Sustainable fashion could reduce 347 million metric tonnes of emissions by 2030
Fashion and climate change.
McKinsey research shows that the fashion industry was responsible for 2.1 billion metric tonnes of greenhouse gas (GHG) emissions in 2018, about 4 per cent of the global total. To better understand these numbers, the fashion industry emits about the same quantity of GHGs per year as the entire economies of France, Germany, and the United Kingdom combined.
The fashion industry needs to cut its greenhouse gas emissions to 1.1 billion metric tonnes of CO2 equivalent by 2030. However as it currently stands, the industry is on its way to emissions of 2.7 billion metric tonnes of CO2 equivalent in 2030, unless the industry intensifies its reduction efforts and ramps up decarbonisation actions to reduce annual emissions (roughly half of today’s figures).
Roughly 60% of the additional emission reduction could be achieved in upstream operations (manufacturers and fibre producers), through initiatives such as energy-efficiency improvements and a transition to renewable energy. Another 18% of emissions could be saved by fashion brands through their own operational improvements, and a further 21% by sustainable consumer behaviour. Combined action by all industry participants, could reshape the fashion landscape.
1. Reducing emissions from upstream operations.
Manufacturers and fibre producers could deliver 61% of the accelerated reduction in emissions by decarbonising material production and processing, minimising production and manufacturing waste, and decarbonising garment manufacturing. Improvements in energy efficiency and a transition from fossil fuels to renewable energy sources could deliver about 1 billion metric tonnes of emission reduction in 2030 across the fashion value chain.
2. Brands can reduce emissions from their own operations.
Brands should improve the use of recycled fibre in their material mix, increase their use of sustainable transport, improve their packaging (with recycled and lighter materials), decarbonise their retail operations, minimise returns, and reduce overproduction (only 60 per cent of garments are currently sold without a markdown). This could achieve 308 million metric tonnes of CO2-equivalent reduction in 2030.
3. Sustainable fashion consumption.
Positive changes in consumer behaviour during use and reuse, and the introduction by brands of radically new business models could contribute 347 million metric tonnes of emissions reduction in 2030. This includes an increase in circular business models promoting garment rental, resale, repair, and repurposing; a reduction in washing and drying; and an increase in recycling and collection to reduce landfill waste and move the industry toward an operating model based on sustainable fashion and closed-loop recycling.
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Consider the full lifecycle of clothes and your approach to fashion — your choices can reduce emissions and force the fashion industry to move to an operating model based on closed-loop recycling.
Source: McKinsey & Company