6 Themes That Will Shape the Future of Sustainability in Fashion in 2024
Photo: Creative Lab/Shutterstock.com
While some progress was made, overall, the fashion industry’s approach to sustainability in 2023 highlighted a layered and somewhat contradictory scenario.
On the one hand, the industry acknowledged the urgency of implementing sustainable practices and advancing its sustainability commitments. It recognized the need for systems change and the potential of emerging technologies and tools to significantly reduce its environmental and social impact.
However, despite this awareness and the abundance of available solutions, many brands remained reluctant to fully commit beyond pilot projects, capsule collections, and low-stakes initiatives.
This hesitation stemmed from several factors, including the perceived risk of new technologies, the cost of implementing sustainable solutions, uncertainties about their effectiveness, and a wait-and-see attitude — hoping that other companies would test the waters first.
While there was an apparent readiness and access to effective tools for a sustainable shift, many companies preferred to let others lead the way in adopting new practices – observing the outcomes and challenges from afar before committing themselves.
…if they committed at all.
This approach led to slow progress, as many of these solutions and tools needed longer-term commitments from brands to scale up their operations and meet demand, yet only some were willing to be the first movers.
Consequently, in 2023, the industry's transition towards sustainability was slower and less decisive than it could have been. Instead of being the breakout year industry leaders predicted, brands often opted for low-risk commitments that didn't fundamentally challenge the existing business model or disrupt their established market strategies.
Embracing the Unknown for Impactful Change
As we usher in a new year, the fashion industry finds itself at a pivotal crossroads regarding its approach to sustainability and innovation. But one thing remains clear: old ways won’t open new doors, and the imperative for the fashion industry to undertake meaningful climate action is escalating with undeniable urgency.
Driven by increased awareness and pressure from various stakeholders in 2024, there's optimism that more brands will emerge as pioneering trailblazers, embracing innovative thinking and bold leadership. These brands will play a crucial role in steering the industry toward collective transformation, setting a new standard for environmental and social responsibility in fashion.
Below, we highlight the key themes that we believe will define the future of sustainable fashion in the upcoming year.
Truly Collaborative Partnerships to Scale Next-Gen Materials
In 2023, the industry increasingly focused on next-generation materials as brands sought to reduce their environmental impact. This shift was driven by a need to adopt materials that are less resource-intensive, comply with evolving environmental regulations, and meet the growing consumer demand for sustainability.
Highlighting this trend, Biofluff secured $2.5 million to enhance the production of its plant-based fur, while Spiber's Fall/Winter Collection, crafted from innovative Brewed Protein™️, represented a significant stride in material innovation, underscored by major investments, collaborations, and the unveiling of novel capsule collections and prototypes. However, the industry faced considerable challenges in assimilating these groundbreaking materials seamlessly into the established supply chains.
Brands often found themselves in a cycle of fatigue, experimenting with new materials but struggling to integrate them into their supply chains due to the scaling limitations of material innovators. On the other hand, innovators needed longer-term commitments from brands to scale up their operations and meet demand.
This dilemma was starkly illustrated when Bolt Threads, known for its Mylo mycelium material, paused production. Despite initial interest and backing from major brands like Adidas, Stella McCartney, and Kering, they struggled to scale production and bring products to market due to financial constraints.
Looking to 2024, regulatory pressures and consumer demand will likely push brands to take a more concerted and collaborative approach toward integrating next-gen materials into their supply chains. Instead of short-term or limited collections, we can expect to see more robust and extended partnerships emerge between brands and material innovators to allow for more strategic planning and overcome challenges related to integrating innovative materials.
Continued Crackdown on Greenwashing
In 2023, major brands like H&M and Nike faced legal challenges over allegations of misleading sustainability claims. These lawsuits highlighted the growing scrutiny that companies face regarding such claims. They also underscored a broader concern about the accuracy and honesty of environmental claims made by brands and the evolving landscape of consumer awareness and regulatory attention to sustainability marketing.
With growing public awareness of sustainability issues, consumers are increasingly demanding more than superficial environmental claims. They want detailed and substantiated information, with transparent, objective, and verifiable data about products’ genuine sustainability or environmental friendliness. Alongside this heightened consumer awareness, the evolving landscape of regulations and best practices for sustainable marketing, led by Europe, necessitates a higher standard of transparency and factual accuracy in environmental claims.
As lawmakers increasingly set their sights on creating standards that affect consumer industries, including fashion, we’ll likely see more stringent regulations in 2024 to crack down on misleading environmental claims and greenwashing. We’ll also likely see more consumer-driven accountability, with customers demanding comprehensive proof of sustainable practices and penalizing brands that fail to deliver.
As more stringent regulations emerge, we can expect a heightened level of accountability. In 2024, we’ll likely see brands become more cautious in their marketing strategies, focusing on ensuring that their environmental claims are substantiated and verifiable. Consequently, this shift might lead to the development and adoption of standardized industry definitions for environmental terms, aiding in consumer and industry understanding and trust.
Increased Garment Worker Activism and Brand Accountability
In 2023, the world witnessed a surge in garment worker activism, with Bangladesh at the forefront.
Thousands of garment workers took to the streets demanding higher wages after the government announced a minimum wage increase, which, according to garment workers and labor rights advocates, fell drastically short of a livable wage. As the protests increased, mirroring the growing desperation and frustration of the workers, the government’s stance hardened. Over 100 garment workers and labor advocates were jailed between October and November. Tragically, these protests saw four fatalities and numerous injuries, while over thousands of workers, including those from major fashion company suppliers, faced blanket charges.
In response, ethical fashion trade groups representing over 2,500 international brands, retailers, and suppliers wrote to Bangladesh Prime Minister Sheikh Hasina, calling for a reevaluation of the minimum wage and advocating for a collaborative approach to align wages with international labor standards.
In solidarity, eight US Representatives, including Ilhan Omar and Alexandria Ocasio-Cortez, wrote an open letter to the American Apparel and Footwear Association (AAFA). This letter underscored the crucial role of AAFA member companies, given their substantial influence in Bangladesh, to actively champion livable wages for garment workers. They specifically urged US brands to support the workers’ demand for a minimum wage of 23,000 BDT ($208 per month). The letter went beyond wage issues, calling for the cessation of violence against workers, an improvement of the wage-setting process, assurance of long-term sourcing relationships, and the effective use of leverage by brands to guarantee fair compensation for workers, among other vital concerns.
This solidarity was not limited to Bangladesh alone. Throughout 2023, activists and labor advocates around the world upped the ante using social media campaigns, creative hoaxes, and demonstrations at events strategically aimed at challenging global fashion brands and holding them accountable for ensuring the welfare and rights of workers in their supply chains.
Entering 2024, this momentum shows no signs of waning. Labor advocates and garment workers are increasingly uniting to challenge the power imbalance in the fashion industry and push for systemic change.
In September, US Senator Kirsten Gillibrand reintroduced the Fabric (Fashioning Accountability and Building Real Institutional Change) Act, representing a significant legislative effort to safeguard garment workers’ rights and encourage domestic manufacturing. Key features of this bill include establishing a $50 million Domestic Garment Manufacturing Support Program and prohibiting payment schemes that disadvantage workers. Importantly, it aims to hold brands responsible for the labor practices of their manufacturing partners.
If passed, the Fabric Act will set a precedent for others to introduce similar legislation. This could lead to a global shift in policy, with more governments implementing regulations to protect garment workers' rights.
Increased legislation and activism among garment workers and labor advocates may lead to a greater emphasis on transparency within the fashion industry. Brands may be compelled to disclose more information about their supply chains, including where and how garments are made, as awareness grows and consumers demand ethical considerations be included in brands’ sustainability efforts.
This shift will influence fashion brands to adopt more responsible production methods and invest in technologies that allow for supply chain transparency.
Investment in Technologies That Support Transparency
In 2023, the fashion industry significantly ramped up its interest in Digital Product Passports (DPPs) and QR codes, a move amplified by impending regulations such as the EU's Digital Product Passport legislation.
This shift marks a decisive move towards enhanced transparency, sustainability, and the adoption of Extended Producer Responsibility (EPR), a policy approach that holds manufacturers accountable for the environmental impacts of their products throughout their entire lifecycle.
The integration of these digital tools into the fashion sector is multifaceted, offering numerous advantages. Primarily, it enables brands to accurately trace each product from its inception in manufacturing to its eventual end-of-life. This traceability fosters a deeper understanding of the supply chain, highlighting areas where efficiency and sustainability can be improved. Additionally, it plays a crucial role in combating counterfeit products, ensuring authenticity.
DPPs streamline the exchange of information between manufacturers, suppliers, retailers, and recyclers. This shared transparency ensures that all stakeholders in the supply chain have access to consistent information, bolstering collaboration and coordination. It also aids in upholding uniform quality standards and ethical practices throughout the industry.
For consumers, scanning a QR code provides access to a product's digital passport, revealing detailed, trustworthy information about the product's origins, materials, environmental footprint, and ethical considerations. This level of openness empowers consumers to make choices that are in line with their personal values and environmental concerns.
Beyond transparency, DPPs are instrumental in steering the industry towards a circular economy. They provide comprehensive data about materials and manufacturing processes, enabling informed decisions about recycling or repurposing products at their life's end. This ensures that materials are handled correctly, contributing to a more efficient recycling process and reducing waste.
DPPs also offer guidance for repair and maintenance, thus prolonging the lifespan of products. Knowing the materials and construction methods allows for more effective repairs, keeping products in use for longer periods and diminishing waste.
Importantly, the utilization of DPPs motivates designers and manufacturers to consider the end-of-life stage of their products right from the start. Being responsible for the entire product lifecycle incentivizes brands to design products that are either easier to recycle or have a longer lifespan, thereby supporting the principles of a circular economy.
Looking ahead to 2024, the potential applications for DPPs are vast. It’s anticipated that these tools and other technologies that enable transparency and traceability, will continue to evolve and gain broader adoption, with an increasing number of brands implementing them.
This will revolutionize the way product data is communicated and shared throughout the value chain, marking a transformative period in the fashion industry's journey towards sustainability and responsibility.
Emphasis on Repairs
In 2023, the resale continued to dominate as the most rapidly expanding segment in the fashion retail industry, showing no signs of slowing down.
Over the course of the year, many brands introduced a range of recommerce initiatives, seeing them as opportunities for both economic gain and environmental benefits. However, the contribution of these resale programs to sustainability varies. The true indicator of a program’s environmental effectiveness is in its structure and its capacity to redirect revenue streams from manufacturing new products to reselling existing ones. However, many of fashion’s current resale programs heavily focus on selling new products, which doesn't shift revenue from new product sales to servicing and selling existing products across multiple owners.
In a circular economy, the focus should not only be on reselling pre-owned items but also on extending the life of these products through maintenance and repairs. However, despite the increase in resale and takeback programs, clothes are rarely repaired due to high costs, time constraints, and logistical challenges. The current linear business model of the fashion industry doesn’t incentivize brands to offer repairs, as selling new products is more profitable. Moreover, there is a gap between consumer expectations and the realities of repair work, particularly in terms of appearance, cost, and time. This discrepancy makes the transition to a sustainable, repair-focused approach more complex.
As 2024 is likely to bring stricter regulations targeting misleading sustainability claims, resale programs that predominantly encourage buying new products could be criticized as marketing strategies rather than true sustainability measures. For brands to genuinely commit to sustainability through their resale initiatives, it's crucial they shift their focus. Rather than exclusively focusing on incentivizing new purchases to drive consumer engagement, there also needs to be a focus on reducing the demand for new production. This can be achieved by incorporating repair and maintenance services.
While integrating repair services might seem financially burdensome in the short term, it opens the door to significant long-term benefits. Not only can repairs establish a new revenue stream, but they can also play a crucial role in building enduring brand loyalty. This approach aligns seamlessly with the emerging trends identified in the BoF-McKinsey State of Fashion 2024 Executive Survey.
According to the report, in 2024, the fashion industry will face significant challenges and uncertainties due to varying economic conditions and consumer confidence levels in the US, Europe, and China. The industry is expected to pivot from its traditional reliance on performance marketing, with its focus on immediately quantifiable metrics, to a more brand-centric marketing approach. This shift will underscore the importance of forging emotional bonds with consumers through genuine brand storytelling, a strategy aimed at bolstering brand loyalty and fostering sustained customer engagement over the long term.
Consumers are increasingly gravitating towards brands that resonate with their personal values, especially those demonstrating a commitment to sustainability and responsible consumption. In an environment where brand loyalty and consumer trust are paramount, the investment in repair services can be a strategic move, contributing to a brand’s reputation for responsibility and commitment to sustainability while also fostering deeper connections with consumers.
2024 is poised to be a year of remarkable innovation and progress. While we anticipate these six themes to significantly influence the industry, another pivotal element to watch this year is how the industry leverages artificial intelligence (AI) to revolutionize everything from supply chain management to design creativity, embedding sustainability into every layer of the fashion ecosystem.
Equally important is the industry's burgeoning dedication to biodiversity and regenerative practices. This shift marks a move away from simply reducing harm, towards actively fostering environmental healing and regeneration.
In this critical moment, the fashion industry stands at the forefront of a significant opportunity to shape a better, more sustainable future. The time for action is now, and the decisions and innovations made in 2024 will be instrumental in determining the course of sustainable fashion for years to come.
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