Business leaders need help to save the planet

Saving the planet – and delivering a better deal for textile workers – is everything in fashion right now. Activist groups like Fashion Revolution, Fashion for Good, and Clean Clothes have raised consumer awareness, a UK parliamentary report flagged the cost of fast fashion and, ahead of London Fashion Week, further public initiatives are likely.

As brands search for purpose, and more than ever consumers expect the fashion industry to step up on sustainability, the question for companies is how? As a global executive search firm working across the fashion and luxury sector, we now regularly see briefs for senior people who have traction in this area, but we also know, from leaders across the sector, that most businesses are conflicted.

To understand this better, over the summer we asked several hundred top executives working in fashion and retail companies about the progress being made on sustainability in their businesses – and also what’s helpful to progress, and what’s not.

Over 100 replied, the vast majority senior executives and board members – in short those setting the agenda. Seventy per cent of these C-suite leaders said that a more sustainable approach was either “mission critical” or a key objective for their companies. Whilst a third (32%) said the main driver was company ethos, but the largest group (39%) said their businesses were increasingly focused on sustainability to address consumer expectations.

Senior executives don’t need convincing about the importance of embracing sustainability, but they are struggling to make significant progress in a commercial environment. Our poll showed very clearly that many leaders are struggling with this, finding it difficult and counter-intuitive to implement initiatives which negatively impact profit, even in the short term.

Over 40% of the leaders we spoke to said quite clearly that continuing to meet commercial objectives is their biggest barrier to adopting a more sustainable approach. Almost a quarter cited challenges across their supply chains as the most significant obstacle. Interestingly, no one mentioned fear of public criticism on the issue as particular concern.

Interestingly, almost all these leaders (94%) say their companies have a strategy and policies in place to address sustainability – which is clearly a good start. Less positive however, is that the majority note a lack of clarity over responsibility for delivering this across their organisations.

Lack of leadership from the very top (20%) and a piecemeal approach (27%) emerged as key issues, but for the largest number of business leaders (29%), the main problem is that sustainability goals don’t feature in the objectives of every team and department. The result is that, whilst many people across their organisations may be involved in sustainability initiatives, commercial goals and measures continue to be what really count.

Against this backdrop it’s perhaps unsurprising that most business leaders (75%) think a real step change on sustainability can only be achieved with greater regulation. In toughening economic times, few are prepared to put the profitability of their companies at risk.

So, whilst sustainability may be big in fashion, it has yet to become big business.

Catherine Broome, Head of Fashion & Luxury, Odgers Berndtson