Harold Tillman, the owner of Jaeger and chairman of the British Fashion Council, has called for tax-breaks for "eco-fashion" businesses.
The recommendation is part of a campaign spearheaded by Mr Tillman which urges fashion businesses to work in a more sustainable way and make eco-fashion more affordable to consumers.
Mr Tillman, a member of Highgate Synagogue, said ethical and sustainable fashion ranged from the fabrics to the machinery used to produce the clothes.
He said: "Sustainability within the fashion industry, the second largest employer in the UK, needs to be more than just personal choice, it needs to make sense for businesses and consumers.
"We are calling on all parties to recognise the impact that tax breaks could make on one of the UK's most exciting and innovative industries by supporting those who are working in a sustainable way and making it attractive to all businesses to be more ethical."
Mr Tillman, who also owns luxury brand Aquascutum, said that it was not a "community thing" but something the "world at large" must do.