Fewer respondents are actively working on sustainability goals

In the run-up to COP29 (which takes place from November 11 to November 22), the Global Fashion Agenda (GFA) has published its annual GFA Monitor for the third time. The report looks at how the fashion industry can reach a net positive level, what progress is being made and what ongoing challenges exist. The report was prepared in collaboration with GFA’s impact partners: the Apparel Impact Institute, the Ellen MacArthur Foundation, the Fair Labor Association, the Social & Labor Convergence Program and the Textile Exchange.

As in the previous year, progress was tracked based on five sustainability priorities: respectful and safe work environments, better pay systems, responsible management of resources, smart material choices and circular systems.

“The GFA Monitor 2024 reinforces the core themes of COP29: increasing ambition and enabling concrete action. As climate threats, geopolitical challenges and skepticism around sustainability increase, the industry must rethink its strategies to adapt quickly while promoting long-term resilience. I urge leaders to use the practical steps, tools, programs and proven best practices outlined in this report and the previous edition to promote a sustainable, equitable and transparent fashion ecosystem,” said GFA CEO Federica Marchionni in a press release.

Respectful and safe working environments

While some important advances have been made in this area, for example in flexible working, the report emphasizes that “continued efforts are needed to align industry standards and strengthen cooperation between buyers and suppliers.”

While companies are increasingly recognizing the benefits of inclusive policies, diversity, equity and inclusion efforts must address persistent structural inequities, which often disproportionately affect women and marginalized groups. Regarding informal employment arrangements such as working from home and outsourcing, more needs to be done to prevent exploitation and inadequate labor protection. Other areas of action are responsible purchasing policy, employment conditions and social protection.

Better payroll systems

Some progress has been made in addressing pay issues, with initiatives supporting pay transparency, responsible sourcing policies and collective bargaining. Fourteen percent more survey respondents say they have set goals for fair pay and living wages through collective bargaining by 2035.

However, the report finds that “system solutions are inadequate and wage gaps persist, especially in key manufacturing regions where inflation exceeds wage growth and gender pay gaps exist.” Wage increases remain minimal, with only a reported 1 percent increase in the gap between minimum wage and living wage since 2023. While legislative efforts such as the Corporate Sustainability Reporting Directive (CSRD) aim to improve pay transparency and equality, other areas of action such as responsible purchasing policy, employment conditions and social protection exist.

“Working together, we can and will put an end to low wages for garment workers. Setting sector targets for 2035 is a step forward; now we must prioritize measuring progress towards living wages,” says Tiffany Rogers, Director of Innovation and Development, Fair Labor Association Manufacturing.

Credits: Elio Santos/Unsplash

Responsible management of resources

Although environmental protection and climate action are on the agenda of many companies, greenhouse gas emissions, resource use and industry growth continue to increase, burdening the system.

“Conserving biodiversity, responsible water management and combating pollution require holistic strategies as the impacts of climate change increasingly disrupt production regions,” said the report, which points to regulations such as the EU Renewable Energy Directive and policies on the use of chemicals as examples to address decarbonization and environmental impact. “Indigenous communities should be more closely involved in decision-making regarding biodiversity conservation” is another conclusion.

Other areas of action are land use, water management and fiber fragmentation.

Smart material choices

As companies increasingly set goals to use more sustainable materials and align with the United Nations’ 2030 goals, production of new synthetic fibers is at an all-time high, while the share of recycled fibers has declined – a fact that is just weeks away. ago was highlighted in the Materials Market Report published by the Textile Exchange. The reports also found that by 2023, nearly 30 percent of all cotton produced would be produced under sustainability programs.

“Regulatory initiatives such as the EU Green Deal are pushing for more sustainable textile materials, but significant innovation is needed to reduce raw material consumption and recover value from existing sources,” the GFA Monitor advises. Areas of action are synthetic fibers, vegetable fibers, artificial cellulose fibers and animal fibers.

Circular systems

In this area too, companies are increasingly setting goals and investing in solutions and implementing programs around circularity, especially in the field of textile recycling and circular business models. However, economies of scale have often not yet been achieved.

“Despite regulatory initiatives promoting circular design and waste reduction, the circularity gap has widened since 2018. To promote circularity in the fashion industry, it is essential to tackle overproduction, improve recycling infrastructure and ensure fair transition for workers,” the report summarizes. As areas of action, fashion companies should address circular design, circular business models, textile-to-textile recycling and a just transition.

“To create a thriving fashion industry, we need to fundamentally change the way we design, make and ultimately use our clothes. To truly challenge conventional linear models at scale – and for a circular economy to become the norm for fashion – we must accelerate efforts that not only redesign the products of the future, but also the services and business models that deliver them and keep them in use,” said Jules Lennon, fashion lead at the Ellen MacArthur Foundation.

“The survey results show that goal setting for all five indicators for responsible resource management has increased, with the largest increase (59 percent) focused on water management by 2040. However, fewer respondents are actively working on these goals or measure progress,” is the conclusion.

The full report can be downloaded from the GFA website.

This article was previously published on FashionUnited.com. Translation and editing by Caitlyn Terra.

Source: fashionunited.nl