A Fair Fashion Future: How Brands and Suppliers Can Work Together for a Just Transition

Collaborative financing, inclusive governance, and shared accountability are key to decarbonizing the textile industry without leaving anyone behind.

The global textile and apparel industry stands at a turning point. With new carbon border measures and sustainability standards reshaping international trade, the question is no longer whether brands will decarbonize — but how they can do so fairly.

In countries like Pakistan, where textiles make up 60% of exports and employ 40% of the workforce, this shift presents both risks and opportunities. Policies such as the EU’s Carbon Border Adjustment Mechanism (CBAM) and the UK’s expected carbon border tax will soon require manufacturers to cut emissions or face higher export costs. Yet many suppliers in the Global South, particularly small and medium enterprises, lack the resources or clear guidance to meet these expectations.

A just transition means ensuring that the journey to net zero does not come at the expense of suppliers. According to the Transformers Foundation (2023), 80% of the industry’s emissions occur in supply chains, but suppliers receive only a small share of the final retail value — and are often expected to finance decarbonization themselves. This inequity is not only unsustainable; it risks deepening the divide between brands and their production partners.

What’s needed is a new model of collaboration, where brands and suppliers co-develop solutions, and share financial responsibility. Some key actions include:

  • Co-developing decarbonization roadmaps: Brands should engage suppliers early to set achievable targets that reflect local realities — from energy efficiency upgrades to renewable transitions.
  • Equitable financing: Through pooled or blended finance mechanisms, brands and investors can share costs and de-risk supplier investments in cleaner production.
  • Inclusive governance and reporting: Sustainability frameworks should recognize not just emission outcomes but also brands’ financial contributions and supplier engagement.

These ideas underpin a new research project led by Dr. Amama Shaukat, examining the just transition in Pakistan’s textile sector. By combining interviews with brands and on-the-ground research with suppliers and workers, the project aims to identify practical pathways for equitable climate action.

The message is clear: achieving net zero in fashion requires partnership, not prescription. Brands and suppliers must move beyond compliance to shared innovation and mutual accountability. Only by working together through fair finance, inclusive governance, and effective reporting, can the industry deliver a truly just transition and redefine what sustainability means in global fashion.

Call to Action:

Join the conversation. If your brand or supplier network is exploring fair financing or governance models for decarbonization, connect with Amama via Common Objective. Together, we can build a fashion system that is not only net zero but also fair by design.