Climate change is increasing the frequency and severity of extreme weather events whilst also increasing global temperatures at an alarming rate. One reason this is of concern to the fashion industry is that the weather influences consumer spending, and as weather patterns become more unpredictable forecasting becomes a serious challenge. To help combat this issue, fashion brands need to make their supply chains more flexible to be able to adapt to unexpected changes in the weather faster.
Climate change creates a number of environmental risks that will impact fashion companies.
Raw materials are under threat because of the extreme weather events in the past few years. Materials such as wool, cotton, leather and cashmere are under threat. An example of this is the recent deadly summer floods in Pakistan, which amongst other things eradicated nearly 40% of the country’s cotton crop. Pakistan is the sixth largest cotton producer, meaning impacts on its supply has global consequences. Companies must increasingly factor in the likelihood of droughts, floods and fires when deciding on their supplier of these materials.
Researching into what companies are doing to combat this issue i found that Brands such as Ralph Lauren and LVMH are part of agriculture projects. These seek to help fight climate change and support farming practices that are geared towards building resilience against climate change, though these are currently only small-scale projects.
The financial risk.
Fashion brands have had to get used to supply chain shocks such as the pandemic and the Ukraine war. However, climate change is the biggest long term risk and cause of disruption that companies will have to adapt to.
Further, with consumer habits changing rapidly due to the weather, forecasting becomes even more difficult. Many brands will find it hard to predict just how exposed they are to climate risks due to the limited visibility of their suppliers and their processes. The business for social responsibility has stated:
‘’If you don’t know where your raw materials are coming from it will be very difficult to have a contingency plan.’’
Another major problem that fashion brands are currently facing is the growing pressure to improve labour conditions in their supply chain. The sector is facing a massive challenge as the world’s most climate vulnerable countries are some of the industry’s biggest suppliers. Poorly ventilated factories in ever-increasing temperatures and sun scorched farms are only a couple of the issues that fashion brands will face. Every stage of the supply chain will be impacted. Brands must be aware that these issues are happening right now and will only get worse. The change in weather and this new warmer winter and summer will affect consumer habits hugely. It puts the seasonal business model in jeopardy as consumers are now shopping with a ‘buy now, wear now’ mindset. This is harder to fit in the traditional fashion calendar. Customers are turning towards season-less products, with climate change being a driving force of this change.
So, what are fashions survival strategies to combat climate change?
Increasing resilience in supply chains will not just increase consumer confidence but will help create a better strategy for fashion brands to manage climate change. In 2021 VF Corps annual analysis of risks that threaten its businesses included climate change for the first time. The Chief Operating Officer and incoming Chief Executive of non-profit textile exchange Claire Bergkamp noted:
“nature is being destroyed faster than it can regenerate and we’re nearing irreversible tipping points.”
If brands are serious about adapting in this ever-changing climate, then they are going to have to engage with their suppliers more. From garment factories to raw material producers, it’s the first step for the industry to reduce its impact on climate change.
Making changes to supply chains is time consuming and expensive. It is also a huge risk for the farmers livelihoods. With most projects that are looking into regenerating agriculture still in the pipeline it’s likely we will not see this any noticeable change for the foreseeable future. Practices that fashion brands could look in to include restoring soil, which would make it more resilient to extreme weather conditions. The companies that are taking this issue seriously are the ones that will be best placed to adapt to the consequences of climate change and will be the driving force for positive change in an ever-changing industry.
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