Understanding and navigating the complexities of global supply chains is essential in the journey toward sustainability and circularity within the fashion industry. Supply chain emissions in the apparel sector account for at least 80 percent of its total carbon footprint (World Economic Forum, 2021). Given the geographic dispersion of these supply chains, focusing on Scope 3 emission reductions—often involving external suppliers—are the most difficult to tackle and can greatly accelerate progress toward sustainability goals, particularly in regions with limited technological availability and regulatory pressures. Prioritizing supplier engagement enhances a brand's strategy, strengthens its reputation, reduces legal risks, mitigates climate impact, and aligns with shareholder expectations. There is already substantial progress as leading fashion companies are increasingly investing in sustainable materials, renewable energy, and energy efficiency to decarbonize their supply chains and improve overall strategy.
In the pursuit of a circular economy and net-zero ambitions, fashion brands must address emissions not only from their direct operations (Scope 1) and purchased electricity (Scope 2) but also from broader supply chain activities (Scope 3). Scope 3 emissions are challenging to manage as they occur outside the company’s direct control. Setting a Scope 3 reduction target indicates a commitment to managing indirect emissions and working collaboratively with suppliers to reduce the brand’s overall carbon footprint. Engaging suppliers is thus crucial for advancing Scope 3 goals and achieving comprehensive decarbonization.
Through initiatives such as the Climate Solutions Partnership (CSP), students in the Sustainability Management program at the Kogod School of Business, collaborated with the World Resources Institute (WRI) and partners under the Clean Energy Investment Accelerator (CEIA) to map barriers and common strategies for sustainable fashion brands aiming to decarbonize their supply chains. Brands such as Arc’teryx, Columbia, H&M Group, Icebug, NEMO, and Nike shared best practices on supplier engagement, renewable energy adoption, and energy efficiency improvements, forming a roadmap of tools and practices for other industry players committed to sustainability.