The United Nations Sustainable Development Goals and fast fashion companies’ practices: An exploration of company disclosures and media reports

Abstract

Background: The global fast fashion industry is known to be a prominent contributor to sustainability challenges which the United Nations seeks to address through the Sustainable Development Goals (SDGs). Sustainability disclosures remain largely voluntary and applicable to listed companies. A balanced assessment of the alignment to SDGs therefore necessitates the inclusion of independently reported sustainability information.
Aim: This study explores which SDGs are disclosed in fast fashion companies’ corporate reports and determines the extent to which independently reported information corroborates or contradicts SDGs.
Setting: The study employed a content analysis of corporate and other reports from eight of the largest global fast fashion companies.
Method: Scores were calculated for each company, for each of the 17 SDGs over the 3-year period of 2020–2022.
Results: Although SDGs are frequently mentioned in the corporate reports, detailed disclosures relating to specific targets and specific initiatives are lacking. We find a misalignment between the SDG focus in corporate reports and in media reports. Media reports tend to provide a more balanced perspective, addressing both positive and negative impacts of the industry’s practices on the SDGs. Coverage of specific sustainability transgressions by these reports makes them a relevant source of information that is not discussed in corporate reports.
Conclusion: Overall, the authors found a misalignment between SDG focus in corporate reports and the SDGs which attract media attention.
Contribution: The authors relate the SDGs to the fast fashion industry, which is notable because of the established significance of the industry in the attainment of these goals. Furthermore, our focus beyond self-reported disclosures contributes to the research on the relevance of corporate sustainability disclosures.