AI
Written with AI assistance•March 16, 2026•
AI
Generated IllustrationA new report on the fashion industry's climate goals reveals that most major firms are off-track. Swiss companies On and Mammut received middling to poor grades, with On being criticized for a lack of public commitment to the energy transition, highlighting a gap between ambition and action in the sector.
"Only 7 per cent of fashion companies are on a climate course"
"While renewable electricity targets for firms’ own factories are now standard, the key challenge of outsourced supply chain emissions is not being addressed adequately."
The global fashion industry is failing its climate exams, and the results are alarming. According to the "Fossil-Free Fashion Scorecard 2025" by NGO Stand.earth, a staggering 93% of the world's largest fashion firms are completely off-track to meet critical climate targets. Only three out of the 42 most influential brands are currently on a clear path to limiting global warming to 1.5°C. This represents a systemic failure across the sector, from luxury powerhouses to fast-fashion giants.
While many companies have standardized renewable electricity targets for their own factories, the industry grapples with a much darker reality: outsourced supply chain emissions. Stand.earth reports that this key challenge is being woefully ignored. The gap between public ambition and actual implementation is widening, leaving the vast majority of the sector drifting away from the goals set by the Paris Agreement. As the climate crisis accelerates, the fashion world's inability to clean up its supply chain poses a direct threat to global environmental stability.
Zurich-based darling On Running has hit a formidable wall in its sustainability journey. Despite its meteoric rise in the global market and a brand image deeply rooted in the Swiss outdoors, On received a disappointing overall grade of D+. Most damning is the grade of F the company received for its lack of public commitment to the energy transition. This stark assessment exposes a critical disconnect between the brand's sleek, nature-inspired marketing and its corporate environmental policy.
Comparatively, On is lagging behind its fiercest international rivals. While On languishes with a D+, competitors Nike and Adidas managed to secure C and C- grades, respectively. The report highlights that the Swiss shoemaker performs particularly poorly in terms of commitment to environmental protection, a metric that should be the cornerstone of a modern outdoor brand. For a company that prides itself on innovation, this failing grade serves as a wake-up call that technological advancement in performance must be matched by aggressive climate action.
Swiss heritage brand Mammut fares slightly better than its Zurich counterpart, yet still confronts a mixed reality. The outdoor apparel giant received an overall grade of C, placing it in the middle of the pack. However, Mammut secured a singular victory that distinguishes it from every other brand in the analysis: an A+ in green shipping. It was the only company among the 42 analyzed to achieve the highest possible score in this category, proving that logistical sustainability is achievable.
This achievement in shipping logistics demonstrates that Swiss precision can drive environmental progress. Yet, the overall C grade suggests that excellence in one area cannot mask deficiencies in others. While Mammut leads the fleet in transport, broader decarbonization across production and materials remains a hurdle. The contrast between their shipping prowess and their average overall performance underscores the complexity of the supply chain puzzle—one that even established Swiss firms are struggling to solve completely.
While Swiss brands navigate their own sustainability hurdles, the global fast fashion sector is driving emissions to unprecedented heights. The report reveals a shocking statistic regarding Chinese retailer Shein: the company has increased its outsourced emissions by a massive 170% in recent years. To put this into perspective, Shein is now responsible for CO2 emissions equivalent to the entire nation of Lebanon. This surge highlights the catastrophic impact of the ultra-fast fashion model on the planet.
Interestingly, the top of the class is not occupied by luxury brands, but by Swedish giant H&M (B+) and US brand Eileen Fisher (B-), the only two to receive B grades. This creates a complex narrative where some mass-market producers are outpacing premium brands in climate strategy. For Switzerland, a nation that consumes fast fashion at the second-highest rate globally, these findings are critical. The industry is at a tipping point, and without radical changes to the outsourced supply chain, the goal of a fossil-free fashion future remains a distant dream.