Efforts are ongoing to mobilize more of the industry from the Global South and ramp up policy efforts to scale up the decarbonization of energy systems in production countries. There are, however, a high number of uncertainties for most industries in pursuing a decarbonization pathway to net zero. Many innovations will be needed in the fashion industry in order to successfully align with a 1.5 °C pathway. These include effective fibre recycling systems, low-impact raw material production and innovation, scaling up energy-efficient processing technologies, boosting grid and on-site renewable energy in all key fashion production regions (concentrated in developing countries), innovations in low-carbon logistics, alternatives to packaging and delivery to customers, garment care and customer behaviour change, business model transformation at point of sale, and infrastructure for diverting products from landfill. There are also major uncertainties around new approaches such as regenerative agricultural practices, which have the potential to mitigate impacts from raw material production but are largely untested or unverified.

The Charter is aiming to address a number of these challenges directly or through collaboration with other organizations. For example, by closely aligning efforts on industry decarbonization with organizations such as the Sustainable Apparel Coalition, Textile Exchange, The Fashion Pact, and many other relevant key industry coalitions. Working groups will support progress by bringing together manufacturers, material producers, brands, non-governmental organizations, industry groups, chemicals and logistics providers and external players such as policymakers and financial institutions.

Discussions are under way on how best to align the Charter’s interim goal of a 30 per cent reduction with the 1.5 °C target, which may adjust to interim targets in order for the Charter's commitments to reflect scientific consensus. Signatories agree on the need to undertake an analysis to explore the right level of ambition on emission reduction and clarify baseline years, scopes and transition processes from existing Charter targets. This will be reinforced by public reporting to CDP and the task force within the Decarbonization Pathway Working Group.

In the near term, a rapid action programme for climate strategies is a focus of the Working Groups on Manufacturing/Energy, Policy Engagement and Financial Tools. These efforts will aim to support signatories as they look to implement their own targets while helping to build ease of access to existing programmes and facilitating an enabling environment for renewable energy in supply chain facilities. This matches the general consensus among the Working Groups on a need to collectively ramp up efforts to deploy low-carbon energy solutions in priority markets (e.g. Bangladesh, Cambodia, China, India, Indonesia and Viet Nam) through strategic and tailored approaches for each country. The rapid action programme was devised for 2021 with specific deliverables set ahead of COP 26 and beyond. This focus on immediate action also extends to reducing owned and operated emissions (scopes 1 and 2) and scaling up low-carbon raw material commitments (recycled cotton, recycled polyester, etc.).

Beyond new renewable energy and energy efficiency installations, signatories will also aim to boost collective efforts to replace coal in priority countries. This work will include knowledge-sharing on why coal-fired boilers are still in use, options for coal substitutions in on-site processes, the viability of alternatives beyond solar, and available financial options. To facilitate this work, a strong coalition that extends beyond fashion is envisioned, to include energy experts, industry brands, sourcing partners and machine manufacturers. This will also involve working closely with policymakers and identifying financial support to switch from coal-fired boilers to other potential sources (biomass, natural gas, rice husk, etc.).

Work on raw materials will continue to contribute to the development of data to help to ensure clarity on climate impacts and baseline years for comparability across different raw material initiatives. Attention will also focus on coming up with consistent guidance for setting material targets and guidelines on how to measure progress in line with an industry 1.5 °C goal. More collaboration with other working groups will also help to define Charter engagement around circularity, chemical input, innovation and decarbonization (particularly on heat processes and manufacturing processes that are not currently covered by other working groups). In 2021, the Group will direct collaborative industry efforts to improve life cycle analyses and fill data gaps on new materials (e.g. human-made cellulosic fibres and animal fibres), but also aims to explore ways for better industry collaboration on data, circular systems and nature-based solutions, among other matters.

Efforts to promote broader climate action will continue to help to articulate the business case for low-carbon transformation between fashion brands and manufacturers, especially around renewable energy. The Group shall further seek to understand the demands of working groups for financial tools and policy goals in specific markets in order to support concrete industry requests to policymakers. The Working Group, in collaboration with the United Nations Environment Programme, will also explore the development of a 1.5 °C communications playbook for fashion consumers that focuses on the fashion end-use phase and tackles sustainable consumption behaviours.

The work under the Charter in its first two years prepared the ground for engagement on concrete action that is now to be translated into real emission reduction strategies. Further efforts will establish more ambitious interim targets and reveal the serious commitment by signatories to align their climate action with scientific consensus. However, the scale and urgency of climate challenge are still immense, and much more needs to be done to shape a fashion industry that meets a 1.5 °C pathway and helps to realize the goals of the Paris Agreement.

The COVID-19 pandemic is likely to accelerate trends that were already on the rise and impacting fashion. A number of recovery plans are already being devised on the understanding that more sustainable measures will help to build back better and create a more stable economy. As a result, industry players that are shifting to more sustainable and low-carbon production and consumption patterns are bound to have more resilient businesses in both the near and long term. The Charter will continue to help fashion stakeholders to advance these objectives by calling on a wide range of stakeholders to define action road maps, enable knowledge-sharing and create learning platforms. By leveraging the combined strength, knowledge and resources of the industry, collective climate action by the fashion industry can help to drive the necessary change — at the local, national and global level — towards a healthier and more sustainable world.

The Charter would like to thank all of its signatories and supporting organizations for their collaborative efforts and leadership on climate action in the fashion industry. In addition, the Charter appreciates the continued coordination with external organizations and initiatives in the sector and beyond.

We are grateful for the financial support to Charter’s work by the following signatories:

Connect with us at climatedialogues@unfccc.int.