Yirun WANG

Sustainable Fashion: Trends, Innovations, and Investment Opportunities

by
Yirun WANG

In this article, Yirun WANG (ESSEC Business School, Master in Strategy & Management of International Business (SMIB), 2024-2025) explains about recent developments and opportunities of sustainable fashion.

The Rise of Sustainable Fashion: Innovation Meets Consumer Demand

The fashion industry, historically known for its significant environmental footprint, is undergoing a profound transformation. Brands are increasingly adopting eco-friendly materials and processes to reduce their impact on the planet. From recycled fabrics and biodegradable textiles to innovative solutions like lab-grown leather and waterless dyeing technologies, the industry is embracing groundbreaking advancements that prioritize sustainability.

Leap® by Beyond Leather
Leap® by Beyond Leather
Source: the company.

Leap® by Beyond Leather
Leap® by Beyond Leather
Source: the company.

A key driver of this shift is the changing behavior of consumers, particularly among younger generations. Today’s shoppers are more informed and conscientious, demanding greater transparency and accountability from brands. They want to know where their clothes come from, how they are made, and whether the production processes align with ethical and environmental standards. This growing demand for sustainable products is pushing brands to rethink their strategies and integrate sustainability into their core values. Companies that fail to adapt risk losing relevance in an increasingly competitive market, while those that embrace sustainability are gaining a competitive edge and building stronger connections with their customers.

Investment Trends: Capital Flowing into a Greener Future

The sustainable fashion movement is not just reshaping consumer behavior—it’s also attracting significant attention from investors. Venture capital and private equity firms are increasingly directing funds toward startups and established brands that prioritize environmental and social responsibility. One area of particular interest is circular fashion, a model that emphasizes designing products for reuse, recycling, or upcycling. This approach not only reduces waste but also creates new revenue streams and business opportunities.

Industry leaders Brunello Cucinelli and Matteo Marzotto have invested in YHub, a pioneering company at the forefront of traceability and sustainability technologies. YHub’s innovative platform enhances supply chain transparency by enabling businesses to verify the ethical origins and environmental credentials of their products. This strategic move reflects a broader trend of capital shifting toward green innovations, as the fashion and luxury sectors increasingly prioritize sustainable practices in response to growing consumer demand for accountability and ethical production.

Additionally, ESG (Environmental, Social, and Governance) criteria are becoming a critical factor in investment decisions. Investors are looking for brands that demonstrate a clear commitment to reducing waste, improving labor conditions, and minimizing their environmental impact. This trend reflects a broader recognition that sustainability is not just a moral imperative but also a smart business strategy. Brands that align with these values are more likely to secure funding, attract loyal customers, and thrive in a rapidly changing market.

Why should I be interested in this post?

The intersection of sustainability and fashion represents a pivotal moment for the industry. It’s not just about creating eco-friendly products; it’s about reimagining the entire lifecycle of fashion—from design and production to consumption and disposal. This shift is driven by a combination of innovation, consumer demand, and investment, all of which are working together to create a more sustainable future.

This article offers a comprehensive look at the forces driving this transformation and the opportunities it presents. Whether you’re a consumer looking to make more informed choices, an investor seeking promising opportunities, or simply someone interested in the future of fashion, understanding these trends is essential. The move toward sustainability is not just a trend—it’s a fundamental change that will define the fashion industry for decades to come.

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Useful resources

Women’s Wear Daily (WWD) (24/06/2024) Brunello Cucinelli, Matteo Marzotto Investing in YHub, a Leader in Technologies for Traceability and Sustainability

Forbes (26/04/2024) The Importance of Sustainability In Fashion

McKinsey (11/11/2024) The State of Fashion 2025: Challenges at every turn

About the author

The article was written in April 2024 by Yirun WANG (ESSEC Business School, Master in Strategy & Management of International Business (SMIB), 2024-2025).

My Internship Experience at Impact Hub Shanghai

by
Yirun WANG

In this article, Yirun WANG (ESSEC Business School, Master in Strategy & Management of International Business (SMIB), 2024-2025) shares her internship experience at Impact Hub Shanghai, a global network focused on empowering sustainable business innovation. As an Inclusive Innovation intern, I had the opportunity to contribute to impactful projects while gaining valuable insights into sustainability, entrepreneurship, and cross-sector collaboration. This experience not only deepened my understanding of sustainable consumption but also connected me to the broader world of impact investing and the financial ecosystem that supports sustainable development.

About the company

Impact Hub Shanghai is part of a global network of over 100 hubs in 60+ countries, dedicated to fostering sustainable business practices and social innovation. The organization supports entrepreneurs, startups, and corporations in driving positive changes through initiatives like sustainability advocacy, innovation consulting, and impact investment services.

Impact Hub Shanghai’s mission is to inspire, enable, and connect individuals and organizations to create a more sustainable and inclusive future. Their work spans various sectors, including climate action, circular economy, sustainable consumption and gender equality, making them a key player in China’s sustainability ecosystem.

Logo of the Impact Hub Shanghai.
Logo of Impact Hub Shanghai
Source: the company.

My internship

During my two-month internship, I worked as a Business Development and Marketing Assistant, supporting projects related to sustainable consumption, circular economy, and inclusive innovation. This role allowed me to engage in diverse tasks, from industry research and branding to event planning and client communication, while also exploring the intersection of sustainability and finance.

My missions

As an intern, I was involved in several key activities:

  • Business Development: I conducted industry research and prepared three industry reports on topics like sustainable consumption and the transition to net zero. This involved analyzing market trends, identifying opportunities for innovation, and summarizing findings for internal and external stakeholders.
  • Branding & Communication: I contributed to the development of an Integrated Marketing Communication plan and wrote/edited WeChat manuscripts to promote Impact Hub Shanghai’s initiatives. This required creativity, attention to detail, and an understanding of the target audience.
  • Event Planning: I supported the planning and execution of three events, including the RISE UP! Sustainable Life Fest, which aimed to raise awareness about sustainable living. I also assisted in organizing two offline events, which involved coordinating with partners, managing logistics, and ensuring smooth execution.

Required skills and knowledge

This internship was an excellent opportunity for students like me, who are passionate about sustainability and business innovation. While it didn’t require specialized expertise, the role demanded a strong foundation in business concepts, research skills, and the ability to adapt quickly to new challenges.

Key skills included:

  • Analytical Thinking: Interpreting data and trends to support decision-making.
  • Communication: Crafting clear and compelling messages for diverse audiences.
  • Teamwork: Collaborating with colleagues and external partners to achieve common goals.
  • Adaptability: Learning new tools and approaches to address emerging challenges.

Additionally, staying updated on sustainability trends and understanding the broader context of social and environmental issues were crucial for contributing effectively to the team’s efforts.

What I learned

This internship was a transformative experience, providing me with a deeper understanding of sustainable business practices and the role of innovation in driving positive change. I gained practical skills in research, branding, and event management, which are applicable to future roles in sustainability and business development.

One of the most valuable lessons was the importance of collaboration and cross-sector partnerships in addressing complex global challenges. Working with diverse stakeholders, from entrepreneurs to corporate leaders, taught me how to navigate different perspectives and find common ground for impactful solutions.

Related financial concepts

I detail below three financial concepts related to my internship: Impact Investing & Sustainable Investment, Circular Economy & Net-Zero Transition, and Corporate Social Responsibility (CSR) & Branding.

Impact Investing & Sustainable Investment

Exposure to Impact Hub Shanghai’s investment arm deepened my understanding of how impact investing firms assess sustainability-driven ventures. I gained insight into how capital is allocated to businesses that generate financial returns while driving positive social and environmental outcomes.

Circular Economy & Net-Zero Transition

My work on industry reports deepened my understanding of business models focused on resource efficiency and carbon neutrality. My work on the RISE UP! Sustainable Life Fest highlighted the importance of sustainable consumption in reducing environmental impact. Through this project, I learned how businesses can align their strategies with sustainable consumption principles, such as offering reusable products, reducing packaging waste, and promoting circular economy practices.

Corporate Social Responsibility (CSR) & Branding

My internship also exposed me to the broader financial ecosystem that supports sustainability. From green bonds to ESG investing, I gained insights into how financial markets are evolving to prioritize sustainability. I gained insight into how companies integrate sustainability into their brand identity and business strategies to create positive social impact.

Why should I be interested in this post?

My internship at Impact Hub Shanghai reinforced my belief in the power of business and finance to drive positive change and equipped me with the tools to contribute meaningfully to a more sustainable future if you are also interested in sustainable and responsible investment concepts.

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   ▶ Anant JAIN Dow Jones Sustainability Index

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   ▶ Anant JAIN Socially Responsible Investing

Useful resources

Impact Hub

Global Reporting Initiative (GRI)

World Economic Forum What are green bonds and why is this market growing so fast?

Sustainable Finance

Global Impact Investing Network What you need to know about impact investing?

United Nations Development Programme Harnessing Financial Instruments for Impact Investing

About the author

The article was written in April 2025 by Yirun WANG (ESSEC Business School, Master in Strategy & Management of International Business (SMIB), 2024-2025).