Cop26: How fashion industry aims to make sustainability fashionable


Nicky Harley
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British fashion houses have united to showcase sustainability as the industry pledges to bolster its sustainability ambitions by calling on companies to halve their carbon emissions by 2030.

The sector previously had a target of reducing emissions by 30 per cent by 2030 but through the Fashion Charter, it is now urging groups to set targets based on science.

On Tuesday, the British Fashion Council hosted GREAT Fashion for Climate Action, for which designers including Burberry, Phoebe English and Stella McCartney set out how they have adapted their work to increase sustainability and reduce their contribution to the climate crisis.

The sector is responsible for 10 per cent of all greenhouse gas emissions – more than shipping and aviation combined – and pressure to find sustainable solutions is mounting.

“The GREAT campaign showcases the best of the UK’s creativity and ingenuity across the world,” UK Prime Minister Boris Johnson said.

“From infinitely recyclable clothing to carbon neutral companies, it’s brilliant to see these British fashion brands innovating and leading the industry towards a greener future.

“I know many more businesses will work hard to make fashion more sustainable in the years to come and I commend the industry’s resolve to play their part in this.”

British fashion designer Phoebe English said the event was a “huge opportunity”.

“We are pleased to be able to showcase our work and methods as part of the Cop26 conference,” she said.

“The fashion sector has a huge opportunity to be contributing to healthier less extractive systems. It is imperative that as an industry we are unified in our actions to make these approaches general practice across the international sector.

“The time is now.”

Mother of Pearl launched its first fully sustainable line, No Frills, in 2018 and urged the industry to follow suit.

“Sustainability has been a lifelong passion of mine and I’ve been on a mission for Mother of Pearl to reduce its impact on the planet,” the brand’s creative director, Amy Powney, said.

“However, it’s no longer about one brand. The fashion industry requires an entire system reset and a shift in consumer behaviour.

“We need to get back to valuing clothes as beautifully crafted pieces, not throwaway objects. The system needs to slow down; we need to invest in brands with the right values and consider closed loop systems which encourage us to rent, repair, recycle and resell, replacing impulse purchases and fast fashion methodology.”

At an event at the Cop26 climate summit on Monday, the Fashion Industry Charter for Climate Action set out new targets to introduce sustainability measures faster in response to the climate crisis.

“We have realised [the charter we launched at Cop24] is not enough and we need to make it stronger, more concrete and call for companies to halve emissions by 2030,” said Niclas Svenningsen, manager of Global Climate Action at UN Climate Change.

“The science is clear – we have to do this. We do not have a choice.”

Jerome Le Bleis, chief supply officer at Burberry, said the industry needed to work together.

“We have to set bold targets supported by science,” he said.

“The focus on raw materials is extremely important and collaboration is key to making it happen. At Burberry we have set a bold ambition to become climate positive by 2040. It is not just setting the goals, but setting concrete actions.”

Further commitments in the updated Charter include ensuring all electricity used is from renewable sources by 2030, sourcing environmentally friendly raw materials and phasing out coal from the supply chain by the same date.

“This is an important milestone for the Fashion Charter, as it increases the ambition level in effort to align the industry with 1.5°C,” said Stefan Seidel of Puma, who is also co-chairman of the Fashion Industry Charter Steering Committee.

Elvis & Kresse has found a novel way to reuse unrecyclable firehoses, by creating high-end fashion accessories.
Elvis & Kresse has found a novel way to reuse unrecyclable firehoses, by creating high-end fashion accessories.

“It is a signal that we need to work closely together with our peers, our supply chain, policymakers and consumers to get on the track to net zero.”

Dr Delman Lee, vice chairman of Tal Apparel, has called for a sustainability index to rate companies.

More than 130 companies and 41 supporting organisations have signed the Fashion Charter, including H&M Group, Adidas, Nike and Chanel.

The renewed charter also calls for creating incentive mechanisms for supplier engagement in decarbonisation, as well as measures to engage policymakers and financial institutions.

“In a time when the climate crisis is accelerating to unprecedented levels, we need the real economy to lead on climate action,” Mr Svenningsen said.

“The strengthened commitments of the Fashion Charter signatories is an excellent example of such leadership.”

Last week, fashion designer Stella McCartney showed Britain’s Prince Charles her eco-fashion exhibit, the Future of Fashion, at Cop26.

  • People gather in the Action Zone inside the venue of the Cop26 summit in Glasgow, Scotland. AP Photo
    People gather in the Action Zone inside the venue of the Cop26 summit in Glasgow, Scotland. AP Photo
  • Former US president Barack Obama speaks during the summit. EPA
    Former US president Barack Obama speaks during the summit. EPA
  • Delegates take pictures with their phones as Barack Obama gives his speech. Reuters
    Delegates take pictures with their phones as Barack Obama gives his speech. Reuters
  • A model of the globe is carried through the venue in Glasgow. Reuters
    A model of the globe is carried through the venue in Glasgow. Reuters
  • A delegate views a screen displaying global temperatures. Reuters
    A delegate views a screen displaying global temperatures. Reuters
  • A 'Choose Earth' mural on a gable end in Glasgow. Reuters
    A 'Choose Earth' mural on a gable end in Glasgow. Reuters
  • Climate change activists take part in a 'Zombie Dance' in George Square, central Glasgow. Getty Images
    Climate change activists take part in a 'Zombie Dance' in George Square, central Glasgow. Getty Images
  • Stop Climate Chaos Scotland campaigners unveil a heart-shaped ice sculpture illuminated in green on the banks of the River Clyde overlooking the Cop26 summit venue. PA
    Stop Climate Chaos Scotland campaigners unveil a heart-shaped ice sculpture illuminated in green on the banks of the River Clyde overlooking the Cop26 summit venue. PA
  • Activists from Extinction Rebellion take part in a 'Loss and Damage' protest performance, where a car painted to look like a globe was smashed outside the Cop26 summit in Glasgow. PA
    Activists from Extinction Rebellion take part in a 'Loss and Damage' protest performance, where a car painted to look like a globe was smashed outside the Cop26 summit in Glasgow. PA

She discussed vegan items with him and ways to avoid making football boots out of kangaroo leather.

The industry has been pioneering alternatives, including Dr Carmen Hijosa, who came up with the novel idea of using leftover pineapple leaves as an alternative to leather and created Pinatex.

More than 3,000 brands in about 80 countries use her Pinatex creation, including high-street names such as Hugo Boss and H&M.

Fashion brand Elvis & Kresse is leading the way using the London Fire Brigade’s old hoses, which had previously gone to landfill, to create designer bags and belts.

The business has also signed a five-year deal with Burberry to use 120 tonnes of its leather offcuts to create luxury items.

Primark has recently pledged to make all its clothing more sustainable by 2030 and to sell clothes that can be “recyclable by design” by 2027.

The clothing sector is worth £32 billion ($43.38bn) to the UK economy annually, and every year about a million tonnes of clothes are thrown away.

British researchers are developing ways of manufacturing textiles from household waste, such as food scraps and kitchen roll.

This year, luxury French fashion brand Saint Laurent announced it would stop using fur next year.

Research in the Netherlands found that the greenhouse gas emissions resulting from the production of one kilogram of mink fur was at least five times that of the highest-scoring textile, wool. This was in large part due to the production of the animals’ feed, emissions from their faeces and the processing of their pelts.

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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Updated: November 09, 2021, 5:40 PM