Per this article, the Apparel Impact Institute has published a study that puts a number against the above question.Â
It predicts the fashion industry will see a 34% drop in profit by 2030 (in less than four years) due to environmental inaction.
Inaction will produce:
–Â Â Â Â Â Â Â Â Â Higher carbon prices
–Â Â Â Â Â Â Â Â Â Rising raw material costs
–Â Â Â Â Â Â Â Â Â More expensive energy
–Â Â Â Â Â Â Â Â Â Supply chain disruption
–Â Â Â Â Â Â Â Â Â Higher operating costs
The biggest area of impact is Scope 3 (ie, decarbonizing the supply chain).
So, the question for you is this: If the fashion industry expects a 34% reduction in profit within four years due to environmental inaction, what do you think your industry’s risk is – 0%? 25%? 50%?
And, what do you think your company’s risk is?
Zero percent is probably unlikely. Odds are, your industry and your company are probably looking at a 25% – 50% profit risk over the next four years due to your environmental inaction.
Is that worth action or will you wait to see if it plays out?
If you want to get ahead of this while your peers wait and watch, read this on what you want in a sustainability program, watch this master class, and contact us.
The post What percentage of your future profit is at risk due to your inaction? appeared first on Edenark.
