How Sustainable are the Three Top Clothing Manufacturers?

The manufacturing and supply chain operations within the fashion sector face considerable examination over sustainability and waste.

For an industry often criticised for its environmental impact, the pressure to demonstrate tangible progress is mounting.

Looking at three of the largest businesses in the sector - LVMH, Hermès and Inditex - reveals how they are adapting their operational and manufacturing strategies to meet ambitious environmental targets.

According to LVMH’s 2024 Social and Environmental Responsibility Report, LVMH is making progress.

The report states: “LVMH’s 2024 environmental performance metrics show it is on the right track to meet its LIFE 360 targets for 2026 and 2030.”

This is supported by data showing clear progress in circular economy, innovation, supply chain traceability and reductions in greenhouse gas (GHG) emissions.

Bernard Arnault, Chairman & CEO, says: “Our ethical principles and our commitment to upholding our social environmental and cultural responsibilities are rooted in a simple strongly held belief that it is by working together with our employees and all our other stakeholders – public and private institutions suppliers and partners NGOs and indeed other companies in our sector – that we will be able to transform challenges into opportunities to drive progress across society as a whole.”

LVMH's production and supply chain goals

LVMH has set clear manufacturing and sourcing targets, including eliminating virgin fossil-based plastic in all packaging by 2026 and ensuring no deforestation occurs in its supply chain by 2025.

LVMH's latest figures indicate it has already reduced scope 1 and 2 emissions by 55.1%, meeting its 2026 goal two years early.

Furthermore, LVMH reports that nearly 100% traceability for diamonds, wool and leather has been achieved.

Looking ahead LVMH plans to achieve full supply chain traceability for all strategic materials by 2026–2030 and expand its focus on regenerative agriculture.

Hermès, a French luxury house, has integrated sustainability directly into its production ethos.

Its 2024 Annual Report explains that it ensures all its products are “responsibly manufactured using sustainable materials with a frugal use of materials an approach based on craftsmanship and by applying the principles of the circular economy in its production approach as much as possible”.

This strategy is central to reducing the carbon footprint of its activities.

Axel Dumas, CEO, says: “Hermès places responsibility and sustainability in all its actions and creations. Each métier applies the principles of eco-design to optimise the use of materials so as to reduce waste promote reuse and recycling and be part of a circular economy approach.”

Carbon reduction in high-end manufacturing

Hermès has set a target to reduce its scope 1 and 2 GHG emissions by 50.4% by 2030 against a 2018 baseline and has already achieved a 63.4% reduction.

Hermès also surpassed its goal of sourcing 100% renewable electricity by 2025, reporting that 98% of its electricity now comes from renewable sources.

Its plans involve phasing out fossil fuels by 2030 and deepening supply chain transparency and responsible sourcing to formalise its climate resilience strategies.

Inditex, which owns seven brands including Zara, and Zara Home, is focusing heavily on its supply chain to achieve its sustainability objectives.

Oscar Garcia Maceiras, CEO, explains that while the direction of the fashion world is “difficult to predict”, Inditex's results are “very positive”. A key part of its strategy is the Supply Chain Transformation Plan, launched in 2023.

Oscar says: “We are leveraging that plan to support and advise our suppliers and manufacturers so that they can meet more ambitious requirements around water management chemical substances waste and emissions. As a result of this and other initiatives we made further progress towards a low-carbon economy.”

Inditex’s supply chain transformation

The plan requires all key factories to have decarbonisation plans and to make annual cuts to emissions while adhering to strict waste and water management protocols.

Inditex has set a goal for net-zero emissions across its value chain by 2040 with an interim target of a 50% Scope 3 reduction by 2030.

According to its latest report, 73% of textile fibres used in 2024 were lower impact and 39% were recycled. Inditex is now working to change entirely to lower-impact fibres by 2030 scale up next-generation recycling technologies and decarbonise its entire supply chain by mandating renewable energy waste and water reduction plans for all suppliers.