The fashion industry is investing in sustainability, but it is not good enough in the long term view. Billions of dollars of investment are needed if the industry is to operate more sustainably.
Last month Bangladesh-based denim manufacturer Mostafiz Uddin asked some of his customers for help securing a $3 million loan he said he needed to pay for upgrades that would allow him to operate more sustainably. Even though Uddin had struggled to stay afloat as brands cancelled orders and put pressure on prices during the pandemic, the investment aligned with his long-term vision and was something the brands he worked with – big, global companies that had their own environmental commitments – said they wanted. But when he asked them to provide letters indicating they were committed customers for his bank, a condition for any loan, only one – H&M Group – obliged, he said. Uddin’s experience is being repeated over and over at every level of fashion’s supply chain. Many major brands have promised consumers they will eliminate toxic chemicals, switch to recycled polyester or reduce greenhouse gas emissions. They can’t hit those goals by installing energy-efficient windows at corporate headquarters in Paris or New York. They need factories, usually owned by third parties, to switch to green energy sources and install new equipment. It’s expensive work requiring long-term investment. And while brands may push for the upgrades, suppliers say they’re often on their own when it comes to paying for them. The brands “are not contributing or helping in any way,” Uddin said. “When you want a little bit more money for [sustainably produced clothing] nobody wants to pay … all the financial risk falls on the suppliers.” As a result, progress toward a cleaner fashion industry has come at a snail’s pace. For that to change, brands need to rethink their supplier relationships, experts say. Rather than pitting factories against each other each season to find the cheapest manufacturer, the industry needs to establish stable partnerships that enable long-term investments – even if it sometimes means clothes cost more to produce.