which minimise the environmental impact of home delivery and returns.
Based on estimates by Boston Consulting Group, Global Fashion Agenda and the Ellen MacArthur Foundation, the report also said that an estimated $500 billion in value is lost annually by clothes that are hardly even worn and/or rarely recycled.
Share this story:
