What Fuels Fashion? A Dive into the Latest Fashion Transparency Index
Fashion Revolution’s latest Fashion Transparency Index (FTI) report, a special edition called What Fuels Fashion?, opens with a heart-stirring story from Malish Godfrey, a Sudanese refugee working with Root Project. In true Fashion Revolution style, it calls attention to the humans most impacted by “Big Fashion”. This first-person narrative sets the stage for a discussion about the industry's accountability and transparency and how it relates to the current climate crisis.
What is the Fashion Transparency Index?
Fashion Revolution launched its first transparency report back in 2017. Back then there was little to no transparency from large brands. The FTI was an opportunity to expose the lack of transparency among major brands and encourage accountability following the tragic Rana Plaza disaster in 2013. “Transparency is the essential first step towards meaningful change, “ says Liv Simpliciano, Fashion Revolution’s Policy and Research Manager.
This year’s report titled “What Fuels Fashion?” is a slight departure from where previous reports have focused. Since headlines repeatedly speak on the slow progress brands are making, Fashion Revolution (Fash Rev) thought it was time to shake up the conversation and put the focus back where it matters – recognizing the system is working as designed and to fix that, it was time for brands to invest back to climate change adaption and mitigation.
The Evolution of the Fashion Transparency Index
Working with over 20 agencies and experts such as the Zero Discharge of Hazardous Chemicals (ZDHC), Human Rights Watch, and the Transformers Foundation, the methodology that makes up the Index is updated to ensure that the Fashion Transparency Index remains at the forefront of the industry's accountability conversation.
Simpliciano believes it’s working. She says, when it was first launched, only 32 out of 100 brands reported information on their first-tier suppliers. Today, thanks to mounting consumer pressure and pending legislation, 52% of 250 brands are reporting information about their manufacturers.
The Need for a New Approach
The FTI has always aimed to drive conversation and change. However, even Fashion Revolution recognized the need to adapt alongside the industry. With media outlets continually highlighting the slow progress, it became necessary to give them something else to talk about. Enter the “What Fuels Fashion?” report, which shifts the conversation toward fashion's contribution to the climate crisis. According to Liv, they needed to “change the narrative.”
Much like the conversations surrounding “Big Oil,” Fash Rev believed it was time to put the spotlight on “Big Fashion.” This special edition of the Fashion Transparency Index takes a deep dive into the industry's role in greenhouse gas emissions, focusing on material sourcing, energy procurement, and the harmful model of overproduction.
Bold Recommendations for Decarbonization
The biggest shift in this year's report is in its recommendations. Fashion Revolution is now calling on brands to invest 2% of their annual revenue into decarbonization and Just Transition efforts. This isn’t an arbitrary figure. With an estimated trillion-dollar-per-year cleanup cost, 2% is the minimum necessary to make a real impact.
As Ruth MacGlip, Fashion Campaign Manager of Action Speaks Louder, so eloquently puts it:
“For every sustainability claim we see, we need to ask one fundamental question: Does this actually make an impact on reducing emissions, ditching fossil fuels, or scaling up renewable energy? If not, the Earth simply cannot tell the difference.”
Suppliers' Role in the Solution
While the FTI typically focuses on brands, this year’s report consulted suppliers when developing its methodology. Liv Simpliciano hopes that the data gathered will help strengthen conversations around purchasing practices and give suppliers more leverage.
Historically, the power dynamics have made it difficult for suppliers’ collective voices to be heard. The goal is to change this by ensuring brands view suppliers as true manufacturing partners, not just vendors.
Including suppliers in the conversation is crucial because they are an essential link in emission reduction. A staggering 96% of emissions are Scope 3—those originating upstream in the supply chain (purchased products and end-use) or downstream (manufacturing). Suppliers often bear the risks of sustainability initiatives while brands reap the rewards. The “What Fuels Fashion?” report argues that it’s past time for this imbalance to be addressed.
The Just Transition Movement
The call for brand buy-in isn’t a new one. Fashion Revolution, along with a host of other advocacy groups has been calling for big brands to invest in living wages for over a decade.
However, this particular ask—a 2% revenue investment in decarbonization and Just Transition efforts—represents a new alignment with the Just Transition movement. Originally spearheaded by Tony Mazzocchi in the 1970s, and later supported by organizations like the International Trade Union Confederation (ITUC) and the Climate Justice Alliance (CJA), this movement seeks a fair transition to sustainable energy that doesn’t leave workers behind.
The Bigger Picture
At its core, the Fashion Transparency Index is about justice and responsibility. The fashion industry is a trillion-dollar business built on the back of imperialism, colonialism, and exploitation—profiting from regions that are still suffering from the legacy of these systems. With time running out to mitigate climate change, Simpliciano states financial accountability is crucial because it’s a language brands understand.
As we delve deeper into the findings of the Transparency Index, we recognize that it is a vital tool for driving conversation and change in the industry. Liv believes, in a perfect world, the Index wouldn’t exist at all—because true transparency and accountability would be the norm. But until then, fostering a culture of transparency is key to dismantling the barriers that have historically marginalized suppliers and moving towards a more equitable, sustainable future for everyone involved.
Bio
Sharmon Lebby is a nonprofit consultant focused on collaborating with social and environmental impact organizations to bring their visions to life. A former writer for Treehugger and ESJ and the Founding President of the Ethical Network of San Antonio, Sharmon enjoys amplifying small businesses and connecting them with the resources they need to grow and thrive. Her interest and expertise lie in the intersections of environmentalism, fashion, and under-appreciated communities.