Decarbonisation

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.

The apparel sector now produces more climate data than at any earlier point. Fifty companies under the STICA initiative disclosed emissions inventories, transition plans, and targets in 2025. Yet sector-wide emissions continue to rise, and nearly half of signatories report they are behind on primary climate targets. The distance between disclosure capability and actual decarbonisation performance is not closing.

A new Roadmap has urged global fashion brands sourcing from major garment-producing hubs to fund and implement a Just Energy Transition across their supply chains, warning that persistent financing gaps, weak adaptation measures and price-driven purchasing practices are shifting climate risks onto suppliers and workers throughout production networks.

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.

Cascale’s State of the Industry Report 2026 assessed decarbonisation progress in the apparel, footwear and textiles industry using verified Higg FEM data from 2023 and 2024. The analysis showed emissions continued to rise, driven by energy use in manufacturing, with coal dependency, limited electrification and minimal renewable adoption constraining progress towards climate targets across major producing countries.

China’s textiles and apparel sector stands at a crossroads of sustainability, competitiveness, and workforce responsibility. With decarbonisation targets, rising labour costs, and export diversification, the industry faces profound transformation. Policies under the 14th Five-Year Plan and “dual carbon” strategy will determine how the sector adapts to shifting global sourcing and compliance landscapes.

India’s textile industry is a major emitter due to fossil fuel reliance in wet-processing. A new study evaluates electric boilers and heat pumps, modelling national, state, and cluster adoption scenarios to 2050. Findings highlight efficiency gains, emissions reductions, and cost implications, particularly when combined with renewable energy procurement, across Gujarat, Maharashtra, Tamil Nadu, and the Surat cluster.

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.