Understanding ESG's growing role in the fashion industry

It may be intrinsically connected to style and innovation, but the fashion industry has a decidedly unfashionable environmental and social footprint. Every garment carries the weight of its production, and the consequences extend far beyond the latest trends.

Currently responsible for up to 10 per cent of global greenhouse gas emissions, the fashion sector is on a path to contribute 26 per cent of the world’s carbon emissions by 2050 according to the Ellen MacArthur Foundation’s A new textiles economy: Redesigning fashion’s future report. The industry also ranks among the top three water consumers, alongside technology and agriculture.

However, it’s not just carbon and water that is a problem – about 500,000 tonnes of microfibre from clothing ends up in the ocean each year, equating to three million barrels of oil in pollution.

Another challenge is bridging the gap between sustainability and profitability.

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