Fast fashion industry growth diminishes ESG gains

Significance

Post-pandemic, UFF companies have further increased the speed of production and distribution cycles to achieve record sales, while the main fast fashion brands are trying to combine affordable fashion and sustainability. Both models risk potentially irreversible environmental damage.

Impacts

• Retailers in the fashion industry will face rising criticisms about ‘green washing’.
• Lack of ESG standardisation will impede efforts to make companies more compliant.
• High inflationary pressures will fuel the backlash against green policies, including the European Green Deal.
• The US pushback against ESG policies will intensify if Donald Trump is re-elected president in November.