If reports are to be believed, Chinese fast-fashion giant Shein is trying to make up for its past mistakes, shifting its image to justify a $100 billion valuation ahead of an ambitious IPO in four years. A lot of work needs to be done. The company controls most of the category at 28 percent, but it is also one of the worst in ESDG. It relies on suppliers in China, where the Uyghur populations suffer forced labor and dangerous working conditions, to keep prices low. Fast fashion is harmful to the environment and most regulators think it is irredeemable. Shein has a lot to answer for.
The company’s efforts to market an enthusiastic ambition to jump on the ESG bandwagon should put it on the path to redemption. Not quite, isn’t it?
ESG is not a marketing tactic
Businesses and fast fashion are often misunderstands. As a result, there have been a lot of talking heads wrongly accusing ESG of being a corporate cancel culture. Shein hopes to use Esg to their advantage by engaging in Esg messaging and stories without realizing that the model is antithetical to Esg’s mission.
For Shein and their contemporaries, ESG storytelling without business transformation is a thinly veiled strategy.
Adjusting for climate change within the current framework of a business is flawed from the start according to Kenneth Pucker, the former COO of Timberland. He said that changing underlying systems won’t yield results if you just turn up or down the dial.
For fast fashion, effective ESG demands that instead of existing within their usual parameters of manufacturing disposable clothing and cynically moving a dial up or down, that they rethink their entire business, from manufacturing and pricing to employees and supply chains, with the goal of reaching true social justice and climate progress That is a frightening idea to most companies, especially if they are doing it for a reason. If a company is forced to help, it becomes more understandable.
That is the reason why Shein and their peers use the term ESG Storytelling without Business Transformation. It is difficult for companies that understand and are driven by the U.N. sustainable development goals to create change. It is not possible for companies to hope to move the needle if they only use ESG for story telling. Studies show that telling stories without making meaningful change will not fly with the American consumer.
Transparency as a real strategy
Other leaders in fashion are ready to incorporate ESG at the heart of their organizations with the right guidance. It’s important to find partners who can give guidance.
The right partner can push fashion brands to open source their success. Having worked with global apparel brands, I can attest that their business cultures are still mostly old school and they tend to see their ESG innovations as a competitive edge. They wouldn’t allow others to copy their system for cleaning the chemicals out of water. They don’t see that this can be more than an environmental benefit, as well as the story of their company and how they want to help others.
While fast fashion may be beyond repair, certainly other leaders in fashion are ready to embed ESG at the heart of their organizations with the right guidance.
Honesty and humility can be encouraged by partners. There is no such thing as sustainable clothing. Environmental harm is caused by all fashion practices. Understanding this can allow an organization to level-set both its actions and messaging and help consumers learn to reduce that negative impact by avoiding excessive buying and waste The famous ” Don’t buy this jacket” ad from Patagonia was based on this philosophy.
This commitment to truth extends to reporting, which requires oversight and verification. Agencies and consulting firms can help bridge the gap between fashion brands and third party verifications. The Fair Labor Association can provide metrics that prioritize impact.
Other fashion brands can help contribute to the industry shift required to truly do right by our planet, and our future, even though there is no way fast fashion can ever be.