Most fashion brands’ net-zero plans ignore supply chain workers, report reveals

Global fashion brands have been accused of greenwashing after making net-zero pledges that fail to protect workers in their supply chains. 

A report by the Business & Human Rights Resource Centre looked at 65 leading fashion companies and found that over half had committed to cut emissions by 2030, but none set targets that considered the impact on workers.

Hermes, Nike and Lululemon were named among the brands that did not address the human rights impact of decarbonisation. 

No company had a stand-alone just transition policy. 

Eight brands included some mention of a just transition in their policies, but most ignored workers when setting climate targets.

Of the eight brands with the most ambitious climate targets, only Inditex and Kering had public climate plans mentioning workers. 

Capri, Hermes, Hugo Boss, H&M, LPP, Lululemon, Nike and Primark did not. 

10 brands published wider climate transition plans covering operations and supply chain, but just three named workers in relation to climate risks.

43 brands set requirements for suppliers to reduce factory emissions. 

Of these, 42 offered support, mainly in the form of training or general “engagement”. 

Only 16 detailed any financial help for suppliers to decarbonise, including help to access loans. 

11 mentioned workers in relation to climate change in their social or human rights policies. 

Only 10 recognised heat stress as a health and safety issue, and just four gave suppliers detailed guidance on the matter. 

Only Canada Goose and VF Corp mentioned climate impacts on the livelihoods of supply chain workers.

Inditex linked its ‘Workers at the Centre’ strategy with its climate plan. 

Adidas, Levi’s, Nike and Next set out expectations for suppliers on heat stress. 

Moncler included trade unions as stakeholders for environmental issues. 

H&M stated the need for direct financial support to reduce supply chain emissions.

The report called on fashion brands to put just transition principles at the heart of their business, including supporting freedom of association in supplier factories. 

It urged brands to work with trade unions, support suppliers financially, and publish guidance on managing workplace climate impacts.

Natalie Swan, labour rights programme manager at the Business & Human Rights Resource Centre, said: “Without major transformation, the fashion industry is projected to contribute more than 25% of total global greenhouse gas emissions by 2050. 

“This will intensify extreme weather events such as heatwaves and flooding in major sourcing regions, disrupting production and endangering the health and livelihoods of already vulnerable workers. 

“There is a critical need to act now, before the window for meaningful intervention closes.  

“But the fashion industry’s climate targets mean little if the people who make its products are not taken into consideration. 

Swan added: “While urgent decarbonisation of the industry is crucial, companies are failing to recognise the ways in which this rapid process is likely to impact the human rights of workers in their supply chains. 

“Decarbonisation done without workers as critical and creative partners is not a just transition, it’s a dangerous shortcut.  

“Brands must stop hiding behind greenwashing slogans and start seriously engaging workers and their trade unions, whose rights, livelihoods and safety are under threat from both climate change and the industry’s response to it.”

She said: “If implemented thoughtfully, the shift to clean energy can help transform a historically exploitative industry into one that is more equitable, inclusive and resilient. 

“Decarbonisation strategies, done right, protect workers and communities, reduce long-term risk and lay the foundation for stronger, fairer and more resilient supply chains.”