The fashion industry is a massive consumer of the world’s natural resources. The sector has been criticized for its environmental footprint, and is said to be responsible for 10% of all carbon emissions. A 2018 report presented at the Copenhagen Fashion Summit found that the fashion industry produces an estimated 92 million tons of solid waste annually and is also the second biggest consumer of water, discharging 20% of the world’s wastewater every year.
As such, the industry also has a social responsibility to ensure the materials they use are managed responsibly. Fashion companies are under pressure from consumers and governments to reduce their negative impacts on the environment. A 2022 Deloitte study found that 23% of consumers have already switched to buying from companies that share their environmental values with Gen Z being thrice as likely to follow suit.
Fashion has developed a negative reputation due to the high volume of production, poor quality control, and rampant pollution. The statistics are alarming, but not without hope. Experts say that by focusing on the digitally-optimized circular economy — where products are designed to be reused or recycled and resources are conserved to minimize waste — industry can reduce its environmental impact by 30-60 per cent.