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DELIVERING ACTIONABLE INSIGHTS ON THE DAY’S NEWS Brought to you by Alex Panas, global leader of industries, & Axel Karlsson, global leader of functional practices and growth platforms Welcome to the latest edition of Only McKinsey Perspectives. We hope you find our insights useful. Let us know what you think at Alex_Panas@McKinsey.com and Axel_Karlsson@McKinsey.com. —Alex and Axel Weaving sustainability into fashion In the news • Biodegradable materials. The Washington Post reports that biodegradable fabrics could be a promising solution for the fashion industry’s sustainability problem. A US company, for example, makes a 100% bio-based fabric from shrimp shells and mushrooms. It has also partnered with luxury brands to highlight its novel and fashionable textiles. Earlier this year, a Japanese biotech company secured about $64 million to enhance the mass production of its botanical, spider-silk-like fibers. [WaPo] • Measuring fashion’s carbon footprint. The fashion industry is responsible for about 2% of the world’s greenhouse gas emissions, according to a report cited by Bloomberg. Many fashion companies are seeking to reduce their emissions, but evaluating their progress is difficult due to differences in how they calculate and report their emissions. Some companies are experimenting with greener fabrics, shifting away from fossil fuels, and testing business models that reduce dependence on new products. [Bloomberg] “Cutting overproduction in half from where it is today would make a huge contribution toward a lower carbon footprint of the industry.” On McKinsey.com • Sustainability in fashion. The fashion industry is a major contributor to climate change and biodiversity loss, making its sustainability efforts crucial for the planet’s health. McKinsey partner Anna Granskog and coauthors explore the coming decade in sustainable fashion, addressing circular business models and actions the industry can take to reduce emissions. With up to 40% of garments sold at a discount and some not sold at all, reducing overproduction could make a big difference, Granskog says. • Lowering emissions. Each year, the fashion industry emits about the same quantity of greenhouse gases as the entire economies of France, Germany, and the UK combined. By 2030, it will need to cut its emissions by about half—or else it will exceed the 1.5 degree pathway to mitigate climate change set out by the Intergovernmental Panel on Climate Change and ratified in the 2015 Paris Agreement. Visit our series, The Next Normal, to discover the future of fashion and learn how fashion companies are focusing on sustainability. Explore sustainable fashion —Edited by Colin Crawford, editor, Atlanta Was this forwarded to you? Sign up here. Or send us feedback—we’d love to hear from you. Follow our thinking McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android. Copyright © 2024 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007