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NEW YORK - Increasing demands by consumers and regulators for a more sustainable apparel industry pose a financial and reputational risk to companies that don’t adapt, according to global credit rating agency Moody’s.

Fast-fashion retailers and discount brands are at the greatest risk from the challenges created by the global rise of eco-friendly trends, said Moody's in a research announcement.

It warned that fashion companies will have to adapt to sustainability, invest in decarbonisation and increase sourcing transparency in order to remain competitive.

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