The Scandinavian Textile Initiative for Climate Action’s (STICA) 2024 Progress Report reveals that that the progress of a significant number of STICA signatory members is still too slow. Despite the hard work, the pace and scale of the emissions reductions of many companies are not in line with what is required by science to stay within 1.5°C of global warming.
- Despite leading the fashion industry’s climate transition, the actions of STICA’s 54 member companies are not enough. For instance, 40% do not have targets aligned with 1.5°C.
- 42% of the companies self-report that they are not currently on track to meet their Scope 3 targets, and 57% state that their Climate Action Transition Plans do not enable them to reach their Scope 3 climate targets.
- According to companies’ supplier engagement reporting, a majority of suppliers to many of the companies do not actively engage in decarbonisation actions, nor do most STICA signatories have contracts with suppliers that include climate-related requirements or financial incentives for climate action.
Highlights: Among other things, the report revealed:
- 38 members report that their emissions have decreased. 12 members report their emissions have increased. Five members have not seen any change in emissions.
- 58% of the companies report that they are on track to meet their Scope 3 targets, even though only 43% of the companies report that they have a Climate Transition Plan to prove it. This is important since 98% of all emissions are in the value chain (Scope 3). One-third of the companies have produced a Climate Transition Plan for Scope 3 and have started to implement this. 15% have not started at all.
- Even though 62% of the companies report that they collect data directly from their suppliers, this data is often not verified.
Lack of data or its low quality make it harder to identify cost-effective actions to reduce emissions among suppliers. Based on the data in this report, the SFA concludes the following:
- This data has its strengths and weaknesses. To ensure more reliable and accurate reporting, supply chain traceability, transparency, and data quality need to be significantly improved.
- Many company signatories participating in STICA’s Climate Action Program have come a long way in a relatively short time. It can also take time for climate actions and investments to yield results.
- The progress of a significant number of STICA signatory members is still too slow. Companies have reported a number of challenges they are facing and suggested solutions, many of which require government action.
- Shareholder and owner demands for short-term financial growth and the lack of sufficient financial incentives make absolute GHG emissions reductions challenging.
ACTION NEEDED: The report recommended:
- Smarter legislation is needed to ensure there are sufficient financial penalties for not reducing emissions and commensurate rewards for reducing emissions and transforming business models.
- It is essential that stakeholders explore additional and/or different success indicators for the industry based on concepts such as well-being and sufficiency.
THE CONTEXT: The Paris Agreement, a legally binding international treaty on climate change, was adopted by 196 countries at COP21 in Paris in 2015. These countries agreed to limit global warming to well below 2°C, preferably to 1.5°C, compared to pre-industrial levels.
- In 2018, the Intergovernmental Panel on Climate Change (IPCC) stated in its special report “Global Warming of 1.5°C” that a global temperature rise of more than 1.5°C will likely result in severe consequences for people and the planet. Scientists tell us we need to halve our emissions every decade in order to limit warming to no more than 1.5°C.
ABOUT STICA: The Sustainable Fashion Academy (SFA)—a non-governmental organisation—launched the Scandinavian Textile Initiative for Climate Action (STICA) in collaboration with well-recognised apparel and textile companies. STICA’s aim is to ensure that the Nordic region and Europe do more than their share to reduce their climate impacts in line with the 1.5°C global warming pathway, while transforming their businesses and the industry— and well before 2050. STICA believes this is the only way to avert the worst impacts of the current climate crisis.
WHAT THEY SAID
STICA member companies continue to show climate leadership. However, even the most committed companies encounter significant obstacles. The most fundamental issue is the lack of sufficient financial incentives for climate action. Legislators need to establish adequate financial rewards and penalties to motivate companies to accelerate decarbonization across the apparel value chain. STICA will keep working to accelerate industry change. We need to be realistic about what is required. We need bold and courageous leadership. The path of real change will be bumpy, and probably painful. There will be tradeoffs; there will be winners and losers. But in the end, the alternative would be far worse. So let’s not ease off now.
— Michael Schragger
Director
Sustainable Fashion Academy
… I would specifically like to see associations/clusters across Europe to work with their members (and perhaps some public funding) to do the same and adopt best practices from STICA’s work. The only other country in which I have seen something somewhat similar was France coordinated by the textile industry association UIT.
— Lutz Walter
Secretary-General
The European Technology Platform for the Future of Textiles and Clothing
…it could be very helpful if companies can indicate in more detail what is needed to scale up circular and sustainable business models. We see many examples of such business models, but unfortunately very few of them are able to scale up in the current market. We need to understand what is needed to scale up circular and sustainable business models across the value chain in this sector. The European Environment Agency will look into that in 2025 and could use some inputs and advice from business.
— Lars Fogh Mortensen
Expert / Textiles and Circular Economy
European Environment Agency
There needs to be greater emphasis on the fact that, as the STICA Signatories’ reporting shows, the majority of the emissions (around 80–90%) is from the production of new products. We urge STICA to place more focus on the necessity of reducing overall resource use. Aiming to reach a sufficiency level for the fashion industry within the planetary boundaries, while still fulfilling well-being and human needs. Or as we highlight in our ‘Max 5’ challenge: A maximum of 5 new clothing pieces per person and year is a fair share for all, within the planetary boundaries. We also recommend that STICA ask signatory companies to share more details regarding how they intend to decrease the overall volume of new products in favor of circular alternatives.
— Anna-Karin Sundelius
Senior Policy Advisor / Textiles, Sustainable Consumption
Swedish Society for Nature Conservation
