Latest news with #Aii
Yahoo
06-08-2025
- Business
- Yahoo
Increased production, polyester use causing fashion industry's emissions to rise: report
This story was originally published on ESG Dive. To receive daily news and insights, subscribe to our free daily ESG Dive newsletter. Dive Brief: Despite calls to make the fashion industry more sustainable, the apparel sector's greenhouse gas emissions increased by 7.5% in 2023 compared to 2022, according to a recent report from global nonprofit Apparel Impact Institute. This marks the first year-on-year increase since Aii began tracking emissions in 2019. Increased production was one of the drivers behind the sector's growing carbon footprint, spurred by ultra-fast fashion companies like Shein gaining traction, the report found. The industry also used more virgin polyester — a fossil fuel-based fiber, which now makes up 57% of total global fiber production — rather than recycled materials, according to the report. The apparel industry's emissions reached 944 million metric tons, in 2023, per the report. This accounts for 1.78% of total global emissions that year. Dive Insight: Estimates of the fashion industry's share of global GHG emissions vary depending on calculation methods, but a 2020 McKinsey report estimated that the contribution could be anywhere from 3 to 10%. A separate 2021 report from the World Economic Forum found that the fashion industry and its supply chain were the world's third-largest polluter. In recent years, consumers, activists, and governments have called on fashion companies to make their product design and supply chains more sustainable. Aii's estimate of the fashion industry's GHG emissions is based on the non-profit Textile Exchange's latest data on the total amount of various fibers produced globally. This data is based on 2023 figures and was released in late 2024. Aii then used the Higg Materials Sustainability Index, which quantifies emissions generated during each part of the apparel production process for a given material, to calculate the total emissions associated with these production volumes. The sustainability-focused nonprofit did not include the emissions generated by companies' corporate offices, consumer use, or disposal activities because these can be complicated to calculate, according to the report. If emissions continue to rise on this trajectory, the fashion industry's carbon footprint will be about 1.253 billion metric tons by 2030, the report warned. To limit global warming to 1.5 degrees Celsius, the industry would need to reduce its emissions to 0.489 billion metric tons by 2030, Aii said. The findings align with a recent report by the NewClimate Institute that found that major brands like H&M, Adidas, Lululemon, Inditex and Shein were far off track from reducing their emissions to meet the 1.5 degrees Celsius goal. In fact, Shein's emissions jumped by 23.1% in 2024, according to the brand's own calculations. However, Aii's report highlighted a few cases of progress being made when it came to decarbonization, including H&M's 23% reduction in scope 3 emissions and denim manufacturer Artistic Milliners' $100 million investment in renewable energy. Such shifts indicate the path forward, Apparel Impact Institute President Lewis Perkins told ESG Dive in an email. 'There is incredible potential with energy decarbonization' to reduce a company's carbon footprint in scope 3, Perkins said. However, he added, that 'the cost of decarbonization remains a real hurdle, especially for small and medium-sized suppliers, who often face less favorable lending conditions.' For example, Aii found that virgin polyester was used more by apparel brands, compared to recycled polyester, because it was simply cheaper due to low oil and gas prices that year, according to the report. The report notes that, historically, individual brands have not been willing to help their suppliers decarbonize their processes. To address this, Aii's Fashion Climate Fund raises money from brands, banks, and philanthropists to subsidize suppliers' transition to renewable energy. But Perkins added that decarbonized supply chains are becoming an increasingly attractive business proposition because they mitigate risk for shareholders and protect brands from oil and gas price viability: 'We are seeing real financial returns, beginning with lower energy costs.' Recommended Reading 'False solutions' undermine climate goals at Shein, Lululemon Sign in to access your portfolio
Fashion Value Chain
25-07-2025
- Business
- Fashion Value Chain
Apparel Sector Emissions Rise 7% in 2023: Aii Report
The apparel industry saw a 7.5% year-on-year rise in carbon emissions in 2023, according to the Apparel Impact Institute's (Aii) annual Taking Stock of Progress Against the Roadmap to Net Zero 2025 report. This is the first recorded emissions increase since Aii began tracking progress in 2019, with total emissions reaching 944 million tonnes—nearly 2% of the world's total output. The spike was primarily driven by rising production volumes, especially in ultra-fast fashion, and growing reliance on virgin polyester, which now accounts for 57% of global fiber use. Recycled alternatives remain vastly underutilized. Despite the sector-wide rise, the report highlights encouraging climate progress among individual companies and suppliers. Several brands have lowered their direct emissions (scope 1 and 2) by investing in renewable energy and phasing out coal. Notable climate leaders include H&M, which cut scope 3 emissions by 23% since 2019, as well as Fast Retailing, Puma, and Inditex, all reporting substantial reductions. On the supply side, significant initiatives include Artistic Milliners' $100 million renewable energy investment, Shenzhou Group's 24% reduction in scope 1 and 2 emissions over two years, and Elevate Textiles' 35% cut since 2019. Aii President Lewis Perkins emphasized the urgent need for collective climate action: 'While we've built the foundation for climate progress, the data shows we must now accelerate, share risks, and deepen investment.' To support industry-wide efforts, Aii is expanding key initiatives including: Clean by Design: Helping manufacturers cut emissions via energy efficiency Fashion Climate Fund: A $250M initiative to finance supply chain decarbonization Climate Solutions Portfolio: A curated list of impactful emissions-reduction programs With 2030 approaching fast, the report outlines urgent next steps: scaling sustainable materials, improving energy efficiency, transitioning to 100% renewables, and eliminating coal from production processes.
Fashion Value Chain
12-05-2025
- Business
- Fashion Value Chain
Bangladesh Textile Sector Faces $4.8B Green Gap
A new report by the Apparel Impact Institute (Aii) and Development Finance International (DFI) outlines a $6.6 billion investment needed to cut greenhouse gas emissions in Bangladesh's apparel and textile industry by 50% by 2030. While $1.6 billion in funding is currently accessible and $175 million is expected soon, a $4.8 billion gap remains. Bangladesh, already among the top five countries with the highest GHG reduction potential in the apparel sector, can significantly support global climate goals if this gap is bridged. The report proposes innovative financial models—like blended finance, green bonds, and pay-for-performance—to attract private capital and enable the transition to low-carbon technologies. Barriers such as limited technical knowledge and high infrastructure costs are also addressed, with rooftop solar, LED retrofitting, and waste heat recovery listed as practical interventions. Aii's Climate Solutions Portfolio (CSP) is already in place to support suppliers with funding, technical know-how, and performance data, de-risking investments and accelerating the green transition. The report emphasizes that international-local cooperation is vital to ensure Bangladesh becomes a global leader in sustainable apparel manufacturing.
Associated Press
22-04-2025
- Business
- Associated Press
Cascale Podcast Season Spotlights Consumer Goods Supply Chain Decarbonization
AMSTERDAM, HONG KONG, OAKLAND, Calif., April 22, 2025 /3BL/ - With a thematic focus on consumer goods supply chain decarbonization, the new season of Cascale's 'Source of Good' podcast reflects the nonprofit organization's commitment to combat climate change. Kicking off with Lewis Perkins of Apparel Impact Institute (Aii), released today, 'Source of Good' will share actionable insights and inspiring stories that drive the urgent transformation needed in the consumer goods industry. Across 10 bi-weekly, 20-minute episodes, listeners will discover how innovative companies – including Tapestry, Primaloft, ITL, Hirdaramani, and more – use Cascale's Higg Index tools and other pioneering practices with the aim to achieve a 45% reduction in GHG emissions by 2030, ultimately aligning with a 1.5°C future. 'Our work with Cascale is about more than metrics - it's about building momentum for real, lasting change,' said Lewis Perkins, president at Aii. 'Together, we're shaping a shared roadmap to help our industry cut emissions. I'm inspired by what's possible when we align around bold action and collective responsibility for a better industry and healthier planet.' Building on the inaugural season successes – including a conversation with Rick Ridgeway, legendary mountaineer, environmentalist, writer, and Cascale co-founder – 'Source of Good' set the standard for industry dialogue on sustainable practices. With subscribers in over 50 countries, listeners can find the podcast on all major streaming platforms and follow the journey of industry change through each insightful episode. 'By spotlighting supply chain decarbonization, we're addressing one of today's most urgent challenges—while sharing powerful stories of transformation. These episodes showcase tangible strategies that inspire collective action and demonstrate how our industry can unite for a sustainable future,' said Lee Green, vice president of Marketing & Communications at Cascale. 'Source of Good' is produced by Hueman Group Media, a Webby-winning media company that produces high-caliber podcasts for social change and impact. The show is hosted by Rachel Lincoln Sarnoff, Cascale's communications director and a former journalist. 'Source of Good' is available on multiple platforms, including Apple Podcasts, Spotify, iHeart Radio, Amazon Music, and more. For more information about Cascale and to listen to the Source of Good podcast, visit or join our email mailing list here. ABOUT CASCALE Cascale is the global nonprofit alliance empowering collaboration to drive equitable and restorative business practices in the consumer goods industry. Formerly known as the Sustainable Apparel Coalition, Cascale owns and develops the Higg Index, which is exclusively available on Worldly, the most comprehensive sustainability data and insights platform. Cascale unites over 300 retailers, brands, manufacturers, governments, academics, and NGO/nonprofit affiliates around the globe through one singular vision: To catalyze impact at scale and give back more than we take to the planet and its people. LinkedIn | X | Instagram | Facebook | YouTube Visit 3BL Media to see more multimedia and stories from Cascale
Yahoo
17-04-2025
- Business
- Yahoo
Cascale, Aii report shows Vietnam gains ground in apparel's low-carbon shift
The report titled "Vietnam Country Report: Macroeconomic, Socioeconomic, and Industry Analysis" provides an in-depth look at Vietnam's economic and industrial landscape. It is the first of a series that integrates insights from Cascale's sustainability assessment tool, Higg Facility Environment Module (FEM), exclusively featured on Worldly. An analysis of over 1,200 verified Higg FEM submissions from 2023 reveals a significant carbon footprint due to coal usage, with 12% of facilities directly using coal and 94% dependent on Vietnam's coal-heavy electricity grid. Despite this, renewable energy makes up less than 2% of energy consumption within the sector, presenting a substantial opportunity for transitioning to greener practices as outlined in the Industry Decarbonization Roadmap (IDR) by Cascale and Aii. As per the report, Vietnam's economic forecast shows a promising 6.5% growth rate by 2025, surpassing its regional counterparts. The manufacturing industry remains a cornerstone of this growth, accounting for nearly 23.88% of GDP in 2023. Foreign Direct Investment (FDI) also reflects strong investor confidence, with $31.4bn recorded in the initial 11 months of 2024. The apparel and footwear industry generates three million workers and was estimated to contribute $71bn in export revenues for Vietnam in 2024. However, it also confronts serious sustainability issues, such as high energy use and carbon emissions. Vietnam has pledged to enhance its renewable energy usage by 65-70% by 2045, aiming to cut greenhouse gas emissions by approximately 70-80%, demonstrating its commitment to supply chain decarbonisation aligned with the IDR. The IDR ensures that resources are allocated effectively, enabling the realisation of low-carbon sourcing and additional advantages. This involves concentrating efforts on the critical 10% of sites within the textile and apparel supply chain, some of which are located in Vietnam, as these are responsible for more than 80% of the worldwide manufacturing emissions. The report recommends prioritising the uptake of renewable energy and the implementation of circular economy practices. It urges brands to cultivate enduring partnerships with their supply chain collaborators, which will promote fairness and catalyse reformative business methods. There is an emphasis on investing in the enhancement of employee skills, especially in areas related to sustainability and environmentally friendly technologies. The report also recommended staying informed about changes in Vietnam's regulatory landscape to guarantee adherence to regulations and to take advantage of emerging market prospects. Cascale CEO Colin Browne said: 'This isn't merely about compliance—it's about long-term competitiveness. Brands increasingly prefer suppliers who meet robust sustainability standards. Manufacturers investing in sustainability today will secure long-term brand partnerships tomorrow.' In March this year, Cascale revised its Higg Brand and Retail Module (Higg BRM), which is part of the Higg Index, to correspond with EU sustainability reporting rules and legislation. "Cascale, Aii report shows Vietnam gains ground in apparel's low-carbon shift" was originally created and published by Just Style, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
