How to Fix the Carbon Crisis in Fast Fashion

Workers organize used clothing for packaging at a warehouse near Barcelona on Aug. 1. REUTERS
Workers organize used clothing for packaging at a warehouse near Barcelona on Aug. 1. REUTERS
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How to Fix the Carbon Crisis in Fast Fashion

Workers organize used clothing for packaging at a warehouse near Barcelona on Aug. 1. REUTERS
Workers organize used clothing for packaging at a warehouse near Barcelona on Aug. 1. REUTERS

With all eyes on climate talks in Dubai, the world of fashion is working out how it can fulfill an ambitious pledge to slash the emissions it makes clothing the world with speed and style.
And the outlook isn't rosy, says Reuters.
Big brands have promised big cuts to their carbon footprint - but it is manufacturing that causes most of the environmental damage and somebody has to foot the bill for the radical change.
"The scale of the decarbonization challenge completely dwarfs the funds available," said Vidhura Ralapanawe, executive vice president at the fashion company Epic Group.
Hong Kong-based manufacturer Epic - which makes clothes in Bangladesh, Jordan and Ethiopia - has been at the forefront of global efforts to clean up the environmental footprint of the 2 trillion-dollar fashion industry.
"We are working with local and global organizations to move the whole industry forward, while trying to bring together brands, retailers, manufacturers, mills, and service providers."
The key to progress, he said, is a positive partnership between brands and manufacturers.
"Given the investment and risks manufacturers are taking, they need support in terms of long-term partnership as well as business terms that are sensitive to pricing," added Ralapanawe.
Fashion is one of the world's most damaging industries.
Behind 2% to 8% of all greenhouse gas emissions, it sucks up scarce water and creates vast amounts of pollution and waste.
The industry in 2018 set the goal of halving emissions by 2030 and reaching net zero by 2050. But progress has been slow.
Britain's monthly fashion habit alone creates the same carbon footprint as 900 round-the-world flights, according to the Oxfam charity. A 35-mile car trip creates the same environmental damage as making one cotton shirt, it added.
The stats have only got worse as the global appetite for fast fashion grows, with ever more consumers chasing the latest catwalk-to-high street trends.
Industry also knows that as of next year, it must comply with European Union legislation forcing companies to report and address emissions in their supply chains, with manufacturing to blame for about 80% of all apparel sector emissions.
But as global fashion brands pledge to drive down emissions and power towards the 2050 net-zero goal, textile and garment manufacturers are demanding that brands share the financial burden of investing in low-carbon technology and processes.
Last month, Transformers Foundation - a New York-based think tank that speaks for denim makers and brands - released a report urging more collective action to achieve a climate transition.
Kim van der Weerd, intelligence director at Transformers Foundation, said the apparel sector rarely asks 'who pays' for the big transition, assuming that it is the suppliers whose facilities must change who will foot the bill.
"That is both impractical and inequitable," she told the Thomson Reuters Foundation, given that suppliers have far less money than the big brands.
Experts said decoupling the key sticking point - who must act and who can pay - could help break the impasse, putting suppliers in charge of what changes to make and ensuring that brands duly invest in that overhaul.
PAYING FOR AMBITIONS
Textile makers want a range of funding options from the brands they feed to finance a new, cleaner production line.
Mohiuddin Rubel, a director at Bangladesh's apparel makers' trade body - the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) - said fashion brands can support suppliers by offering grants, low-interest loans and direct investments.
That will help suppliers move to more renewable energy and energy-efficient technology, as well as retain workers, he said.
Some initiatives are already underway.
The Apparel Impact Institute (AII), a US think tank promoting sustainable investments, formed the Fashion Climate Fund last year that mobilized $250 million with the aim of unlocking $2 billion of finance and cutting 150 million tons of carbon from fashion over the next three decades.
Kurt Kipka, chief impact officer at the Institute, said the fund could help speed cuts as the sector is ripe with opportunity for rapid reform.
Among suggested easy, quick wins: recovering heat from the water used in production or improving boiler efficiency.
Apparel makers said making climate finance available, accessible and affordable for suppliers is essential for a low-carbon future for fashion. But the sums involved are sizeable.
If the industry wants to achieve net zero by 2050, it will need more than $1 trillion of investment, said an AII report.
NO COOKIE-CUTTER
Besides a shortfall in funding, the industry faces another big hurdle to rapid decarbonization - the sheer diversity of priorities and problems faced by its myriad suppliers.
In densely-populated Bangladesh, suppliers find it difficult to generate enough rooftop solar power as most factory buildings expand vertically rather than horizontally, limiting roof space, cloth makers told a climate conference held in Dhaka in October.
In Pakistan, factories are unable to cut deals with third parties that would supply renewable power to help them cut emissions, and must instead make the reductions in-house, said the Transformers Foundation report.
In other words, one size will not fit all.
"If our approach is to take the collective goal of the Paris Agreement and to divvy it up equally amongst companies without taking feasibility into consideration, we will fail," said van der Weerd of the denim industry think tank.
Epic Group's Ralapanawe said the needs of a giant may not be the same as those of a heavily-leveraged small supplier, and a mix of financial tools will be needed to meet both.
Kurt Kipka, chief impact officer at the Apparel Impact Institute, said helping suppliers lighten their footprint demanded flexibility from funders.
"It’s imperative that we meet industry and partners where they are - based on the different needs of leading facilities and facilities only starting in the decarbonization journey," he said.



Adidas Sees Europe Rebound in 4th Quarter, Streaks Ahead in China

FILE PHOTO: The logo of Adidas is seen on a Gazelle sneakerat a shop in Berlin, Germany, May 2, 2024. REUTERS/Lisi Niesner/File Photo
FILE PHOTO: The logo of Adidas is seen on a Gazelle sneakerat a shop in Berlin, Germany, May 2, 2024. REUTERS/Lisi Niesner/File Photo
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Adidas Sees Europe Rebound in 4th Quarter, Streaks Ahead in China

FILE PHOTO: The logo of Adidas is seen on a Gazelle sneakerat a shop in Berlin, Germany, May 2, 2024. REUTERS/Lisi Niesner/File Photo
FILE PHOTO: The logo of Adidas is seen on a Gazelle sneakerat a shop in Berlin, Germany, May 2, 2024. REUTERS/Lisi Niesner/File Photo

German sportswear maker Adidas said on Thursday it expected Europe, its largest but worst-performing market, to return to growth in the last quarter of 2026, while it continued a strong run in China where it is outpacing rival Nike.

Heavy discounting at many retailers due to high inventory levels and promotional activities led to a slowdown in Europe, with sales contracting in the third quarter. The region accounts for almost a third of group sales.

Adidas ⁠CEO Bjorn Gulden ⁠told journalists the group had a strong order book despite the difficult situation of some European economies. The firm said the fourth quarter would be helped by delayed shipments moving into the period, and higher sales to wholesalers.

"We're still taking share and are doing pretty well," Reuters quoted Gulden as saying.

The company's Frankfurt-listed shares were up 4% by 1100 GMT on ⁠Thursday, with JPMorgan analysts pointing to the reassuring comments on an improving business in Europe.

Adidas said it expected high single-digit growth in Europe in the last three months of 2026, after currency-neutral net sales fell by 4% to €2.24 billion ($2.50 billion) in the third quarter.

By contrast, its quarterly sales grew by 12% in North America and 13% in Greater China, where it outperformed US rival Nike, whose sales have been falling there for almost two years.

"We see that other companies are struggling (in China), but I don't see anything right now ⁠that tells ⁠us that we see any clouds in the next quarters," Gulden said.

In its competition with Nike, Adidas has been investing in new styles, including the launch of its lightest-ever racing shoe, the Adizero Adios Pro Evo 3, which helped Kenyan runner Sabastian Sawe to crack the two-hour marathon barrier in April.

The group confirmed its previously released results for the third quarter and its raised guidance for the year, citing strong sales of its running and football lines.

Marketing and point-of-sale expenses were up 4% to €833 million, reflecting additional brand investments around the World Cup throughout July as well as normalizing marketing spend since August.


Storied Paris Department Store Seeks Bankruptcy Protection

(FILES) This photograph shows the BHV store (Bazar de l'Hotel de Ville) in Paris on October 5, 2025. (Photo by JOEL SAGET / AFP)
(FILES) This photograph shows the BHV store (Bazar de l'Hotel de Ville) in Paris on October 5, 2025. (Photo by JOEL SAGET / AFP)
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Storied Paris Department Store Seeks Bankruptcy Protection

(FILES) This photograph shows the BHV store (Bazar de l'Hotel de Ville) in Paris on October 5, 2025. (Photo by JOEL SAGET / AFP)
(FILES) This photograph shows the BHV store (Bazar de l'Hotel de Ville) in Paris on October 5, 2025. (Photo by JOEL SAGET / AFP)

Paris department store BHV Marais, which courted controversy last year with a partnership with Asian fast-fashion giant Shein, said Tuesday it had sought bankruptcy protection to protect its operations and jobs.

The bankruptcy procedure "is part of BHV's relaunch, not its failure," the company said, adding that the landmark store opposite Paris City Hall that employs 700 people will remain open.

The store's previous owner already had problems with brand-name boutiques it hosted over payment delays before it sparked controversy last year by announcing that BHV Marais would host Shein's first physical permanent store.

The announcement struck a raw nerve in a French public concerned about the disappearance of local jobs amid a flood of Asian imports, and triggered the departure of a number of brands.

The owner finally sold the business to a number of its managers in June, who promptly parted ways with Shein.

The new owners said that as part of that deal the ownership of part of the building was transferred, but they had yet to receive the funds, which adversely impacted their plans to revamp the business.

The owner of the building, the Canadian asset manager Brookfield, rejected that assertion, saying it does not have any outstanding sums due to BHV Marais.

French labor inspectors believe that BHV Marais has not been making payments, which its management has denied.


L’Oreal Shares Bounce on Third-Quarter Sales

A L'Oreal sign is displayed at the beauty products section of a department store inside a shopping mall in Beijing, China June 10, 2025. (Reuters)
A L'Oreal sign is displayed at the beauty products section of a department store inside a shopping mall in Beijing, China June 10, 2025. (Reuters)
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L’Oreal Shares Bounce on Third-Quarter Sales

A L'Oreal sign is displayed at the beauty products section of a department store inside a shopping mall in Beijing, China June 10, 2025. (Reuters)
A L'Oreal sign is displayed at the beauty products section of a department store inside a shopping mall in Beijing, China June 10, 2025. (Reuters)

Shares in L'Oreal rose 4% on Friday, hitting their highest in more than two years, after the French cosmetics giant reported third-quarter sales well ahead of expectations on strong demand for premium products in China and elsewhere.

Sales from July ‌to September rose ‌7.7% on an adjusted like-for-like basis ‌to €11.56 ⁠billion ($12.95 billion), topping a ⁠consensus analyst forecast of 5.9% growth in a Visible Alpha poll, L'Oreal said late on Thursday.

The maker of Lancome creams and Prada perfumes beat estimates for growth in all regions apart from Latin America, with North Asia, which is ⁠predominantly China, significantly ahead. All of its ‌divisions apart from ‌its mass market unit exceeded expectations.

"L'Oreal, once again, beat a ‌high bar," Barclays analysts said in a note.

Analysts ‌at Jefferies called the report "an impressively strong update", highlighting a "momentum shift in China and Europe" that lifted the growth rate in its Luxe division.

The group generates ‌a third of its revenue from its luxury division, but in China that ⁠business ⁠accounts for about two thirds of its sales in the market, positioning it well for a pick-up in Chinese demand. L'Oreal says it is growing three times faster than the market in China.

Shares were up 4.4% at €431.2 ($482.60) by 0917 GMT, the highest since June 2024. The shares are up by more than 17% this year.

"We see scope for the shares to test €450 as investors increasingly recognize the durability of its superior growth profile," the Barclays analysts added.