The Pulse of the Fashion Industry is published by Global Fashion Agenda, Boston Consulting Group and Sustainable Apparel Coalition. It follows the strong belief that the environmental, social and ethical challenges the industry faces today are not simply a threat, but instead an immense untapped value creation opportunity. This microsite explores key findings and shines a light on most repellent outcomes of this year’s update. For full insights please download the 2019 Update.
The 2019 Pulse Score* shows that the fashion industry has improved its social and environmental performance in the past year, but at a slower rate than the previous year. Despite this improvement, the fashion industry is still far from sustainable. Furthermore, the findings demonstrate that fashion companies are not implementing sustainable solutions fast enough to counterbalance the negative environmental and social impacts of the rapidly growing fashion industry. If the Pulse Score stays on its current trajectory, the gap between industry output and the Pulse Score will widen.
As a result, if the industry does not implement changes at a faster rate, it will not be able to achieve the United Nations Sustainable Development Goals1 or meet the Paris Agreement2. The publishers call upon industry leaders to increase their pace towards a deeper and more systemic change. Companies must push harder, with more focused and coordinated efforts, to overcome technological and economic limitations that hinder progress.
The 2019 Pulse Score increased +4pt from last year, compared to +6pt in 2018.
This means that measurable progress decreased by 1/3.
To provide an overview of the industry’s progress, segments are ranked in performance quartiles based on their Pulse Scores.
For a more nuanced understanding of the industry’s progress, the Pulse Score is broken down by segment and size to reveal patterns and to incorporate tailored recommendations.
Small, medium and large players in the entry-price segment increased their Pulse Score more significantly than other groups. Two factors explain the significant progress seen by these segments:
Small, medium and large players in the entry-price segment increased their Pulse Score more significantly than other groups. Two factors explain the significant progress seen by these segments:
Companies progressed by integrating sustainability in their strategy, corporate identity, decision making, governance, reporting and tracking, which is reflected in the positive leaps in their scores.
Given the knowledge building and collaborative nature of associations like Sustainable Apparel Coalition, joining them can strongly contribute to a company’s ability to set targets, define strategies and build governance foundations, which are especially valuable for companies getting started with their sustainability efforts.
The premium segment saw solid scores of 52 to 54, with Pulse Scores increasing by one to three points over the last year. Again, some of these advances are not reflected in Pulse Scores, but this does not mean that projects are unsuccessful, but rather that they are at a stage that does not yet yield measurable impact at scale.
The giant companies in the entry-price segment are finding it increasingly challenging to improve their Pulse Scores. Finding solutions for the unresolved problems is becoming tougher, and impact and returns are receding.
Two steps within the value chain that show above-average performance are Management & Target Setting and Supply Chain. The former covers enabling activities and overarching aspects of sustainability that involve target definition, strategy setting and governance. The latter step essentially encompasses the production of garments and footwear.
The Pulse Curve showcases a five-phase trajectory of the industry’s social and environmental performance, providing guidance for fashion companies as they assess their current standing, locate themselves against their peers and map out their next steps. Each phase defines a set of priorities and milestones for companies to focus on, which are summarised by the CEO Agenda5. The Roadmap to Scale captures these priorities along the Pulse Curve and offers actionable guidance for the sustainability journey of fashion companies.
The fashion industry must overcome its roadblocks to achieve more substantial improvements that lead to a systemic change. Solving the challenges of scaling and innovating disruptive technologies is a necessity for future progress.
The fashion industry has shown progress toward better social and environmental performance over the year, but the slackened pace is alarming. Even the most advanced brands face limits to what they can achieve in isolation. To master the significant roadblocks lying ahead, a strong ecosystem of collaboration is required to drive impact by identifying best practices and inspiring innovative solutions. Moving forward, coordinated action is crucial to overcoming the challenges of the fashion industry, given its global nature. An overall policy approach, timelines and incentives must thus be aligned at an international level.
Consumers are increasingly aware and concerned about social and environmental responsibility in the fashion industry as proprietary research by Boston Consulting Group6 shows.
of consumers surveyed view sustainability as extremely or very important.
Mentions of sustainability in social media increased a third faster than overall social media growth between 2015 and 2018.
Consumers mostly acquire information about sustainability issues through online search (35%), social media (31%) and non-digital print media (29%).
The strongest triggers for conscious behaviour concerning sustainability are
CLIMATE CHANGE EFFORTS (50%)
NATURAL DISASTERS (49%)
More than a third of consumers report they have already switched from their preferred brand to another because it credibly stands for positive environmental and/or social practices.
More than 50% of consumers plan to switch brands in the future if another brand acts more environmentally and socially friendly than their preferred one.
However, consumer considerations of sustainable practices are not yet powerful enough to be the most important driver of purchasing behaviour.
FOR 7% OF CONSUMERS, SUSTAINABILITY IS THE KEY PURCHASING CRITERION
BUT 23% PRIORITISE HIGH QUALITY, 17% LOOKING SUCCESSFUL AND 16% RECEIVING GOOD VALUE FOR MONEY
Consumers nevertheless expect brands to be concerned about environmental, social and ethical issues and to act accordingly. Sustainability considerations are seen as a prerequisite rather than a driver of purchasing decisions. These results indicate a shift in importance of these considerations and represent a strong signal to the industry.
It is just a matter of time before responsible practices become pivotal to decision-making factors when purchasing a product. The question is no longer whether it is necessary to improve sustainable business practices, but rather how long it will take before consumers stop buying from brands that do not act responsibly. Yet, the industry cannot wait for the consumer to lead this movement—it is up to fashion leaders to take bolder moves today to transition to a sustainable industry.
Three broad segments emerged in the survey data regarding consumer perception on the importance of switching to a brand with more responsible practices.
The fashion industry must overcome its roadblocks to achieve more substantial improvements that lead to a systemic change. Solving the challenges of scaling and innovating disruptive technologies is a necessity for future progress.
The fashion industry has shown progress toward better social and environmental performance over the year, but the slackened pace is alarming. Even the most advanced brands face limits to what they can achieve in isolation. To master the significant roadblocks lying ahead, a strong ecosystem of collaboration is required to drive impact by identifying best practices and inspiring innovative solutions. Moving forward, coordinated action is crucial to overcoming the challenges of the fashion industry, given its global nature. An overall policy approach, timelines and incentives must thus be aligned at an international level.
The Pulse of the Fashion Industry is published by Global Fashion Agenda, Boston Consulting Group and Sustainable Apparel Coalition. It follows the strong belief that the environmental, social and ethical challenges the industry faces today are not simply a threat, but instead an immense untapped value creation opportunity.
The authors would like to thank all of those who contributed to this update.
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