As the year draws to a close, it’s time to take account of all that has been accomplished in the previous months. Fashion firms have begun publishing out their annual reports in December. One prominent theme in non-financial reports is sustainability. Year after year, an increasing number of firms are opting to publicly disclose their sustainability status, either because of regulatory demands or the need to communicate transparency to end consumers.
In an era where sustainability is a top priority for consumers and stakeholders, the fashion industry is under increasing pressure to implement and communicate ethical practices. However, while sustainability reporting is an effective tool for demonstrating commitment, it may also become a liability if not executed correctly. Mistakes in reporting can harm a brand’s reputation, resulting in public reaction, legal issues, and a loss of assurance.
Below, we explore the six most common sustainability reporting mistakes and how fashion brands can avoid them.
1. Greenwashing: Overpromising and Underdelivering
One of the most damaging mistakes a brand should avoid making is greenwashing—exaggerating or fabricating sustainability claims. Several high-profile brands have been called out for promoting “green” collections that lack substantial environmental benefits. Terms like “eco-friendly” or “sustainable” are often used without evidence, misleading consumers and eventually losing their trust.
2. Not including quantitative information
Omitting quantitative data or failing to provide precise figures that substantiate the report’s assertions is one of the most frequent errors. The intention is to make the material available to anyone, but the absence of concrete metrics erodes the content’s credibility and makes it impossible to judge accomplishments impartially. It is more difficult for readers to evaluate the true impact of the brand’s decisions and actions when there are no numbers available. Brands often cherry-pick data or ignore established frameworks like the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), or Task Force on Climate-related Financial Disclosures (TCFD).
3. Lack of Transparency
Credible sustainability reporting is based on transparency. However, a lot of firms do not give thorough details regarding their production methods, raw materials, or supplier networks. This strategy may not accurately represent the situation and may lead to readers becoming suspicious of the business because they believe it is concealing issues or is not being completely truthful.
4. Overlooking Social Sustainability
Many brands just consider environmental factors, ignoring important social factors like diversity, labor rights, and community well-being. A limited focus comes out as selective and could result in charges of disregarding the wider obligations of ESG (Environmental, Social, and Governance) initiatives. In addition to environmental data, sustainability reports should equally highlight diversity programs, safe working conditions, and fair compensation.
5. Failing to mention the methodologies used or who verified the results
Sustainability is not a solo journey—it requires collaboration across the value chain. Brands often fail to mention the methodologies they used or the responsible party for the analysis which clearly raise doubts about the accuracy of the data and negatively impact the brand’s reputation.
To make sure that the information in your sustainability report is unbiased and supported by sound methodology, external evaluation is essential. The credibility of the report can be raised by having an impartial third party verify the content and make sure no important details are missed. Furthermore, by demonstrating the brand’s sincere dedication to sustainability, this independent backup reduces any potential concerns or uncertainties.
6. Setting Unrealistic Goals without Clear Roadmaps
Goals that are not detailed, measurable, or time-bound may appear to be empty promises. Many brands set ambitious sustainability goals, such as achieving net-zero emissions or 100% recycled materials by a specific year. However, without particular information, these aims become hazy in the perspective of clients. Goals should be well-defined, measurable, and time-bound.
Sustainability reporting is not just a PR exercise—it’s a reflection of a brand’s values and commitment to the future. When done right, it can strengthen trust, build loyalty, and set a brand apart in the competitive fashion industry. Avoiding the mistakes mentioned above not only protects your brand’s reputation but also allows you to distinguish out in an increasingly competitive fashion market by establishing yourself as a positive change leader.
