Earth Overshoot Day 2025: The Planet’s Credit Line Is Maxed Out
Back
Article Type
Sustainability Soapbox
Topic
Responsible Investing
Published
July 24, 2025
Read time
4 mins
Author
Georgina Laird
Share

On July 24, 2025, humanity will have officially spent Earth’s annual ecological budget. From this day forward, we are living on borrowed credit, ecologically speaking, until December 31.

 

What Is Earth Overshoot Day?

 

Earth Overshoot Day marks the date when our demand for natural resources - food, timber, water, land, and the ability to absorb carbon - exceeds what the planet can regenerate in a year. It’s calculated by the Global Footprint Network, using data on global consumption and the Earth’s biocapacity.

 

In 2025, that tipping point arrives after just 205 days. This means for the remaining 160 days, we’re overdrawing Earth’s natural capital - depleting forests, overfishing oceans, and pumping more carbon into the atmosphere than ecosystems can absorb. We’re living beyond our ecological means, and Mother Nature isn’t offering an overdraft facility.

 

Here in the UK, Overshoot Day fell on May 20th this year, meaning that if everyone on Earth lived like the average UK resident, we would need 2.6 planet Earths to sustain our lifestyle. In the United States, the situation is even more extreme - Overshoot Day landed on March 13th, equating to 5.1 Earths required. But not all countries overshoot their ecological budgets. Nations like Cambodia and the Philippines still live within the planet’s means, meaning they don’t have an Overshoot Day at all.

 

There’s a clear trend here: wealthier, more developed countries tend to blow through their ecological budgets much faster, especially those with high consumption and dense urban populations. While countries with large ecological reserves help balance the global average, the overall trajectory is increasingly worrying.

 

France’s Fashion Laws: A Response to Ecological Overshoot

 

In light of this growing ecological deficit, governments are beginning to take more decisive action. France, a country synonymous with fashion, has introduced sweeping new legislation aimed at curbing the environmental damage caused by ultra-fast fashion.

 

The bill introduces a tiered system that categorises fashion companies based on their environmental and social impact. Brands like SHEIN and Temu, classified as ultra-fast fashion, will face the strictest penalties. More established fast fashion players like Zara fall into a slightly less penalised category.

 

Key measures include:

 

  • A gradually increasing eco-contribution tax, starting at €5 per item and rising to €10 by 2030.
  • A ban on advertising, including influencer marketing.
  • Mandatory eco-impact labels on all garments, warning consumers about the environmental and social costs of overconsumption.
  • Restrictions on free returns and non-EU imports to reduce waste and emissions.

 

The goal is to slow down overproduction, reduce pollution, and protect garment workers while encouraging more sustainable consumption habits.

 

Impact on Fast Fashion

 

For companies built on speed, scale, and low margins, this law introduces significant operational and marketing challenges. The advertising ban alone could disrupt influencer-driven sales models. Combined with rising costs per item and logistical constraints, the pressure to adapt becomes clear.

 

The Role of Asset Managers

 

As asset managers, we have a critical role to play in addressing these challenges. Biodiversity loss, driven in part by industries like fashion, poses systemic risks to the global economy by disrupting supply chains, increasing regulatory exposure, and threatening the long-term viability of entire sectors. Industries like agriculture, forestry, food and beverage, and fashion are particularly vulnerable due to their direct dependence on natural ecosystems. Crucially, these sectors often rely on the same finite natural resources, creating a convergence of demand that far exceeds the planet’s regenerative capacity. This overlapping pressure accelerates ecological degradation and amplifies financial risk across portfolios.

 

By identifying nature-related risks and opportunities, engaging with companies on sustainable practices, and reallocating capital toward nature-positive solutions, asset managers can play a pivotal role in mitigating ecological overshoot. Integrating biodiversity into ESG analysis is no longer optional; it’s a fiduciary responsibility.

 

 

Disclosures

Author

Georgina Laird
Senior Responsible Investment Associate

Georgina Laird is a senior responsible investment associate responsible for analyzing and monitoring environmental, social and governance factors within the firm’s sustainability-themed equity and multi-asset mandates, and engaging with investee companies on a regular basis.

View profile
Related Articles
View all Aegon insights