Schneider Electric has a new chief sustainability officer, just six months after her predecessor was appointed to the position.
Incoming CSO Esther Finidori previously served as a vice president for strategy at Schneider Electric, based in France. She replaces Hong Kong-based Chris Leong, who moved to the water treatment company Ecolab to become chief marketing and innovation officer.
Schneider Electric did not immediately reply to a request for comment on the timing of Leong’s departure.
Success in sight
Finidori inherits a sustainability operation that has made strong progress on key targets. Schneider Electric’s emissions goals, validated by the Science Based Targets initiative, require the company to reduce Scope 1 and 2 emissions by 76 percent by 2030, relative to a 2021 baseline. For Scope 3, which constitutes 99 percent of the baseline total, it’s shooting for a 25 percent reduction over the same time frame. According to the company’s data for 2024, Scope 1 and 2 emissions fell by 51 percent and Scope 3 by 19 percent.
Finidori joined Schneider in 2016 as a director of sustainable supply chain and carbon dioxide strategy, before progressing to become a vice president for environment in 2021. She was previously a manager at Carbon 4, a climate consultancy, and holds masters in technology policy and industrial engineering, respectively, from the University of Cambridge and the CentraleSupélec, near Paris.
[Sustainability work is hard. Ready for Trellis Network to help? Learn more about our peer network.]
https://sustainable-future.org/wp-content/uploads/2025/03/cropped-trellis_favicon_180x180.png3232sustainablefuturehttps://sustainable-future.org/wp-content/uploads/2024/06/Untitled-design-117-300x94.pngsustainablefuture2025-06-10 17:30:422025-06-11 18:08:41Schneider Electric promotes VP of strategy for suddenly vacated CSO role
Devin Giles, a seven-year veteran of the sustainability team at International Paper, has stepped in as head of sustainability and ESG at home furnishings retailer Wayfair.
Giles replaces Anna Vinogradova, who left her Wayfair position after four years for a role at another company, as yet undisclosed. Giles started in May and worked alongside her predecessor during a brief transition period.
The switch was revealed in LinkedIn posts by Vinogradova and Giles, and confirmed by a Wayfair spokesperson.
“This role brings together the work I love the most: driving sustainability through collaboration and innovation to make it part of how business gets done,” Giles said.
Wayfair, which had revenue of $11.9 billion in 2024, committed in 2021 to a 63 percent reduction in Scope 1 and 2 emissions by 2035 (based on a 2020 baseline). In Wayfair’s 2023 corporate responsibility update published in June 2024, the retailer reported a slight increase in that footprint. It does not have a publicly stated goal for cutting Scope 3 emissions from suppliers, which accounted for close to 99 percent of its footprint in 2023.
“This will require continued collaboration with our suppliers, logistics partners and stakeholders to deliver strategies that reduce emissions beyond our own operations,” Vinogradova said in a 2023 interview.
Other high-profile Wayfair sustainability initiatives include its target of zero waste by 2030 (the figure was 42 percent as of 2023) and the Shop Sustainably program, which the retailer uses to identify more than 33,000 certified sustainable products.
At International Paper, Giles recently managed the company’s renewables strategy — centered on using renewable or recycled sources for product development, and on developing circular manufacturing processes. She joined the company as a graduate intern in May 2017.
[Join more than 5,000 professionals atTrellis Impact 25 — the center of gravity for doers and leaders focused on action and results, Oct. 28-30, San Jose.]
https://sustainable-future.org/wp-content/uploads/2025/03/cropped-trellis_favicon_180x180.png3232sustainablefuturehttps://sustainable-future.org/wp-content/uploads/2024/06/Untitled-design-117-300x94.pngsustainablefuture2025-06-10 17:05:322025-06-11 18:08:42Wayfair taps International Paper circularity strategist to lead ESG
Alice Hartley is joining Nike as its new director of waste and circularity, after a dozen years of similar leadership roles at Gap Inc. and Under Armour. The hire reflects a strategic focus by the sneaker colossus to embed circularity across the organization. Hartley will serve with a relatively new CEO and chief sustainability officer as Nike moves forward from drastic cuts to its sustainability staff by previous leadership in December 2023.
“This clears a space for Hartley to review the situation afresh and build on the extensive work that preceded her arrival,” said Andy Sloop, who last year left Nike after eight years as global director of zero waste and circularity.
When Hartley departed as circularity director at Under Armour in 2024, peers called her “one of the true class acts of the industry” and “a real thought leader and an inspiring champion.”
In between corporate roles, Hartley continued serving as a board member of the nonprofit Accelerating Circularity. She has also used social media to laud policies, including California’s Responsible Textile Recovery Act, which requires apparel companies to manage products after consumers are done using them.
Upcoming challenges
Last year, Hartley shared with Trellis her view of circular economy leadership: “Because of the complexity inherent in circularity work, it helps to create shared, high-level roadmaps so that the overall strategy and pace of goal progress is understood across teams,” she said. “This also helps create continuity as new people join or roles change over time.”
But staff turmoil is far from the only challenge Hartley faces. The Beaverton, Oregon, giant is a study in contrasts when it comes to scaling circular economy work.
To begin with, the Science Based Targets initiative (SBTi) has validated the company’s 2030 net zero goals, but not its long-term ones. Similarly, Nike shares its circular design guide, but has not integrated circular innovations into its main product lines. The Nike Refurbished takeback and resale program appears to be a successful circular segment, but it’s not central to corporate revenue strategy. Nike also features recycled content in mainstream products while revealing little about traceability of materials or rates of recycling.
And although Nike is known for savvy innovations — glue-free recyclable ISPA Link trainers, Space Hippie running shoes of made from scrap material and recycled-polyester Flyknit sneakers — it has failed to phase out virgin synthetic materials. The Stand.earth Fossil Free Fashion Scorecard recently awarded Nike an overall C grade, and a C-minus for materials and circularity. To its credit, however, the brand, which holds nearly one-quarter of market share in athletic wear and shoes, stood with or above its peers, including Puma (C), Adidas (C-minus), New Balance (D) and On Running (D).
In her 2024 interview with Trellis, Hartley noted that that circularity agendas inevitably involve multiple departments, requiring the need to set goals and check accountability across functions. Sloop notes that this is a steep hill to climb at Nike, which is “large, complex, matrixed, constantly changing and has very distributed and unclear decision rights.”
Fortunately, Hartley comes to her new post with more than a decade of experience in complex organizations.
Previous accomplishments
As the first circularity expert at Under Armour, Hartley oversaw the creation of a tool to help the company and other businesses assess and prevent microfibers from shedding from their garments. She also spearheaded the establishment of circular design principles for half of Under Armour’s products, leading training for 200 workers. And she collaborated on efforts to adopt alternatives to spandex.
No reason was given for Hartley’s departure one year ago, which came amid broader leadership reshuffling. The company didn’t name a direct successor.
Before her busy year at Under Armour, Hartley spent 11 years at Gap Inc.. She joined the San Francisco retailer in 2012 as a senior analyst in strategic sourcing, just after earning an MBA at MIT, and quickly worked her way up the ladder, spending her last three years there as director of product sustainability and circularity.
While at the clothier, Harley established numerous foundational sustainability efforts, including launching its product sustainability team and partnering to create the Gap for Good strategy for sustainability products. She also forged a product resale trial and an experimental textile-to-textile recycling pilot. Under Hartley’s lead, Gap became the first brand to join the U.S. Cotton Trust Protocol and a founding brand member of the Ellen MacArthur Foundation’s Jeans Redesign project.
“What I love about fashion is that it’s so relatable,” Hartley told the podcast “Fashion is Your Business” in 2021. “No matter who you are, whether you consider yourself fashionable or not, we all play a role. And I think if we can harness that fact that it’s such a common ground then it can be a real force for change.”
[Join more than 5,000 professionals atTrellis Impact 25 — the center of gravity for doers and leaders focused on action and results, Oct. 28-30, San Jose.]
https://sustainable-future.org/wp-content/uploads/2025/03/cropped-trellis_favicon_180x180.png3232sustainablefuturehttps://sustainable-future.org/wp-content/uploads/2024/06/Untitled-design-117-300x94.pngsustainablefuture2025-06-09 20:23:002025-06-11 18:08:42What Alice Hartley is up against as Nike’s new circularity director
A new AI-powered study of more than 8,500 listed companies has revealed a “profound” lack of disclosure and governance around climate-related lobbying. One result of the secrecy, argue the report’s authors, is that companies often lobby in a way that undermines their own climate strategies.
The report, produced by climate-tech non-profit Danu Insight, used natural-language processing and AI to examine around 250,000 annual reports, disclosure statements, web pages and other documents. The report identified and rated evidence that each company disclosed specifics of its climate lobbying activity and implemented oversight of it.
Silent majority
A large majority were found to be completely silent: 78 percent provided no public disclosure about their climate lobbying, and 75 percent showed no evidence of a relevant governance process.
At the other end of the spectrum, just 6 percent achieved the top score — four points — on transparency, including disclosure of policies lobbied for or against, lobbying mechanisms used and outcomes sought. On governance, less than 1 percent earned four points on such issues as mechanisms for aligning lobbying with broader goals.
Performance on the ratings varied significantly across industries.
Source: Danu Insight
“Companies operating in sectors generally understood to be highly exposed to climate-related policy and transition risks tend to demonstrate higher levels of disclosure,” the report noted. “This suggests that companies facing more climate pressure (e.g., from regulators, transition challenges, or stakeholder scrutiny) are more likely to disclose their lobbying activities and implement governance structures.”
The uncovered level of secrecy is possible in the U.S. because lobbying disclosure laws focus on the amount of money spent rather than on what it is used for, said Thomas O’Neill, founder of Danu Insight. The European Sustainability Reporting Standards, which are followed by companies that report under the region’s Corporate Sustainability Reporting Directive, require disclosure of lobbying that is material to sustainability efforts. Those rules, though, are in the process of being implemented, and the results are not reflected in the report’s data.
Lobbying the lobbyists
One target audience for the report is investors, who can use its information to assess and compare companies’ climate strategies, said O’Neill.
The report also serves as a useful guide — and cautionary note — for sustainability professionals interested in shaping their company’s lobbying. Government relations units are often siloed, limiting the influence of sustainability teams and allies. One common result is that companies can be relatively passive members of trade groups, such as the U.S. Chamber of Commerce and the Business Roundtable, which have lobbied against climate legislation that is critical to the success of company sustainability goals.
“The government relations people have their agenda, and it’s usually to hold back regulations, to protect the company,” said O’Neill.
Like other advocates for climate lobbying reform, O’Neill argued that companies should work to change the trade groups they are members of rather than leave them. “There are lots of things they could be doing, conversations that could be had,” he said. One template for action is the attempts of Microsoft and others to influence Chamber of Commerce lobbying on climate legislation enacted under President Biden.
https://sustainable-future.org/wp-content/uploads/2025/03/cropped-trellis_favicon_180x180.png3232sustainablefuturehttps://sustainable-future.org/wp-content/uploads/2024/06/Untitled-design-117-300x94.pngsustainablefuture2025-06-09 10:00:002025-06-09 18:08:36‘Profound’ secrecy in corporate climate lobbying exposed in AI-powered study
The opinions expressed here by Trellis expert contributors are their own, not those of Trellis.
Earlier this year, seven people who bought Apple’s carbon-neutral watches sued the company over the price premium they paid for these products. The lawsuit, which accuses Apple of making false and misleading claims about the watch’s green credentials, has serious issues of its own — including a misunderstanding of how carbon markets work, a disregard for established climate protocols and the implication that all offsetting is inherently ineffective.
The lawsuit also underscores a misconception about the best ways to communicate about corporate climate action. Such lawsuits could discourage companies from making their environmental efforts public, effectively punishing those taking steps forward, while letting those doing nothing off the hook.
What’s been lost amid the ongoing lawsuit is the fact that Apple designed and manufactured a carbon-neutral watch. I worry this case — and others like it — will scare companies into greenhushing their products, or not even attempting to make carbon-neutral products at all. The Environmental Defense Fund raised a similar concern in a legal brief backing Apple’s climate strategy, arguing that credible, transparent action should be supported, not punished, or we risk discouraging companies from staying ambitious in their sustainability efforts.
This need not be the case. Companies should follow Apple’s lead and speak boldly about their sustainability strategies, even amid the current political backlash against corporate climate action.
A brief history of carbon-neutral claims
Apple isn’t the first manufacturer to experience backlash linked to its carbon-neutral claims. After Germany’s Federal Court of Justice ruled Katjes, a sweets manufacturer, had misled consumers with its carbon-neutral claims, the country banned carbon neutral labels on products unless accompanied by a detailed explanation.
In 2023, Delta Air Lines faced a class-action lawsuit alleging that its marketing of the airline as “carbon neutral” was misleading. Similarly, in 2022 Danone faced legal action over green claims on its Evian water bottles. Although a series of class action claims against Danone were originally allowed to proceed, the court reversed its decision in December.
Taking companies such as Apple, Delta and Danone to court will disincentivize further action. They will likely review their “carbon-neutral” experiments, conclude they didn’t play well publicly and possibly decide against future climate action. This is already happening: Nestlé dropped its carbon-neutral pledges for KitKat and Nespresso, opting instead to focus on direct emissions cuts. In Germany, supermarket chain Rewe and drugstore chain Rossmann removed “climate neutral” labels from their products following regulatory pressure. EnergyAustralia also pulled its “Go Neutral” offset program after a greenwashing lawsuit, pivoting towards deeper internal decarbonization. These retreats send the wrong signal at a time when ambition and transparency are most needed.
Beyond legal action
We’re emerging from an initial period of experimentation in which many businesses claimed their products to be “carbon neutral” for the first time. And while it’s valuable for media organizations and other watchdogs, activists and even competitors to question the integrity of these claims, in doing so, some have made the term synonymous with greenwashing. Nuance has been lost and misunderstanding has spread.
For example, consumers might not know that, for most sectors, reducing emissions is voluntary. Companies choose to do so because it’s part of their climate strategy or they believe it’s what consumers want.
We should now be familiar enough with the term “carbon neutral” to know it means a company has cut some emissions and wants to compensate for those it cannot yet prevent. But some critics and commentators seem to think that when a company claims it’s carbon neutral, it’s implying it’s environmentally impactless.
Rather than focusing legal firepower on the relatively few companies making environmental steps, critics might achieve more impact by turning their attention to the 81 percent that haven’t even set climate targets.
Of course, it makes a better story to shout “hypocrite” than “laggard,” but doing so isn’t productive. We need consumers and media calling on companies to take climate action rather than punishing those that do.
I’m not saying all companies making efforts to reduce their emissions are perfect, nor that they do all in their power. But how much more inspiring would it be if, instead of going on the defensive, sustainability leaders honestly shared lessons learned?
Corporations, don’t give up
I recognize it’s hard for companies to know what to claim. But to overcome this challenge, the Voluntary Carbon Market Initiative, an independent non-profit launched with support from the U.K. government and leading climate philanthropies, has produced a claims code of practice to help companies accurately convey emissions reduction and compensation.
It’s also critical that we’re accurate with terminology. Some sustainability experts and climate communications specialists question whether “carbon neutral” is the most useful term. We need a phrase that shows a company’s progress toward cutting emissions such as “carbon responsible” or “climate positive.”
Next, charging a premium for a more environmentally positive product is a mistake. Companies should make it easier, not harder, for consumers to make green choices, particularly as politicians increasingly disregard sustainability. If more people could buy greener products at reasonable prices, it would signal to companies there’s strong consumer demand, encouraging them to ramp up these initiatives and kickstarting a virtuous circle of greater investment and innovation.
While it’s tempting in the current political environment to greenhush, companies that share the tangible actions they’re taking, not just future goals, are more likely to shape environmental dialogue and demonstrate leadership. Transparency about real progress can inspire others and build trust.
Companies have a choice: Either retreat into a world of greenhushing and environmental negligence or boldly advance the sustainability agenda through action and transparency. Companies that act decisively and communicate openly might face backlash now, but will ultimately be on the right side of history.
https://sustainable-future.org/wp-content/uploads/2025/03/cropped-trellis_favicon_180x180.png3232sustainablefuturehttps://sustainable-future.org/wp-content/uploads/2024/06/Untitled-design-117-300x94.pngsustainablefuture2025-06-09 10:00:002025-06-09 18:08:37What we can learn about corporate climate action from the Apple watch case
No fashion brand deserves an A for effort to wind down its dependency on fossil fuels for energy and materials, according to activist group Stand.earth.
H&M Group earned a class-leading grade of B+ in the watchdog’s third Fossil-Free Fashion Scorecard of 42 fashion brands, suggesting that even a fast fashion business can make sustainability strides.
That contrasts with seven overall F’s handed down, including one for ultra-fast brand Shein. That company’s Scope 3 indirect emissions are skyrocketing as it continues a heavy dependence on polyester.
The report graded each company in five categories: climate commitments and transparency; renewable energy transition; advocacy; materials and circularity; and clean shipping. (Stand’s methodology included cross-referencing public reports with a survey it sent to businesses. Reviews by independent experts informed its letter grades.)
H&M stood out for financially backing suppliers’ attempt to slash emissions. It also scored an A+ for climate commitments and transparency, as it was the only company with a renewable energy target for emissions from raw material processing, that is, Tier 3 in the supply chain.
Similarly, sportswear and outdoor brands did best with climate commitments and transparency, including seven of the dozen brands with renewable energy targets for their supply chains. Patagonia and Puma each scored a C+. Yves Saint Laurent parent Kering, also with a C+, had the best showing among luxury brands, which tend to be cagey about their supply chain details. Mass market brands such as Eileen Fisher fared better than those in other categories by a full letter grade. They also nabbed better marks for use of low-carbon materials and circularity efforts.
Fossil fuels are woven into every step of apparel manufacturing, which makes up 4 percent of total greenhouse gas emissions, outpacing even the aviation industry, according to Stand’s report. The group advances a vision in which fashion phases out petroleum and coal, supports a “just transition” to a low-carbon economy and better engages the communities within their supply chains.
Stand was founded as ForestEthics in 2000. The San Francisco-based group, which originally targeted companies’ paper sourcing policies, takes credit for influencing 140 apparel businesses to ramp up their demand for renewable energy in manufacturing.
In this year’s report, the nonprofit issued a warning: “Unless brands act now to fund and enable the manufacturers and workers in their supply chain to deliver rapid climate action, building a more equitable model for the industry, this combination could create the perfect storm that sets the industry’s sustainability journey back, while leaving brands open to serious investor and reputational risk.”
Hall of fame — and shame
Eileen Fisher of Irvington, New York, came in second place overall with a B-. The only two A+ grades in one of the five sub-categories that Stand identified were H&M for commitments and transparency and Mammut for clean shipping.
Three companies received a C+ overall, including Gucci parent Kering, Levi Strauss and Patagonia.
The top three companies on Stand.earth’s 2025 fashion scorecard.
At the bottom of the pack, Boohoo of Manchester, England, received Fs across the board. Barely beating it, Aritzia, Shein and Columbia each scored Fs in three categories, with a D- for materials and circularity.
“Dangerously out of step with climate action,” according to the report, Abercrombie & Fitch, Aritzia and Columbia Clothing have not even set targets for slashing Scope 3 emissions.
The bottom three companies on Stand.earth’s 2025 fashion scorecard.
Key progress areas
Here are highlights from each of the five categories that Stand analyzed:
“Climate and energy commitments and transparency” — Two-thirds of brands maintain net zero goals, but only five companies revealed near-term, concrete steps to reach that achievement.
“A fair renewable and energy-efficient manufacturing transition” — More than half of the companies are actively helping suppliers decarbonize. But only H&M offers financing beyond loans.
“Climate and renewable energy advocacy” — H&M scored an A, followed by Bs for Eileen Fisher and Nike. H&M, Kering and LVMH were the only brands satisfying U.N. criteria for the integrity of their net zero targets.
“Low-carbon and deforestation-free materials” — Average grades rose to D from F since 2023, and 95 percent of brands offer resale or repair. Nearly one-third of the brands are actively pursuing circular textiles, but only Puma has set a deadline (2030) for using a specific share (30 percent) of textile-to-textile recycled polyester. Only six companies are seriously pursuing a majority of materials without petroleum-based synthetics.
“Greener shipping” — Almost two-thirds work upstream shipping into their Scope 3 emissions targets. However, just nine brands explain the modes of transport they use, and only six pledged to reduce air shipping. Heavy emissions continue, with no end in sight, for Fast Retailing, Inditex, Prada, Puma and Shein.
In all its phases, material production spews out more than half of fashion’s greenhouse gas emissions, according to Stand.earth’s report.
Recommendations for fashion purveyors
Stand shared seven recommendations for apparel and footwear companies seeking to accelerate decarbonization:
1. Create “just climate transition” plans detailing near-term steps for 2030 and long-term steps for 2050 toward net zero goals.
2. Work with other brands to help smaller companies along the supply chain to ditch coal in favor of efficient and renewable energy technologies.
3. Enhance equity in dealings with suppliers. This includes helping to finance decarbonization efforts, including favorable loan rates and financing that suppliers don’t need to pay back. Stand also advises providing long-term agreements.
4. Focus more on climate adaptation efforts tailored to localities, helping workers “through the impacts of climate breakdown.”
5. In manufacturing centers, boost collaborative advocacy for policy and infrastructure that helps suppliers use more renewables.
6. Stick with a plan to get rid of synthetic materials. The report called out “the limitations of false solutions like recycled polyester.”
7. Use less polluting transportation by creating emissions targets and planning for slower, less-polluting shipping.
https://sustainable-future.org/wp-content/uploads/2025/03/cropped-trellis_favicon_180x180.png3232sustainablefuturehttps://sustainable-future.org/wp-content/uploads/2024/06/Untitled-design-117-300x94.pngsustainablefuture2025-06-06 19:19:012025-06-07 18:08:44Who got passing — and failing — grades on this fashion sustainability scorecard
If you’re a corporate affairs professional who’s been feeling the ESG backlash, you’re not alone.
New research from Trellis data partner GlobeScan and the University of Oxford found that in Europe and North America, corporate affairs professionals say pushback against ESG has become more pronounced, with approximately half of respondents reporting increased resistance against this agenda in the past 12 months. At the same time, corporate affairs professionals in other parts of the world are much less likely to report experiencing more resistance. This divergence underscores a critical point: although ESG is becoming more contested, growing resistance to it is far from universal.
What this means
Nowhere are the effects of rising political and economic pressures more visible than in the expansive domain of ESG. Often misrepresented as a vehicle for ideological agendas, ESG remains a vital lens through which companies interpret their operating environment and shape strategic behavior. For corporate affairs, ESG remains a central, yet increasingly complex arena. Regional disparities are widening, and political forces are reshaping both strategic priorities and narrative framing. In this shifting landscape, companies may need to adopt more nuanced, regionally attuned approaches to ESG in the years ahead.
Based on the Oxford-GlobeScan Global Corporate Affairs Survey of 245 corporate affairs practitioners conducted February-March 2025.
https://sustainable-future.org/wp-content/uploads/2025/03/cropped-trellis_favicon_180x180.png3232sustainablefuturehttps://sustainable-future.org/wp-content/uploads/2024/06/Untitled-design-117-300x94.pngsustainablefuture2025-06-06 10:00:002025-06-06 18:08:29Corporate affairs pros in Europe, North America report increased ESG resistance
Around 20 employees have been let go by Pachama, a carbon markets company that has won business from Salesforce, Boston Consulting Group and others by providing tools that can identify and monitor high-quality nature-based credits. Pachama’s cuts are the latest in a voluntary carbon market that has been roiled by wider economic uncertainty and anti-ESG sentiment.
Pachama was founded in 2018 by Diego Saez Gil, an entrepreneur with a background in the travel industry. The company debuted as carbon credit buyers were becoming increasingly concerned about the quality of forest credits. The remedy it offered: due diligence tools based on remote sensing and artificial intelligence. By late 2023, Pachama had raised $88 million from big-name funds, including Breakthrough Energy Ventures and Amazon’s Climate Pledge Fund, as well as celebrity investors such as Serena Williams and Ellen DeGeneres.
The company had recentlyexpanded into project development, but the departures, announced late last week, are part of what Saez Gil described as “a strategic shift back to Pachama’s original vision: building a technology platform powered by geospatial AI to help make confident investment decisions into nature-based climate solutions and sustainable land management.” Pachama’s headcount is around 35 after the layoffs, Saez Gill said.
That reduction in force is the latest in a series of setbacks for young carbon market companies. Heirloom, a direct air capture (DAC) project developer that has contracts with Microsoft and others, has laid off staff and cancelled a project since last November’s elections. Doubts about future federal funding for DAC are believed to be the cause. Last month, Climeworks, another DAC company, cited similar reasons for cutting just over 100 positions from a staff of around 480.
Roiled markets
Turbulence at the federal level hit these companies hard because the voluntary carbon market, a core part of all of their business models, is also going through an upheaval: Controversy over the integrity of some classes of carbon credits has spooked buyers. The total value of credits traded in 2024 was around $530 million, a quarter of the market size just three years earlier, according to data released last week by Ecosystem Marketplace, an information source for environmental markets.
Source: Ecosystem Marketplace
“The current uncertain and volatile financial, economic and geopolitical climate, added to the anti-ESG agenda in the U.S., is indeed having an effect on corporate sustainability budgets,” Saez Gil told Trellis. “The impact is especially acute in the voluntary carbon market, which was already in a moment of correction.”
There are signs, however, that the market is doing a better job of rewarding higher-quality credits — a move that many observers see as critical to its long-term success. The Ecosystem Marketplace report, for example, notes higher demand for credits that have won approval from the Integrity Council for the Voluntary Carbon Market, an increasingly influential standards-setter. A shift away from cheaper, lower-integrity credits toward more expensive but reliable options, including high-quality forest projects and DAC, is a positive sign for all three of the companies hit by the recent layoffs.
Tricia Carey, the former chief commercial officer for circular fabric innovator Renewcell, could have played it safe when she found herself out of a job in July 2024. With a professional network spanning companies such as Gap, H&M and Under Armor, she might have easily landed a new gig at a well-established fashion brand.
Instead, less than a year after Renewcell’s bankruptcy, she’s taking a risk with another early-stage startup, Avalo, which uses artificial intelligence to breed climate-resilient crops. She’ll be the evangelist: meeting with farmers, mills, spinners and brands to sell them on the approach.
“I’m a relationship builder,” she said on the latest episode of the Climate Pioneers interview series. “I love innovation, and I actually really like starting with things from scratch. You can build versus remodel, which you often have to do in a large global enterprise.”
The 6-year-old company has raised almost $15 million, including $11 million in March, to cultivate seed strains that use less water and fertilizer than conventional plants. Carey was hired to expand Avalo’s focus beyond sugarcane, rice and other commodities into cotton, fashion’s second most used fabric. It drinks 3 percent of the water used for agricultural purposes and is responsible for 10 percent of worldwide pesticide use.
“The industry is going through an incredible transition right now, and it’s never been a more exciting time to be a part of the textile and apparel industry,” she said. “We’ve got policy coming at us. We have now a lot happening within the tariff world. We’ve got the technology coming in. We have disruption from new entrants into the market, and so it really gives us a chance to rebuild and to do it the right way.”
Cotton was also at the center of Carey’s job at Renewcell, which sought to replace the use of virgin cotton with an alternative called Circulose made out of recycled cotton scraps. As chief commercial officer, Carey signed H&M and the parent companies for Tommy Hilfiger and Zara as clients. But longstanding supply chain practices and high production costs forced Renewcell into bankruptcy. Its intellectual property was acquired by a private equity firm and lives on in a renamed company, Circulose.
A fashionable career
Carey will try to connect Avalo with the network she built over 25 years with Lenzing, the company behind Tencel, a breakthrough wood-based textile designed to reduce the environmental impacts of fashion. There, she helped convince brands including Gap, Levi’s and Under Armour to source the fabric. Carey’s career began in the New York fashion district, inspired by her childhood wardrobe of handmade clothes.
“I learned how to sew because if I didn’t like [a garment], I was going to fix it,” she said. “That got me interested in textiles at an early age.”
Carey gravitated to startups later because they can be more nimble than companies struggling to transition in step with shifting consumer expectations. Although she sometimes misses Lenzing’s resources, she relishes the chance to share her mistakes and shortcuts with less-established companies.
Avalo’s appeal to cotton farmers centers on answering this question: How can they grow the most profitable crop as soil health deteriorates and water supplies become less predictable? Its AI algorithms scour seed databases to study seed traits and predict how to breed the best cotton seeds for the climate conditions of specific growing regions. “We can work on multiple traits at a time, which is not how traditional breeding is done,” Carey said. Often, changing these characteristics takes twice as long.
The company is seeking large cotton buyers to support its current strain being planted on about 2,000 acres by 15 farmers in an arid region of West Texas. If all goes as expected, the plants will use 95 percent less water than do currently available seeds.
‘Learn, earn and return’
“I’m kind of looking at it in phases of learn, earn and return,” she said. “I felt I was reaching this point where I could take all of my learnings and return them back to the industry so much of what I had experienced and where I saw that it really needed to evolve.”
She’ll prioritize three best practices at Avalo:
Execution at a much faster pace. Startup teams don’t have the guardrails or processes typically associated with navigating large organizations. That requires them to be laser-focused on mission. Carey says she learned more in her 18-month Renewcell tenure than she did in five years with a larger organization.
Recruitment of flexible individuals. Camaraderie is crucial. Carey seeks people with “the energy and the resilience to look at things differently, and that are also willing to build systems and have the flexibility to know that not everything’s going to be perfect.”
Diversification of customer segments. One of Renewcell’s downfalls was an over-reliance on small capsule collections with fashion brands that failed to scale their orders. “We do so many pilots, we can get into that stagnation of pilots after pilots after pilots,” she said. “In many cases, it’s back to basics, it’s about communication, it’s back to making sure that we’re running projects properly.”
https://sustainable-future.org/wp-content/uploads/2025/03/cropped-trellis_favicon_180x180.png3232sustainablefuturehttps://sustainable-future.org/wp-content/uploads/2024/06/Untitled-design-117-300x94.pngsustainablefuture2025-06-05 08:00:002025-06-05 18:08:58What’s next for the exec who convinced H&M and Gap to rethink textile sourcing
Few of the nearly 8,000 companies with validated science-based net zero targets make headlines for reaching that milestone. But for Shein, which has come to symbolize the excesses of cheap, trend-driven fashion, the news drew widespread criticism from sustainability experts.
“If Shein were sincere, perhaps we wouldn’t see emissions grow quite so astronomically recently,” said Maxine Bédat, director of the New Standard Institute, a New York City think tank.
Not according to the San Francisco watchdog group Stand.earth, which on June 3 gave the company an “F” on its annual Fossil-Free Fashion Scorecard.
“If Shein were a country, it would be the 100th-biggest emitter in the world,” the report said, generating almost as much pollution as Lebanon, “having increased Scope 3 emissions by over 170 percent in just two years.” Shein flunked in a variety of categories, including commitments and transparency, renewable energy transition, advocacy and clean shipping. Its highest mark was a D-minus for materials and circularity.
Although that report was compiled before Shein’s SBTi validation, its core complaints remain largely unaddressed by the company.
Even with a small emissions jump, the company would have to shave roughly one-third of its Scope 3 emissions in the next half decade to satisfy its new targets, Pucker noted.
Since its launch in 2008 in Nanjing, Shein has not yet produced a sustained drop in emissions.
By relying on high-carbon air freight, Shein beats its peers in terms of its shipping impacts. Credit: Stand.earth
Shein’s growth
The brand has rocketed to popularity with an on-demand, direct-to-consumer business model that flew some 900,000 packages a day to individuals in the U.S. last year.
“If you’re looking from a production side, there are many things that Shein does that, in fact, the sustainability sector has been peddling as a great idea for a very long time,” said Veronica Bates Kassalty, a fashion consultant and former World Bank economist in London. For example, brands have been trying to figure out how to sustain and profit from making limited, small runs of fashions rather than overproducing.
“The only people who managed to crack it: Shein,” she said. “And that’s what enabled them to catapult themselves into the stratosphere, because they’re constantly producing something new all the time, and it’s no great risk to them.”
The United States’ de minimis exemption has enabled the company to jet goods to the country, duty-free, in packages worth $800 or less. Until the White House closed that loophole May 2, the policy had helped Shein snowball among fashion influencers flaunting cheap and trendy wardrobe hauls.
That, and the Trump administration’s seesawing tariffs on imports, have slowed Shein’s roll. The company boosted spending per customer by 35 percent but lost 30 percent of customers from April to mid-May, compared with the same period last year, according to Bain & Company. Amid this challenging environment, Shein’s target for an initial public offering moved again recently from London to Hong Kong. It had originally set its sights on New York.
What’s the plan?
Shein’s net zero targets appear to be standard, either at or slightly above the SBTi baseline. Roadget Business of Singapore, Shein’s parent company, seeks to reduce absolute emissions across Scopes 1, 2 and 3 by 90 percent by 2050. Its goals for 2030 include a 42 percent reduction in Scope 1 and 2 emissions and a 30 percent drop in Scope 3. (Scope 3, including the indirect supply chain and transportation emissions, comprised 99 percent of the company’s emissions in 2023.)
Yet it’s important to note that when the SBTi legitimizes any corporate net zero targets, it’s only a first step; there’s no enforcement for what happens next, according to Bédat, author of “Unraveled: The Life and Death of a Garment.”
“There is a real misunderstanding of what an approved target means, and this ends up being used as greenwashing,” she said. “The target approval is not an approval of the quality of the plan for reduction, it simply means that the target is in line with the requirements.”
But sharing a credible climate transition plan would help, according to Bédat. “Elements of credibility include: how are they incentivizing suppliers, how [many] resources are they putting [toward] incentivizing suppliers, how much are they spending on lobbying for or against policies that align with their targets and how their growth targets align with their transition plan.”
For now, however, Shein’s plan does not reflect that. And that, said Bédat, “indicates a weak plan.”
The limitations of standards
The raised eyebrows over the ultra-fast apparel company’s true intentions come as the SBTi itself is attracting criticism for proposed flexibility to Scope 3 requirements. The body’s validation for Shein comes under SBTi’s current standards, released in March 2024. With the next version under public consultation, Shein will have to update its targets by 2030 to satisfy the new requirements.
The SBTi has also recognized the need for a specific standard for apparel companies to address the unique challenges of the increasingly polluting sector, which by some counts makes up 10 percent of global greenhouse gas emissions.
Shein’s 2023 sustainability report illustrates its intentions to ramp up circular economy efforts. Credit: Shein
The Greenhouse Gas Protocol, which influences the SBTi, was set up within the contemporary context of linear, “take, make, waste” economies, according to Miranda Schnitger, climate lead for the Ellen MacArthur Foundation. Therefore, these and other standards fail to provide measurements or incentives for circular practices, such as keeping durable materials and products in use for years or decades. Schnitger hopes to help change that.
Shein has an extensive “design for a circular future” plan, and the company makes numerous other efforts that the industry considers to be sustainable. For example, it has invested $10 million toward communities affected by textile waste. In 2023 the company used some 20,000 meters of deadstock in its designs. It has also collaborated with the Textile Exchange on organic cotton and special packaging and is investing in large-scale polyester recycling.
However, that’s not enough to offset the high-production, low-price business model of clothes designed for disposability, according to Kassalty. In addition, three quarters of its products are made of petroleum-derived polyester, a nightmare for emissions and human health. Durable garments of natural fibers create lower environmental impacts yet don’t fit Shein’s business model, according to Kassalty.
“Everyone’s been focusing on the production side, and nobody’s been looking at the way these companies sell,” she said. “And what really differentiates a sustainable company from an unsustainable company is the way that you sell.”
[Join more than 5,000 professionals atTrellis Impact 25 — the center of gravity for doers and leaders focused on action and results, Oct. 28-30, San Jose.]
https://sustainable-future.org/wp-content/uploads/2025/03/cropped-trellis_favicon_180x180.png3232sustainablefuturehttps://sustainable-future.org/wp-content/uploads/2024/06/Untitled-design-117-300x94.pngsustainablefuture2025-06-04 21:31:072025-06-05 18:09:23Shein achieves science-based targets validation but earns an ‘F’ for fossil fuels