Iconic fashion firm delays Net Zero target by decade amid huge scale back of climate ambitions
Burberry has delayed its Net Zero emissions target by 10 years after the luxury fashion brand revised its climate commitments in its latest annual report.
The Ftse 100 company confirmed it now expects to achieve Net Zero emissions by "no later" than the 2049/50 financial year.
The British fashion house had previously pledged to reach the target during the 2039-40 financial year.
Burberry said the revised timetable reflected a "pragmatic response to external factors" while maintaining what it described as an appropriate level of ambition, given climate change remains a major business risk.
The company also pointed to the "observed and projected speed and scale of decarbonisation" across both the luxury sector and international markets as factors behind the decision.
Burberry originally unveiled its sustainability strategy in 2021 during a period when many multinational businesses were strengthening environmental commitments made during the pandemic.
At the time, the company pledged to become "climate positive" by 2040.
Former chief executive Jonathan Akeroyd previously described the plans as part of Burberry’s "long-standing commitment to sustainability" and its "appreciation for nature and the outdoors".
Burberry said in 2021: "By strengthening our commitment to sustainability, we are going further in helping protect our planet for generations to come."
The move places Burberry alongside several major corporations which have scaled back environmental commitments in recent years.
Consumer goods giant Unilever announced in 2024 that it would reduce several ethical targets, including commitments relating to plastic packaging.
The company described its revised approach as "unashamedly realistic".
Food manufacturer Nestlé also withdrew from The Dairy Methane Action Alliance last year, stepping away from efforts aimed at reducing emissions linked to dairy farming.
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Oil companies BP and Shell have similarly revised emissions targets introduced during the pandemic and extended their transition timelines while continuing fossil fuel production.
Several major American financial institutions have also softened climate-related commitments following the return of President Donald Trump to the White House.
Mr Trump has repeatedly criticised environmental policies and previously referred to climate measures as the "Green New Scam".
The climate policy revision comes during a wider restructuring programme at Burberry under chief executive Joshua Schulman, who took over leadership of the company in 2024.
Mr Schulman has overseen a significant turnaround strategy focused on reducing costs and improving profitability.
The company cut around 1,700 jobs, representing approximately a fifth of its workforce.
Burberry said restructuring costs exceeded £45million last year following £29million in charges during the previous financial period.
The company said the workforce reductions generated immediate savings of around £80million and helped restore profitability in 2025.
Investors responded positively to the restructuring efforts, with Burberry shares rising by around 17 per cent over the past 12 months.
The annual report also revealed Mr Schulman could receive remuneration worth up to £12.2million in future years through a bonus structure linked to performance targets and share price milestones.
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