Decarbonising Fashion Without Workers: New Report Exposes the Climate Plan Gap

A new report from the Business & Human Rights Resource Centre reveals that fashion industry climate plans are dangerously out of touch with worker realities. Despite bold decarbonisation targets, brands exclude workers from planning, risking livelihoods and safety. The study calls for a just transition that integrates environmental and social justice.

Long Story, Cut Short
  • Most fashion brands are setting decarbonisation targets without including workers in the planning or implementation stages.
  • Workers face rising climate-related risks while companies fail to address the social impacts of their sustainability goals.
  • Only one of the top brands has a climate transition plan that mentions workers, exposing a major policy gap in the industry.
While workers want to see policy frameworks strengthened, they are clear that these mean nothing without effective implementation
Workers for Policy While workers want to see policy frameworks strengthened, they are clear that these mean nothing without effective implementation E Tuyay / ILO

The sun’s a scorcher and workers in the textile-fashion-footwear industry roil in the heat in overheated factories and precarious homes as production hubs grapple with extreme heat, flooding, and climate-linked wage instability, says research from the Business and Human Rights Resource Centre

  • The research— The missing thread: Workers absent from fashion companies’ climate plans— says that far from the runways and boardrooms where sustainability targets are set, the reality is unfolding where those most affected by climate change are excluded from the decisions shaping their futures. Workers are facing rising risks also with no seat at the table as companies miss the vital building block of worker engagement and social dialogue needed to address climate change while centring the decent work agenda.

Findings show that while more than half of the 65 brands covered in this report have made commitments to reduce supply chain emissions by 2030, not a single target is framed around decarbonising while engaging with or mitigating the impact on workers.

  • No company has a standalone just transition policy and of the seven companies with the most ambitious climate targets, only one – Inditex – has a public climate transition plan which mentions workers (Capri, Hugo Boss, LPP, Primark, Asics and H&M do not).
  • Testimony from apparel workers demonstrates that these policy gaps do indeed matter. Workers in Bangladesh, for example, recognised the benefits of decarbonised factories, but called for them to be “certified green [only] if they are also green for workers.” This reflects concerns about what rapid decarbonisation means for wages, working conditions and health and safety – including heat stress – and where worker needs and interests are considered to be separate from climate mitigation efforts.
  • Seven out of 65 companies have supply chain emissions reduction targets of 50% or more by 2030 (compared to baseline years ranging from 2015 to 2021).
  • Three companies commit to reducing supply chain emissions by 2025 (compared to baseline years of 2019 to 2022).
  • 33 companies commit to net zero or carbon neutrality by 2050 or earlier.

Companies say they will meet decarbonisation targets at factory level by:

  • requiring suppliers to reduce energy usage and switch to renewable energy sources; introducing new technologies and automation;
  • “diversifying” supplier bases and reshoring and nearshoring production and introducing a “circular” production model through initiatives such as increased utilisation of recycled materials – with 46 companies12 setting out targets on the use of lower impact, including recycled, materials for products.
  • Not a single target is framed around minimising impact on workers.
  • Only one of the companies with the most ambitious targets – Inditex – has a standalone climate plan or strategy that explicitly mentions workers.
  • No companies mention consultation with trade unions in setting these targets.

It is impossible for a fair transition to take place without an understanding that decarbonisation and materials targets will have a direct impact on the workforce. Most companies appear to be in denial about the potential harm of their decarbonisation plans for workers, indicating a belief either that workers will not be impacted by the enormous and rapid industry shifts required to decarbonise supply chains and adapt to the impacts of climate change, or that the impacts of these shifts on production workers are not their responsibility. Either way, workers stand to pay the price.

WORKER VOICES: Workers expressed their desire for clearer and more comprehensive policies from brands, for these to explicitly include workers, and for these policies to be implemented.

  • A just transition is essential: In Bangladesh and Cambodia, the Resource Centre spoke to workers acutely aware of the need to reduce emissions across the sector but fearful of again being left behind in big industry shifts. In this context, research participants expressed readiness and eagerness for dialogue on the impacts of climate change and the just transition, and frustration that the companies profiting from their labour are barely talking about the concept, let alone setting out and implementing the policies to bring it about.
  • Policies should be clear, integrated and explicitly include workers: In Bangladesh, workers stated that brands need to combine environmental and social policies when it comes to workers and the just transition. Workers expressed frustration at “vague” and “ambiguous” policy statements, and the absence of a policy framework for the just transition, calling for policies from brands that are clearly stated and directed to both workers and suppliers, and crucially, accessible: “We need to see your policies in factories, not just hidden on your website,” said a worker in Bangladesh.
  • Policies are just the start: While workers want to see policy frameworks strengthened, they are clear that these mean nothing without effective implementation. In the words of one worker in Bangladesh: “brands need to not just say ‘what’ they want to do, but ‘how’.”
  • Workers must be included in risk assessment processes: Workers demonstrated some awareness of regulatory instruments such as the European Union’s Corporate Sustainability Due Diligence Directive (CSDDD), stressing the need to be included in plans for the implementation of such instruments, engaged as critical stakeholders throughout and with fair access to information and capacity building opportunities.
  • Companies need to join the dots: Workers are on the frontline of the climate emergency; working for poverty wages in factories that are too hot, returning to homes they cannot afford to cool and fearing replacement by automation and shifting production bases. This daily lived experience means that workers are having to join the dots between climate change, decarbonisation and decent work in a way that companies have so far failed to do. Workers in Bangladesh are clear-eyed about the “hype” around green factories: while recognising the benefits of decarbonised factories, they nonetheless “should only be certified green if they are also green for workers” and workers’ broader concerns around wages, working conditions and health and safety – including heat stress – must simultaneously be addressed as part of a just transition.
Key Findings
  • Over half of the 65 brands assessed have set supply chain emissions targets for 2030.
  • Not a single brand has a standalone just transition policy in place.
  • Only Inditex has a climate transition plan that explicitly includes workers.
  • No brands consulted trade unions while setting climate goals.
  • Workers are absent from nearly all decarbonisation strategies and risk assessments.
Worker Demands
  • Climate policies must be transparent, detailed, and accessible in factories.
  • Decarbonisation goals should also protect wages, health, and safety.
  • Workers must be involved in climate planning and transition processes.
  • Trade unions should be key partners in climate-related social dialogue.
  • Green factories should only be certified if they are also fair to workers.

RECOMMENDATIONS: Bringing about a just transition for the fashion industry: The Business & Human Rights Resource Centre presented the findings of the fashion brand policy analysis to workers and their representatives operating in Tier One readymade garment (RMG) factories in Bangladesh and Cambodia. Recommendations are informed by workers’ response to the research findings and their lived-experience expertise.

RECOMMENDATIONS TO BUYERS

  • Build just transition framing into the design of climate plans and their implementation. Develop clear just transition strategies to deliver shared prosperity throughout the supply chain and refresh the company’s suite of social and environmental policies to reflect the realities of the climate emergency and its impact on rightsholders.
  • Name and centre workers and their representatives as critical stakeholders to drive a just transition within own operations and supply chains. This should include:
  • Utilising leverage to assertively encourage and strengthen freedom of association in supplier factories to support social dialogue on the just transition;
  • Setting out and implementing policies for trade union engagement and partnership on the just transition. Trade unions must be included as a critical rightsholder group in brands’ stakeholder mapping, and brands should engage directly with trade unions in relation to the shift towards green factories, decarbonisation initiatives, worker health and safety and the implications of this for delivering decent work.
  • Provide support through a range of means to suppliers to meet decarbonisation requirements and ensure that purchasing practices support suppliers to develop fair and green production. Brands must support suppliers to switch to renewable energy and improve energy efficiency, including through direct investment and fair and sustainable purchasing practices.

RECOMMENDATIONS TO GOVERNMENTS:

In buying countries

  • Develop and implement mandatory human rights and environmental due diligence legislation, ensuring stringent processes for risk assessment, mitigation and meaningful stakeholder engagement in relation to impacts of the climate emergency and decarbonisation.
  • Bring suppliers, trade unions, and fashion brands together in a pre-competitive environment to develop shared approaches to respect for workers’ rights in a just transition.
  • Follow through on the COP29 commitment for countries with “developed economy” status to contribute to the climate finance goal of $300 billion per year by 2035 to support climate action in lower income countries.

In sourcing countries

  • Develop and implement a clear green industrial strategy through a tripartite framework that engages business and workers as critical partners, and which acknowledges workers as an impacted rightsholder group. The strategy must include the apparel and footwear sector, and must also enact policies to support job creation outside of the garment industry to mitigate any job losses. Governments must also address the entire work package for workers, from wage negotiations to provision of social security.
  • Provide an enabling environment for the just transition. This should include opportunities to finance and release funds to support decarbonisation in the apparel and footwear sector, including funds to train and reskill workforces across sectors.
  • Renew commitment to freedom of association, including strengthening labour codes and adequately financing inspectorates. Governments must engage with all stakeholders on the just transition, and bring suppliers and unions together to develop shared approaches to respect for workers’ rights in a just transition, together insisting on fair distribution of benefits and costs of the transition across the supply chain from brands.

Recommendations to investors

  • Insist on double materiality reporting from fashion companies to enhance investors’ risk management and fair distribution of benefits of risks and benefits in supply chains.
  • Include just transition and freedom of association commitments as key criteria in assessment of portfolio companies’ material risks.
  • Promote successful dialogue for a just transition. Engage brands both individually and collectively to support the design and implementation of a just transition.

LEAD AUTHORS AND RESEARCHERS: Kate Jelly, Natalie Swan and Anithra Varia with support from: The Resource Centre’s regional researchers, Michael Clements, Mayisha Begum, Rosie Monaghan and Áine Clarke &: Karmojibi Nari (KN) and Bangladesh Centre for Worker Solidarity (BCWS) in Bangladesh and Cambodian Alliance of Trade Unions (CATU), Independent Trade Union Federation (INTUFE), Collective Union of Movement of Workers (CUMW), Coalition of Cambodian Apparel Workers Democratic Unions (CCAWDU), Cambodian Labour Confederation (CLC), Cambodia Federation of Independent Trade Unions (CFITU), Center for Alliance of Labor and Human Rights (CENTRAL) and Solidarity Center in Cambodia.

ABOUT: The Business & Human Rights Resource Centre is an international NGO which tracks the human rights impacts of over 10,000 companies in over 180 countries.

The missing thread
The missing thread
Workers absent from fashion companies’ climate plans
  • Authored by:

    Kate Jelly, Natalie Swan and Anithra Varia with support from: The Resource Centre’s regional researchers, Michael Clements, Mayisha Begum, Rosie Monaghan and Áine Clarke &: Karmojibi Nari (KN) and Bangladesh Centre for Worker Solidarity (BCWS) in Bangladesh and Cambodian Alliance of Trade Unions (CATU), Independent Trade Union Federation (INTUFE), Collective Union of Movement of Workers (CUMW), Coalition of Cambodian Apparel Workers Democratic Unions (CCAWDU), Cambodian Labour Confederation (CLC), Cambodia Federation of Independent Trade Unions (CFITU), Center for Alliance of Labor and Human Rights (CENTRAL) and Solidarity Center in Cambodia.

  • Publisher: Business and Human Rights Resource Centre
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  • Dated posted: 13 June 2025
  • Last modified: 13 June 2025