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Forbes
6 days ago
- Business
- Forbes
Remaking The Future: Real Solutions For A Sustainable Fashion Industry
Mumbai, India: Indian workers sew in clothing factory in Dharavi slum. The global fashion industry, valued at $1.7 trillion has elements of mass production, exploitation, and disposability, and it stands as one of the largest polluters and least transparent industries. From fast fashion's environmental footprint to microplastics found in human bloodstreams, the crisis is undeniable. As outlined in the previous articles on the structural exploitation, environmental collapse, waste colonialism, and health risks, it is essential to pivot to real solutions. Systemic reform is not just possible but there are individuals who are making waves. Dr. Hakan Karaosman, Associate Professor at Cardiff Business School and Chief Scientist at Fashion's Responsible Supply Chain Hub, stresses that sustainability must move beyond marketing slogans and become a governance structure ensuring fairness, transparency, and responsibility. Radical transparency is key and according to Fashion Revolution, when brands openly share information, it empowers the public to examine their practices, demand accountability for their statements, and push for meaningful improvements. The 2024 Global Fashion Transparency Index, as reported by Fashion Revolution, highlights that a significant number of fashion companies still fail to disclose fundamental details about their environmental and labor practices. Only 41% of brands surveyed revealed their wage policies, and just 24% provided data on the actual wages paid throughout their supply chains. Furthermore, for any improvements to the fashion sector, it has to start with the business models assessments and drastic improvements in the supply chain. Small textile factory in the city of Dhaka According to the United Nations Environment Programme, the fashion industry contributes up to 10% of global carbon emissions more than international flights and maritime shipping combined. To align with the Paris Agreement and limit warming to 1.5°C, brands must adopt Science-Based Targets and transparently report progress. Fashion Revolution's Transparency Index shows that while disclosure at the first tier direct suppliers has improved, only 12% of brands reveal information about processing facilities and just 5% disclose raw material suppliers. Without full supply chain visibility, risks of labor abuses, environmental degradation, and greenwashing will continue to remain high. According to the Global Living Wage Coalition, a living wage is the income earned during a standard workweek that enables a worker and their family to maintain a decent standard of living. This encompasses access to essentials such as adequate food, clean water, housing, education, healthcare, transportation, clothing, and other basic needs, along with a buffer for unforeseen expenses. However, according to Clean Clothes Campaign, garment workers in countries like Bangladesh earn on average, far below the estimated living wage of $253 per month. Brands must move beyond voluntary commitments and implement enforceable agreements that ensure living wages across all supplier contracts. Over 70% of textiles used in fashion are derived from fossil fuels, including polyester, nylon, and acrylic. Transitioning to organic cotton, recycled fibers, and emerging bio-based alternatives could reduce the industry's carbon footprint significantly. Moreover, the resultant microplastics are detrimental to the environment and human health. According to a 2025 McKinsey report, global clothing consumption is accelerating rapidly and is expected to grow by 63 percent by 2030, reaching 102 million tons. Fast fashion trends have also shortened the lifespan of garments, with some estimates indicating that low-cost clothing items are discarded after only seven wears. Alarmingly, for every five pieces of clothing produced, three are either sent to landfills or incinerated each year. The textile industry's environmental impact is staggering, generating 1.2 billion tons of greenhouse gas emissions annually, surpassing the combined emissions from all international flights and maritime shipping. The industry must shift from quantity to quality, designing durable, timeless garments, encouraging circular fashion models, and holding brands accountable for their environmental footprint. The fashion industry's environmental toll and human rights violations are no longer hidden and as consumers grow more conscious and regulatory pressures intensify, brands must evolve. As Dr. Hakan Karaosman advocates, it is not enough to speak about responsibility it must be embedded into the very governance of fashion.
Forbes
01-04-2025
- Business
- Forbes
Beyond The Price Tag: The Dark Side Of Luxury And Circular Fashion
Models walk the runway during the Chanel Womenswear Fall/Winter 2025-2026 show as part of Paris ... More Fashion Week at Grand Palais on March 11, 2025 in Paris, France. (Photo by) Luxury fashion has long positioned itself as an exclusive alternative to fast fashion, with brands like Louis Vuitton, Chanel and Christian Dior boasting craftsmanship and heritage. However, luxury is not without its sustainability challenges. Meanwhile, the fashion resale and clothing rental models are gaining traction, offering potential solutions to the industry's overproduction crisis. According to ThredUp, the global secondhand market is projected to reach $350 billion by 2027, signaling a shift in consumer preferences. Luxury brands emphasize exclusivity, but their supply chains remain opaque. The use of exotic materials, such as crocodile leather and mink fur, raises ethical concerns, while some brands destroy unsold inventory to maintain brand value. According to research by Dr. Hakan Karaosman, the luxury fashion market reached an estimated €1.2 trillion globally in 2018, with the personal luxury goods sector—including apparel, textiles, and footwear—growing to €260 billion, reflecting a 6% increase. Despite luxury brands' reputation for high-quality, durable materials, they drive relentless consumer demand through capsule collections and celebrity-endorsed limited editions. However, the industry's environmental and social costs are substantial. According to NGOs and consumer groups, luxury fashion brands have been linked to burning excess stock, polluting with hazardous chemicals, excessive water consumption, and exploiting labor while falsely marketing products as 'Made in Italy'. Additionally, automation, shifting ownership norms, and increasing transparency demands have left luxury fashion leaders grappling with tough challenges in an evolving marketplace. According to a 2018 Burberry report, the brand incinerated over $36 million worth of unsold products in one year alone, highlighting the industry's hidden waste problem. The brand explained that the items were destroyed to prevent them from being sold at a discount. It emphasized taking waste management 'extremely seriously' and claimed to use special incinerators to generate energy from the process. Platforms like ThredUp, The Thrift Hub in Jamaica and Depop are redefining fashion consumption by extending the lifespan of garments. According to Eco Cart, buying secondhand reduces a garment's carbon footprint by 82% compared to buying new. Additionally, sustainable fashion is rapidly gaining momentum. Statista reports that the global sustainable apparel market is projected to grow from $6.3 billion in 2023 to $12.6 billion by 2030. However, high-end resale platforms still contribute to overconsumption by marketing secondhand shopping as an endless cycle of buying and reselling. Rental services like Rent the Runway promote access over ownership, reducing demand for single-use purchases. However, the model is not without flaws—constant shipping, dry cleaning, and packaging generate emissions that sometimes offset its benefits. According to researchers at Finland's LUT University, renting clothing—where a single garment is leased to multiple users—may be less sustainable than expected. A study published in the Finnish scientific journal Environmental Research Letters found that renting fashion can generate more global warming emissions than simply discarding garments. The research, highlights that the environmental cost of rental fashion stems from transportation emissions. The model assumes that consumers travel at least two kilometers to return rented jeans, and after ten uses, they exchange them for a new pair—leading to increased carbon footprints primarily due to vehicle emissions. The fashion industry's business models—whether fast fashion, luxury, resale, or rental—are driving overconsumption, supply chain inefficiencies, and unsustainable labor practices. Luxury fashion, despite its craftsmanship and exclusivity, relies on limited-edition collections and high turnover, fueling relentless demand. Fast fashion accelerates waste and exploits garment workers, while ultra-fast fashion takes this to extreme levels, producing thousands of new styles daily. Resale platforms, while extending garment lifespans, still encourage continuous buying and selling. Rental fashion, once considered a circular solution, has hidden sustainability drawbacks, including emissions from transportation and cleaning. Ultimately, these business models prioritize profit over ethical supply chains, often leaving workers without a livable wage and pushing environmental costs onto society. The solution lies in systemic change—brands must shift from volume-driven profits to responsible production, fair wages, and transparent sourcing. Consumers must also challenge the narrative of endless newness and embrace true sustainability over performative greenwashing. Read our previous article Beyond The Price Tag: The Dark Side Of Fast Fashion Business Models, and stay tuned as our series continues with an in-depth examination of fashion's pollution problem.
Forbes
01-04-2025
- Business
- Forbes
Beyond The Price Tag: The Dark Side Of Fast Fashion Business Models
Fast fashion Fast fashion has revolutionized the apparel industry, making trendy clothing more affordable and accessible than ever. However, this business model comes at an enormous cost. According to the Ellen MacArthur Foundation, the fashion industry produces over 92 million tons of textile waste annually, with fast fashion contributing significantly to this staggering figure. As brands like Zara, H&M, Temu and Shein continue to push rapid production cycles, the environmental and human costs are mounting at an unsustainable rate. This is the first article in the Fashion and Sustainability series. To gain expert insight into the current state of the industry by examining the different types of fashion business models and how they are designed for overconsumption. Dr. Hakan Karaosman, Associate Professor at Cardiff University, Chief Scientist at FReSCH, and Chair at the Union of Concerned Researchers in Fashion, was interviewed to gain insight on the sector. He is a leading authority on sustainable fashion supply chains and stresses that true sustainability requires systemic change rather than surface-level commitments and certifications. As the son of a garment worker, his research is deeply personal, fueling his mission to bring justice to those working across complex fashion supply chains through scientific inquiry and industry reform. The Fast Fashion Model: A System Built on Waste and Exploitation Fast fashion thrives on a high-speed production cycle that prioritizes low costs and rapid turnover. According to the New York Times garment workers in countries such as Bangladesh and Cambodia earn as little as $3 per day, often working in unsafe conditions. Meanwhile, synthetic fabrics like polyester—found in over 60% of garments—release microplastics into the ocean with each wash, further exacerbating pollution according to the United Nations Environment Program. Ultra-Fast Fashion: The Darker Side of Trend-Driven Apparel If fast fashion is unsustainable, ultra-fast fashion is outright catastrophic. Brands like Shein, Boohoo, and Fashion Nova have taken the most undesirable aspects of fast fashion and accelerated them through data-driven trend forecasting. Shein alone uploads between 2,000 and 10,000 new styles daily, leveraging algorithmic predictions and influencer marketing to fuel relentless consumer demand according to Times Magazine. A 2022 Business Insider report indicate that some Shein suppliers' workers are 18-hour shifts for as little as 4 cents per garment. The Direct-to-Consumer Shift: A Sustainable Solution or Greenwashing? Direct-to-consumer brands like Everlane and Reformation present themselves as sustainable alternatives by cutting out middlemen and emphasizing ethical sourcing. While this model reduces inventory waste, many brands still rely on overproduction and aggressive marketing tactics. According to Changing Markets Foundation, 59% of sustainability claims by major fashion brands are misleading, indicating that greenwashing remains a significant issue. The Future of Fashion & the Need for Systemic Change The dominance of fast and ultra-fast fashion reveals a system built on exploitation and environmental destruction. Unless consumers and policymakers demand greater accountability, the cycle of disposability will continue. The rise of sustainable alternatives and green certification is promising, but without systemic reform, the industry's impact will remain devastating. Stay tuned for the next article in the series which examines the business models of luxury, resale, and rental fashion industries.
