Latest news with #ApparelImpactInstitute
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.
Forbes
24-04-2025
- Business
- Forbes
Is It Time For Fashion To Enter Its Heat Pump Era?
New research by the Apparel Impact Institute and Global Efficiency Intelligence has quantified the ... More opportunities for electrification across fashion manufacturing facilities. For fashion to get serious about the decarbonization of its supply chains, industry players must get to grips with electrification and hone in on low carbon thermal energy sources. A new report commissioned by the Apparel Impact Institute (Aii) and authored by Global Efficiency Intelligence has quantified the levelized cost of heating for different technologies such as electric boilers and heat pumps, across different time frames and geographies to ascertain their potential for electrification. Alongside the development of a roadmap for adoption, the findings calculate the magnitude of how different energy sources can contribute to decarbonization efforts in a typical wet processing textile plant, as well as the co-benefits that can be created as a result of transitioning away from fossil fuels in manufacturing hubs like China, India, Vietnam, Bangladesh and Indonesia. Enabling the appropriate infrastructure for a just energy transition across the apparel and textile sector's operations has surged in urgency as the impacts of climate change, including extreme heat and flooding threaten production hubs. Research published by the Global Labor Institute at Cornell University and Schroders reviewed heat stress, coastal and riverine flooding across 32 major production centers from 2030 to 2050 to illustrate the physical risks that fashion's suppliers face both now and in the future. Delays to decarbonize not only threaten supply chain operations but the livelihoods and safety of the workers employed by facilities. Effectively and proactively implementing roadmaps to electrify manufacturers operations is also essential for brands and retailers to achieve climate related goals and make good on public energy transition plans. Currently, many of the largest brands are signatories of the UNFCCC Fashion Industry Charter for Climate Action which stipulates a phase out of coal-fired boilers from supply chains by 2030, alongside overall targets to reduce Scopes 1 - 3 greenhouse gas emissions by 50% by 2030 against a baseline of no earlier than 2019. With five years to go, the industry's likelihood to reach this across the board remains unclear. The trajectory of Scope 3 emissions for some of the most dominant companies in the sector like SHEIN, whose indirect emissions increased by 82% from 2022 to 2023 are cause for concern. This runs alongside the fashion's continued dependence on oil and gas to create synthetic fibers which have been linked to fracking practices along the supply chain, according to a recent investigation from Yet positively, many of the world's largest brands including H&M Group, Inditex, Puma and Adidas have made commitments and progress on coal phase out plans. In its latest Sustainability Progress report, H&M Group has extended its commitments to phase out coal to tier three of its supply chain and has reduced the number of garment supplier factories in tier one and two using on-site coal boilers by 77% between 2022 and 2024. In an interview, Pauline Op de Beek, climate portfolio director for the Apparel Impact Institute (Aii) told me about the current appetite to shift away from coal across the industry. 'The transition is front of mind for brands and the suppliers they work with. There is a broad consensus on the need for electrification, but what has been missing until now is looking at the practicalities and the timing.' she said. This outlines why the new quantification study, which uses a cash flow modelling approach to assess the lifetime costs for different technologies, can be leveraged as a tool to guide decision making and investment strategies. 'By looking at the levelized cost of heat, we demonstrated that electrification technologies can have cost advantages over fossil fuel-fired boilers in future scenarios that predict increased availability of renewable electricity and lowering prices.' commented Ali Hasanbeigi, founder and research director of Global Efficiency Intelligence. The techno-economic assessment of low carbon thermal heat sources in different geographies revealed multiple interesting findings. When assessed across indicators including capital expenditure, operating expenses, thermal efficiency and technological maturity amongst others, electric boilers and heat pumps came out on top. They ranked highly for low non-energy operating expenses, a high market growth outlook and a high level of efficiency. In the five countries reviewed, heat pumps incurred lower levelized costs of heating for steam production in comparison to coal and natural gas, despite the highest capital costs. The research determined that across all countries including Vietnam and Bangladesh, electrification with steam-generating heat pumps leads to greater efficiency gains and energy savings than converting to electric steam or hot oil boilers. 'It was impressive to see how transformational heat pumps paired with some procurement of renewable electricity could be, even across all different country contexts. The economic and environmental benefits.' said Hasanbeigi. Hasanbeigi discussed the short-term barriers that must be overcome to realize the potential of heat pumps such as equipment and installation costs. 'Industrial heat pumps are still scaling up and the initial investment costs can be prohibitive for manufacturers without support from downstream brands or government incentives, even though heat pumps are so much more efficient than fossil fuel-fired boilers.' he said. I asked Hasanbeigi if any market is more ripe for a low carbon thermal energy transition than others. 'India is particularly promising for a low-carbon thermal energy transition due to its rapidly growing supply of low-cost, zero-carbon renewable electricity. This creates a strong foundation for the adoption of electrification technologies, including industrial heat pumps.', he said, whilst adding that China and Vietnam are also making notable progress given the growth of the corporate renewable energy procurement in these markets. Another finding surrounds the role of alternative fuels, like sustainable biomass in enabling brands to move towards low carbon thermal energy sources. 'Sustainable biomass may be a good near-term decarbonization solution, namely when the sustainability of biomass supply can be verified and the hurdles to electrification are too high in the very near term.' Hasanbeigi relayed. However, the authors are quick to indicate that when generated from unsuitable biomass boilers, direct combustion emissions are slightly higher than coal, making it an unviable alternative in the long-term. Areas of friction include the fact that biomass prices are expected to rise as the demand for sustainable biomass grows while supply remains limited. The study depicts country-specific challenges when using biomass as a near term solution. For instance, in China, the fashion sector would be competing with demands for sustainable sources of biomass from other industries, including the electric power sector. Whereas in Indonesia, the authors cite there is a high risk that a biomass scale up could contribute to further tropical deforestation issues. Aii's Op de Beek told me that 'The availability of biomass is not going to increase. Sustainably sourced biomass has become unaffordable to some countries, making the case for electrification even more urgent.' Op de Beek emphasized how sensitive timing can be according to various policies, electricity prices and grid infrastructure across different regions. That's why the authors set out a roadmap to address critical junctures on the timeline between 2030 and 2050 when many greenhouse gas emissions reduction targets are set to. 'We need alignment on brand strategies across a timeline and communicating that to manufacturers. This is an important part of a just transition, to give a sufficient time horizon to action recommendations and provide the space to ask for technical and financial support.' she said. Distinct timeframes outlined in the research are central to consider because of the technology innovation pipeline and cost factors too. 'Clear phases are important as certain technologies mature and develop. For example, with steam generating heat pumps there is a time lag because we still need pilots to happen.' Op de Beek said. A multitude of factors including funding, the variance in grid infrastructure across manufacturing hubs and a turbulent policy landscape all stand as hurdles to overcome both now and in the future when transitioning to low carbon thermal energy. Notably, the high up-front costs of investing in pilots, scaling and implementing technology can impact adoption. 'The quantification element of this work highlights the transition is not for free. It demonstrates how complicated it is from a capital expenditure point of view when considering the pay back periods. None are less than two years, which is the standard timeframe management teams in organizations are used to approving.' Op de Beek told me. Op de Beek observed that there has been positive movement from a capital expenditure perspective. 'Things takes time, there has a been a rewiring of sustainability budgets and how chief financial officers perceive climate change in their budgets.' She did note that garnering support becomes harder if the operating expenditure associated with electrification increases and is reflected in unit costs. 'We don't see willingness for brands to pay more per unit in this instance.' she said. This sentiment feels particularly resonate at a time when brands are facing increased uncertainty, volatility and heightened costs as a result of global tariffs that will significantly impact trade across fashion's global supply chains. I asked Hasanbeigi what the biggest barrier is to hold back the industry's intention to decarbonize. 'Financial barriers remain one of the most significant obstacles to textile manufacturer decarbonization. The high cost of electricity compared to fossil fuels, coupled with the upfront investment and installation costs of electrification equipment, can make electrification feel out of reach. This is especially true for smaller manufacturers or those operating on thin margins.' Fortunately, the Aii's Brand Playbook for Financing Decarbonization was devised to overcome such challenges where manufacturers can access the support needed to make these transitions viable. Beyond financing, other challenges include ensuring grid infrastructure that is supportive of electrification. The study sets out that production facilities may face increased vulnerability due to grid instability as they become more dependent on the electrical grid in countries that still face grid infrastructure reliability issues, such as Pakistan. There are also clear calls for fashion brands to provide more training and support to incentivize a thermal energy transition for their manufacturers. advocates for companies to equip their supply base with resources to not only improve energy efficiency and renewable energy adoption but to engage and promote clear transition plans with science-based targets and develop on-site feasibility studies. Encouragingly, the findings outline how public-private partnerships, the right financing models and policy shifts can be used simultaneously to tackle such near and long-term challenges. Aii sets out clear recommendations for policy makers including providing incentives and grants for electrification pilot projects and harmonizing standards and regulations for sustainable biomass. The organization also outlines the need for policymakers to work on the allocation of ongoing resources for grid modernization and renewable electricity integration. There is the opportunity for the industry to collaborate to electrify and advocate for many of these things. In our conversation, Op de Beek references initiatives including the Renewable Thermal Collective, a global, buyer-led coalition focused on decarbonizing thermal energy with renewable solutions and the Asian Clean Energy Coalition (ACEC) which convenes renewable energy buyers, in collaboration with sellers and financiers, to strategically shift policy in key Asian national and regional markets. Hasanbeigi observes why advocating for grid infrastructure and corporate procurement mechanisms in countries like Bangladesh and Indonesia is so important. 'Effectively decarbonizing energy in these regions requires expanded renewable energy availability and infrastructure. In Bangladesh, many textile manufacturers use diesel generators to supply electricity as there is not yet sufficient access to clean grid power or dedicated renewable energy.' he said. Alongside programs such as the Aii Renewable Thermal Energy Transition Program which works to identify energy solutions, advance technologies and create detailed assessments based on where facilities are located and what investment looks like, new open-sourced tools have been developed to help reduce friction to adoption. The Textile Heating Electrification Tool created by Global Efficiency Intelligence aims to help textile manufacturers evaluate the energy, emissions, and cost benefits of different technologies and is already being used by Patagonia, New Balance and the Outdoor Industry Association. 'Our tool is a first step towards a feasibility assessment and provides helpful context, such as a database of electric boiler and heat pump manufacturers and an implementation action plan. The tool can be tailored to each facility's situation, while also providing general findings about electrification when no facility-level data is available.' Hasanbeigi said. Ultimately, the speed of fashion's transition to low-carbon thermal energy sources to spur decarbonization will depend on adapting to facility and country specific nuances, while advocating for investors, policymakers and executives in fashion's boardrooms to scale funding and prioritize supply chain electrification. 'We need to accept that if we want to decarbonize, lots of capital investment is needed. By quantifying that we can create a call to action for brands to be financially involved.' finalized Op de Beek.
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
Associated Press
17-04-2025
- Business
- Associated Press
Cascale's Higg FEM Reveals Opportunities for Low-Carbon Transition in Vietnam
AMSTERDAM and HONG KONG and Oakland, Calif., April 17, 2025 /3BL/ - Issued today, the ' Vietnam Country Report: Macroeconomic, Socioeconomic, and Industry Analysis ' report, developed by Cascale with support from the Apparel Impact Institute (Aii), highlights the evolving macroeconomic landscape, sustainability challenges facing apparel and footwear manufacturing, and the rapid expansion of the consumer goods market in Vietnam. A strong economic outlook coupled with bold sustainability initiatives reveals a country poised to play a crucial role in global decarbonization efforts, even as tariffs threaten to put 5.5% of Vietnam's GDP at risk and raise prices for American consumers (New York Times, April 6). Tariffs and other key topics impacting Vietnam will be on the agenda at the Cascale Forum: Ho Chi Minh City on May 14-15, as Cascale members and non-members alike – including manufacturers, leading brands, service providers, and supply chain partners – come together for an immersive event to address urgent sustainability challenges and opportunities. The report includes critical analysis of data from Cascale's Higg Facility Environment Module (FEM) tool, exclusively available on Worldly. It is the first in a series of actionable reports filtering Higg FEM insights through a regional lens. In 2023, over 1,200 verified Higg FEM submissions showed coal exacerbates carbon emissions in the region: 12% of apparel and footwear facilities use coal for energy, while 94% rely on electricity purchased from Vietnam's coal-dependent grid. Although renewable energy accounts for less than 2% of the sector's energy use, the analysis underscores opportunities for transformation to a low-carbon economy, including through the Industry Decarbonization Roadmap (IDR) developed by Cascale and Aii. The report shows Vietnam can couple growth with sustainable manufacturing. Vietnam's economy is expected to grow by 6.5% in 2025, outpacing regional peers. The manufacturing sector continues to be a key driver, contributing 23.88% to GDP in 2023. Additionally, Foreign Direct Investment (FDI) remains robust, reaching US$31.4 billion in the first 11 months of 2024, signaling investor confidence in Vietnam's economic resilience. Employing around three million workers and generating an estimated US$71 billion in export revenues for 2024, the apparel and footwear sector is a vital component of Vietnam's economy but faces significant sustainability challenges, including high energy consumption and carbon emissions. With commitments in place for a 65-70% increase in renewable energy by 2045 – reducing greenhouse gas emissions by a projected 70-80% – Vietnam is committed to supply chain decarbonization, in line with the IDR. The report brings Cascale and Aii's IDR into focus as a potential solution. By uniting manufacturers, brands, retailers, and stakeholders around shared goals, the IDR emphasizes collective accountability and pre-competitive collaboration to accelerate systemic change across the supply chain. With a science-based target of reducing supply chain emissions by 45% by 2030, the IDR drives measurable progress through various interventions, solutions, and programs. The IDR ensures resources are targeted, so low-carbon sourcing and other benefits can be realized. This means prioritizing action in the 10% of facilities across the textile and apparel supply chain – including some in Vietnam – that account for over 80% of global manufacturing emissions. By aligning with these initiatives, facilities in Vietnam can play a pivotal role in the global transition to a low-carbon economy.'This isn't merely about compliance—it's about long-term competitiveness,' said Colin Browne, Cascale CEO. 'Brands increasingly prefer suppliers who meet robust sustainability standards. Manufacturers investing in sustainability today will secure long-term brand partnerships tomorrow.' 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's Higg FEM Reveals Opportunities for Low-Carbon Transition in Vietnam
AMSTERDAM, HONG KONG AND OAKLAND, CA / / April 17, 2025 / Cascale Industry Decarbonization Roadmap (IDR) could help deliver on sustainability goals as consumer goods manufacturing continues to drive GDP growth, projected at 6.5% in 2025. Issued today, the "Vietnam Country Report: Macroeconomic, Socioeconomic, and Industry Analysis" report, developed by Cascale with support from the Apparel Impact Institute (Aii), highlights the evolving macroeconomic landscape, sustainability challenges facing apparel and footwear manufacturing, and the rapid expansion of the consumer goods market in Vietnam. A strong economic outlook coupled with bold sustainability initiatives reveals a country poised to play a crucial role in global decarbonization efforts, even as tariffs threaten to put 5.5% of Vietnam's GDP at risk and raise prices for American consumers (New York Times, April 6). Tariffs and other key topics impacting Vietnam will be on the agenda at the Cascale Forum: Ho Chi Minh City on May 14-15, as Cascale members and non-members alike - including manufacturers, leading brands, service providers, and supply chain partners - come together for an immersive event to address urgent sustainability challenges and opportunities. The report includes critical analysis of data from Cascale's Higg Facility Environment Module (FEM) tool, exclusively available on Worldly. It is the first in a series of actionable reports filtering Higg FEM insights through a regional lens. In 2023, over 1,200 verified Higg FEM submissions showed coal exacerbates carbon emissions in the region: 12% of apparel and footwear facilities use coal for energy, while 94% rely on electricity purchased from Vietnam's coal-dependent grid. Although renewable energy accounts for less than 2% of the sector's energy use, the analysis underscores opportunities for transformation to a low-carbon economy, including through the Industry Decarbonization Roadmap (IDR) developed by Cascale and Aii. The report shows Vietnam can couple growth with sustainable manufacturing. Vietnam's economy is expected to grow by 6.5% in 2025, outpacing regional peers. The manufacturing sector continues to be a key driver, contributing 23.88% to GDP in 2023. Additionally, Foreign Direct Investment (FDI) remains robust, reaching US$31.4 billion in the first 11 months of 2024, signaling investor confidence in Vietnam's economic resilience. Employing around three million workers and generating an estimated US$71 billion in export revenues for 2024, the apparel and footwear sector is a vital component of Vietnam's economy but faces significant sustainability challenges, including high energy consumption and carbon emissions. With commitments in place for a 65-70% increase in renewable energy by 2045 - reducing greenhouse gas emissions by a projected 70-80% - Vietnam is committed to supply chain decarbonization, in line with the IDR. The report brings Cascale and Aii's IDR into focus as a potential solution. By uniting manufacturers, brands, retailers, and stakeholders around shared goals, the IDR emphasizes collective accountability and pre-competitive collaboration to accelerate systemic change across the supply chain. With a science-based target of reducing supply chain emissions by 45% by 2030, the IDR drives measurable progress through various interventions, solutions, and programs. The IDR ensures resources are targeted, so low-carbon sourcing and other benefits can be realized. This means prioritizing action in the 10% of facilities across the textile and apparel supply chain - including some in Vietnam - that account for over 80% of global manufacturing emissions. By aligning with these initiatives, facilities in Vietnam can play a pivotal role in the global transition to a low-carbon economy. "This isn't merely about compliance-it's about long-term competitiveness," said Colin Browne, Cascale CEO. "Brands increasingly prefer suppliers who meet robust sustainability standards. Manufacturers investing in sustainability today will secure long-term brand partnerships tomorrow." 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 View additional multimedia and more ESG storytelling from Cascale on Contact Info:Spokesperson: CascaleWebsite: info@ SOURCE: Cascale View the original press release on ACCESS Newswire Sign in to access your portfolio
