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The 7 biggest sustainability reporting mistakes that damage fashion brands’ reputation

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The end of the year is approaching, bringing with it a recap of everything accomplished over the past months. December is a time for wrapping up, and fashion brands begin preparing their annual reports. Sustainability stands out as the key focus in non-financial reports. Whether due to regulatory requirements or the need to convey transparency to end consumers, more and more brands are choosing to publicly share their sustainability status year after year.

At BCome, the platform that works with hundreds of industry professionals to help them better understand the impact of their products and build more responsible and efficient supply chains, we have analyzed the most common mistakes found in fashion companies’ sustainability reports. Discover the weak points that could be harming your brand’s reputation.

Publishing a sustainability report is a powerful tool for promoting transparency, building trust with your target audience, and standing out in the market. It also fosters continuous improvement and strengthens brand image. However, if these reports are poorly executed, they can have the opposite effect, undermining trust among both the public and investors.

Here, we break down the seven most common mistakes fashion brands should avoid to protect their reputation and maintain credibility:

1. Not including quantitative information

One of the most common mistakes is omitting quantitative data or failing to present clear figures that support the claims made in the report. While the goal is to make the document accessible to everyone, the lack of tangible metrics undermines the credibility of the content and makes it impossible to objectively measure achievements. Without numbers, it's harder for readers to assess the real impact of the actions and decisions the brand is making.

Solution: It’s important to include specific data, such as percentages, quantities, or comparisons with previous years. For example, instead of saying "we've reduced our emissions", it would be more effective to say "we've reduced our emissions by 25% over the past two years".

“We can be more transparent than ever when it comes to our products and their impact on the planet – during 2023 we have data on a majority of our products to tier 3. We want to give our customers the information they need to make an informed decision when making purchases, as well as helping us make progress on our sustainability goals”. Swedish Stockings, Sustainability Report 2023

2. Using language that is either too vague or too technical

A report that uses excessively vague language can make it difficult for the reader to truly understand the brand's efforts, which may lead to distrust. On the other hand, overly technical language can confuse those who are not familiar with specialized vocabulary, making the report hard to comprehend. Both approaches are counterproductive.

Solution: The language should be accessible and clear, avoiding vague or confusing terms that verge on greenwashing. If technical or specialized concepts are used, they should be explained simply within the report itself. The goal is to make the document understandable to all audiences, regardless of their prior knowledge of sustainability.

3. Not evaluating the KPIs defined in the previous report

If key performance indicators (KPIs) were defined in previous reports, it is crucial to track their progress. Failing to evaluate these KPIs in subsequent reports gives the impression that the goals are not important or that there is no ongoing effort to improve. Additionally, it misses the opportunity to demonstrate progress and the effectiveness of implemented strategies.

Solution: In each new report, dedicate a specific section to evaluate the KPIs set in the previous period. Explain which goals were achieved, which ones were not, and the reasons behind them.

4. Focusing only on achievements and hiding areas for improvement

Many fashion brands focus only on highlighting their successes and omit any mention of challenges or areas that still need improvement. This approach does not reflect the full reality and can create distrust among readers, who are likely to feel that the brand is hiding problems or not being fully honest.

Solution: Acknowledging areas for improvement, even if negative, shows a sincere and proactive attitude towards progress. It's important to be transparent about what still needs work and to show how the brand is taking steps to address these weaknesses.

“The Sustainability Report embodies a mindset. It is not just a notebook of achievements; it is the place where we admit the limits we have encountered, representing a goal that drives us to make more thoughtful choices and never lose our direction”. Rifò, Sustainability Report 2023

5. Not addressing sustainability in a holistic way

A common mistake is focusing exclusively on environmental aspects of sustainability, such as reducing emissions or water consumption, while neglecting other equally important factors, like the social aspects of the supply chain. This creates an incomplete view of the brand's sustainability efforts.

Solution: Sustainability reports should approach sustainability from a holistic perspective, considering not only environmental impact but also social risks within the supply chain. Providing a more comprehensive and detailed analysis shows that the brand is genuinely committed to all aspects of sustainability.

“It is a pleasure for BROWNIE to present our first sustainability report and share with you what we are doing to advance in this area, which is so relevant to our business, people, and the planet”. Juan Morera, CEO of BROWNIE, Sustainability Report 2023

6. Setting goals without quantifying them or specifying a timeline

When goals are not specific, measurable, or time-bound, they can seem like empty promises. Without concrete numbers and deadlines, it's difficult to measure the success or progress of these objectives, which may raise doubts about the brand's true accountability.

Solution: Goals should be clear, measurable, and have established timelines. For example, instead of saying "we will improve our energy efficiency", it should be communicated as "we will reduce energy consumption by 20% by 2030".

7. Not mentioning the methodologies used or who verified the results

If the methodologies used to calculate the data are not detailed and the responsible party for the analysis is not mentioned, there is a risk that the results may be perceived as having been calculated directly by the brand. This can raise doubts about the accuracy of the data and negatively impact the brand's reputation.

Solution: It is essential to include a section that explains the methodologies used to calculate the presented data and specify which external organization conducted the analysis, ensuring the results have independent verification.

“With regard to water consumption in production, the BCome software and the AWARE methodology are used to calculate the impact and water consumption”. ECOALF, Sustainability Report 2023

It is crucial to have external evaluation to ensure that the data presented in your sustainability report is objective and backed by a solid methodology. An independent third party can provide the necessary impartiality to validate the information and ensure that no relevant data is overlooked, increasing the report's credibility. Additionally, having this external support helps demonstrate the brand's genuine commitment to sustainability, avoiding potential doubts or questions.

BCome offers a free template to help you draft your annual sustainability report, making it easier to create a clear and structured document. Avoiding the mistakes mentioned not only protects your brand's reputation but also allows you to stand out in an increasingly competitive fashion market, positioning yourself as a leader committed to positive change. With the right approach, your report will not just reflect your efforts, but also serve as a powerful tool to strengthen your brand’s image and long-term success.

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