19 Feb 2026
Climate inaction could lead to 34% drop in profits by 2030
On the 10 February 2026 Apparel Impact Institute published new research, The Cost of Inaction, a landmark analysis illustrates how climate risks are increasing costs for companies in the fashion industry.
The report covers:
- Calculation of estimated income losses finding that even modest climate shocks resulting in a 3% drop in global cotton production, could raise COGS (cost of goods sold) by 1% and erode earnings before interest and taxes (EBIT) margins by up to 0.5 percentage points by 2030.
- Drivers of margin risk such as carbon pricing mechanisms, raw materials disruptions, energy risks and regulatory compliance costs.
- Scenarios to help CFOs and finance teams assess how different decarbonization, energy, and policy pathways impact profitability and competitiveness.
read the full report:
The Cost of InactionRelated Content
Collaboration with
Global Association of Risk Professionals (GARP)
Global Fast Fashion: A Climate and Nature-related Risks Scenario Game
Climate change and nature loss are altering business landscapes across supply chains, infrastructure, consumer behaviour, and regulation. They require the attention of boards not because of external pressure alone, but because they shape long-term resilience, competitiveness and corporate value.
Collaboration with
Taskforce on Nature-related Financial Disclosures
Asking Better Questions on Nature – For board directors
This “Asking Better Questions on Nature” guide is designed to help non-executives and boards across business and finance surface critical insights about nature-related dependencies, impacts, risks and opportunities to inform their decision making.
