When climate risk hits fashion’s bottom line with Apparel Impact Institute

For years, sustainability in fashion has often been discussed almost as a parallel conversation to the business itself. Some brands publish reports, set targets and talk about responsibility, while others turn their sustainability credentials into a marketing tool. Yet, at the corporate level, many of the real decisions are still being driven by the old metrics of margins, supply chains and growth – but that's beginning to change. Behind the scenes, there is a vast global industrial system increasingly exposed to climate volatility, energy prices, material shortages and carbon regulation. And its stakeholders have realised that sustainability is crucial to competitiveness: climate change can affect energy prices, raw materials and supply stability.In this episode of Shaken Not Burned, Felicia speaks to Kristina Elinder Liljas, senior director for sustainable finance and engagement at the Apparel Impact Institute (AII), about how climate volatility is set to upend many companies' forward strategies within the next five years. From supply chain disruption and rising sourcing costs to carbon pricing and energy volatility, they explore why sustainability is shifting from a reporting exercise or a worthy side conversation to a core business issue.In its Cost of Inaction report, the AII looks at the literal price tag of climate risk in fashion. The findings are striking, and the message is clear: inaction may just be the most expensive strategy on the board.For an industry built on speed, scale, and razor-thin margins, sustainability is a matter of corporate survival.This is week one of our four-part fashion arc. Over the next month, we are tearing down the curtain on global supply chains to see how this industry impacts people, the planet, and the bottom line.If you enjoyed this episode, subscribe to our newsletter and follow us on LinkedIn, TikTok and Instagram – and why not spread the word with your friends and colleagues?