Wedoany.com Report on Mar 18th, H&M Group and EY jointly released the white paper "Accelerating Fashion Decarbonization – Unlocking Efficient Pathways to Enterprise Value and Finance," which outlines the business case for decarbonization, aiming to provide practical guidance for financial leaders. The report points out that the fashion industry needs to take collective action to protect operations from climate disruptions and fulfill commitments, with some solutions already existing.

Adam Karlsson, Chief Financial Officer of H&M Group, stated: "The cost of inaction on climate change is too high. CFOs have a responsibility to ensure long-term business resilience, not just short-term profitability. Our role is to ensure how sustainability goals are achieved, which requires combining cost efficiency with value creation to reduce risks and enhance corporate value."

The white paper focuses on three barriers to decarbonization in the fashion industry: the unclear enterprise value of Scope 3 decarbonization, the complexity and fragmentation of supply chains, and the lack of relevant financing tools. To address these challenges, the report proposes three pathways: linking decarbonization impact to financial value, promoting industry-wide collaboration, and scaling decarbonization through new financing models.

The report emphasizes the critical role CFOs play in decarbonization by integrating climate risks and advocating for collaborative financing models to guide their organizations toward long-term value creation. Anna Ryott, Chief Impact Officer for EY Nordics, commented: "The fashion industry has an opportunity to collectively address these challenges. There is growing momentum for industry-wide collaboration and openness to exploring new financing models to accelerate the green transition."

Clair Smith, Head of Sustainable Trade Solutions at HSBC, added: "Investing in climate mitigation today helps reduce long-term costs and business risks." H&M Group and EY hope this white paper will inspire more companies to jointly engage in decarbonization efforts and enhance business resilience.