Sustainability is becoming an increasingly important commercial driver for the fashion business, new research from the Hong Kong Trade Development Council (HKTDC) has shown.
More industry stakeholders are integrating ESG into their business strategies, with many seeing tangible business benefits, a survey of buyers and suppliers at HKTDC fairs and events between April 2025 and March 2026 has found.
The proportion of fashion practitioners considering ESG important stood at 92%, up from 85% in a similar survey released last year.
The latest findings also highlighted sustainability’s commercial value, with many ESG-related suppliers reporting strong profit margins and buyers willing to pay significant premiums for sustainable products, Alice Tsang, Principal Economist of HKTDC’s Global Research Team, noted.
Most fashion industry exhibitors offering ESG-related products or services reported additional profit margins of 10% or more. At the same time, around half of fashion buyers were willing to pay a premium of at least 10% for ESG-related products.
“This trend, combined with Hong Kong's strengths in international connectivity, green finance and professional services, reinforces the city’s role as a leading sustainable fashion hub in Asia,” Ms Tsang observed.
Hong Kong’s standing as a sustainability hub also improved. Fashion buyers and suppliers gave the city a score of 65.5 for the quality of its ESG services, up 2.3 percentage points from the previous survey.
This includes gains across the survey’s three sub-indices, covering ESG’s environment, social and governance components.
The environmental sub-index, which rose to 64.3, tracks the perceived ease of sourcing and delivering ESG solutions in Hong Kong.
The social sub-index, which moved up to 67.0, reflects perceptions of Hong Kong companies’ ESG‑related community engagement, talent availability and knowledge exchange.
The governance sub-index, which climbed to 66.1, monitors perceptions of Hong Kong’s corporate governance with regard to ESG reporting frameworks, incentives, levels of support and international connections.
These findings were drawn from a larger survey of some 1,800 respondents for an ongoing study called the HKTDC ESG Index.
Responses for the fashion sector included fashion designers, merchandisers, garment manufacturers and other industry‑related stakeholders.
Sustainable business
In addition to assessing Hong Kong’s ESG capabilities, the research also showed sustainability becoming an integral part of business strategy, product development and sourcing decisions for fashion, reflecting evolving market expectations and emerging business opportunities.
The share of fashion practitioners engaged in sourcing or selling ESG-related products and services rose to 46% in the latest survey, up from 33% previously.
HKTDC also asked practitioners about digital solutions for ESG compliance. More than half specified sustainable supply chain platforms, while around a third referenced AI analytics as well as supplier collaboration tools.
When asked about solutions offered by Hong Kong providers that can help with ESG reporting requirements across complex supply chains, 44% of respondents cited tools for better transparency and traceability, 40% mentioned ESG certification, while 28% named ESG audits and risk analysis solutions.
HKTDC has published an in-depth overview of the survey results in an article called ‘Very Much in Style: ESG in the Fashion Industry’.
“Fashion businesses increasingly recognise Hong Kong’s unique strengths and solutions, which position the city as an ideal platform for companies looking to identify sustainable business opportunities, forge international partnerships and navigate evolving global ESG requirements,” remarked HKTDC Director of Research Bruce Pang.
Supporting this, the HKTDC continues to connect fashion industry players with new ideas, partners and opportunities. The dedicated exhibition zone NEXT@Fashion InStyle showcases innovation in sustainable fashion and materials at HKTDC’s Fashion InStyle trade fair, for example.
Meanwhile, designers, brands and buyers from around the world will explore sustainability, responsible fashion and other emerging trends at Asia’s annual fashion spotlight CENTRESTAGE, which is taking place on 2-5 September.
“With events like CENTRESTAGE facilitating the exchange and showcase of innovative and sustainable fashion, Hong Kong is well placed to support the industry’s transition towards a more sustainable future,” Mr Pang said.