Commercial, Energy Efficiency  -  May 19, 2020

Global Fashion Agenda urges sustainability post-pandemic

Global Fashion Agenda released May 19 a call for fashion brand leaders to prioritize sustainability in their business models as they adapt to the economy of a post-COVID world.

Based on in-depth consumer research and contributions from McKinsey & Company, the Copenhagen-based group concluded that by placing sustainability at the core of their business models, fashion companies will in the short term optimize their value chain and in the long-term create more resilient business models. The CEO Agenda 2020 -- COVID-19 Edition identified six opportunities for executives to rebuild resilient and sustainable businesses, including:

1. Map social and environmental impacts along the value chain 
2. Build trust and brand loyalty 
3. Raise the bar on supplier relationships and shift to equal partnerships 
4. Address stock levels and markdowns by scaling new business models 
5. Accelerate the digitalisation of business processes 
6. Shape the e-commerce infrastructure of the future

The report emphasizes the importance of tracking climate risks throughout the value chain in order to create a baseline for proactive planning and target setting, as well increasing transparency. According to Global Fashion Agenda, two-thirds of consumers state that sustainability has become a more important priority to combat climate change following COVID-19. 

“I’m well aware of the battlefield fashion leaders are on every day in these weeks and months, and how sheer survival is the top priority for many,” Global Fashion Agenda CEO Eva Kruse said in a statement. However, this crisis presents an opportunity for us to re-evaluate the lexicon of fashion and, by default, its entire system of operations. I urge fashion leaders to rethink and rebuild systems in a collective effort to ensure a just and resilient future post-pandemic. I acknowledge that this is not an easy feat, which is why we have updated the CEO Agenda as a tangible tool to help CEOs ensure that their companies come out on the other side with sustainability at their core and more resilient than ever.”