The fashion industry faces several pressing ecological and environmental challenges. Water consumption is a significant issue, as textile production, particularly cotton farming, requires vast amounts of water, leading to depletion of local water resources. Water pollution from dyeing and finishing processes releases toxic chemicals into rivers and lakes, affecting aquatic life and human health.

Greenhouse gas emissions from the fashion industry are substantial, driven by energy-intensive production processes and transportation. The reliance on fossil fuels for synthetic fibers like polyester further exacerbates climate change.

Textile waste generation is another critical challenge, with vast amounts of textile waste ending up in landfills due to fast fashion's short life cycles and poor recycling practices. Worldwide only 12% of textile is recycled. Even less, just 1%, is recycled from worn clothes into new garments. Most is used for low-value items such as insulation or mattress padding.

Chemical usage in textile manufacturing involves harmful substances such as dyes, bleaches, and finishing agents, which can be hazardous to both the environment and workers' health. Microplastic pollution from synthetic fibers shed during washing contributes to ocean pollution, affecting marine life and entering the food chain.

Resource depletion from the extensive use of non-renewable resources for fabric production and garment manufacturing leads to environmental degradation. Addressing these challenges requires adopting sustainable practices, such as using eco-friendly materials, improving production efficiency, implementing robust recycling systems, and promoting circular fashion models to reduce waste and environmental impact.

For example, viscose rayon production involves significant environmental impacts due to its reliance on wood pulp and chemical processing. Key environmental concerns include deforestation, as the raw material often comes from non-sustainable sources, leading to habitat loss and biodiversity decline. The manufacturing process uses harmful chemicals which can cause air and water pollution.