How Far Have Swedish Brands Come with Their Climate Targets?
Sweden is often considered to be a sustainability pioneer in many various fields. However, if we take a closer look at the fashion industry and its climate ambitions, what's the reality? We have taken a closer look at the Swedish Textile Initiative for Climate Action (STICA) report. The report provides a detailed data overview of company-level information on their Scope 1, 2, and 3 emissions, targets, and progress for the fiscal year 2023 (or 2022/2023 for some companies). Here's a summary of the key elements and certain brands status:
Image: STICA
Progress in Emissions Reduction
Among STICA’s 55 signatory members:
38 companies have successfully reduced their emissions.
12 companies reported an increase in emissions.
5 companies saw no change in their emissions.
While these numbers indicate that the majority of companies are moving in the right direction, the progress is uneven and, for some, too slow to align with global climate goals.
Image: STICA
Scope 1 & 2 Challenges and Progress
Targets vary widely, most aim for absolute or percentage reductions aligned with specific base years, aiming for net-zero by 2030 or earlier.
Progress:
Companies like Acne Studios, Active Brands, and Bubbleroom are ahead or on track to meet their targets.
Companies such as BRAV, Didriksons, and TOTEME are falling behind.
Data Verification: Only a few have had their data verified by third parties (e.g., Acne Studios, Db).Scope 3 Challenges and Progress
Image: STICA
Scope 3 Challenges and Progress
Scope 3 emissions, which account for 98% of all emissions in the value chain, remain the largest obstacle for Swedish brands. These emissions include everything from raw material sourcing to transportation and product end-of-life. Key insights from the report reveal:
Reduction percentages range from 30% to 100%, often tied to specific categories (e.g., product-based, per-unit CO2 reductions).
58% of companies report being on track to meet their Scope 3 targets. Companies like Cellbes, Ellos, and Bubbleroom are performing well, achieving or exceeding their interim targets.
However, only 43% have a Climate Transition Plan to support their claims.
Approximately 33% of companies have drafted and started implementing Climate Transition Plans for Scope 3, while 15% have not begun at all.
Firms like TOTEME, Gina Tricot, and Fenix Outdoor lag significantly behind, with some showing increases in emissions.
The lack of verified supplier data poses a significant barrier. Although 62% of companies collect data directly from their suppliers, much of it is unverified, making it difficult to pinpoint effective emission-reduction strategies.
Few companies have third-party verification (e.g., Db, Elodie Details).
Strengths and Weaknesses in Reporting
The report underscores the strengths and weaknesses in data collection and reporting. Transparency, traceability, and data quality need urgent improvement to support reliable progress tracking. Companies require robust systems for verifying supplier data and identifying cost-effective emission-reduction measures within the supply chain.
Key Barriers to Faster Progress
Despite commendable efforts, several challenges slow progress for Swedish brands:
Short-Term Financial Pressures
Many companies report that shareholder and owner demands for immediate financial growth hinder investments in long-term climate actions.Inadequate Financial Incentives
The lack of sufficient rewards for reducing emissions and transforming business models makes sustainable transitions harder to justify financially.Policy and Legislation Gaps
Smarter legislation is needed to:Impose meaningful financial penalties for companies failing to reduce emissions.
Provide incentives for emissions reductions and innovative, sustainable practices.
Image: STICA
The brands
Leaders: Companies such as Acne Studios, Active Brands, and Nudie Jeans have met or exceeded interim targets and have verified data, which enhances credibility.
Challenges: Firms like BRAV, TOTEME, and Båstadgruppen face significant challenges due to sharp increases in emissions or lagging reductions.
Data Transparency: Many companies do not have third-party verification for Scope 1, 2, or 3 data, which raises concerns about accuracy and accountability.
Sectoral Trends: Despite some challenges, most companies are making progress toward reducing emissions, with varying degrees of ambition and success.
Here's an analysis of how H&M, Gina Tricot, Ellos, Casall, and House of Dagmar are performing regarding their Scope 1, 2, and 3 emissions targets based on the provided data:
H&M Group
Scope 1 & 2:
2023 Emissions: 54,805 tonnes CO₂e
Change Since Base Year: -16,952 tonnes CO₂e (-24%)
Target: 56% absolute reduction by 2030 (2019 base year)
Progress: On target
Required Annual Reduction from 2024: -4.6%
Verification: 3rd party verified, limited assurance
Scope 3:
2023 Emissions: 8,509,008 tonnes CO₂e
Change Since Base Year: -1,855,912 tonnes CO₂e (-18%)
Target: 56% absolute reduction by 2030 (2019 base year, category 1)
Progress: On target
Required Annual Reduction from 2024: -6.0%
Verification: 3rd party verified, limited assurance
Summary:
H&M is on track for both Scope 1 & 2 and Scope 3 targets. Its emissions reductions are progressing steadily, supported by verified data.
Gina Tricot
Scope 1 & 2:
2023 Emissions: 856 tonnes CO₂e
Change Since Base Year: +143 tonnes CO₂e (+20%)
Target: 50% absolute reduction by 2030 (2021 base year)
Progress: Behind target
Required Annual Reduction from 2024: -10.0%
Verification: Not verified
Scope 3:
2023 Emissions: 41,178 tonnes CO₂e
Change Since Base Year: +7,416 tonnes CO₂e (+22%)
Target: 50% absolute reduction by 2030 (2021 base year, category 1)
Progress: Behind target
Required Annual Reduction from 2024: -11.4%
Verification: Not verified
Summary:
Gina Tricot is struggling significantly with both Scope 1 & 2 and Scope 3 emissions, showing increases instead of reductions.
Ellos
Scope 1 & 2:
2023 Emissions: 332 tonnes CO₂e
Change Since Base Year: +33 tonnes CO₂e (+11%)
Target: 50% absolute reduction by 2025 (2020 base year)
Progress: Behind target
Required Annual Reduction from 2024: -30.5%
Verification: Not verified
Scope 3:
2023 Emissions: 90,630 tonnes CO₂e
Change Since Base Year: -29,605 tonnes CO₂e (-25%)
Target: 50% absolute reduction by 2030 (2020 base year, category 1)
Progress: Ahead of target
Required Annual Reduction from 2024: -3.6%
Verification: Not verified
Summary:
Ellos is struggling with its Scope 1 & 2 targets but is ahead of schedule on Scope 3 reductions.
Casall
Scope 1 & 2:
2023 Emissions: 35 tonnes CO₂e
Change Since Base Year: -121 tonnes CO₂e (-77%)
Target: 75% absolute reduction by 2025 (2018 base year)
Progress: Target achieved
Required Annual Reduction from 2024: -
Verification: Not verified
Scope 3:
2023 Emissions: 1,194 tonnes CO₂e
Change Since Base Year: -738 tonnes CO₂e (-38%)
Target: 50% absolute reduction by 2030 (2019 base year, category 1)
Progress: Ahead of target
Required Annual Reduction from 2024: -1.7%
Verification: Not verified
Summary:
Casall has achieved its Scope 1 & 2 target early and is ahead of schedule on Scope 3 emissions.
House of Dagmar
Scope 1 & 2:
2023 Emissions: 1 tonne CO₂e
Change Since Base Year: +42%
Target: 50% absolute reduction by 2030 (2018 base year)
Progress: Behind target
Required Annual Reduction from 2024: -13.1%
Verification: 3rd party verified, reasonable assurance
Scope 3:
2023 Emissions: 746 tonnes CO₂e
Change Since Base Year: -2,227 tonnes CO₂e (-75%)
Target: 50% absolute reduction by 2030 (2018 base year, category 1)
Progress: Ahead of target
Required Annual Reduction from 2024: -1.0%
Verification: 3rd party verified, reasonable assurance
Swedish brands have to some extent demonstrated leadership in the global push for climate action, with many making meaningful strides toward their climate targets. However, the progress of a significant number of companies remains too slow. Tackling Scope 3 emissions, improving data quality, and overcoming financial and legislative barriers are essential to accelerating the shift to a low-carbon future. You can make a difference by highlighting your role as a consumer and asking about the brands you’re about to purchase from climate targets and results. You also play the role of a voter, citizen and professional. We need smarter legislation, improved stakeholder collaboration, and a broader definition of success. We believe Swedish brands can sustainably lead the way—but more needs to be done, from them, the government and the people.