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.
Kristina Elinder Lilja