- Executive Summary: The 2026 Carbon Progress Index
- Brand Analysis
- 1. Levi Strauss & Co. (-42% Reduction)
- 2. H&M Group (-41% Reduction)
- 3. Nike (-36% Reduction)
- 4. Lululemon (-29% Intensity Reduction)
- 5. Kering (-24% Reduction)
- 6. LVMH (-13% Reduction)
- 7. Inditex (Zara) (-11% Reduction)
- 8. Adidas (-10% Reduction)
- 9. Stella McCartney (-8% Reduction)
- 10. Patagonia (-2% Reduction)
- Analysis: The “Absolute Reduction” Mandate of 2026
As of early 2026, the global retail and fashion industry has reached a turning point. With the full implementation of the EU Ecodesign for Sustainable Products Regulation (ESPR) and California’s Climate Corporate Data Accountability Act (SB 253), the industry is now being judged on absolute carbon performance rather than marketing promises. This report ranks the top 10 retailers strictly by their Carbon Progress (2025/26), featuring only those brands that have achieved documented reductions in their absolute carbon footprint.
Executive Summary: The 2026 Carbon Progress Index
The following table ranks the top 10 retailers from the most significant absolute carbon reduction to the least. Brands with emissions increases (such as Amazon and Shein) have been excluded from this “Leaders” list.
| Rank | Brand / Company | Carbon Progress (2025/26) | Sustainability Status | Greenwashing Risk | Key Driver of Progress |
| 1 | Levi Strauss & Co. | -42% (Absolute) | Circular Leader | Minimal | Supply chain renewable energy & Water<Less® |
| 2 | H&M Group | -41% (Scope 1, 2 & 3) | Volume Challenger | Medium High | Massive investment in recycling hubs & coal phase out |
| 3 | Nike | -36% (Scope 3) | Scaled Progress | Low Medium | Circular design & 70% recycled content in footwear |
| 4 | Lululemon | -29% (Intensity) | Growth Balancer | Medium | 77% recycled polyester & supplier renewables |
| 5 | Kering | -24% (Absolute) | Transparency Leader | Low | EP&L account driven supply chain optimization |
| 6 | LVMH | -13% (LIFE 360) | Luxury Standard | Low | LIFE 360 energy efficiency & regenerative ag |
| 7 | Inditex (Zara) | -11% (Absolute) | Efficiency Giant | Medium | Shift to 100% sustainable fibers & green logistics |
| 8 | Adidas | -10% (Absolute) | Material Pioneer | Medium | 100% recycled polyester transition |
| 9 | Stella McCartney | -8% (Absolute) | Innovation Leader | Very Low | Scaling bio materials (Mylo™) & lab grown silk |
| 10 | Patagonia | -2% (FY25) | Circular Leader | Minimal | Focused on longevity; small but high quality reductions |
Brand Analysis
1. Levi Strauss & Co. (-42% Reduction)
Levi Strauss & Co. has emerged as the 2026 leader in carbon progress, delivering a 42% absolute reduction in supply chain emissions driven by a large scale rollout of its “Renewable Energy in the Supply Chain” program and the expansion of its Water<Less® technology, which cuts the energy required to finish denim. This shows that a heritage brand can fundamentally reinvent its core manufacturing processes to meet the most demanding modern climate standards.
2. H&M Group (-41% Reduction)
H&M Group remains a top performer, reporting a 41% reduction in total GHG emissions from its 2019 baseline, supported by a push into textile to textile recycling and a total ban on coal in its Tier 1 and Tier 2 suppliers. Despite its high volume business model, these infrastructure investments are delivering some of the largest absolute carbon reductions in the fast fashion sector.
3. Nike (-36% Reduction)
Nike has achieved a 36% reduction in absolute Scope 3 emissions, with its “Move to Zero” program integrating recycled content into 70% of its footwear and successfully decoupling its carbon footprint from sales growth. Its ability to scale recycled materials while maintaining elite performance standards is becoming a benchmark for the entire athletic industry.
4. Lululemon (-29% Intensity Reduction)
Lululemon reported a 29% reduction in emissions relative to profit, even as rapid expansion pushes up its absolute footprint. The brand has transitioned 77% of its polyester to recycled sources and rolled out renewable energy across its primary supplier base, earning its position as the “growth balancer” that is actively mitigating the environmental impact of global scale.
5. Kering (-24% Reduction)
Kering (owner of Gucci and Saint Laurent) has delivered a 24% absolute reduction, guided by its Environmental Profit & Loss (EP&L) tool, which pinpoints high carbon processes such as leather tanning and silk production for replacement with lower impact alternatives. As a result, Kering continues to be viewed as the gold standard for transparency in luxury, cutting its footprint even as it enters new markets.
6. LVMH (-13% Reduction)
Under its LIFE 360 program, LVMH has reduced its carbon footprint by 13%, moving toward a 2026 target of 100% material traceability and already achieving a full transition to renewable energy across its global boutiques. The group’s progress is steady and highly verified, prioritizing high quality reductions in the most visible and energy intensive parts of its business.
7. Inditex (Zara) (-11% Reduction)
Inditex, the parent company of Zara, posted an 11% absolute reduction in 2025, supported by strong advances in material science. However, its progress remains constrained by the carbon heavy air freight that underpins its fast fashion delivery model, making logistics the main obstacle on its path to absolute carbon neutrality.
8. Adidas (-10% Reduction)
Adidas has achieved a 10% absolute reduction, largely through its move to 100% recycled polyester across key product lines. While this is a solid step, the brand has been slightly slower than Nike in tackling the energy intensive manufacturing processes embedded in its Tier 3 suppliers.
9. Stella McCartney (-8% Reduction)
Stella McCartney has recorded an 8% reduction, a notable achievement given that the brand already started from a relatively low impact baseline by avoiding leather and fur. Its 2026 progress is powered by the commercialization of next gen materials like Mylo™ mushroom leather and lab grown silk alternatives, pushing the frontier of sustainable luxury.
10. Patagonia (-2% Reduction)
Patagonia reported a modest 2% reduction in FY2025, reflecting its choice to prioritize product longevity and repair through programs like Worn Wear rather than rapid, technology led carbon cuts. It ranks tenth only because it is already operating at high efficiency; its minimal greenwashing risk and status as a Benefit Corporation remain the industry’s aspirational endpoint.
Analysis: The “Absolute Reduction” Mandate of 2026
The 2026 Sustainability Scorecard reveals three critical industry shifts:
1. The Death of Offsetting: Brands are no longer being credited for “carbon neutral” claims based on tree planting. Only absolute reductions in the supply chain (Scope 3) are moving brands up the ranking.
2. The Recycling Revolution: The leaders (Levi’s, H&M, Nike) are those who have successfully integrated recycled materials into their core, high volume product lines.
3. The Transparency Tax: Under California SB 253, brands that cannot provide audited Scope 3 data are facing significant legal and reputational risks, forcing a new level of honesty in the industry.
