With news of the US Senate passing the latest climate package, the country’s efforts to combat the climate crisis — fashion and beauty — are just around the corner.
“The Law of Inflation Reduction [a whopping $369 billion in funding] It’s the most important piece of environmental legislation in the last three decades,” Sara Edwards, head of North American research at Unimia, told WWD. In addition to the legislation, which is expected to reduce US greenhouse gas emissions by 40 percent by 2030, it also calls for other countries and private investors to be at the forefront of climate policy and investment discussions. Global Influences.”
Eunomia advises public sector clients, companies (most recently DHL) and cities on waste reduction, greenhouse gas emissions and revenue policy – just what happens in circular textiles.
Across the board, the Act supports every industry effort to reduce Tier 1, 2 (direct) and 3 (indirect) emissions in all supply chains. Investments range from electric vehicles to resilience strategies for farmers facing extreme weather events, as seen in recent Appalachian floods, West Coast wildfires or ongoing heat waves.
Among the most important things for fashion, large corporations (those with more than $1 billion in revenue) will have a new 15 percent tax to pay.
Edwards said, “While some big brands may be hit by the new 15 percent lower corporate profits tax, supporting climate-resilient infrastructure can only be a good thing and is in line with the changes many brands are implementing.” “
Lindsay Casella, vice president of marketing at RecycleTrac Systems, similarly emphasized the importance of transitioning to a low-carbon supply chain.
“The latest US climate package passed by the Senate recognizes a gap in the solution supply chain, affirming our government’s role in transitioning our country – previously a bad actor as our carbon polluter is one of the highest in the world – to a shift away from fossil fuels. A good actor who plans to become a global leader in fighting destruction,” she says.
Senate primacy was “very important” to pass this historic package, Casella said, adding that big investments in energy, infrastructure and agriculture would lower costs and ultimately encourage companies to bring back raw materials and manufacturing. It would release nearly $400 billion in tax credits over 10 years, promoting changes to electric vehicles, renewable energy sources, domestic production and more, in turn taking the heat off corporate taxes.
It’s more straightforward for some industries than others.
While these incentives may seem more promising in the climate equation, especially for the millions employed in the garment sector, there is no doubt that they will have far-reaching impacts elsewhere. Casella should note that unlike fashion (which, according to AAFA, manufactures 97 percent of its goods overseas), the beauty industry today has a high volume of production in the U.S. due to shipping challenges and costs. Supply chain changes and job losses can be less for beauty.
Although the climate bill’s oil and gas provisions have made concessions to staunch eco advocates — the measure allows new oil drilling contracts in the Gulf of Mexico and Alaska’s Cook Inlet — the bill provides a more urgent response to the climate crisis than the US. It has yet to be seen.
Consumers, Casella said, may demand more action from major companies and the government, prompting more scrutiny.
“Could the IRS’s Expansion Reflect the Big Four That Are Turning Auditors into Sustainability Consultants? Apart from monitoring taxes, can this large organization play a role in maintaining accountability through legal requirements, monitoring pollution and carbon emissions? she asked.
If voluntary ESG reporting efforts falter, legal requirements may follow.
