Apparel Impact Institute

The Apparel Impact Institute (AII) has launched the Energy and Carbon Benchmark, a new tool designed to measure energy use and emissions across textile manufacturing processes. Developed with industry partners, it establishes process-level metrics to compare facilities, track performance over time, and guide collective decarbonisation efforts across the global fashion supply chain.

Climate risk is increasingly being modelled not as a reputational concern but as a margin-level financial exposure. New analysis suggests operating profits in apparel could shrink sharply under accelerated net-zero transitions. Kristina Elinder Liljas, Senior Director of Sustainable Finance and Engagement at Apparel Impact Institute, argues that carbon exposure now belongs inside capital allocation models, not sustainability reports.

Continued climate inaction could place around 70% of projected market value at risk by 2040, while delayed regulatory compliance may significantly erode profitability. A new analysis by the Apparel Impact Institute (AII) has modelled the financial exposure associated with carbon pricing, supply-chain disruption and transition risks, outlining how early mitigation strategies alter cost trajectories and long-term enterprise resilience.

The apparel sector’s carbon footprint grew sharply in 2023, underscoring the gap between climate commitments and actual performance. The rise in emissions was driven primarily by polyester usage, particularly virgin fibres. Despite growing investment in greener practices, the sector remains far off course for its 2030 goals, according to a new report from Apparel Impact Institute.

Bangladesh’s garment industry faces mounting pressure to decarbonise amid regulatory shifts and brand climate commitments. Yet, financing, energy infrastructure, and governance gaps hinder progress. A new Apparel Impact Institute report has outlined the critical enablers required for a just transition, from policy reform to capacity building. AII President and CEO Lewis Perkins throws light on programmatic investment and long-term collaboration to future-proof the sector in Bangladesh.

As the fashion industry struggles to firm up a roadmap towards decarbonisation, one of the players that has been pro-active in trying to clean up its supply chain is the H&M Group. Kim Hellström, Senior Sustainability Manager, Climate at the Group speaks at length about the challenges in decarbonising the supply chain.

At a critical crossroad, the apparel and textiles industry in Bangladesh could lead global decarbonisation efforts while unlocking substantial economic and social benefits, including the creation of green jobs, says an Apparel Impact Institute (AII) report which also outlines proactive, actionable strategies to further decarbonisation efforts, foster collaboration, and enable meaningful progress for the industry.

Although apparel and footwear exports account for approximately 15% of Viet Nam’s GDP, this sector faces critical sustainability challenges, particularly in energy consumption, carbon emissions, and resource efficiency, says a new report.

An Apparel Impact Institute report calls upon apparel brands, textile manufacturers, policymakers, and financial institutions to take immediate action to accelerate decarbonisation even as it urges brands to commit to electrification targets and provide financial support to suppliers in building renewable electricity capacity and adoption, ensuring a more resilient and cost-effective supply chain.

In a multi-stakeholder initiative, Open Supply Hub is adding four more leading members to its platform — Cascale, Ethical Trading Initiative, Ethical Supply Chain Program, and Ethical Tea Partnership — which will result in tens of thousands of suppliers across various sectors being shared on OS Hub's open data platform, which maps supply chain production locations globally.