The fast fashion industry is facing a critical turning point, with sustainability becoming an urgent focus amid growing concerns about environmental degradation and unethical labour practices.

As the sector accounts for a significant share of global carbon emissions, water pollution, and textile waste, the demand for more responsible, transparent, and circular practices is intensifying. Consumers and regulators alike are pushing for change, prompting brands to rethink their production models.

Uniqlo

Uniqlo has implemented several initiatives aimed at reducing its environmental and social impact.

While these efforts are commendable, there is a need for more comprehensive data and transparency to fully assess the effectiveness of these initiatives. he company should focus on enhancing supply chain transparency, ensuring fair labour practices, and providing detailed reporting on its sustainability goals to improve its overall impact.

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Criteria

Carbon Footprint, Medium

Uniqlo has set science-based targets to reduce greenhouse gas emissions in both its direct operations and supply chain. However, there is no evidence indicating that the company is currently on track to meet these targets.

Ecological Impact, Medium

The company has implemented measures to reduce water consumption, notably in its jeans finishing process, achieving up to a 99% reduction.

Additionally, Uniqlo has introduced recycled polyester in some products and is working to minimize single-use plastics. Despite these efforts, the brand continues to use materials like leather and exotic animal hair, which have significant ecological footprints.

Energy Consumption, Medium

Uniqlo has made strides in energy efficiency, such as installing LED lighting in stores, leading to a 38.7% reduction in greenhouse gas emissions per unit area in FY 2020 compared to FY 2013.

However, comprehensive data on the company’s overall energy consumption and its reliance on renewable energy sources are limited.

Freight Density, Medium

While Uniqlo has taken steps to improve logistics efficiency by reducing the use of new corrugated cardboard and optimizing transport, detailed information on the environmental impact of its freight operations is scarce.

Recycling Rates, Medium

The brand has initiated recycling programs, including the use of recycled polyester from post- consumer PET bottles in certain products. However, the overall scale and effectiveness of these recycling initiatives across all product lines are not extensively documented.

Saving Levels, Medium

Uniqlo’s efforts to reduce water usage and incorporate recycled materials contribute to resource savings. Nevertheless, the company lacks comprehensive reporting on the cumulative savings achieved through these initiatives.

Specific Product Monitoring, Medium

The company has developed technologies to monitor and reduce water usage in specific products, such as jeans. However, there is limited information on the monitoring of environmental impacts across its entire product range.

Supply Chain Waste, Medium

Uniqlo’s social auditing program is accredited by the Fair Labour Association, and the company has policies prohibiting suppliers from charging workers recruitment fees. Despite these measures, there is no evidence that Uniqlo ensures payment of a living wage in most of its supply chain, indicating room for improvement in supply chain management.

Sustainability Scorecards, Medium

The brand has published sustainability reports outlining its environmental and social initiatives. However, the lack of detailed progress data and comprehensive metrics makes it challenging to fully assess the effectiveness of these efforts.

Water Management, Medium

Uniqlo has achieved significant water savings in specific processes, such as the jeans finishing process. Nonetheless, a comprehensive water management strategy encompassing all areas of production is not well-documented.

Related to other brands

Number of criteria met by each brand:

ESCP Business School Team

Research developed by five curious international ESCP Business School students who have worked together to successfully complete their consulting project. They analysed four brands in four different categories -24 brands: electric cars EV, dairy products, computers, personal care, luxury apparel, fast fashion-, according to 10 environmental criteria.

Sources

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