Purchased goods dominate the emissions picture
For FY26, FatFace reported gross market-based greenhouse gas emissions totaling 49,033 metric tons of CO2e, up 4% from its FY25 baseline. Following independent assurance, it revised the total from the previously reported 44,939 metric tons.
The retailer attributed that revision primarily to a more detailed calculation of emissions from purchased goods and services, drawing on supplier invoices and expenditure data organized by cost code.
FatFace's sustainability disclosures put purchased goods and services, known as Scope 3 Category 1, at more than 80% of its total emissions. The company says this activity falls outside its direct control. Scope 3 covers emissions across the value chain rather than those generated directly by the retailer's own operations.
To address supplier emissions, FatFace introduced a partnership agreement earlier in 2026. Participating suppliers are asked to measure their greenhouse gas output, develop plans for reaching net zero and report progress against agreed milestones. They may receive preferred partner status for selected product categories and potential co-funding for decarbonization projects, pilots and tooling upgrades.
The first signatories included two of its largest suppliers, India's Afflatus and Kautilya Industries. According to Green Retail World, both have supplied FatFace for 15 years and together make a tenth of its products.
FatFace sees its established manufacturing relationships as a basis for closer environmental and ethical collaboration. It reports a combined 315 years of working with its top 20 manufacturing partners, with relationships averaging 16.5 years.
Tracing suppliers and checking working conditions
Supply-chain mapping reached Tier 5, or the raw-material or farm level, in some cases during the reporting year. That visibility was based on suppliers' declarations, rather than extending across the entire supply chain.
FatFace carried out 126 audits of Tier 1 factories, with 79% conducted without advance notice. Under its audit system, ratings of one to three indicate compliance; 94% of factories achieved those ratings.
The retailer identifies six salient human rights risks in its supply chain: freedom of association and collective bargaining; safe and healthy working conditions; forced labor and modern slavery; fair wages and benefits; lawful working hours; and child labor.
Green Retail World reports that, following Next's acquisition of FatFace in October 2023, FatFace aligned its supplier code of conduct with its parent's code of practice. That code is based on the Ethical Trading Initiative base code.
Material targets show mixed results
A new Preferred Materials Guide gives FatFace's product teams a framework for assessing fibers. It brings together water use, carbon impact, chemical safety, transparency and social impact to support more consistent sourcing decisions.
The retailer increased its use of preferred materials, though results varied by fiber. Cotton reached 99.5% against a 100% target. Polyester was at 50%, below its 75% target. Against separate targets of 75%, viscose reached 82%, leather 81% and linen 65%.
According to FatFace, certification problems affected progress on cotton and linen. For polyester, a particular difficulty was verifying recycled content in small components.
Takeback, resale and repairs
FatFace's revised circularity strategy centers on Reskinned as its main partner for extending product life. Reskinned says the takeback and resale program began in January 2026, making FatFace its first new partner of the year.
The program operates online and in selected stores. Returning at least three qualifying FatFace items earns customers 20% off a future purchase with a minimum spend of £80. Customers can send up to four takeback parcels annually, while other brands' clothing can be donated through the social enterprise Give Your Best. Secondhand FatFace items are offered for resale at discounts of up to 60% from the recommended retail price.
The treatment of donated or excess stock depends on its condition. Items may be repaired and resold; those unsuitable for reuse may be returned to fiber where possible or shredded into filling material.
FatFace also refers customers to Clothes Doctor for repairs and alterations. It plans to publish uptake figures for its different circularity options after collecting a full year of data.
Within its own operations, the retailer finished installing LED lighting throughout its stores. It also reported that 2% of operational waste from 152 monitored sites went to landfill in FY26.
Setting the next ESG priorities
The report reviews progress under FatFace's previous ESG strategy as the company develops its next one. FatFace became B Corp-certified in April 2023, according to trading and sustainability director Nick Stevenson in a statement reported by Green Retail World.
A double materiality assessment will inform the new strategy. It will consider both FatFace's effects on people and the environment and the social and environmental issues that could pose financial risks or create opportunities for the business. The aim is to identify the most material issues and guide the allocation of resources.
Work already identified includes reducing supply-chain emissions, mapping suppliers in greater depth and putting the Preferred Materials Guide into use. FatFace is also exploring digital product passports, which could give customers more information about product origins and manufacturing while supporting its longer-term transparency ambitions.
