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.

Zara

Despite Zara’s stated sustainability goals, current practices, such as increased reliance on air freight and a lack of transparency, indicate that the company faces significant challenges in improving its environmental and social impact.

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Criteria

Carbon Footprint, Low

Zara has declared its goal of achieving net-zero emissions by 2040. However, recent analyses indicate that the company has increased its use of air freight to avoid shipping delays, significantly contributing to carbon emissions.

Ecological Impact, Low

Investigations have linked Zara to deforestation and other environmental damages in Brazil’s Cerrado region. Additionally, the brand’s reliance on synthetic materials like polyester contributes to microplastic pollution.

Energy Consumption, Low

The growing dependence on air freight for distribution has increased Zara’s overall energy consumption, undermining the effectiveness of energy efficiency measures implemented in other areas.

Freight Density, Medium

Zara’s logistics rely heavily on air transport for rapid product delivery, which significantly contributes to the company’s carbon footprint, highlighting inefficiencies in transportation management.

Recycling Rates, Low

Despite announcing sustainability initiatives, Zara lacks transparency in its recycling and waste management programs, making it difficult to assess their effectiveness.

Saving Levels, Medium

There is little publicly available information on economic savings achieved through sustainable practices, suggesting a lack of emphasis on efficiency gains.

Specific Product Monitoring, Low

The absence of transparency and verifiable data makes it difficult to evaluate Zara’s effectiveness in tracking the environmental and social impact of its products throughout their lifecycle.

Supply Chain Waste, Low

Zara has been associated with labour exploitation, including inadequate wages and unsafe working conditions. While the company acknowledges these issues, the effectiveness of corrective measures remains uncertain.

Sustainability Scorecards, Medium

Although Zara publishes sustainability reports, the lack of independent verification and detailed impact assessments raises concerns about the transparency and credibility of its commitments.

Water Management, Low

There is limited publicly available information on Zara’s water management practices, making it difficult to evaluate the company’s impact on this critical resource.

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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