None of the world's major fashion companies achieved high climate strategy ratings in 2025, according to new analysis from the NewClimate Institute and Carbon Market Watch. Despite ongoing efforts, brands are struggling to keep pace with their decarbonization targets, with only 37 percent on track to reach their 2030 goals.
The assessment of five major global fashion companies – Adidas, H&M, Inditex, Lululemon and Shein – found that Adidas, H&M and Inditex were rated "moderate" while Lululemon was rated "poor" and Shein received a "very poor" rating. The report highlighted the absence of electrification plans for manufacturing processes as a key shortcoming.
Progress has been mixed across the sector. While 29% of companies now have supply chain renewable electricity targets compared to just 12% in 2023, the percentage with commitments to phase out coal by 2030 remained stagnant at 47%. Only 14% of brands reported providing decarbonization project financing for suppliers.
The fashion industry contributes at least 4% of global emissions in 2024, while extreme weather events could jeopardize $65 billion worth of apparel exports and eliminate nearly one million jobs by 2030. Despite some progress, current actions are insufficient to drive meaningful sector-wide emissions reductions.
Textile Exchange's chief impact officer noted the organization is "not on track" to meet its goal of slashing greenhouse gas emissions from fiber and raw material production by 45 percent by 2030. Industry experts emphasize that real progress depends on electrifying manufacturing processes and sourcing renewable electricity, rather than relying solely on emissions targets.
