NGO’s report trounces fashion giants

H&M, Gap, Lululemon, Inditex and Gap were frequently mentioned in a report by the New Climate Institute NGO, focusing on the energy sourcing strategies adopted by major international groups. The report was extremely critical of the five apparel groups, especially with regards to their supply chains.

“The rate of electrification is still low for some of the major energy demand sources in the fashion sector,” stated the 82-page document.

“Direct fuel consumption is used for various processes in garment production, including textile production, spinning and weaving, dyeing and printing and garment assembly, although these processes can be electrified in modern manufacturing facilities,” continued the report.

The New Climate Institute (NCI), an NGO founded in 2014 with the support of German, Dutch, Norwegian and French state institutions, thinks that the pledges made by major fashion groups with regards to renewable electricity are “at best of superficial integrity,” since they are not accompanied by plans for electrifying their suppliers’ manufacturing operations. NCI also pointed out that the claim made by some groups about the use of bio-energy is debatable: biomass and natural gas aren’t considered as viable alternatives for replacing, for example, coal in energy-intensive manufacturing processes.

The report specifically examined renewable electricity purchases by the corporations it monitored. The Gap group is criticized for being unclear about its purchasing strategy, which however aims to enable the group to use 100% renewable electricity for its own operations by 2030. The H&M group set itself the same objective, extending it also to its suppliers. Achieving this goal could be hampered by a lack of commitment to electrification on the part of H&M’s numerous suppliers, noted the report.

Spanish giant Inditex, owner among others of Zara, has also set itself the target of using 100% renewable electricity for its directly run operations. But this target is based “on lower-quality renewable electricity purchasing practices and accounting methods,” stated the report.

What about Lululemon, which already claims to exclusively use renewable electricity?

“[Lululemon’s] claim is mostly based on the purchase of RECs [renewable energy certificates], which are unlikely to have a significant impact on the supply chain’s decarbonisation.”

The Nike group has given itself until 2025 to use 100% renewable electricity for its own operations. NCI observed that “it remains unclear whether Nike’s electricity procurement methods are adequate to substantiate this claim.”

Fashion was not the only sector whose energy sourcing practices were analysed in the report. The document also looked at corporate giants like Apple, Google, Microsoft, Samsung Electronics and TSMC.