Cashmere Production's Environmental Impacts Are Driven by Herd Management, Not System Type, Study Finds

The first widely available Lifecycle Assessment study for cashmere has been released, covering nomadic grazing and farmed production systems across China and Mongolia. The study identifies primary production as the dominant impact stage and finds herd-level management and productivity as the key drivers, offering brands a baseline for targeted intervention and sourcing decisions.

Long Story, Cut Short
  • The study found no significant differences in climate change impacts between nomadic and farmed cashmere systems, regardless of production system, when measured on a per-kilogram basis.
  • Herd-level productivity and management practices, including winter nutrition, were identified as more significant environmental impact drivers than the type of production system.
  • The social assessment found that herders across Mongolia and China face market volatility, climate shocks, debt cycles, and barriers to entering certified supply chains.
Soil carbon dynamics in rangeland cashmere systems remain difficult to model precisely, with high regional variability creating potential for both underestimation and overestimation of greenhouse gas impacts.
CARBON UNCERTAINTY Soil carbon dynamics in rangeland cashmere systems remain difficult to model precisely, with high regional variability creating potential for both underestimation and overestimation of greenhouse gas impacts. Engin Akyurt / Pexels

Herd-level management and productivity have been identified as the primary drivers of cashmere's environmental impacts, rather than the choice of production system. The first widely accessible Lifecycle Assessment study for the fibre has found that primary production is the most significant contributor across climate change, water use, ecotoxicity (the potential for toxic harm to ecosystems), and land use indicators, with nomadic and farmed systems showing comparable climate outcomes when assessed per kilogram of clean dehaired cashmere.

  • Within the scope and assumptions of the study, herd-level management factors, including cashmere yield per animal and winter nutrition through supplementary feeding, were identified as the primary drivers of environmental impact across both production systems.
  • Biogenic carbon (carbon released by organic matter) and land use impacts were explored through a sensitivity analysis, following a methodological decision not to attribute soil carbon impacts to cashmere production in the baseline results.
  • Primary data was collected across nomadic grazing systems and farmed systems in China and Mongolia, with the functional unit (the standardised quantity used for reporting) defined per key stage in the supply chain to ensure consistent impact reporting.
  • The social assessment reveals that these pressures disproportionately affect vulnerable groups, including women, small-scale herders, and those in remote areas, compounding barriers to economic stability.
  • The findings have been published in the Life Cycle Assessment for Cashmere by Textile Exchange last week.

BEHIND THE RESEARCH: Conducted with support from consultancy Integrity Ag, the LCA study was designed to produce robust and transparent environmental datasets for cashmere production systems. The Textile Exchange LCA+ approach was applied, incorporating a social assessment component alongside environmental impact categories, and the study's results will be submitted for peer review for scientific journal publication.

  • The study was conducted in accordance with ISO 14044:2006 Environmental Management: Life Cycle Assessment: Requirements and Guidelines; an independent expert panel conducted a critical review to ensure conformity with the ISO standard and the scientific robustness of the results.
  • An external stakeholder group comprising representatives from cashmere initiatives, cashmere industry stakeholders, local scientific institutions, and LCA experts provided ongoing guidance and input throughout the study.
  • The impact assessment covered categories required by the European Union's Product Environmental Footprint version 3.1 and the Higg Materials Sustainability Index (MSI) version 2.0, including climate change, resource use, water use, eutrophication, and land use.
  • The functional unit was defined as 1 kg of raw cashmere at the farm gate for primary production, and 1 kg of fine dehaired cashmere at the processing gate; the dataset included 170 herders and farms, notably large for an LCA study.
  • Most herders had no form of record keeping, meaning survey responses were estimated; results are presented by production system and should not be interpreted as representative of either Mongolia or China, nor used for comparison between the two countries.

WHAT THE NUMBERS REVEAL: Land use impacts proved more complex than other indicators, varying according to the unit of assessment. Nomadic systems showed higher impacts per kilogram of product, as they usually occupy more land per kilogram of cashmere, while farmed systems showed higher impacts per hectare due to greater stocking density and input intensity. The limitations of the LANCA (land use indicator value calculation) model in rangeland contexts underscore the need for improved methodologies and region-specific data.

  • Soil organic carbon losses were estimated using Intergovernmental Panel on Climate Change (IPCC) Tier 1 methodology and were highly uncertain, with substantial variability between regions.
  • Given the wide sensitivity range observed, there is potential for both underestimation and overestimation of greenhouse gas impacts from soil carbon stock change in the cashmere supply chain.
  • Impacts from soil carbon loss were not attributed to cashmere in the baseline results, due to the difficulty of separating climate-induced effects and grazing impacts.
  • As a next step out of this LCA study, a group of brands, suppliers, and cashmere programmes has been working to find potential ways to address methodological gaps in capturing the value of extensive pastoralist systems within traditional LCA methodology.

ON THE GROUND: Rather than shifting to one production system in favour of the other, brands should prioritise supplier support and targeted interventions to improve animal and land management, cashmere quality, and general system resilience, ensuring improvements generate overall positive outcomes rather than shifting impact from one side to the other.

  • Extreme weather events, including heavy snowfall, freezing temperatures, and harsh winters following summer drought, known as dzuds in Mongolia and Inner Mongolia, increase environmental impacts through their effect on productivity and higher animal mortality.
  • Supplementary feeding can improve animal welfare and survival during dzud events, but barriers including feed costs, limited availability, and infrastructure challenges mean this is not always possible.
  • Improving herd productivity, managing stocking rates in line with land conditions, and improving animal nutrition can help reduce environmental impacts, but require the right conditions for herders, including training, stable market access, and economic incentives aligned with local cultural practices.
  • The study period included a dzud event in Mongolia, leading to unfavourable conditions and lower than normal livestock production; a five-year average using national statistics data was applied to remove annual fluctuations in production.

THE HUMAN DIMENSION: The social assessment of cashmere farming in Mongolia and China reveals a sector shaped by deep-rooted tradition and accelerating change. Herding and farming remain closely tied to identity, family, and community across both countries, yet herders face a growing set of pressures that disproportionately affect vulnerable groups, including women, small-scale herders, and those in remote areas. Building a sustainable and equitable cashmere supply chain requires shared responsibility among producers, processors, brands, governments, and civil society.

  • These challenges disproportionately affect vulnerable groups, including women, small-scale herders, and those in remote areas, who face the greatest barriers to economic stability and integration into formal supply systems.
  • Multi-year sourcing commitments, direct engagement with herders and cooperatives, and investment in inclusive certification and traceability systems can help build greater economic stability and trust.
  • Partnerships with landscape-level organisations responsible for rangeland management can support more effective monitoring, stewardship, and community-led approaches to pasture health.
  • Aligning commercial incentives with fibre quality, environmental stewardship, and producer resilience can help create conditions for more sustainable cashmere production while supporting the long-term viability of herding livelihoods.
  • Future research should aim to refine land use impact models, expand regional data collection, and investigate interventions that improve environmental outcomes and social and economic well-being; further research is also needed to expand and test the outcomes of this study to support sustainable transformation in the cashmere industry.

WHAT THEY SAID

This cashmere LCA study, which we believe is the first of its kind to be made widely available, provides cashmere-specific data the industry has long needed. It offers a clearer understanding of key impact drivers across both farmed and nomadic grazing systems… highlighting current methodological limitations in fully capturing the value of extensive grazing practices.

— Beth Jensen
Chief Impact Officer
Textile Exchange

 
 
Dated posted: 20 July 2026 Last modified: 20 July 2026