H&M leads, Shein lags in Fashion Climate Rankings

The latest global fashion industry climate report highlights a widening gap between leaders and laggards, with H&M Group topping the rankings for the second year in a row while Shein and others face criticism for surging emissions and weak climate action.

Non-government group Stand.earth has released its latest ranking of fashion companies’ climate action, with Swedish brand H&M Group claiming the top spot for the second consecutive year. Meanwhile, rapidly growing Chinese fast fashion brand Shein ranked third from the bottom, alongside U.S. sportswear brand Under Armour and others.

H&M Tops Fashion Climate Ranking Again

According to the report, fashion production accounted for 4% of global carbon emissions in 2024, more than the entire aviation industry. Most emissions across the fashion supply chain come from fossil fuel use, particularly during fabric manufacturing, which alone makes up over half of the sector’s total emissions.

The study evaluated 42 major global fashion brands across four categories: fast fashion, mass market/retailers, sportswear and outdoor, and luxury. Brands were scored in five key areas: climate commitments and transparency, renewable energy transition, climate advocacy, use of low-carbon and deforestation-free materials, and green shipping.

H&M Group received a B+ overall, the highest grade awarded since the survey began. The report praised H&M Group for its strong performance in climate commitment and transparency, as well as its advocacy work. It also highlighted the group’s financial support and assistance for decarbonizing its supply chain in Bangladesh.

The report also mentioned Lululemon, a Canadian activewear brand, for its ambitious plan to source 50% of its supply chain electricity from renewable sources by 2030. The brand was noted for making significant progress toward that target.

Shein’s Emissions Surge; Under Armour Scores an ‘F’

At the bottom of the ranking, Stand.earth singled out Shein for a sharp 170% increase in its absolute emissions over the past two years, now equivalent to the annual emissions of Lebanon. A major factor is Shein’s logistics strategy, which relies heavily on air freight with individually packaged parcels, driving up its carbon footprint.

Shein received an overall F grade, along with Under Armour, U.S. outdoor brand Columbia, and British fashion retailer Boohoo. These companies were marked primarily for lacking climate or energy targets and failing to present decarbonization plans for their supply chains.

Brands such as Puma, Nike, and Adidas mostly scored in the C to C- range. Spain’s Inditex, parent company of Zara, earned a C; U.S.-based Gap Inc. received a D+; and Fast Retailing, the Japanese parent company of Uniqlo, was given a D, signaling relatively poor performance.

Todd Paglia, executive director of Stand.earth, noted a growing divide in the fashion industry’s decarbonization efforts. While a few companies are making progress, the majority are failing to support energy transitions in their supply chains, leaving countries like Bangladesh, India, Pakistan, Vietnam, and Cambodia, which are highly vulnerable to climate change, in increasingly precarious positions.

“The 2025 Fossil Free Fashion Scorecard makes it clear that the fashion industry is still failing to take the decisive action needed to align with global climate goals,” said Todd Paglia, executive director of Stand.earth. “While we see some brands making progress, most others are missing the moment or shirking their responsibility entirely, which is alarming. Moreover, many brands are failing to support their suppliers in transitioning to clean energy, meaning the financial burden of transitioning disproportionately impacts manufacturers. The industry has the resources to act but instead, we see companies making empty promises while continuing business as usual. Brands leading the way, like H&M Group, are proving that meaningful action is possible, but they must accelerate their efforts and push their competitors to follow suit.”

For more information, visit Stand.earth, H&M Group, or Shein.