The fashion industry, currently responsible for up to 10% of global emissions, can still reach net-zero by 2050 if $1 trillion of investment is mobilised to scale a range of targeted solutions, a report published today reveals.
Co-authored by Fashion for Good, the Apparel Impact Institute, and sponsored by HSBC, the report headlines with the $1 trillion investment required to achieve net-zero, which is presented as an opportunity, rather than a cost, as it would go to financing projects that ‘offer an attractive financial, as well as environmental, return on investment’.
“Reducing carbon emissions will be one of, if not the, defining challenges of our generation and indeed the fashion industry,” said Katrin Ley, managing director, Fashion for Good. “The good news is that a strong pipeline of solutions – both disruptive and ready to be implemented – can drastically decarbonise the industry. This report highlights that not only are the opportunities plentiful and financially attractive, but they are key to getting us to a net-zero, circular industry.”
The report says existing solutions can deliver nearly half of the required CO2 reductions, while more than one-third can come from scaling innovative solutions, with 14% from actions such as adopting circular business models.
“The fashion industry is becoming increasingly aware of its environmental impact and of the need to swiftly transition to net-zero,” added Zoë Knight, managing director and group head of the HSBC Centre of Sustainable Finance. “This report shows that, while there are challenges to overcome, this transition is possible and will open up new opportunities for businesses in this sector. Collective action is critical. The financial system must play its part by providing the investment to fund net-zero solutions at scale.”
Read the full report: Unlocking the Trillion-Dollar Fashion Decarbonisation Opportunity.