The fashion industry has come a long way in embracing sustainability, but one critical piece of the puzzle still needs more attention i.e. Scope 3 emissions.
These indirect emissions, which occur across the supply chain and product lifecycle, can account for up to 96% of a fashion brand’s total carbon footprint (Reuters, 2023). Effectively addressing Scope 3 is essential for any meaningful climate strategy in fashion.
What exactly are Scope 3 emissions?
Scope 3 emissions are greenhouse gases released from activities that fall outside a company’s direct operations. In fashion, this stretches across the entire value chain i.e. from the fields where cotton is grown, to the factories that dye and stitch garments, to the fuel used in transport and even how clothes are washed and disposed of by consumers.
- Upstream examples include:
- Raw material extraction
- Textile production
- Shipping of goods to warehouses and stores
- Downstream examples include:
- Consumer use and care
- End-of-life disposal and waste management
- These emissions may not happen within a brand’s own facilities, but they are still part of the environmental impact a product creates from start to finish.
Why does Scope 3 matter so much in fashion?
The fashion supply chain is long, complex, and layered. From sourcing fibers to delivering the final garment, each step leaves an environmental mark. This complexity makes Scope 3 emissions both a challenge and an opportunity.
According to India’s Ministry of Environment, Forest and Climate Change (2024), the textile and apparel sector contributes nearly 2% of the country’s total greenhouse gas emissions, approximately 65 million tonnes of CO₂ equivalent annually. With the industry projected to reach $350 billion by 2030, addressing Scope 3 emissions is critical for sustainable growth.
Here’s why Scope 3 emissions cannot be ignored:
- Largest impact area: For most fashion brands, Scope 3 emissions represent the majority of their carbon footprint.
- Complex supply chains: Collaborating with hundreds of suppliers across diverse regions makes tracking emissions difficult, but not impossible.
- Tightening regulations: Global frameworks are increasingly requiring brands to measure and reduce emissions across their entire value chain.
- Growing consumer awareness: Shoppers are demanding transparency and accountability in how products are made and marketed.
- Cost-saving potential: Optimizing energy use, minimizing waste, and improving logistics can reduce both emissions and operational expenses.
- Drives innovation: Transitioning to lower-impact materials and greener manufacturing processes often leads to smarter, more efficient practices.
The challenges and where brands can take action
Addressing Scope 3 emissions is not easy, but it is still doable. The biggest hurdles are usually:
- Data transparency: Getting reliable information from suppliers is still a challenge for many brands.
- Supply chain complexity: Not all suppliers have the same capabilities, infrastructure, or awareness.
- Engagement: Building trust and collaboration with suppliers is key to any successful sustainability effort.
- Technology: Tools for carbon accounting, traceability, and performance tracking are improving, but adoption takes time.
- Science-based targets: Setting clear targets and sharing them helps align everyone on the path forward.
A new approach to sustainability in fashion
Reducing Scope 3 emissions is not about shifting blame or ticking boxes. It is about rethinking how products are made, moved, and used. It is important is done in a way that is fair, transparent, and measurable.
Brands that are serious about their climate commitments are now investing in better data, engaging more deeply with suppliers, and using digital platforms to monitor and reduce their impact across the value chain. This shift is essential for long-term brand resilience and relevance.
Reducing Scope 3 emissions in the fashion industry demands more than good intentions; it requires actionable insights, strong supplier collaboration, and reliable data. Since Scope 3 emissions represent over 90% of most fashion brands’ total carbon footprint, effectively measuring and managing these indirect emissions is essential for building transparent and sustainable supply chains.
Read the full case study on Ascot Fashion, a leading fashion textile exporter, and their approach to ESG data management using ESG Xpress.
Take the next step toward responsible fashion. Explore how ESG Xpress can support your Scope 3 journey.