California’s new bill, extreme weather disrupts the fashion industry and more.
Large corporations doing business within the state of California will be required to calculate and report all of the greenhouse gas (GHG) emissions from their supply chains or risk being excluded from California’s market. The first-of-its-kind mandate in the nation could be the most significant climate related legislation in the US since the Inflation Reduction Act. While many companies disclose their Scope 1 and 2 emissions, under California’s legislation, businesses will also have to report their Scope 3 emissions.
As Danielle Fugere, president of the advocacy inverter group, As You Sow, said, “Full Scope 1-3 emissions reporting is the new norm, not the exception.” California’s pioneering move in the United States, serves as a trailblazing example for the nation. This initiative proposes benefits for various stakeholders. It allows policymakers to gather essential facts to craft and implement effective environmental policies, enables consumers to make informed choices, and enhances procurement decisions.
Extreme weather events could potentially have a negative impact on the global fashion industry. A study conducted by Cornell University in collaboration with Investment manager Schroders has identified Bangladesh, Pakistan, Vietnam, and Cambodia – key industry hubs – as being at risk of potentially billions of losses in earnings by 2030. Fashion brands that heavily rely on these countries for sourcing should consider implementing mitigation measures. The study recommends that businesses and regulators prioritize the protection of workers, and suggests that fashion brands explore options for assisting their suppliers in relocating facilities to nearby, less risky locations.
To mitigate the potential adverse impacts of extreme weather events, fashion brands can invest in adaptation measures, such as climate resilient infrastructure, cooling systems, and adaptive design elements like green roofs and improved ventilation. Furthermore, as the industry is responsible for approximately 10% of global annual carbon emissions, they must prioritize and scale up sustainable practices.
There is growing concern around the downsizing of the automotive workforce in light of the shift towards electric vehicles (EVs). EVs, characterized by their reduced components, require a smaller workforce for assembly when compared to traditional gas-powered vehicles. According to Ford’s CEO, manufacturing an EV requires approximately 40% fewer employees than producing a gas-powered automobile. Consequently, labor unions within the automotive industry are presently engaged in negotiations with the major automakers.
The transition to clean energy’s full effect on job disruptions remains to be determined. While some argue that as jobs are lost, new jobs are created, the remaining balance is unknown. Nevertheless, it underscores the need for a workforce equipped with new skill sets.