TOP STORY

Fashion’s Growth Model Faces a Structural Climate Stress Test

Climate risk is increasingly being modelled not as a reputational concern but as a margin-level financial exposure. New analysis suggests operating profits in apparel could shrink sharply under accelerated net-zero transitions. Kristina Elinder Liljas, Senior Director of Sustainable Finance and Engagement at Apparel Impact Institute, argues that carbon exposure now belongs inside capital allocation models, not sustainability reports.

Latest: Updates
Other Top Stories
 
CIRCULARITY / RECYCLING / SECONDS / WASTE

Informal Recycling Work Heightens Exposure to Labour and Environmental Harm Across Value Chains, OECD Analysis Finds

Recycling processes in the garment and footwear sector were found to carry heightened labour, environmental and governance risks, driven by widespread informality, low margins and hazardous working conditions. The analysis highlighted forced labour, child labour, unsafe facilities and criminal waste practices as material exposures within collection, sorting and reprocessing systems.

 
FLASHPOINT: CLIMATE
Beyond Headlines / STICA Report

The apparel sector now produces more climate data than at any earlier point. Fifty companies under the STICA initiative disclosed emissions inventories, transition plans, and targets in 2025. Yet sector-wide emissions continue to rise, and nearly half of signatories report they are behind on primary climate targets. The distance between disclosure capability and actual decarbonisation performance is not closing.

Climate Impact / Garment Workers

A new Roadmap has urged global fashion brands sourcing from major garment-producing hubs to fund and implement a Just Energy Transition across their supply chains, warning that persistent financing gaps, weak adaptation measures and price-driven purchasing practices are shifting climate risks onto suppliers and workers throughout production networks.

 
 
 
FOCUS: COTTON

‘MSP Isn’t Distorting Prices’: CCI Head on Imports, Yields, and the Road to Cotton Stability

The single largest cotton trading company and a public sector undertaking under the Union Ministry of Textiles, the Cotton Corporation of India (CCI), established in 1970, undertakes price support and commercial purchase operations to safeguard the economic interest of farmers in the cotton growing regions and to ensure its smooth supply to the textile industry. A Q&A with its Chairman-Cum-Managing Director, Lalit Kumar Gupta.

 
 
 
SPOTLIGHT EDITIONS: SELECT 4
 
 

"Quote Unquote"

Kristina Elinder Lilja
Kristina Elinder Lilja
Senior Director, Sustainable Finance and Engagement
Apparel Impact Institute
Carbon pricing would be the most structurally embedded risk and hardest to reverse. Carbon pricing is different as it sits directly on Scope 3, where 96–99% of apparel emissions occur. That means it’s embedded in Tier 2 manufacturing and upstream energy systems. Unless those systems decarbonise, cost exposure compounds year over year.

"Quote Unquote"

Mihir Bholey
Mihir Bholey
Former Principal Faculty, Interdisciplinary Design Studies, Science and Liberal Arts
National Institute of Design
In the Indian context, fashion is inseparable from textiles. India has a very rich textile tradition, deeply rooted in ethnic practices and aesthetics. At the same time, design is also a global language, and globalisation has led to homogenisation. When you visit superstores in Europe or Asia, you often see similar, standardised products. The truly distinctive items usually come from traditional markets. Once a product is converted into a brand, it risks becoming homogenised and losing its uniqueness.

 
FOCUS: LEATHER

IILF 2026 Exposes Gap Between Boardroom Sustainability and Tannery Floor Reality

Chennai's IILF 2026 exposed contradictions shaping India's leather industry: innovative chemical systems alongside organisational failures, Trump tariffs suppressing demand yet prices holding firm, and sustainability frameworks that never reach tannery workers. The 'Leather Carnival' demonstrated both the sector's professionalisation and its struggle to reconcile traditional identity with market realities.