January 26, 2026 New report: Policymakers are blocking fashion’s climate action

While apparel brands and retailers continue to demonstrate leadership in climate action, policymakers are making it increasingly difficult for companies to reduce emissions at the scale and pace required. A new STICA progress report examines where companies are advancing and where policy gaps are holding the industry back.

The 2025 Progress Report from the Scandinavian Textile Initiative for Climate Action examines climate performance across 53 apparel and textile companies. According to the report, 35 signatories have reduced their absolute emissions since their base year, and 26 companies are currently on track to meet their Scope 3 targets.

Seven of the companies that are on track to meet their Scope 3 targets have reduced absolute emissions while increasing revenue. At the same time, eleven signatories have seen absolute emissions rise since their base year, which the report attributes to factors including more accurate data, insufficient action, or the lag between implementing climate measures and seeing results.

Michael Schragger, Director of STICA, says the data shows companies can act on climate when conditions allow.

“The progress of STICA signatories, though gradual, shows that companies have no excuse not to act on climate,” he says.

“But to ensure these actions align with science-based targets, address the climate risks facing apparel workers, and build resilient supply chains, policymakers must remove barriers and make climate action a true driver of innovation and industry transformation.”

Growth and emissions reductions do not always align

Maria Schartau of Snickers Workwear, a STICA signatory, highlights the difficulty of maintaining emissions reductions during periods of business growth.

“We are committed to climate action and are making progress,” she says and continues:

“But as our company continues to grow, reducing emissions at the pace and scale required becomes even more challenging. Without sufficient financial incentives and a level playing field, sustaining this progress remains difficult.”

She adds that recent policy developments in the European Union have made climate action more difficult.

“Diluted EU climate legislation makes climate action even harder,” she says.

“We need smarter legislation that unlocks investment in circular systems, enforces real penalties for not reducing emissions, and delivers substantial rewards for companies that do.”

What the 2025 STICA data shows

The report finds that 50 of STICA’s 53 signatories reported data this year, with three unable to report due to limited capacity or financial challenges. Thirty-nine signatories now use primary data in their calculations, and fourteen have parts of their data verified by a third party.

Thirty-five signatories report a decrease in absolute emissions since their base year, while eleven report an increase. Four companies are not included in progress assessments because they currently lack a target.

A total of 36 companies have set targets aligned with the 1.5°C pathway. Twenty-six companies are on track to meet their Scope 3 targets, with 21 of these aligned with the 1.5°C trajectory. Two companies follow a trajectory well below 2°C, two follow a 2°C trajectory, and one company has a target approved by the Science Based Targets initiative that does not meet STICA’s internal requirements.

Supplier engagement and policy involvement

The report shows increased engagement with suppliers. Thirty-four companies report supporting suppliers in setting greenhouse gas reduction targets, up from 31 last year. Forty-two companies are engaging suppliers on renewable energy implementation, compared with 40 last year.

Seventeen companies report having a plan to ensure a Just Transition as part of their climate action work, unchanged from the previous year.

Policy engagement has also increased. Twenty-one companies report endorsing a climate solutions campaign or sign-on letter, up from 13 last year. Twenty-nine companies report providing feedback on STICA-related policy positions, compared with 23 the year before.

Calls for stronger, not weaker, legislation

Based on the data, the Sustainable Fashion Academy notes that reporting quality still needs improvement. The organization says supply chain traceability, transparency, and data quality must improve, and that STICA will require signatories to increase their use of primary data in future calculations.

The report also raises concerns about the European Union’s move to roll back sustainability reporting legislation. STICA signatories support simplified legislation but not diluted requirements. Proposed changes are expected to place many STICA companies out of scope, despite limited financial incentives for climate action.

The report concludes that while progress is possible, it remains too slow to meet what climate science indicates is necessary to stay within the 1.5°C warming pathway. It calls for smarter legislation that includes meaningful penalties for inaction and rewards for companies transforming their business models.

Finally, the report emphasizes the need for the apparel industry to explore additional indicators of success beyond emissions reductions, including measures related to well-being and sufficiency.

Selected highlights:

Source: STICA

Lead image: Frederic Koberl / Unsplash