With news that the Senate has passed the latest climate change package of its kind, the country’s efforts to combat the climate crisis—and fashion and beauty’s efforts—are coming closer.
“Inflation control law [a whopping $369 billion in funding] It’s the most important environmental legislation in the last 30 years,” Sarah Edwards, North American director for Eunomia Research and Consulting, told WWD. “In addition to being estimated to reduce U.S. greenhouse gas emissions by about 40% by 2030, the Act will help other nations and private investors to make climate a part of policy and investment discussions. It’s a signal to put it in the forefront, which will have even greater consequences: global impact.”
Eunomia advises public sector clients, companies (most recently DHL) and cities on waste reduction, greenhouse gas emissions and future policy.
The law fully supports all industry efforts to reduce scope 1, 2 (direct) and 3 (indirect) emissions throughout the supply chain. Investments include everything from electric vehicles to resilience strategies for farmers facing extreme weather events, as seen in the recent Appalachian floods, West Coast wildfires and ongoing heatwaves. It is included.
One of the most important things to watch in the fashion industry is the new 15% tax on large companies (revenues over $1 billion).
Edwards said: ”
Lindsey Casella, vice president of marketing for Recycle Track Systems, similarly emphasized the importance of moving to a low-carbon supply chain.
“The latest US climate change package passed by the Senate recognizes gaps in the supply chain of solutions and positions our country as one of the countries with the highest carbon pollution in the world. It examines the role of a government that has turned into a country that has been a villain based on: a great actor who plans to become a world leader in the fight against fossil fuel destruction,” she said.
Casera said the Senate precedent that passed this historic package was “greatly needed” to cut costs by increasing investment in energy, infrastructure and agriculture, ultimately helping businesses will give incentives to revive raw material production and manufacturing. Almost $400 billion in tax credits over 10 years, better switching to electric vehicles, renewable energy sources, domestic production, etc., cooling corporate tax heat.
In some industries it’s easier than others.
These incentives may look more promising in climate change bills, but they definitely cause ripple effects. In particular, it affects millions of people employed in the clothing sector. Unlike fashion (which produces about 97% of its products overseas, according to AAFA), the beauty industry now has a high percentage of US-produced products due to shipping issues and costs. Be careful. Supply chain changes and job losses may be less of a beauty.
The climate bill’s oil and gas provisions have been described as a concession by die-hard environmentalists, but the action to allow new oil drilling leases in the Gulf of Mexico and Alaska’s Cook Gulf meant that the law would be closed. We offer a more urgent response to the climate crisis than the United States. still seen
Consumers are likely to demand more action from big companies and governments, Casella said, which could lead to further questioning.
“Does the expansion of the IRS reflect the Big Four turning auditors into sustainability advisors? , could play a role in tracking pollution and carbon emissions?” she asked.
If voluntary ESG reporting efforts continue to be inadequate, legal requirements may follow.
