Fashion industry’s energy, water impact hits women hardest

Energy costs account for 15% to 30% of production expenses in fast fashion, with most operations relying on fossil fuel-based sources

The global fashion industry is facing mounting scrutiny over its environmental and social impact, with a new report highlighting how energy-intensive production, excessive water usage and entrenched gender inequalities are shaping the sector’s future. 

Threads of Transformation by Sustainable Energy for All (SEforALL), examines the interconnected challenges of energy consumption, environmental degradation and gender equality.

The report also calls attention to the urgent need to align the industry with the UN’s Sustainable Development Goals 7 (Affordable and Clean Energy) and 5 (Gender Equality).

Effect on women in Africa’s textile sector

In Africa, women dominate apparel production in countries like Ethiopia and Lesotho, where they make up 80% of the workforce. 

Yet these women face limited pay, poor working conditions and few opportunities for career advancement. Climate-related shocks and energy access challenges further impede their productivity and economic participation.

According to the report, the fashion sector, valued at $1.7 trillion and employing more than 300 million people globally, is responsible for an estimated 2% to 8% of global carbon emissions and nearly 20% of wastewater worldwide. 

These figures stem largely from the fast fashion model, which depends on rapid production cycles, high water consumption for raw materials such as cotton and a growing reliance on fossil fuel-based synthetic fabrics projected to account for 73% of textiles by 2030.

The report cautions that if current trends continue, greenhouse gas emissions from fashion are expected to rise by more than 60% by 2030, while the sector annually generates approximately 92 million tonnes of waste and withdraws 4% of global freshwater. 

Such environmental pressures are particularly acute in water-scarce regions, underscoring the need for more sustainable production and resource stewardship.

Energy use of critical concern

The report finds that the fashion industry consumes around one trillion kilowatt hours of electricity per year, equivalent to a quarter of the US electricity consumption in 2023. 

Energy costs account for 15% to 30% of production expenses in fast fashion, with most operations relying on inefficient, fossil fuel-based sources. 

The report notes that most major brands lack transparent renewable energy targets, limiting progress toward a cleaner, more sustainable energy supply across global supply chains.

Transitioning to renewable energy is framed as both an environmental and economic imperative. 

SEforALL also highlights the role of women-led small and medium-sized enterprises (SMEs) in accelerating the adoption of renewable energy within the sector. 

Empowering these businesses, which account for a substantial portion of the African fashion industry, can improve productivity, reduce operational costs, and foster wider societal gains, says the report.

Impact on women a key focus of report’s analysis

Women constitute approximately 60% of the fashion industry’s workforce and are heavily concentrated in lower-paid and informal roles such as sewing, cooking and ancillary services. 

Despite this, women remain underrepresented in leadership positions; only 14% of executives in major fashion brands are female. 

Women workers are disproportionately affected by environmental degradation and limited access to modern energy services. 

In many production regions, unreliable electricity and poor working conditions exacerbate vulnerabilities, exposing women to health and safety risks from air pollution, extreme temperatures and climate-driven disruptions to water and energy supply.

The report draws attention to the wider implications of these inequities. 

In regions where energy access is limited, women-led SMEs face barriers to scaling production or investing in cleaner technologies. 

Similarly, manual processes dependent on inconsistent electricity constrain efficiency and increase exposure to hazardous working conditions. 

By addressing energy and gender disparities, the fashion sector can improve economic empowerment, health outcomes and climate resilience for women workers, the report recommends.

Strategies to address challenges 

Key recommendations include: 

• strengthening environmental conservation practices such as water stewardship 
• regenerative agricultural practices
• sustainable raw material use 
• enhancing supply chain transparency and accountability 
• promotion of circular fashion models that encourage recycling, textile reuse
• consumer education

 

Renewable energy has a major role to play

The report identifies renewable energy adoption as critical for reducing carbon emissions and stabilising operational costs. 

It calls for targeted financial incentives, public-private partnerships and investment in energy-efficient machinery, particularly for women-led SMEs. 

“Supporting women entrepreneurs with access to financing, training, and leadership opportunities can accelerate the transition to low-carbon energy while promoting inclusive economic growth,” says the report.

Fashion and climate change

The fashion industry’s impact is not limited to energy and water. 

The report underscores that climate change and environmental degradation exacerbate gender disparities, particularly in low- and middle-income countries (LMICs) that produce 90% of global clothing. 

SEforALL stresses that achieving SDG7 and SDG5 requires integrated, systemic solutions. 

Renewable energy deployment, energy efficiency improvements and water conservation measures can simultaneously reduce environmental impact and enhance productivity for women workers and entrepreneurs. 

The report highlights that embedding gender-responsive approaches into climate and energy policies, collecting gender-disaggregated data and promoting women’s active participation in decision-making processes are also essential for ensuring a just transition.

Circular practices could address carbon and water footprint

The report further notes that circular business models have the potential to expand their market share from 3.5% to 23% of the global fashion market by 2030. 

By combining renewable energy adoption with circular practices and gender empowerment, the industry can significantly reduce its carbon and water footprint while fostering economic resilience.

The report says the fashion industry is at a critical juncture. 

But with strategic investments in renewable energy, sustainable production and women’s empowerment, the sector can shift from being a major contributor to environmental and social challenges to becoming a driver of sustainable growth. 

The report frames this transformation as an opportunity to foster economic development, environmental resilience and gender equality across global supply chains.

It calls on policymakers, industry leaders and civil society to collaborate on implementing measures that promote sustainability, fairness and resilience, ensuring that women are not left behind in the global transition toward clean energy and responsible production.

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