The revised timeline was disclosed in Burberry’s latest annual report, where the company said the change reflects a ‘pragmatic response to external factors’ while continuing to recognise climate change as a significant long-term business risk.
Burberry has delayed its Net Zero emissions target by 10 years to the 2049/50 financial year, citing slower global decarbonisation and external market realities.
The luxury fashion house said climate change remains a major business risk affecting operations and supply chains.
The revision comes amid broader corporate restructuring under measures aimed at restoring profitability.
It cited the pace of decarbonisation across the luxury sector and global markets as a key reason behind the revision.
Burberry said in a press release that the observed and projected pace and scale of decarbonisation influenced its decision to extend the target date.
The luxury brand had unveiled its sustainability roadmap in 2021 during a period when many multinational companies were strengthening climate pledges following the pandemic. At the time, the brand committed to becoming ‘climate positive’ by 2040.
The company continues to identify climate change as a principal business risk with potential short-, medium- and long-term impacts across operations, sourcing and supply chains. According to the annual report, Burberry integrates climate-related considerations into areas such as capital allocation, investment appraisal, supply chain planning and raw material sourcing.
Its climate risk assessment includes scenario analysis based on pathways developed by organisations such as the Intergovernmental Panel on Climate Change (IPCC), International Energy Agency (IEA) and Network for Greening the Financial System (NGFS). Burberry said the analysis examines both physical and transition risks associated with climate change and evaluates the financial impact on the business over a five-year period.
The company noted that transition risks, including policy changes and market behaviour, are expected to have the greatest impact in the short to medium term, while physical risks such as supply chain disruption could become more significant over the longer term.
It also updated the climate scenarios used in its risk modelling during FY25/26. The company retired its earlier ‘above 4°C’ warming scenario, saying the assumptions no longer reflect current global energy transition trends, particularly the declining cost of renewable energy.
The move places Burberry among a growing number of multinational corporations reassessing climate commitments amid economic pressures and shifting market realities. Companies including Unilever, BP and Shell have also revised sustainability targets or extended transition timelines in recent years.
The climate target revision comes as Burberry undergoes a broader restructuring under chief executive Joshua Schulman, who took over in 2024. The company has implemented cost-cutting measures, including reducing around 1,700 jobs, or nearly one-fifth of its workforce.
Burberry said restructuring charges exceeded £45 million during the last financial year, following £29 million in costs in the previous year. However, the company added that the workforce reductions generated immediate savings of approximately £80 million and supported a return to profitability in 2025.
Fibre2Fashion News Desk (SG)
