FAion is responsible for 10% of the world’s carbon emissions, and it is the second-most polluting sector in the world. However, in an ever-climate-conscious society, it is now trying to present itself as sustainable to attract customers.
One major goal is to reduce greenhouse gas emission. Over the past two decades, many brands have signed up for a scheme called Carbon Disclosure Project (CDP). This independent body awards grades for environmental performance.
The Guardian can only reveal the extent of the fashion industry’s hidden impact on the environment. Despite their actual emissions increasing, household names like H&M and Nike can claim a decrease of carbon dioxide emissions annually and receive high scores at the CDP. This is due to the way the scores were calculated.
It’s all about the fine print. These fashion brands do report their global gross emissions, but they are calculated against total revenue. This means that their emissions will increase as long as they continue to emit more.Less thanTheir revenue rises each year, while their total emissions are rated as a decrease. Nike’s 2020 Climate Change Report explains how emissions rose 1% year over the year, which was offset with 7% year-on year revenue growth, resulting over a 5% decrease in emissions per revenue. [financial year 2019].
The CDP was awarded an A- by Nike despite the rise in carbon emissions. H&M also self-reported gross worldwide emissions increases in 2017-2018. However, because these emissions rose less than revenue, it reported an overall decrease. Each year, H&M received an A-.
The Greenhouse Gas Protocol is a tool that allows you to link emissions with revenue. This protocol sets the rules for reporting emissions. Understanding how emissions are broken down into Scope 1 and 2 is crucial to understanding how brands can appear lower their total emissions.
Scope 1 emissions are the ones that directly result from the company using fossil fuels. Scope 2 emissions are the ones that result from energy purchased from utility providers. Scope 3 emissions include all indirect emissions that occur in the value chain. Companies must report global combined gross Scope 1 and Scope 2 emissions. They also need to self-report if these have increased or decreased relative to revenue increases.
Since 2016, Nikes Scope 1 has emitted more CO2 than ever before. The company’s use of fossil fuels has seen its emissions rise every year. It includes retail, distribution, offices, and other activities. The sportswear manufacturer self-reported releasing 17,975 metric tonnes CO2 in 2015. It then jumped to 47,398 in 2020, a 163% rise. H&Ms have increased from 10,723 to 11,973 in 2015 to 11,973 by 2021. This is down from a high point of 13,380 in 2020.
Scope 3 emissions are important because many companies do not account the pollution caused by their supply chains. Nike tracks these emissions but does not provide a complete total. Scope 3 upstream emissions are used to calculate business travel. This means that the impact of employees’ flights is not included in the gross global emissions. Nike did not respond to a request to comment but previously stated that Scope3 emissions such as business travel were not included in its future sustainability targets.
H&M will track and account for its Scope 3 emissions. The company stated in a statement to Guardian that Scope 1 & 2 emissions represent less than 1% of our total emissions. However, they are not the focus of our work towards our 56% reduction goal. This will not be enough. Scope 3 is our main focus. Scope 3 is our main focus. We see great opportunities to grow while respecting the boundaries of the planet. In 2021, the company earned 1.36bn (1.14bn).
Experts are disappointed by the industry’s self-proclaimed progress. They warn that focusing only on efficiency and not on reducing absolute emissions known collectively as relative decoupling is putting the planet at risk.
Celebrating the success of relative decoupling is a recipe to disaster, according to James Dyke, an associate professor of Earth system science at Exeter. Global warming will cease when we stop emitting greenhouse gases into our atmosphere. Nike has a few more million in the bank, but that doesn’t change the fact.