Fashion industry misses sustainability targets, with only 2% renewable energy use despite efficiency gains.

The fashion industry is falling short of sustainability goals, with renewable energy use at just 2% of total energy, according to 2026 reports from Cascale and the Apparel Impact Institute. Despite progress in energy efficiency, rising production volumes and limited renewable access in key manufacturing countries are driving up emissions. Larger factories offer major reduction potential but complicate coordinated action due to multi-brand operations. Collaboration remains underused, hindered by reluctance to co-invest. The Sustainable Markets Initiative’s 2026 summit, hosted by King Charles III and Stella McCartney, highlights a strategic shift toward cross-sector “pathfinders” tackling decarbonization, AI, and growth capital, aiming to mobilize private investment for systemic change.