Fashion giants H&M, Inditex and Fast Retailing and retailing heavyweights Amazon, Carrefour and Walmart have been accused of "hiding climate inaction behind a fig leaf of net zero plans" in a study which assessed 24 major global corporations.
- Overall, the H&M Group ranked "moderate" in integrity, while Fast Retailing and Inditex scored "low" in the Corporate Climate Responsibility Monitor 2023. Amazon and Walmart scored "low", while Carrefour came up with a "very low" integrity score.
- The study was a joint initiative of the NewClimate Institute and Carbon Market Watch.
The Highlights: Some of the facts pointed out in the report include:
- Fast Retailing, the H&M Group and Inditex commit to using ‘more sustainable’ materials, without explaining what ‘more’ or ‘sustainable’ means.
- Companies present only limited plans to improve product quality and lifetime, which would lead to lower production levels and substantial emission reductions.
- The three fashion retailers in this report – Fast Retailing, H&M Group and Inditex – produce and sell low-cost clothes in large quantities, releasing new product lines with high frequencies.
- The measures they propose include sourcing ‘more sustainable’ materials, recycling materials and energy efficiency. While these can lead to marginal reductions, a decrease in production is likely necessary to bring these companies on a 1.5°C trajectory.
The Report: The 2023 Corporate Climate Responsibility Monitor assessed the climate strategies of 24 major global companies, critically analysing the extent to which they demonstrate corporate climate leadership.
- The study evaluated the integrity of climate pledges against good practice criteria to identify examples for replication, and highlight areas where improvement is needed.
- This was the second iteration of the Corporate Climate Responsibility Monitor, whereby the 2022 analysis revealed a number of issues with corporate climate strategies.
Major Pointers: The report pointed out the following
- H&M Group plans to reduce emissions across its value chain by 56% by 2030 and by 90% by 2040. These are ambitious targets that signal the need for immediate climate action, as long as they are not undermined by reliance on RECs and biomass to claim decarbonisation of the supply chain.
- While H&M Group refers to a wide range of emission reduction measures, more detailed information is needed to understand the likely reduction impact.
- H&M Group committed to phasing out coal in the supply chain, but this pledge is undermined by a heavy reliance on biomass.
- H&M Group commits to 100% renewable electricity in its supply chain by 2030 but it is unclear what share of suppliers are covered by this target and what electricity procurement options H&M Group pursues.
- Fast Retailing’s headline pledges collectively amount to a reduction of 19% of the company’s emissions footprint by 2030 compared with 2019, which is not aligned with global efforts to limit global warming to 1.5°C.
- Fast Retailing has expressed the aim to reach net-zero emissions by 2050, but it has not disclosed a concrete plan for emission reductions between 2030 and 2050.
- Fast Retailing’s emission reduction measures focus on emission reduction plans for supplying factories, but details on how the company engages with suppliers—the company’s main source of emissions—remain limited.
- Fast Retailing aims to use 100% renewable electricity by 2030, but it does not commit to procurement options that would likely result in additional renewable electricity capacity.
- Due to the lack of transparency around Inditex’s net-zero pledge, it is not possible to assess what the commitment entails.
- The company’s interim 2030 targets amount to a 10% emissions reduction below 2019 levels, which is not clearly aligned with global efforts to limit global warming to 1.5°C.
- Inditex has also committed to sourcing 100% renewable electricity by 2022 but appears to rely on low quality procurement constructs.
- Inditex’ emission reduction measures are not detailed enough to understand their potential significance. It is not clear if and how Inditex plans to procure carbon credits to neutralise its emissions.
