Cutting roughly 50% of emissions by 2030 and achieving net zero by 2050 in the fashion sector requires significant investment. The Apparel Impact Institute (Aii) estimates fashion industry decarbonisation will cost USD1 trillion up to 2050.

The vast majority—by some estimates up to 80%—of fashion’s emissions are in the supply chain. Much of the work needed to deliver on the sector’s net zero goals must thus happen in production.

Yet, brands and retailers hold the largest share of revenues and margins. Upstream actors also usually have smaller turnovers and steeper debt-to-revenue ratios. The misalignment of margins, contrasted against the concentration of emissions, poses a real challenge to funding sector decarbonisation.