5 Unsustainable Practices Exposing the Dark Reality of Luxury Brands

When we think of luxury fashion, we picture exclusivity, iconic logos, and the kind of premium that feels untouchable. But that doesn’t mean it’s sustainable. Behind the superiority image, many luxury brands still follow practices that harm people and the planet. Some of it looks different from fast fashion, but the damage can be just as real.

And somehow, luxury escapes the same level of scrutiny fast fashion gets. There’s a double standard. We expect fast fashion to be unethical, but we assume high prices mean higher standards. That’s not always true.

Luxury brands don’t face the same public pressure to change because their image is built on status over access. They produce less, release fewer collections, and use words like ‘craftsmanship’ and ‘heritage’ to signal quality, but that doesn’t automatically make them ethical. When harmful practices happen behind closed doors, they’re easier to excuse or overlook. Here’s a look at the unsustainable side of luxury that often gets ignored.

1. Hidden Labour Exploitation in European Supply Chains

Luxury is supposed to be crafted by skilled artisans in ethical conditions. In 2024, Italy's antitrust authorities found that Dior and Armani's suppliers were using undocumented workers in poor conditions. Some were being paid less than minimum wage, working long hours in factories. The probe ended with Dior pledging 2 million euros to help victims of labour exploitation. Brands often outsource to layers of subcontractors to cut costs. When there’s no transparency, exploitation happens. Luxury or not, no product should come at the cost of human dignity.

2. Exotic Skins and Animal-Derived Materials

Luxury bags and shoes often feature materials like cowhide and rare exotic skins like crocodile, ostrich, or python skin. Hermès uses crocodile leather and claims it comes from certified farms, but this is heavily questioned by animal welfare groups. But farming exotic animals for their skin raises serious concerns for biodiversity and animal welfare. Farming or capturing exotic animals for fashion is a direct blow to biodiversity and humanity. The unsustainable leather industry also involves intense chemical tanning processes that put workers health at risk and also pollutes waterways and soil.

3. Burning Unsold Inventory 

Some luxury brands destroy leftover stock instead of donating or discounting it, in order to maintain their "prestigious" image and avoid devaluation. It sounds unbelievable, but it’s true. In 2018, Burberry admitted to burning unsold bags, clothes, and even perfumes worth nearly $30 million. In the five years prior to 2018, the value of goods it destroyed exceeded £90 million to protect its brand value. The backlash was loud, but Burberry was not the only one. Several other brands have been accused of the same practice. Burning products wastes the goods as well as the energy and resources that went into making them.

4. Greenwashing Without Transparency

Luxury brands love to release sustainability reports, but when you dig deeper, the details are often missing, with weak targets and vague promises. In 2018, the Fashion Transparency Index revealed that luxury brands like Chanel and Dolce & Gabbana had very low supply chain traceability. Some provided no public data on emissions, materials, or suppliers. If we cannot trace where the cotton, leather, or labour came from, there is no way to know whether the brand is actually improving.

5. High Environmental Footprint of "Exclusive" Fashion

Luxury brands may not produce 10,000 styles a day like Shein, but their materials, tanning processes, packaging, and transport often have huge environmental costs. The leather industry, which powers many luxury shoes and bags, is a major driver of deforestation in the Amazon. Chanel and Gucci still rely on leather as a primary material despite offering "green" collections on the side. Water use, emissions, toxic dyes, and air freight all contribute to the problem. 

Luxury is supposed to be about craftsmanship, heritage, and quality that lasts. But when brands cut corners on ethics and exploit workers, it all starts to feel like smoke and mirrors. Unlike fast fashion, luxury brands have the power. They don’t rely on mass production, nor do they chase fleeting trends, which makes their fast fashion tactics even more baffling. 

With their influence and resources, they could invest in slower systems, support local artisans, use biodegradable materials, and set an example of circularity. So why don’t they? 

Sustainability should be the bare minimum for all brands. And if the most expensive brands in the world can’t be ethical, how are they any different from fast fashion?