Nature’s runway: Why nature is the crisis the fashion industry can’t ignore

In brief:

• The fashion industry has a close mutual reliance with nature, especially in the areas of biodiversity, water and land use. Yet the shift from an extractive to a reciprocal relationship between the industry and ecosystems isn’t happening fast enough. 
• If companies fail to reduce their impacts and dependencies on nature, they’ll expose themselves to operational, regulatory and reputational risk. 
• Fashion brands can’t afford to consider climate action as separate from nature conservation and regeneration. Rather than looking to reduce carbon in a silo, companies should be aiming to reduce impacts and dependencies on nature to boost business resilience and preserve the planet’s finite resources. 
• By bringing nature into the fold, fashion companies can fortify themselves against future environmental shocks and build a more resilient business model. 

Nature has long been a rich source of inspiration for the fashion industry. Yet many brands seem to ignore the various ways in which their activities put nature and, in turn, their business – at risk. From the fibers woven into fabrics, to the land used for production, the fashion industry’s success is inherently tied to the health of our planet’s ecosystems. 

What if the key to future-proofing fashion was protecting and restoring nature? 

How nature underpins the fashion industry 

As an industry, culture and system, fashion has a close interdependency with nature, especially in the areas of biodiversity, water and land use.

+ Biodiversity

The fashion and sporting goods sector relies on biodiversity for both the raw materials that go into products —such as cashmere, cotton, leather, viscose and wool — and packaging. Due to the rise of mono cropping and related crop efficiencies, we’ve seen a decline in the number of species used within production. In fact, it’s estimated that biodiversity is declining at a rate 1000x higher than natural rates. Not only does this reduce genetic diversity and make agricultural systems less resilient to environmental threats, but it also increases the industry’s dependence on the remaining species to pick up the slack.  

And while natural fibers pose a risk to nature by nature, this doesn’t mean that synthetic-heavy sectors like the sporting goods industry get a free pass on setting a nature strategy. Issues like microplastic leakage, water use and biodegradability are critical to address.  

+ Water

Water quality and availability are lifelines for both natural ecosystems and fashion, as the industry consumes over 79 trillion liters of water each year. From crop irrigation to dyeing processes, the sector’s reliance on water is multifaceted. 

The production and processing of crops like cotton is highly dependent on water. Poor water management drives water scarcity, as the surface and groundwater used to irrigate cotton fields leads to freshwater loss.  

According to Material Exchange, the fashion industry is the second largest consumer of water due to bleaching, dyeing, finishing, softening, spinning, and growing materials. Unfortunately, most of the water is contaminated by chemicals during these processes, which are often improperly disposed of, polluting our already scarce water supply and contributing to the degradation of aquatic ecosystems.  

+ Land use

Overproduction in apparel has an intense effect on land degradation and deforestation as well, through the cultivation of crops, animal grazing, and manufacturing facilities all requiring substantial land use. 

Leather and viscose production contributes significantly to the deforestation of several ecosystems, including the Amazon. Around 200 million trees are cut down every year to support the production of viscose fibers, and many of these are taken from at-risk, old-growth forests, rather than managed tree plantations. Deforestation and land degradation lead to soil erosion, depleting the fertile topsoil and reducing the land’s productivity.  

The livestock industry uses around 80% of the world’s agricultural lands. The overgrazing of livestock for wool and cashmere affects the balance of plant species too, with an increase in grass-like plants and a decrease in woody shrubs and trees thus affecting species and ecosystem biodiversity. Most grasslands in Mongolia have already been degraded due to cashmere over-grazing practices. Furthermore, failure to address these issues in the fashion industry could lead to supply chain disruptions, increased costs, regulatory risk and reputational damage. 

What is fashion without nature?  

The relationship between fashion and nature needs to shift from extractive to reciprocal – nature provides the resources that underpin the industry and, in return, the industry must take actions that protect and restore ecosystems. If companies fail to reduce their impacts and dependencies on nature, they’ll expose themselves to operational, regulatory and reputational risk.

+ Supply chain resilience

Ecosystem disruptions can reveal vulnerabilities in a company’s supply chain. Relying on a narrow range of resources or sourcing solely from regions prone to environmental instability exposes companies to risks such as price volatility, supply shortages and compromised product quality. For example, many luxury fashion companies prefer longer cotton fibers, which can only be produced in a few regions. The climate and biodiversity crises lead to lower cotton quality due to temperature changes and a reduction in pollinators. This example also extends to raw materials from animals, as rising temperatures can result in lower–quality wool. 

+ Costs and operational efficiency

Environmental disruptions, from water scarcity to extreme weather events, can lead to higher production costs and decreased operational efficiency. Rising costs of raw materials, energy and waste disposal put increasing pressures on profit margins, showing how conventional, resource-intensive practices are both environmentally and financially unsustainable. The fashion industry’s linear model of production, consumption and disposal is a dead-end strategy in the face of rising resource costs and potential regulatory measures aimed at curbing further environmental impacts. 

+ Innovation and future-proofing

The very nature of the fashion industry is to be forward-thinking, but neglecting the importance of nature-related topics is starkly at odds with a culture of innovation. Taking a reactive stance to nature will only put fashion on the defense, leaving companies vulnerable to various risks and environmental disruptions to their business activities. Investing in regenerative ecosystems and adopting circular economy principles are essential for staying ahead in a rapidly changing market shaped by increasingly environmentally aware consumers.

+ Regulatory compliance

Governments and international bodies are recognizing the urgent need for more stringent environmental regulations. Earlier this year, the European Union adopted the EU Deforestation Regulation, which requires companies to meet three conditions to help minimize the risk of deforestation and forest degradation associated with products in the EU market. Companies that don’t align with these evolving standards risk legal repercussions, fines and reputational damage. CSRD is another example. Embracing sustainable transformation is imperative for long-term viability, success and compliance.

How can fashion hit the runway with nature?

Today, reducing greenhouse gas emissions is at the forefront of sustainability strategies and target setting. But we can’t afford to consider climate action as separate from nature conservation and regeneration. Rather than asking how to reduce carbon in a silo, companies should be asking the question: How can we reduce our impacts and dependencies on nature to boost business resilience and preserve the planet’s finite resources?  

To address their dependencies and build a more resilient business model, businesses will need to: 

1+ Understand their dependencies

While historically the market has lacked a standardized method to quantify biodiversity footprints, strong global frameworks are quickly catching up.  

Since nature impacts are heavily dependent on where they’re located, initiatives and actions that work in one landscape, ecosystem or community may not necessarily work in another. Start by thinking about your portfolios that can be measured on a regional basis, as biodiversity and nature-related issues are geographically specific. Once increased visibility is established, companies can collect environmental data from their growers to better prepare for the future. This can be facilitated through taking part in industry collaborations and collective initiatives that drive effective data collection. This is a crucial starting point for understanding both your dependencies and associated risks. 

2+ Address and reduce risk exposure 

As previously mentioned, tackling biodiversity-related issues and dependencies requires a regional perspective. The Taskforce on Nature-related Financial Disclosure (TNFD) recently issued guidance for companies looking to identify nature-related dependencies, impacts, risks and opportunities using their Locate, Evaluate, Assess and Prepare (LEAP) framework. 

The Science Based Targets Network (SBTN) also released a framework for setting science-based targets for nature. This framework aims to help companies take immediate action on nature topics such as biodiversity, freshwater and land use by having them identify areas of impact and opportunities for positive change.

3+ Conduct scenario planning (dependencies, opportunities, risks) 

Scenario planning is a strategic tool that fashion companies can utilize to assess both their impacts and dependencies on nature and delve into adaptation strategies for future environmental shocks. By developing alternative scenarios that represent potential futures based on variations in key drivers, companies can consider scenarios that explore different options for sourcing, circular economy practices and innovative technologies that can mitigate environmental impacts. They can then strategize on how to appropriately adjust their operations, supply chain practices and product offerings to thrive in each scenario and better prepare them for times of uncertainty. 

4+ Take immediate action 

Setting targets and ideally a regional strategy can take time, especially considering what it takes to secure internal buy-in and establish a common understanding is factored in. It’s critical to take action today by joining industry initiatives and partnering with peers on vetted supplier and field-level programs to drive short-term impact. Increasing traceability of raw materials is key to understanding direct nature impacts. While brands work to improve traceability, they should start to address impacts within the life cycle stages they have visibility into. For example, while a company might not know the regional origin of its cotton, it can still take action to limit the impacts of its wet processing, a significant driver of water pollution and consumption. 

5+ Raise the bar even higher 

Ultimately, fashion brands need to set the stage for a complete transformation of their business model, building circularity into products to extend their life and avoid the use of virgin raw materials. It’s important to remember that overconsumption is the number one barrier to securing a sustainable future for the planet and the industry itself. 

The fashion industry needs to utilize sustainability as a roadmap for enduring success. More than a moral or ethical imperative, it’s a strategic business move that aligns with growing consumer expectations, regulatory landscapes and the demands on our planet. By understanding and addressing their dependencies on nature, fashion companies can fortify themselves against future environmental shocks and build a more resilient business model. The call is clear — embrace sustainability and embark on a holistic transformation journey toward a future where fashion and nature coexist harmoniously.