As a global industry, fashion holds immense potential and power not just in fabricating trends or shaping cultural movements but also in influencing environmental impact. The course of action we choose at every stage of the fashion supply chain, from procuring raw materials to retailing end products, has a lasting impact on our planet. Therefore, the challenge facing fashion retailers today is to embrace sustainability as a fundamental business value in addition to satisfying the increased need for innovation and flair. The issue is how the sector can turn retail from being a contributor to climate change to something that promotes sustainability.
Shiraz Askari
The fashion sector has a unique chance to set the standard for climate-conscious business strategies. As sustainability becomes a major priority for customers and investors alike, taking strong action today can not only decrease environmental damage but also future-proof firms. But how does retail fit into the puzzle? And how can the sector leverage its massive worldwide footprint for good?
Environmental Impact of a Carbon-Intensive Supply Chain
Retail is the tail end—and by far the most important stage in the supply chain of the garment industry. Unfortunately, it generates as much of an industry-wide carbon footprint as most other sectors put together. Consider energy-intensive shopfronts, packing waste, and inadequate logistics; none of this tends to figure in the environmental footprint of fashion operations.
What is deepest in fashion's supply chain is the environmental cost from the extraction of raw materials to the journey of the finished good to the stores. Carbon footprint in transportation just seals this deal with production in far-flung areas of the world. As problematic is its reliance on cheap labour and unsustainable sourcing techniques. To solve this challenge, what's needed is a shift towards manufacturing locally and investing in more sustainable materials such as organic cotton or plant-based fibres. Ensuring that retailers demand transparency from suppliers will ultimately decrease the overall emissions of retailers but create a ripple effect that can have effects right down the entire supply chain. McKinsey research finds that the fashion industry contributed at least 4 per cent of the global greenhouse gas emissions in 2018, an amount larger than that produced by France, Germany, and the UK together.
If we continue on the current path, emissions will be twice the level required to meet the Paris Agreement’s target by 2030. The fashion industry needs to reduce its carbon output by 1.7 gigatons of CO2 equivalent—but how can retail help bridge this gap?
Sustainable Solutions to Create a Greener Future in Retail
The retail industry can take a leading position in sustainable fashion by embracing innovative solutions across different touchpoints. Here's how:
1. Sustainable Shopfronts: Energy Efficiency & Green Design
Retail shops are the largest energy consumers, as they rely on artificial lighting, air conditioning, and digital displays to attract shoppers. Fashion brands will make a difference in the following areas:
Switch to renewable energy sources for store operations.
Implementing smart lighting and HVAC systems to reduce energy waste
Designing eco-friendly stores using sustainable materials and green building certifications
Brands like Stella McCartney and Gucci are leading the charge by making their flagship stores carbon-neutral, setting an example for others to follow.
2. Eco-Friendly Packaging & Waste Reduction
Think of the last time you ordered fashion online—layers of plastic, oversized boxes, and unnecessary wrapping. The retail sector needs to rethink packaging strategies to cut waste and carbon emissions by:
Using biodegradable, recycled, and minimal packaging
Implementing reusable shopping bags and "bring-your-own-container" initiatives
Encouraging customers to opt for digital receipts and eco-friendly shipping methods
Retailers can create a circular economy by encouraging customers to recycle old garments, repair worn items, or swap clothing instead of discarding them. Retailers like Patagonia and Reformation have already made significant strides in sustainable packaging, proving that reducing waste doesn't mean compromising on aesthetics or quality.
3. Greener Logistics & Last-Mile Delivery
Online shopping is fast booming, but it comes at a cost to the environment. Fast shipping and inefficient transportation are cited as potential contributors to increasing emissions. The retailer can make a difference on this by:
Optimising supply chain logistics with more environmentally friendly carbon output
Offering carbon-neutral delivery options
Partnering with green transportation services, like electric or bike couriers
Most importantly, delivery can be an effective way of lowering carbon footprints in the so-called "last mile" shipping, from distribution centres in large regions to consumer households. Today, two multinationals will lead the parade: Amazon with electric fleets for its logistics companies and H&M with sustainable packing. The number of trucks on the road would reduce by delivering multiple orders to customers nearby as part of a single shipment, utilising local delivery hubs, or allowing for in-store pickup.
4. The Power of Consumer Engagement & Education
Retail is no longer about selling clothes; it is about creating consumer behaviour. Brands can utilise their retail platform to educate and empower the consumer to make a more sustainable purchase. This could be achieved by:
Use of clear labelling on products stating environmental impact
In-store recycling and take-back programs
Loyalty rewards for purchasing eco-friendly goods
Many brands are already engaging customers through sustainability campaigns. Levi’s encourages customers to wash jeans less frequently, while Adidas promotes its recycled ocean plastic sneakers. When consumers are informed, they’re more likely to align their purchasing decisions with their values.
Making Sustainability a Competitive Advantage in the Retail Sector
Sustainability is a responsibility, not a strategy; it's just the opposite, as studies suggest that consumers of all ages will pay more to purchase sustainable products. Green retail initiatives will always lead to brand trust, a stronger brand attachment, and hence higher long-term profitability.
Furthermore, investors are prioritising ESG factors. Retailers that lead in sustainability will attract capital, partnerships, and opportunities for growth in an evolving marketplace.
The fashion industry is strong enough to redefine retailing as a venue for climate action. Every point, from the stores' efficiency in energy to the packaging's sustainability and mindful engagement of the consumers, will have an optimisable edge through the operations in the retail sphere. Brands that lead the sector today will fight against climate change but also secure a place as first movers into a very transformative industry.
Fashion has always set trends—it's time it sets the bar for sustainability, too. There is no debate anymore about change but rather at what speed is possible. There is a reason why retailers can make a real difference: their power, their influence, and their responsibility can lead the pack. Are they ready to lead?
For in the future of fashion, sustainability is the only style that never goes out of trend.
Shiraz Askari is president, Apollo Fashion International Limited.
