• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
EnvironmentFashion

Big fashion can’t align its climate goals with its business model

By
Zahra Hirji
Zahra Hirji
and
Bloomberg
Bloomberg
Down Arrow Button Icon
By
Zahra Hirji
Zahra Hirji
and
Bloomberg
Bloomberg
Down Arrow Button Icon
September 17, 2022, 11:42 AM ET
A close-up of clothes for sale in a store.
Cheap clothes, enormous climate footprint. Michel Tripepi—EyeEm via Getty Images

Last week was Fashion Week in New York City, and on Monday Climate Week will come to the Big Apple. At the intersection of these annual showcases lies an uncomfortable truth: No one has figured out how to credibly align climate goals with fashion’s current business model. 

Retailers have in the past few years announced a slew of sustainability measures — practically every company in the industry has a plan, or a plan to make a plan, for changing how they manufacture products to be greener, and extending those products’ lifespan. These initiatives have given rise to the buzzword of “circularity,” and are geared at reckoning with fashion’s enormous climate footprint. According to the United Nations, the industry contributes between 2% and 8% of global carbon emissions.

But that’s where things get awkward. As of now, there’s little discussion about just how many goods a company should be producing to hit its environmental targets. Instead, bold strategies abound to keep businesses in expansion mode. 

“Many, many companies are starting to realize they have a situation that appears irreconcilable,” said Elisa Niemtzow, vice president of consumer sectors and global membership at the sustainability consulting company BSR. “The concept of degrowth and alternative business models, or alternative models to growth, can be words that make people uncomfortable.” 

Take H&M. The Swedish retailer has pledged to cut its emissions 56% by 2030 compared to 2019 levels, earning a “B” for its 2021 climate disclosures from the third-party nonprofit CDP. That’s on top of H&M moving to reduce its water and plastic use and rely on more recycled materials. But even the best materials can’t counteract a production volume of 3 billion garments per year, or investor expectations of beating out fast-fashion competitors. Is it even possible to decouple climate goals from that kind of strategy?

Many scientists engaging with BSR don’t seem to think so. “Scientists generally would say that decoupling is actually not possible, or it could be possible for emissions but not for resource use,” Niemtzow said. “And even if it could be in theory possible, it’s extremely unlikely to ever happen.”

Some companies are trying. In the luxury space, Gucci managed to cut its emissions 15% compared to 2019 levels while still boosting sales, Business of Fashion reported. Alternative models on offer include capping growth, focusing on fewer, higher-quality items, and narrowing inventory to climate-friendly options — though it’s unclear how these approaches scale over time. There are also entire businesses springing up around reselling everything from apparel to furniture, or renting goods to avoid new production entirely. The rise in resale, rental, repair and remaking businesses, aka more circular ones, could potentially cut fashion’s climate footprint by about a third of what’s needed to keep the 1.5° Celsius goal alive, according to the Ellen MacArthur Foundation.

“I think the sustainability people in the fashion space have been talking about the elephants in the room of overproduction and overconsumption for several years now,” Niemtzow said, adding that companies are at least starting to be pulled into the conversation. “We’re still all searching for the right models to guide us.” 

Sign up for the Fortune Features email list so you don’t miss our biggest features, exclusive interviews, and investigations.
About the Authors
By Zahra Hirji
See full bioRight Arrow Button Icon
By Bloomberg
See full bioRight Arrow Button Icon

Latest in Environment

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Environment

A large oil-exporting hub will be built in the deepwater Gulf of Mexico amid the Iran war—but only because Japan and the White House are paying for it
Energycrude oil
A large oil-exporting hub will be built in the deepwater Gulf of Mexico amid the Iran war—but only because Japan and the White House are paying for it
By Jordan BlumMay 8, 2026
1 day ago
An almond farmer inspects a fruit on a tree.
North AmericaAgriculture
California farmers must destroy 420,000 peach trees after Del Monte closes its canneries and cancels more than $550 million in long-term contracts
By Sasha RogelbergMay 7, 2026
2 days ago
bears
EnvironmentAlaska
Judge allows Alaska wildlife agents to resume shooting bears from helicopters to protect recovering caribou herd
By Becky Bohrer and The Associated PressMay 7, 2026
2 days ago
Debris from the White House East Wing demolition was dumped at a nearby public golf course and contains toxic metals, National Park report finds
PoliticsWhite House
Debris from the White House East Wing demolition was dumped at a nearby public golf course and contains toxic metals, National Park report finds
By Sasha RogelbergMay 7, 2026
2 days ago
ben
CommentaryFood and drink
Magnum owns Ben & Jerry’s. Now it’s destroying what made the brand worth buying
By David Bronner, Michael Bronner and Ryan GellertMay 7, 2026
2 days ago
At 75, Ted Turner told Fortune he gave himself 5 more years. He got 12—and spent them warning the world was ending
C-SuiteMedia
At 75, Ted Turner told Fortune he gave himself 5 more years. He got 12—and spent them warning the world was ending
By Ashley LutzMay 6, 2026
3 days ago

Most Popular

California farmers must destroy 420,000 peach trees after Del Monte closes its canneries and cancels more than $550 million in long-term contracts
North America
California farmers must destroy 420,000 peach trees after Del Monte closes its canneries and cancels more than $550 million in long-term contracts
By Sasha RogelbergMay 7, 2026
2 days ago
'Blue dot fever' plagues musicians like Post Malone, Meghan Trainor, and Zayn as a growing list of artists cancel tours due to lagging ticket sales
Arts & Entertainment
'Blue dot fever' plagues musicians like Post Malone, Meghan Trainor, and Zayn as a growing list of artists cancel tours due to lagging ticket sales
By Dave Lozo and Morning BrewMay 7, 2026
2 days ago
A Michigan farm town voted down plans for a giant OpenAI-Oracle data center. Weeks later, construction began
Magazine
A Michigan farm town voted down plans for a giant OpenAI-Oracle data center. Weeks later, construction began
By Sharon GoldmanMay 6, 2026
3 days ago
Current price of oil as of May 8, 2026
Personal Finance
Current price of oil as of May 8, 2026
By Joseph HostetlerMay 8, 2026
23 hours ago
U.S. Treasury will have to borrow $2 trillion this year just to continue functioning—more than $166 billion every month
Economy
U.S. Treasury will have to borrow $2 trillion this year just to continue functioning—more than $166 billion every month
By Eleanor PringleMay 7, 2026
2 days ago
Airbnb CEO Brian Chesky warns two types of people won’t survive the AI era: ‘pure people managers’ and workers who resist change
Success
Airbnb CEO Brian Chesky warns two types of people won’t survive the AI era: ‘pure people managers’ and workers who resist change
By Emma BurleighMay 7, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.