According to the latest analysis from Cascale, decarbonization efforts in the apparel, footwear, and textiles industry are progressing at a sluggish pace, failing to align with international climate targets.
Cascale has published a new report titled “State of the Industry 2026: Decarbonization Progress in the Apparel, Footwear & Textiles Industry,” which utilizes verified data from 2023 and 2024 gathered through the Higg Facility Environmental Module (Higg FEM).
This analysis centers on Tier 1 finished product manufacturing and Tier 2 material production.
A significant addition is the implementation of the Effective Energy Carbon Intensity (EECI) metric to evaluate the sector’s efficiency in reducing energy-related emissions, which remain the primary contributors to Scope 1 and Scope 2 emissions.
Key Findings from the Report
The overall progress in enhancing EECI remains minimal and is far short of what is necessary to meet global climate objectives.
Coal continues to be a primary challenge, making up 31% of the sector’s total energy consumption without any change from the previous year. In Tier 2 manufacturing, coal represents the largest share, accounting for 40% of the global energy mix.
The adoption of renewable energy within the industry has remained stagnant, sticking at a mere 2% of total energy consumption between 2023 and 2024, despite increased reports from facilities about using renewable energy.
A relatively small number of large, energy-intensive facilities are responsible for a disproportionate share of emissions. This suggests that targeted interventions may be more effective than broad, generalized strategies. Cascale urges brands and suppliers to engage in its Manufacturer Climate Action Program, which assists manufacturers in measuring emissions and setting reduction targets.
These findings align with global reports, including a recent analysis by the United Nations Environment Programme, which emphasizes that current policies are inadequate to limit global warming to below 1.5°C.
Cascale suggests avoiding production shifts solely based on national averages, advocating instead for sustained collaboration with manufacturers, particularly in Tier 2.
Jeremy Lardeau, Senior Vice President of the Cascale Higg Index, remarked, “This report makes clear that there are no shortcuts to decarbonisation. Real progress depends on true value chain collaboration, not sourcing shifts by the brands. The level of investment required to achieve the deep decarbonisation 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.”