Though most of the fashion world has spent this week with an eye on Milan and Paris, for those focused on sustainability, the place to be was New York.
Since Sunday, the city’s conference centres, hotels and cocktail hours have been clogged with dignitaries and executives in town for Climate Week — an event that runs alongside the UN General Assembly and has been varyingly described as “Burning Man for climate geeks” and the “Davos of climate.” Bloomberg dubbed this year’s edition the “unofficial climate summit of the year,” flagging that fewer business leaders and bankers are expected to show up to the UN’s annual COP climate summit in Baku, Azerbaijan in November than usual.
In contrast to last year, fashion had a robust presence. Several companies and industry associations hosted their own events and CEOs from companies including Gap, Patagonia and Pandora made an appearance.
But despite the buzz, efforts to move the needle on climate action felt as gridlocked as the traffic in midtown Manhattan.
This year is on track to be the world’s hottest on record and global emissions keep rising. While there are pockets of progress, many fashion companies aren’t on course to hit climate goals, even as deadlines set for 2025 and 2030 loom. A report published Thursday by nonprofit Textile Exchange found that the industry is increasing its reliance on plastic, with production of virgin fossil fuel-based synthetic fibres like polyester growing from 67 million tonnes to 75 million tonnes last year.
“We need to get more real,” said Federica Marchionni, chief executive officer at sustainable fashion advocacy organisation Global Fashion Agenda. “We need many more real projects on the ground that can really reduce emissions and get a just transition.”
But a smattering of new commitments announced by fashion companies this week (chief among them a nascent programme to help finance moves to decarbonise cotton production led by the Fashion Pact, a CEO-led coalition of brands) did as much to highlight how far the industry still needs to go as to signal progress. The tone at talks across the week veered from relentless optimism to group therapy session.
Meanwhile, sustainability is slipping down the priority list for corporate leaders, according to an analysis of CEO surveys published by consultancy firm Bain & Co earlier this month. Fashion executives are grappling with a sluggish market, geopolitical uncertainty and disruptive new technologies that are diverting attention from climate risks, which are hard to value, often cost money and frequently deliver intangible returns.
At a fundamental level, there is a conflict between brands’ drive for growth and their climate commitments, since production volumes correlate with environmental impact. If there was any doubt over where most of the industry’s priorities lie, Bank of America published a clarifying note that coincided with the start of Climate Week. In an analysis of the luxury sector’s slowdown, the bank recommended brands abandon the “quiet luxury” trend (which some had seen as an opportunity to promote a less, but better approach to consumption) and revert instead to focus on driving volume by emphasising newness and fashion content.
To be sure, the real action at these summits happens off stage and behind closed doors. The opportunity is to connect with policymakers, financiers, innovators and others from outside the sector who are all needed to tackle some of the structural challenges to action. Incoming legislation also means sustainability can’t fall off the agenda altogether.
Still, the industry should remember that while talk is cheap, inaction will be expensive. Extreme weather could wipe tens of billions of dollars from garment sector earnings and significantly dent brands’ operating profits by 2030, according to a study published last year that examined heat and flooding risk in just a handful of apparel manufacturing hubs.
“Either we collectively win or we lose together,” said Saqib Sohail, responsible business projects lead at Pakistan-based denim manufacturer Artistic Milliners, at an event in support of a New York bill that would increase the industry’s accountability for its environmental impact this week.
THE NEWS IN BRIEF
FASHION, BUSINESS AND THE ECONOMY
Moncler CEO strengthens grip on company with LVMH deal. Under the deal, LVMH purchased a 10 percent stake in Double R, the investment vehicle controlled by the CEO’s Ruffini Partecipazioni Holding, which currently has a 15.8 percent stake in Moncler. Double R will increase its stake in Moncler up to 18.5 percent over the next 18 months, thanks to the funding provided by LVMH.
Online holiday spending is projected to rise by 8.4 percent. US consumers are expected to spend $240.8 billion during the holiday season. The forecast signals a continued shift from physical stores to websites and mobile apps, a trend expected to benefit e-commerce leader Amazon.com Inc.
US Labor Department reaches out to employer group amid possible port strike. The strike, which could start as early as Oct. 1, could result in the closure of some of the busiest ports in the US, including the port of New York and New Jersey. These ports, stretching from Maine to Texas, handle approximately 50 percent of US imports.
Ludovic de Saint Sernin to guest design Jean Paul Gaultier couture. The Paris-based creative director is known for his body-skimming looks, references to queer culture and social media-friendly styling. Jean Paul Gaultier’s haute couture collection by De Saint Sernin will be shown during the next Paris haute couture week in January.
Breitling CEO ‘quite confident’ luxury industry has hit bottom. Swiss watchmakers last week cautioned about a negative outlook for the industry, which has been grappling with the pullback from once-flush shoppers in China. CEO Georges Kern said the Swiss watch industry is “dependent on the Chinese market.”
Telfar to launch real leather bags in a push upmarket. The line will be priced from $400 for a small tote to $960 for a large one, more than four times higher than its “vegan leather” totes. To debut The Carry bags, Telfar will open a pop-up boutique inside Selfridges from Sept. 30 to Nov. 2.
Naomi Campbell is banned from being a charity trustee. The model was disqualified for five years after a Charity Commission inquiry found Fashion For Relief, a poverty relief charity she led, passed on only a tiny fraction of the millions it raised from star-studded celebrity fashion events to good causes.
China probes Calvin Klein owner for alleged Xinjiang boycott. China’s Ministry of Commerce said it will investigate PVH Corp. for suspected boycotting of cotton sourced from the region. If found at fault, PVH could be added to an “unreliable entity list” that prevents offending foreign companies from trading with China.
Italy opens greenwashing probe into Shein website. Italy’s antitrust agency has launched an investigation of Shein’s parent company over potential misleading environmental claims, alleging that the fast-fashion retailer’s website may misrepresent the sustainability of its products.
THE BUSINESS OF BEAUTY
Glossier unveils two new fragrances. Named You Rêve and You Doux, the perfumes cost $78, and will be available on Glossier.com and Sephora on Oct. 3. The fragrances were formulated by Frank Voelkl, the nose responsible for some of Le Labo’s greatest hits, including Santal 33, as well as Glossier’s original You.
Silas Capital and Unilever Ventures invest in skincare brand Oak Essentials. Oak Essentials said it plans to use the investment to power growth in retail, product development and brand awareness. The brand’s chief executive Lauren Harris said it will soon expand wholesale partnerships and introduce a new product pipeline.
Akt London secures $7 million to drive US expansion and product innovation. The British deodorant brand obtained funding from Felix Capital. The investment will go toward product innovation, scaling US operations, and growing retail partnerships while also expanding into new markets such as Europe and Australia.
PEOPLE
LVMH’s head of selective retailing is set to leave the luxury group. The departure of Chris de Lapuente, who oversees the selective retailing division that includes Sephora and Parisian department stores, is likely to be announced this week. De Lapuente, 61, joined LVMH in 2011 as chief executive officer of Sephora.
Alberta Ferretti steps down as creative director of her brand. Ferretti will continue in her role as deputy chairman of Aeffe, the Italian luxury group she founded in 1988. She said the brand would announce a successor soon.
Adrian Cheng steps down as CEO of New World Development. The third-generation heir steered the Hong Kong property developer to its first annual loss in two decades. Cheng will become a non-executive director, effective immediately. Chief operating officer Ma Siu-Cheung will assume the CEO role.
Compiled by Yola Mzizi.
