Fashion's Decarbonization Challenge: The Low-Hanging Fruit Is Gone
The fashion industry's initial phase of climate action, focused on readily achievable goals, has largely concluded. The path forward now demands significant investment and a strategic shift towards tackling complex, systemic challenges, according to a new industry report.
"We've tackled a lot of the low-hanging fruit," said Joel Mertens, director of Higg Product Tools at the multi-stakeholder organization Cascale. "We're now at an inflection point where driving meaningful environmental progress requires substantial and targeted investment."
The latest data paints a sobering picture. Despite public commitments, the apparel, footwear, and textile sector remains dangerously off-course from the carbon reduction trajectory needed to limit global warming to 1.5°C. A key obstacle? The industry's entrenched reliance on coal. Data from seven major production countries shows that from 2023 to 2024, coal consumption in manufacturing remained stubbornly unchanged, accounting for 40% of total energy use in textile processing (Tier 2) facilities. While renewable energy adoption is growing, it still constitutes less than 4% of the total energy mix across supply chains.
Analysis: This stagnation occurs even as broader energy trends show promise, such as recent dips in coal power generation in China and India. The disconnect highlights fashion's unique challenge: its emissions are heavily concentrated. Data from the Higg Facility Environmental Module indicates that roughly 1,500 facilities across nine countries are responsible for 80% of the sector's carbon emissions, primarily from energy-intensive processes like dyeing and laundering.
"This concentration represents a critical opportunity," Mertens noted. "The industry can focus its decarbonization efforts on a smaller number of high-impact facilities rather than spreading resources too thinly."
To clarify this landscape, Cascale introduced a new metric: Effective Energy Carbon Intensity (EECI). It measures carbon emissions against energy inputs, weighting electric and thermal energy to provide a clearer picture of a facility's or region's decarbonization status—from "almost fully dependent on high-carbon fossil fuels" to "energy is almost fully decarbonized."
However, Mertens cautions against using the data for simplistic sourcing decisions. "It shouldn't be like, 'This country has a lot of coal, so I'm not going to work with them,'" he said. The report reveals high variance between individual facilities within the same country, suggesting that progress depends on targeted, factory-level engagement rather than broad geographic exclusion.
The call is for pre-competitive, collective action. Cascale's Manufacturer Climate Action Program (MCAP), an 18-month initiative, is one pathway, helping participants set science-aligned targets for Scope 1 and 2 emissions. True progress, Mertens argues, requires moving beyond passing responsibility. "The manufacturer can say it's the brand's problem. The brand can say it's the government's problem. We need a framework that brings the entire supply chain together."
This means engaging deeper-tier suppliers and scrutinizing purchased energy, like steam, to ensure emissions aren't merely being shifted outside factory walls. There are no perfect solutions—biomass has downsides, and the context for switching from coal to gas or electric varies—but evolving long-term supplier partnerships is key to enabling confident investments.
"Uncertainty leads to hesitation," Mertens concluded, acknowledging geopolitical and trade volatility. "But it doesn't mean we should stop trying. The era of easy progress is over; the era of deliberate, collaborative investment must begin."
Reader Reactions:
"Finally, a report that moves beyond vague sustainability marketing. Pinpointing the 1,500 highest-emitting facilities is the kind of actionable data we need. This is where consortiums of major brands should pool resources for retrofits and renewable energy contracts." — Arjun Patel, Supply Chain Consultant
"More metrics, more reports, more talk. Where's the enforcement? The data shows coal use hasn't budged! Brands are still chasing the cheapest stitch, and suppliers won't invest without guaranteed orders. This is a collective failure of will, not strategy." — Simone Rossi, Environmental Campaigner (Fashion)
"The EECI metric is a pragmatic tool. It helps buyers have more informed conversations with specific facilities rather than writing off entire regions. Real change happens on the factory floor, not in boardroom pledges." — Maya Chen, Sourcing Director
"The focus on thermal energy for wet processing is critical. Electrification of heat is a massive technical and financial hurdle. This underscores the need for policy support and green financing mechanisms tailored for industrial decarbonization, not just power grids." — David Finch, Industrial Energy Analyst