The apparel, footwear and textiles industry made only limited progress on energy decarbonisation in 2023 and 2024, with overall greenhouse gas emissions continuing to rise despite incremental efficiency gains. Verified facility data showed marginal improvement in effective energy carbon intensity, but coal dependence, slow electrification and minimal renewable energy uptake continued to constrain reductions across major producing countries.
- Emissions from apparel, footwear and textiles manufacturing rose by 7.5 per cent in 2023, as increased production volumes outpaced efficiency improvements across global supply chains.
- Analysis across finished product and material manufacturing facilities showed energy use remains the dominant source of Scope 1 and 2 emissions, with heat-intensive production processes driving the highest impacts.
- The findings are drawn from Cascale’s State of the Industry Report 2026, titled Decarbonization Progress in the Apparel, Footwear & Textiles Industry, which examined verified facility-level energy and emissions data across China, India, Vietnam, Bangladesh, Turkey, Pakistan and Sri Lanka.
- The report, published by Cascale recently, assessed decarbonisation performance using verified Higg Facility Environmental Module data from the 2023 and 2024 reporting cycles.
THE REPORT: Cascale’s State of the Industry Report 2026 set out to provide a consistent, industry-level assessment of energy-related emissions in apparel, footwear and textile manufacturing by aggregating verified facility data. It defined the report’s scope, production tiers and country coverage, and established the effective energy carbon intensity framework to enable year-on-year comparison and shared interpretation of decarbonisation progress across the global supply chain.
- The analysis aggregated verified facility-level data to provide an industry-wide view of energy use and emissions across major apparel-producing countries.
- The report applied the effective energy carbon intensity metric to combine thermal and electrical emissions into a single measure of decarbonisation performance.
- Tier 1 and Tier 2 facilities were prioritised due to sufficient data coverage to ensure confidence in representativeness and findings.
- Energy use was identified as the dominant source of Scope 1 and 2 emissions, particularly in heat-intensive material manufacturing processes.
- The report was designed as a recurring annual publication to track progress and support collective action across the global supply chain.
WHAT THE DATA SHOWS: Aggregated facility data showed that industry-wide decarbonisation progress remained slow between the 2023 and 2024 reporting cycles. Effective energy carbon intensity improved only marginally, with a modest redistribution of facilities across performance categories. Overall results continued to diverge from trajectories consistent with limiting global warming to 1.5°C, reflecting persistent dependence on carbon-intensive energy systems.
- Average effective energy carbon intensity declined slightly between FEM 2023 and FEM 2024, driven by limited improvements rather than structural energy transitions.
- Facilities powered by thermal energy continued to account for the largest share of energy-related emissions, particularly within Tier 2 material manufacturing.
- Coal remained a major contributor to emissions, accounting for roughly one-third of total energy consumption with no meaningful year-on-year reduction.
- Electrification increased in some Tier 1 facilities, but gains were uneven across countries, with median facility performance often outpacing consumption-weighted averages due to continued reliance on thermal energy in large facilities.
- A small number of large, energy-intensive facilities were found to drive a disproportionate share of total emissions across the industry.
WHERE PROGRESS STALLS: The report identified persistent structural barriers that continue to slow decarbonisation across the apparel, footwear and textiles industry. Heavy reliance on thermal energy, especially coal, limited renewable energy adoption, and concentration of emissions in large facilities were highlighted as key constraints, particularly within Tier 2 manufacturing where heat-intensive processes dominate energy use, alongside uncertainty linked to continued dependence on biomass in several major producing countries.
- Coal remained a critical barrier, representing around 31 per cent of total energy consumption and showing no meaningful decline between reporting periods.
- Tier 2 facilities relied more heavily on thermal energy than Tier 1, reflecting the energy demands of processes such as dyeing and material treatment.
- Renewable energy adoption increased in the number of facilities reporting use, but accounted for only about two per cent of total industry energy consumption.
- Electrification alone was insufficient to deliver deep decarbonisation, as grid electricity emissions in major producing countries remained high.
- Emissions were disproportionately driven by a relatively small number of large facilities with high thermal energy dependence.
WHAT NEEDS TO CHANGE: The report concluded that achieving meaningful emissions reductions will require coordinated, structural action rather than incremental efficiency gains or shifts in sourcing geography. Accelerating the transition away from coal, expanding electrification alongside renewable energy adoption, and deepening engagement with material manufacturers were identified as essential to aligning the industry with climate targets.
- Phasing out coal, particularly in Tier 2 facilities, was highlighted as the most critical lever for reducing energy-related emissions.
- Electrification must be paired with increased use of renewable electricity, as grid emissions in major producing countries remain misaligned with a 1.5°C pathway.
- Renewable energy uptake needs to expand beyond pilot projects, as purchased and self-generated renewables currently represent only a small share of total energy use.
- Brands and manufacturers were urged to pursue long-term, collaborative supply-chain engagement, as the report cautioned that shifting sourcing between countries does not deliver meaningful emissions reductions.
- Cascale outlined plans to support progress through expanded data access, the Member Analytics Portal, the Manufacturer Climate Action Program, and continued annual reporting.
WHAT THEY SAID
This report makes clear that there are no shortcuts to decarbonization. Real progress depends on true value chain collaboration, not sourcing shifts by the brands. The level of investment required to achieve the deep decarbonization measures at facility level means brands will have to step up in a meaningful way. The climate agenda must be seen as an imperative to change the legacy sourcing dynamics of this industry.
— Jeremy Lardeau
Senior Vice President, Higg Index
Cascale
