Fashion giants over the water

muntahabin

At the epicenter of public attention, the fashion sector is highlighted not only for its innovation and creativity, but also for its significant environmental impact. A recent report from Planet Tracker has shed light on a disturbing practice among fashion giants: on water. This phenomenon, characterized by companies' intentional silence regarding water-related risks , raises crucial questions about the industry's true commitment to sustainability and Corporate Social Responsibility (CSR), reports Edie . Conversation about the risks of water in fashion According to Planet Tracker's latest report, Exposing Water Risk (2024), which analyzes water-related risk disclosures from nearly 30 leading fashion brands, calculated based on adjusted revenue to create a representative sample, only 15 Of the 29 brands included, they report their water use to the Carbon Disclosure Project (CDP), a global disclosure system. The report highlights companies such as Hanesbrands, Gap, VF Corp and for actively leading conversations that recognize the critical importance and challenges associated with water risks in their business operations. In contrast, companies like Gap and Ralph Lauren seem lagging behind. Classifying companies into three broad groups for comparison reveals significant disparities. Non-luxury brands lead in terms of disclosure (69%), followed by luxury brands .

Surprisingly, stores, primarily retail-focused entities, are lagging significantly at just 2%. When analyzing various corporate documents, from annual reports to transcripts of presentations and shareholder meetings, it was observed that only 10% of these documents address the topic of water risks. This highlights a significant lack of attention to the issue of water in the information provided by companies. Additionally, the report points out a common pattern among companies: when it comes to disclosing information about water-related risks, they all tend to focus on the Thailand Phone Number List consumption aspect. Prevalent terms in these disclosures include “risk,” “policy,” and “reduction,” suggesting that companies are particularly concerned about how their water consumption might present risks, the policies they implement to address these risks, and their efforts to reduce the risk. water-related impact on your operations. Water security is good for business The report also highlights that discussions of water-related risks are primarily found in reports, rather than transcripts of financial activities such as earnings calls or capital market events. This raises the question of whether investors underestimate water as an important issue or believe that companies effectively manage water risk, relegating it to a low priority.



Last year, the CDP revealed that a record number of investors, with almost $30 trillion in assets, are pressuring companies to report on key sustainability issues, including water. This direct engagement is leading to better disclosure by companies. Previous research supports the idea that addressing water security in the private sector could unlock potential business opportunities worth $2.3 trillion. «Investments by companies to value water will make a big difference in facing this crisis head-on. The right time to take advantage of these opportunities is now,” says Miriam Denis Le , Senior Director of Water at CDP. Fashion giants go Planet Tracker senior investment analyst Richard highlights that if fashion giants adopt “”, more than a strategic silence, it is a risk in itself: “Water availability is increasingly stressed in many parts of the world due to climate change, inefficient use and untreated disposal. “This could threaten textile production in key regions, disrupting supply chains.