Eco-chic: can high-end brands balance indulgence and responsibility?

Luxury and sustainability – two concepts that seem to exist at opposite ends of the spectrum. Luxury has traditionally been synonymous with excess, indulgence, and social distinction. Sustainability, in contrast, is all about moderation, conservation of resources, and ethical responsibility. So, how can these two worlds meet in a way that resonates with today’s more environmentally conscious consumer?

The fashion industry is notorious for its environmental toll, contributing roughly 10% of global carbon emissions and 20% of global wastewater from fabric dyeing processes. What is more, the majority of clothing ends up in landfills. With fast fashion often bearing the brunt of this criticism, luxury brands have not escaped scrutiny either, despite their deliberately slower production cycles.

In the luxury sector, the extraction of precious gemstones and metals wreaks havoc on ecosystems through deforestation and pollution. Excessive packaging, a hallmark of luxury branding, further amplifies waste, often using non-recyclable materials. Furthermore, the environmental impact of the luxury sector extends beyond fashion. Luxury tourism and transportation, often centred on exclusive, ecologically sensitive areas, leads to habitat destruction and a significant carbon footprint from private jets and yachts.

To meet the expectations of the conscious consumer and global initiatives like the 2016 Paris Agreement, the luxury industry is changing. Concerted efforts are underway to adopt greener practices. Several brands are leading the movement toward what has become known as “eco-luxury.” Kering, the parent company of Gucci and Yves Saint Laurent, has made notable moves, publicly committing to reducing greenhouse gas emissions by 40% by 2035. Last year, the conglomerate opened its first "circular hub" in Italy, aiming to recycle luxury goods at scale. Kering’s investments in sustainable materials and its transparency through the Environmental Profit & Loss reports have earned the company global recognition, including top rankings on the Dow Jones Sustainability Index.

In some instances, the approach to sustainability is even more holistic. Stella McCartney, a trailblazer in sustainable fashion, has proven that luxury and sustainability can coexist without compromising prestige. Her brand, built on a commitment to avoid animal-based materials, showcases how eco-conscious design can command luxury prices. Iconic pieces like the sustainable faux-leather Falabella bag and cruelty-free Elyse platform shoes have become synonymous with high-end, environmentally friendly fashion. McCartney’s success illustrates not only that luxury consumers are embracing sustainability, but also that ethical fashion can thrive in the competitive luxury market.

Restoration of innovation?

Luxury brands are uniquely positioned to champion sustainability through the inherent durability of their products. A well-made designer handbag or tailored suit can be viewed as an investment piece, intended to endure for decades, if not longer. Established brands tend to the craftmanship and longevity of their products to emphasize their heritage. For example, Hermès’ responsible approach is reflected in its artisanal values that involve long-term suppliers and local production. It created an upcycling department, Petit H, which takes excess materials to create one-off or limited pieces. It also has global repairment services that ensure the longevity of hundreds of thousands of items every year.

Nevertheless, some practices require updating if luxury brands want to become more environmentally conscious. It is in this realm that newcomers are showing the way.

Start-ups are often born from a vision to improve the industry. While new luxury brands must continue to demonstrate quality and craftmanship, they often take a scientific approach to developing sustainable methods, demonstrating that contemporary and timeless can coexist. Gabriela Hearst, for example, has received credibility and attention for using anti-radiation fabrics and bio-plastics packaging that decompose in 24 weeks, yet the craftmanship can be compared to icons like Hermès. Hearst collections also include digital identity QR codes that provide the origin material, production process, and carbon footprint for each item. Consequently, Hearst received the TIME Earth Award in 2024 for her impact on climate change.

Established luxury brands are not lagging too far behind. In fact, they have the financial resources to invest in sustainable research and development, and they often do it through collaborations. Kering and Hermès are both invested in innovative materials such as Mylo, a leather alternative made from the root structure of mushrooms. The first mushroom-based leather alternative bag was of course launched by Stella McCartney.

Innovations in eco-materials, and the long-lasting nature of high-end products, mean that luxury and sustainability can complement each other. However, luxury brands are still businesses focused on growth, and while "sustainable capitalism" is a popular industry buzzword, it’s hard to imagine all fashion leaders scaling back on the trends that drive sales. To stay relevant, new designs must be constantly produced, which requires both financial and environmental resources.

The paradox lies in the luxury sector's drive for exclusivity, often fuelling unsustainable consumption patterns. The demand for the latest high-fashion pieces runs counter to sustainability's principle of reducing consumption. Additionally, while luxury brands are exploring eco-friendly materials, alternatives to silk, wool, and leather aren't yet scalable, posing a challenge to balancing profitability with environmental responsibility. Paradoxically, the rising demand for sustainable designs could undermine efforts to limit emissions, as current materials are not fully recycled or upcycled. We cannot rely on alternative consumption to solve the climate crisis just yet.

Future indulgence with a greener touch

As luxury brands navigate the evolving landscape of sustainability, the challenge will be to balance their inherent drive for exclusivity with the growing demand for environmentally responsible practices, beyond craftsmanship that stands the test of time and innovative practices. While many consumers are eager to support eco-friendly brands, a lingering perception exists that green products are of lower quality or less luxurious than traditional offerings. Overcoming this “sustainability liability” requires a shift in narrative, demonstrating that sustainability and luxury can coexist. Brands like Stella McCartney and Gabriella Hearst are leading the way, proving that eco-conscious designs can rival the best in the industry without compromising on quality and design.