Recent studies estimate more than 2% of the global greenhouse gas emissions stem from the fashion industry. A new report, co-authored by Fashion for Good, Amsterdam/Netherlands, and Apparel Impact Institute, San Francisco, CA/USA, and sponsored by HSBC, Hong Kong/China, for the first time charts a trajectory for the industry to meet the net-zero ambition, mapping the integral levers across existing solutions, such as renewable energy, and innovative solutions, such as next generation materials.
“Unlocking the Trillion-Dollar Fashion Decarbonisation Opportunity: Existing and Innovative Solutions” builds on existing research, as well as the knowledge and expertise of the authors. The report estimates the emissions reduction of existing and innovative solutions, and calculates the finance needed to bring them to scale and drive the industry to net-zero by 2050. The findings in the report are significant – analysis shows an estimated US$1 trillion is required to finance the decarbonization of the fashion industry by 2050.
Though $1 trillion may appear to be substantial, the majority of this spend is allocated to projects that offer an attractive financial, as well as environmental, return on investment and can therefore be funded by financial capital. More than $35 trillion of financial capital is available globally for good return Environmental, Social, and Governance (ESG) investments, industry experts expect to exceed $50 trillion by 2025. However, critical barriers to unlocking the financial capital needed remain. With input from key industry stakeholders, the report highlights those barriers and presents examples of financing opportunities.