The fast fashion sector, long under criticism for its environmental impact, is witnessing the widening of a gap between leaders and laggards in the battle to reduce emissions. A new Stand.earth scorecard, published Tuesday, grades 42 international fashion brands on how far they’ve progressed toward the phasing out of fossil fuels—and reveals a stark divide between those taking serious action and those that are lagging behind.
Swedish retailer giant H&M again took the top spot with a B+ grade for its supply chain decarbonisation efforts. Singapore-based SHEIN continued to be at the bottom, with a marginal improvement in rank, and held an F grade for performance.
H&M still held the number one position for the second consecutive year, while SHEIN moved from the last position, which it also occupied in 2023. Spain’s Inditex, the owner of Zara, made a remarkable advance from 20th to ninth position in the table.
Todd Paglia, executive director of Stand.earth said that they’re seeing a sharper split in the sector. He added that while a few companies are putting real money and resources behind the transition away from fossil fuels, most are still doing far too little.
SHEIN, for instance, was once again included in the report’s so-called “F Club,” as its supply chain emissions—defined as Scope 3—have risen over 170 per cent since the previous assessment. The company, which is said to be seeking a Hong Kong IPO, hasn’t yet released its 2024 sustainability report.
In a statement, a SHEIN representative said the company has implemented several carbon-cutting measures and is collaborating with consultants to enhance emissions management. But as SHEIN continues to grow, certain aspects of their operations may see emissions increase while long-term reduction solutions build up, the company stated.
Stand.earth’s Fossil-Free Fashion Scorecard rates fashion companies on five areas: emissions transparency, renewable energy use, use of low-carbon materials, clean shipping practices, and climate leadership. The listings rely significantly on self-reported emissions data from companies, gathered mainly through CDP, an international nonprofit global disclosure system for corporate climate data.
H&M was alone in having a consistent and open decarbonisation plan. In 2023, the Scope 3 emissions of H&M were approximately half those of SHEIN and Zara, while its Scope 1 and 2 emissions—the consequence of its direct activities—were the highest of the trio, though these are a smaller percentage of overall impact.
Henrik Sundberg, the climate lead at H&M, explained that the company’s strategy is based on precise measurement and target-setting. He said that clear monitoring of their emissions and a clear plan of action are fundamental to making progress.
H&M was also one of only three brands in the study to achieve United Nations standards for credible net zero targets. It was one of six firms offering direct funding or access to credit for suppliers to transition to renewable energy, and it invested around US $179 million on decarbonisation last year.
Inditex scored well for its climate disclosure and updated emissions targets. It was one of eight companies that upped their Scope 3 ambitions since the previous scorecard. Nevertheless, the company saw growing emissions in shipping and manufacturing.
Stand.earth senior corporate climate campaigner Rachel Kitchin said that Inditex is adopting more ambitious targets, but its emissions are still in the wrong direction.
