Fashion and luxury companies are taking sustainability seriously, emphasising what they do in their business practices, the materials they use for production, and the impacts of their supply chain.
The case for sustainability is clear – it is good for people and the planet alike – but it also makes business sense. Here’s why sustainability has become an integral focus for fashion and luxury companies.
The Need for Establishing Holistic Sustainability in Fashion
The fashion industry has recently come under fire for its wasteful and unethical practices and poor environmental impact on the planet.
Fast-fashion brands can produce cheap clothes at high volumes in a short timeframe. This has led to a race to the bottom where consumers can buy cheap products, wear them for a few washes and discard them.
However, consumers are now starting to realise the negative impact this has on the planet and global society. As a result, the demand for sustainable fashion is growing, and now fashion and luxury brands need to focus on building their business practices in line with sustainability objectives.
How to Identify if a Business is on Track to Holistic Sustainability
There are several ways fashion companies can identify if they are on track with sustainable business practices:
Measurable Sustainability Targets
Brands need to set sustainability targets and establish a strategy for how they will achieve them. These should include both short-term and long-term goals with tangible objectives that are easy to monitor and benchmark against others in the industry.
Sustainability Claims Backed by Industry-Standard Certifications
Brands must be able to substantiate their claims, which can include a wide range of areas such as environmental impact and ethical business practices.
There are a growing number of third-party certifications available for brands to use. These include Fairtrade, which aims to ensure that fair prices are paid for products and safe working conditions, and the Global Organic Textile Standard (GOTS).
Sustainability Beyond Eco-Friendly Fabrics
Sustainability isn’t just about fabric choice.
Fashion and luxury companies need to think about how they can make their business practices more sustainable, such as reducing packaging waste or having a recycling policy in place for customers who want to return used products.
The true test of sustainability is taking action across the whole supply chain, from sourcing materials to manufacturing them into finished goods.
Fair Treatment of Employees and Suppliers
Sustainability also extends to the treatment of employees and suppliers. Brands must have a supplier agreement in place for all business relationships, which should include ethical working conditions, fair wages and safe practices.
How to Avoid the Pitfalls of Greenwashing
“Greenwashing” is the term given to companies that make misleading claims about their sustainability or eco-friendly credentials to attract consumers. It is crucial that brands don’t fall into this trap and ensure they are transparent about their business practices.
Not all brands greenwash intentionally. But it can be tempting to prioritise marketing-friendly green claims over real action.
The best way to avoid this is by understanding the need for sustainability and how it fits into business strategy.
This will naturally lead to a greater awareness of sustainable practices and help brands avoid misleading consumers about their environmental actions.
More Than a Promise: How to Build an Achievable Sustainability Strategy
The Sustainable Fashion Branding Program from SDA Bocconi School of Management is suited to those working across the fashion and luxury industries who want to understand the business case for sustainability.
The six-week program will guide participants through implementing more sustainable, socially responsible practices for their brand, including supply chain structure, selecting sustainability metrics, and building a brand narrative around their sustainability transformation.
