Fashion companies face 34% profit cuts from climate costs

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illuminem summarises for you the essential news of the day. Read the full piece on Sustainable Views or enjoy below:

🗞️ Driving the news: Fashion companies that fail to decarbonise their supply chains could face significant profit cuts
• A report from the Apparel Impact Institute estimates that by 2030, inaction on decarbonisation could result in a 3% loss in operating margins, with 34% profit cuts
• By 2040, these losses could surge to 67%

🔭 The context: The report urges fashion brands to see decarbonisation not as an extra cost but as a strategic investment that can provide a competitive edge in the long term
• Moving early can help brands align with climate goals and secure growth in a sustainable economy

🌍 Why it matters for the planet: The fashion industry is a major contributor to global emissions
• Decarbonising operations is crucial for meeting climate goals and reducing the industry's carbon footprint
• The shift to sustainable practices is critical for both the planet’s health and future market stability

💬 One quote: “Fashion companies focusing on decarbonisation will gain a competitive advantage,” says the Apparel Impact Institute

📈 One stat: Failure to act could result in 67% profit losses by 2040

See on illuminem's Data Hub™ the sustainability performance — carbon credit purchases, total emissions, and climate targets of thousands of companies

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