“We don't want to achieve net zero inside our fences, we want to achieve net zero outside our fences”

By Juliette Tafreschi, December 20, 2023

The webcast “Pathways to Paris goals: Runway to net zero in the fashion industry”, which took place during the 28th annual COP summit, brought together manufacturers and organizations to address the issue of decarbonization in apparel supply chains. One thing is certain: the industry has good approaches to tackle the problem, but there remains much room for improvement.

The recently concluded global climate summit, COP28, which took place in Dubai this month, ended with a landmark call for nations to transition away from fossil fuels to avert the worst impacts of climate change. The event’s final outcome document also calls for a tripling of global renewable energy capacity and a doubling of energy efficiency by 2030, as countries are urged to shift their energy systems away from fossil fuels. 

However, one thing that disappointed many governments and activists alike was the lack of clear or explicit commitment to phase out fossil fuels (coal, oil and gas) -a call that had already been supported by over 100 countries.

As a major contributor to global carbon emissions (10%), COP28 is also an important platform for the fashion industry to address its own climate challenges and explore possible solutions. This year's conference featured various events and participants from the fashion industry, who actively engaged in discussions and presentations and forged new partnerships to facilitate green transitions in the supply chain.

One notable panel discussion was titled "Pathways to Paris goals: Runway to net zero in the fashion industry". It brought together Saqib Sohail, Head of Responsible Business Projects at Artistic Milliners, Maria Mendiluce, CEO of We Mean Business Coalition, Matthew Guenther, Environmental Sustainability Director at TAL Apparel, and Laura Hohmann, Associate Director of Sustainable Supply Chains at CDP. The discussion was hosted by Shari Friedman, Managing Director, Eurasia.

In case you missed that discussion, we have summarized statements & key takeaways here:

Progresses and Challenges in Decarbonizing

Maria Mendiluce, CEO, We Mean Business Coaliton: “There’s been good progress on renewables, but emissions continue to increase, because we keep burning fossil fuels. The earliest we start to plan an orderly transition the better.”

Matthew Guenther, Environmental Sustainability Director at TAL Apparel: Thermal energy solutions are a big challenge for our industry. How do we decarbonize? There’s a lot more people talking about that challenge today but it’s still an elephant in the room.”

Saqib Sohail, Head of Responsible Business Projects at Artistic Milliners: "When we talk about garment manufacturers and mills, no one talks about one of the main contributors to emissions, the ginning mills. They are the most energy-intensive components of the supply chain.  They all need help but none of them have access to these forums.”

KEY TAKEAWAYS

A Call for Action in Light of Rising Emissions

  • Maria Mendiluce, CEO of the We Mean Business Coalition, points out that despite progress in the field of renewable energies, global emissions are continuing to rise due to the ongoing use of fossil fuels.
  • The “Fossil to Clean” campaign, led by the We Mean Business Coalition, advocates for scaling renewables, doubling energy efficiency, and establishing a clear timeline to phase out fossil fuels.
  • Mendiluce calls for greater commitment from the fashion industry, criticizing the fact that there are no voices from the industry loudly calling for a gradual phase-out of fossil fuels.

The Struggle to Decarbonize

  • That moving away from fossil fuels is not as simple for the textile industry is explained by Matthew Guenther, Environmental Sustainability Director at TAL Apparel, using an example of the struggle to decarbonize thermal energy solutions in the fashion industry, particularly in tiers 1 and 2, where heat is essential for processes such as ironing, finishing, washing and dyeing.
  • Guenther explains that it is mainly the dyeing plants in tier 2 that are powered by combustion boilers and that decarbonizing the fuel sources for these boilers is challenging. Similar to the energy sector's efforts to decarbonize and move away from fossil fuels, it is just as difficult for the textile sector.

Collective Responsibility for Improvement

  • Saqib Sohail, Head of Responsible Business Projects at Artistic Milliners, explains that as a denim manufacturer, the company mainly uses cotton. Since conventional cotton consumes a lot of carbon and water, they aim to improve its environmental impact by addressing the source.
  • Sohail claims that ginning mills are the major contributors to emissions but are often overlooked in discussions about garment manufacturing and that they lack support and access to forums for environmental improvement. He emphasizes the collective responsibility to support these factories in adopting better practices.

Positive Transition Towards Climate Action & Climate Readiness in the Fashion Industry

Laura Hohmann, Associate Director of Sustainable Supply Chains at CDP: “The fashion industry exhibits a diverse range of climate readiness. This all points to progress, and it shows that transparency and public commitments are working. But if we compare these trends with the entire apparel industry and not just the (Fashion Charter) signatories, there is a big difference.”

Matthew Guenther, Environmental Sustainability Director at TAL Apparel: Some of the wins that I’ve seen within the fashion industry has been a greater awareness of climate action and the need for climate action measures.”

Saqib Sohail, Head of Responsible Business Projects at Artistic Milliners: “It’s not only our responsibility to produce good, ethical, clean garments, but also to ensure that the communities we are affecting, they also remain the same way and that’s the whole point of being net zero.”

KEY TAKEAWAYS

Climate Readiness in the Fashion Industry

  • Laura Hohmann, Associate Director of Sustainable Supply Chains at CDP, highlights that the fashion industry has varying levels of climate readiness, with some leading, others developing and a significant proportion at a beginner's level. She sees the progress in the commitments of the Charter signatories resulting from the CDP data as positive: transparency is to increase from 40% in 2020 to 80% in 2023 e.g.
  • Despite the improvements, there are gaps in transparency, quality and the adoption of science-based targets (SBTs), particularly in Scope 3 emissions reporting, says Hohmann, when looking at the entire apparel industry.

Data, Disclosures and Global Standards

  • Hohmann emphasizes the importance of data for progress and climate investment as the foundation for decision-making.
  • She adds that greater disclosure is needed, and industry leaders are called upon to take collective action based on global standards to effectively address climate challenges.

Increased Awareness in the Fashion Industry

  • Matthew Guenther, Environmental Sustainability Director at TAL Apparel, sees an increased awareness in the fashion industry regarding climate action.
  • Guenther sees a positive trend towards the increased use of renewable energies in the fashion sector.
  • For example, TAL Apparel uses solutions for renewable energies such as solar panels on roofs and energy-efficient processes.

Community Responsibility

  • Saqib Sohail, Head of Responsible Business Projects at Artistic Milliners, points out that manufacturers have a responsibility beyond garment production.
  • Artistic Milliners goal is not just achieving net-zero within their facilities but also positively impacting communities outside their fences. 

Accelerating Climate Measures: A Call for Inclusive Discussions and Global Accountability

Matthew Guenther, Environmental Sustainability Director at TAL Apparel: "The fashion industry has a voice. The question is, how can all stakeholders work together to find solutions?”

Saqib Sohail, Head of Responsible Business Projects at Artistic Milliners: “Let's make all discussions inclusive. We should not leave behind the SMEs. They are the main engines of economies and societies.”

Laura Hohmann, Associate Director of Sustainable Supply Chains at CDP: “There are more mandatory disclosure systems, more regulations, and policies in this area. What should go hand in hand with that is better accountability mechanisms at a global level.”

Maria Mendiluce, CEO, We Mean Business Coaliton: “There are 100 companies that have signed, but thousands that have not. If you want to create a level playing field, you must lay the foundations for it. And that's what the fashion industry needs to demand from governments.”

KEY TAKEAWAYS

  • Matthew Guenther advocates for country-level climate weeks involving private sector, governments, financial institutes, NGOs, and fashion stakeholders to collectively address challenges and solutions.
  • Saqib Sohail, urges inclusivity in policy discussions, emphasizing the importance of not leaving out SMEs, the main engines of economies, in the dialogue and solution-making process.
  • Laura Hohmann highlights the need for better global accountability mechanisms to accompany the increasing mandatory disclosure systems and regulations worldwide, emphasizing the importance of defining consequences for meeting or not meeting commitments.
  • Maria Mendiluce stresses the need for governments to set foundations for a level playing field in the fashion industry, emphasizing the importance of demanding more inventions and policymaker involvement to establish the necessary basis for sustainability. 

    CONCLUSION

    Positive progress has been made in the textile industry's efforts to decarbonize. However, the discussion shows that there is still an urgent need for improvement in order to achieve the SBTs. From the discussions with manufacturers, it is clear that these targets are not as easy to achieve as some would like. Challenges in decarbonizing thermal energy solutions were cited, for example, as well as overlooked emissions from ginning plants in the garment supply chain.

    There were repeated calls for inclusive discussions and global accountability, emphasizing the responsibility of all stakeholders, including SMEs, to drive change for a sustainable future.

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