Due to its global and fragmented nature, the fashion industry has one of the most complex value chains, making effective decarbonisation particularly challenging. In the past years, fashion companies’ climate strategies have shown promising signs of improvement, the Corporate Climate Responsibility Monitor 2025 finds. However, limited transparency on implementation plans, over-reliance on false solutions and a lack of commitment to move beyond fast fashion ultimately undermine their credibility.
Despite fashion companies having shown improvements in their GHG emissions targets, their credibility is still questionable and highly dependent on the implementation measures.
The emergence of targets to procure renewable electricity within supply chains must be substantiated by credible plans to electrify production processes.
The lack of transparency in supply chain energy consumption makes it challenging to evaluate sector-wide progress.
Companies clearly lack targets to extend device lifespans or improve repairability, which constitute steps to reduce emissions from production. While recycled materials are acknowledged as important, emissions from sourcing minerals remain largely undisclosed.
“In response to growing global climate action, the fashion industry has begun to optimise its climate strategies. However, reported trends in emissions reductions targets paint a mixed picture. The credibility of these strategies ultimately depends on the development of clear, robust plans that support key sector-wide transitions and complement GHG emission reduction targets.”
Benja Faecks – Policy Expert at Carbon Market Watch
Regulation is direly needed to steer away from destructive business models
Regulatory action is essential to drive a systemic shift toward sustainable fashion models that prioritise value over volume, acknowledging the limitations of voluntary efforts by individual companies.
Production processes electrification
Companies should prioritise the electrification of their supply chains and contextually describe how they plan to support suppliers in the transition.
Renewable energy strategies
Renewable energy strategies across the supply chain should be improved and tailored on emerging good practices.
Lower-emission fibres
Companies should continue to invest in research and development to scale up textile recycling and lower emission fibres.
Circular business models
A structural switch from fast fashion business models towards circularity, to lower production volumes and reduce waste, will contribute to achieving greenhouse gas reduction targets.
You can find more information about the 2025 Corporate Climate Responsibility Monitor methodology here.
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