An Exploration of How Fast Fashion Companies’ Sustainability Policies and Practices Align To the Sustainable Development Goals

Abstract

Background: The fast fashion industry is a significant contributor to environmental and social issues by producing greenhouse gases, generating textile waste and underpaying workers. The voluntary nature of sustainability disclosure in fast fashion corporate reports lacks standardisation and oversight. Consequently, fashion companies tend to emphasise their positive actions and policies. Media reports often present proof of actions that are inconsistent with companies’ reported actions. Purpose: This study explores the Sustainable Development Goals which fast fashion companies disclose in their corporate reports, the level of detail this disclosure and how media reports support or discredit these disclosures. Method: For the top eight fast fashion companies by revenue globally, references to each of the 17 Sustainable Development Goals (SDGs) in corporate reports from 2020 to 2022 and the level of disclosure was explored through qualitative content analysis. The analysis was led by the targets set out for each SDG by the United Nations and a total score was computed for each SDG for each company. Descriptive statistics were calculated to uncover patterns relating to disclosure frequency, disclosure detail, revenue and other company characteristics Results: There has been a persistent lack of disclosure of quantitative and information on performance targets. Commonly reported SDGs are SDGs 1, 5, 6, 7, 8, 12 and 13, demonstrating what fast fashion companies prioritise. The SDGs overall do not garner much media attention, but stakeholders tend to prioritise SDGs 8, 12 and 13. The study provides evidence of the disconnect between disclosure and practice. Implications: This implies that companies view the SDGs as a disclosure checklist with non- binding implications. From a practical standpoint, the absence of regulated Sustainable Development Goal disclosures suggests that stakeholders with an interest in the Sustainable Development Goals cannot depend on corporate reports to inform their decisions.