Sustainability Key to Protecting Fashion Industry Profits: Report

PARIS — Making fashion more sustainable is not only a question of good citizenship, but also of preserving future profitability and revenues for apparel and footwear firms, according to a report published ahead of the Copenhagen Fashion Summit. Fashion brands risk seeing their earnings before interest and taxes margins shrink by up to 3 percentage points between now and 2030 if they don’t take rapid action to address their environmental and social footprint, said the inaugural Pulse of the Fashion Industry study co-authored by the Global Fashion Agenda, a year-round initiative launched by the summit’s organizers and the Boston Consulting Group. The authors aim to provide a common baseline of facts and ideas to spur action in the apparel and footwear industries, which generated estimated revenues of 1.5 trillion euros, or $1.66 trillion at average exchange, in 2016 and employed around 60 million people along their value chain. “The facts show a clear need for acting differently. The good news is that by changing practices, the industry can both stop the negative impact and generate a high amount of value for society, while also protecting profitability,” the report said. “We estimate that the world economy would gain about 160 billion euros [$176 billion] annually if the fashion

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