How fashion brands are tackling sustainability: new report
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New data from ratings platform Good On You shows a major gap between ambition and action. But small brands are stepping up – and pointing to a better path.

Sustainability has become one of fashion’s favourite buzzwords. But how much of it is backed by real change?

That’s the question at the heart of Good On You’s latest Fashion Planet Benchmark Report – a deep dive into how fashion brands are tracking when it comes to cutting emissions, reducing water impact, and moving from bold promises to measurable progress.

As a trusted ratings platform, Good On You independently evaluates thousands of brands based on their transparency and performance across key issues affecting people, the planet, and animals. For consumers, the ratings support more conscious shopping. For businesses, they offer a clear path to better impact.

The verdict? There’s a big gap between what many brands are saying and what they’re doing.

The big brands' climate action deficit 

The data paints a stark picture:

  • Just 4 per cent of large brands report action to reduce emissions from manufacturing
  • Only 2 per cent are working to lower emissions from raw materials
  • A mere 1 per cent are using waste heat recovery – a proven method to cut industrial energy use
  • And despite supply chains being the biggest source of emissions, only 8% of large brands are investing in renewable energy beyond HQ

Instead, a quarter of brands limit renewable energy use to their corporate offices, while more than half haven’t set any emissions reduction targets. Of those that have, 88% aren’t sharing updates. Just 17% are using science-based targets — the current gold standard.

Fashion’s water footprint is another critical but under-addressed area:

  • Only 9 per cent of large brands report even one water reduction initiative
  • Just 6 per cent are using recycled water
  • Water-saving solutions like waterless printing, rainwater harvesting, or closed-loop systems? Rare (less than 2 per cent)

Small Brands, Big Ideas

It’s not all bleak. Many small and independent brands are pioneering practical, creative solutions.

  • 17 per cent of small brands work with artisans to create pieces by hand – cutting emissions and supporting local livelihoods
  • Others are embracing regenerative materials, slower production cycles, and innovative low-impact techniques

These efforts may be smaller in scale, but they offer a blueprint for sustainable fashion that’s both creative and scalable.

Take KitX, for example. Rated 4 out of 5 by Good On You, the Australian label is redefining circular fashion through initiatives like made-to-order ethical tees, repair and resale programs, and garments crafted from natural and recycled materials. 

Founder Kit Willow says, “The status quo of the fashion system is broken with too many natural resources being consumed to create an oversupply of fashion that gets discarded.”

KitX proves that sustainable design and commercial innovation can go hand in hand — showing that brands of any size can lead with integrity, not just ambition.

Reporting progress, not just promises

Consumers are asking tougher questions. Regulators are tightening expectations. And the margin for empty promises is shrinking.

The takeaway? Brands can’t afford to just look good on paper – they need to back it up with proof.

Good On You’s Planet rating rewards brands that go beyond vague commitments. It’s built on rigorous, evidence-based evaluation, using credible sources like data from global non-profit CDP. For brands, that means clarity on where you stand. For customers, it’s a trusted signal of integrity.

Your next step: assess, improve, communicate 

Whether you’re a small label or scaling fast, you can take meaningful action on critical issues. Created by Good On You, the Good Measures tool for brands helps you:

  • Understand how you're tracking on environmental impact
  • Identify what’s working – and what’s missing
  • Builds trust by backing up your sustainability claims

At Afterpay, we’re proud to support initiatives like Good On You’s Good Measures to help brands level up their impact. If you're interested in using the tool to assess and improve your environmental performance, reach out to your Afterpay contact and we’ll connect you with the support you need.

All references to any registered trademarks are the property of their respective owners. Afterpay does not endorse or recommend any one particular supplier and the information provided is for educational purposes only.

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