Blah blah briefing of the

textile and apparel sector

How the sector can meet its climate goals

Nov 2021

Briefingpurpose

This briefing document aims to make the

solutions for climate change real.

Often action related to climate change tends

to get diffused. That is especially true of the

textile an apparel sector, whose value chain

employs 100s of millions of people in almost

every country in the globe.

This briefing note provides a framework to

analyzes the entire production and brings

granularity on the key levers to move.

This document has been produced by the

Sustainable Industries practice at cKinetics.

About the title

The title of this document was inspired by Greta

Thunberg’s address at the Youth4Climate in Sep

2021. Her message was that that there has been

lots of talk (blah blah blah) and little action.

This briefing document is based on the analysis

of commitments (talk) of several hundred

players in the textile and apparel sector. And

tracks the impact, assuming they get converted

to action

Almost1/10

ofman

madeemissions

The textile and apparel sector touches every aspect of our

daily lives. Their production and sale, generates 2.5 billion

tons of greenhouse gas emissions annually.

The sector’s emissions are increasing in absolute terms; as

well as a percentage of global emissions. It represents 7.25%

of total man-made emissions presently and is expected to

reach 9.5% by 2030.

The increasing use of polyester is perhaps the single biggest

factor. This briefing will touch upon other drivers as well.

Summary

2465

Million

tons of

greenhouse

gases

Million

Tons of fiber

converted to

products

7.25

Percent

of mankind’s

annual GHG

emissions

641

3.1

Percent

annualized

consumer

demand growth

395

Million

People

employed by

the sector

Webof

impactof

textileand

apparel

sector

Million

tons influenced

by 165

companies

165companiesinfluence

24%oftheemissions

cKinetics conducted a study to analyze and trace the

emissions of the sector. 165 companies across the globe and

across the production value-chain (from fiber all the way to

product) generate and influence 608 million tons (or about

24% of the sector emissions).

56companiesplanning

emissionsreduction

Many of the companies have set goals and shared details on

them. All this has happened within the last 3 years. It is likely

that this trajectory will continue, especially after factoring in

various national climate pledges.

Tracking action over the next few years will be critical.

Percent

of large companies

that have emission

reduction goals

Howtovisualizeis1billion

tons?

All people on earth weigh 0.5 billion tons

Global plastic consumption is 1 billion tons

Global annual consumption of meat is 0.3 billion tons

Global annual fiber that we convert into products is 0.1

billion tons

These are the emissions generated in the making

of textile and apparel products that we consume

Whatkindofproducts

generateemissions?

Our daily lives are intertwined with textile and apparel

products. From the moment we wake to the time we go to

bed, we use them all the time.

Just consider some examples: the bed we have slept on

(sheets, pillows, mattresses), the towels we have used, the

clothes we adorn ourselves, the seats of the vehicle we use

to commute, napkins we use at our meals, etc.

We also see textiles in packaging (container bags),

agriculture (mats, crop-covers, nets), building construction,

hospitals (masks, gowns, gauzes), etc.

Emissions are generated in the manufacturing process that

covers:

1. Making (or growing) the fiber

2. Converting the fiber into yarn

3. Converting the yarn into fabric

4. Shaping the fabric into the final product

2.465

billiontonsofCO2e

peryear

395

Millionpeopleemployed

acrosstheglobe

Economicimpactishighest

inemergingcountries

The sector also tends to be a large component of the GDP in

several emerging markets.

In many cases, it tends to be the dominant manufacturing

sector- providing higher income opportunities than those

otherwise available.

Textile and Clothing (% of manufacturing sector)

The sector also creates lots of employment and

generates significant economic impact

Employmentacrossa

varietyofvocations

The textile and apparel sector has a long value chain that

touches a variety of different vocations. In many countries it

tends to be one of the larger employers.

And in sub-segments like cut-sew the employment is

dominated by women.

Estimated global employment (in millions)

Farmers and fiber preparation 300

Industrial workers (chemicals,

mills, man made fiber, etc)

Cut-sew-make (textile and

apparel)

Store workers (whose work

cannot be attributed to the

textile and apparel sector alone)

100

Cambodia 87%

Bangladesh 51%

Sri Lanka 32%

Pakistan 29%

Honduras 22%

Vietnam 16%

Guatemala 11%

Source:UNFashioncharter,ILO,Fairtrade,NationalRetailFederation Source:WorldBank.UnitedNationsIndustrialDevelopment

Organization,InternationalYearbookofIndustrialStatistics.

Billions

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

40 20%

18%

16%

14%

12%

10%

Global Emissions Textile sector Emissions Textile sector contribution

Global GHG emissions level increased by 26 % in

the last decade whereas the GHG emissions level

due to textile sector increase by 42% in the last

decade.

In the upcoming ‘decisive’ decade of the climate

change fight, the global emissions are expected to

increase by 5% while the emissions due to textile

sector are expected to increase by 30% during the

same time period.

Textile and Apparel sector contributed to 5.23% of

total global GHG emissions in 2010 which increased

to 7.25% in 2020. The share of textile sector

emissions is expected to reach 9.5% in global GHG

emissions by 2030 (this factors the known emission

reduction plans).

Emissions as a percentage of global emissions is

increasing; expected to grow further from 7.2% to 9.5%

9.5%

ofglobalemissionswillbe

fromthissector

Projected

Source:GlobalEmissionstill2020fromEPA,TextileandApparelsectordatafromcKineticscomMITdatabase,cKinetics

projections

Global GHG Emissions and Textile Sector Emissions

Our demand for textile and apparel products

continues unabated.

To feed that demand, global fiber production

increased 40% in the last decade whereas the

production of polyester increased by 60% at the

same time. Polyester has emerged as the most

preferred fiber because of its low price, versatility,

physical propertied and recyclability.

Global fiber production is expected to increase by

28% (from 2020 levels) by the end of this decade

while the polyester production in expected to

increase by 41% (from 2020 levels) by 2030.

The production of polyester caused 710 million

tons of GHG emissions which was 24% of the total

emissions due to textile sector in 2020.

Increasing consumer demand and increased use of

polyester are key reasons for the growth in emissions

3.1%

Annualizedhistorical

growthrateofdemand

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

100

120

140

160

Silk Down Wool Sheep Cotton MMCF Other synthetics Polyamide Polyester

Global Production of Fibers (Million Tons)

Source:TextileExchange.(2020).PreferredFiberandMaterialMarketReport2020

Almost all the sector’s production emissions are in

upstream manufacturing process

92%

oftheemissionscomefrom

upstreamprocesses

Polyester

Cotton

Otherfibers

MMCF

Fiber

Fabric

Production

YarnConversion

CutSew

Emissions

(Million

tons CO2e)

Percentage

Polyester Production 710

28.4%

Cotton Production 236

9. 5%

MMCF Production 39

1. 6%

Other Fiber Production 187

7.5%

Yarn Conversion 510

22.0%

Fabric Production 633

25.3%

Cut Sew 79

3.2%

Apparel brands logistics and selling 34

1.4%

Other textiles logistics and selling 32

1.3%

2.5 Billion

TonsofCO

Eq

cKinetics estimates for the different

manufacturing process are based

on a study conducted in 2021

The team estimated the quantity of

material as they go through the

different processes: constructing a

mass-flow.

Subsequently, the most recent

emission factors were applied for

each process. These factors were

determined by studying the

emissions of ‘pure-play’ firms in

that space.

Emissions for different processes

CutSewMake

Apparelbrands

Othertextiles

Source:cKineticsresearch,cKineticscomMITdatabase

While the sector may seem large, 165 organizations

influence most of the emissions

2.5 Billion

TonsofCO

Eq

165

Companiescontrol24%of

theemissions

Traced

Untraced

Polyester

Cotton

Other fibers

Untraced

Fiber

Untraced Traced emissions

cKinetics analyzed the sources of

emissions of each of the production

processes, by identifying key firms

and researching their emissions.

Key firms are those that are a

significant in the process – from a

production volume standpoint and/

or from their influence on the

emissions in that stage.

The 165 companies identified span

the globe and are listed at the end

of this briefing.

CutSewMake

Apparelbrands

Othertextiles

Process Key firms Emissions

(Million tons of

eq )

% process

emissions

traced

Polyester Production 19 484.5 68.2 %

MMCF Production 7 23.6 68.5 %

Cotton Production 12 42.6 18.1 %

Yarn Conversion 32 35.5 6.5 %

Fabric Production 66 23.8 3.8 %

Textile/ Apparel

Brand and Retailers –

logistics and selling

29 7.1 11.9 %

Emissions that were traced

Source:cKineticsresearch,cKineticscomMITdatabase

One third of the key players across the value chain have

made commitments to reduce emissions

of165organizationshave

emissionreductionplans

Number of key

firms with targets

Polyester Production 2

MMCF Production 6

Cotton Production 6

Yarn Conversion 2

Fabric Production 12

Brands and Retailers 28

Brands All major brands and retailers

Yarn Toray Industries, Aditya Birla yarn

Cotton Olam and Glencore agriculture

MMCF

Birla Cellulose, Zalando SE,

Eastman Chemical, Kelheim Fibers,

Lenzing and Sateri Holdings

Polyester

Reliance Industries and SiNopec

Yizheng Chemical Fiber

SBTI, 29

Others,

Target

Absolute,

Both, 15

Iintensity,

Other, 5

No Target

Target

Over the last few years, many

organizations have committed to

emission reduction goals. The textile and

apparel sector is no exception.

Science Based Target Initiative (SBTi) is

the most commonly adopted framework

for goal setting.

In addition many organizations have

communicated emission reduction goals

in their annual plans and sustainability

reports (classified as others in the chart).

These are part of their communication/

commitments to investors or to meet

their respective national mandates.

Framework for goal setting Types of goals set

The key organizations have set a mix of

goals to reduce emissions. Absolute goals

are those where the organization

commits to reduce a fixed amount of

emissions. Intensity based goals are

where the emission reductions are linked

to either production or revenue. Some

organizations have both absolute and

emission goals.

56 have emission targets by 2030

30 out of the 56 have net-zero

goals by 2050

Even if all current emission reduction commitments are

met, overall sector emissions are expected to grow

40%

emissionreductions

neededby2030isunlikely

basedonpresenttrajectory

Emissions if the key orgs met their reduction goals

641

Thekeyplayersrepresent

astartingpoint

It is likely that more of the key players (beyond the 56) will

set emission reduction goals in the coming years. The harder

task will be in implementing those plans.

However, even if the existing plans known are met, the

emissions of the key players will fall from 641 million tons of

CO2eq to 580 over this decade: a drop of 9.6%. This factors

the growth of production anticipated in the same time

frame.

Willthisbecomeahard-to-

abatesector?

40% greenhouse reduction by 2030 (from 2020 levels) is

what is needed at a global level to meet climate goals.

The trajectory of the textile and apparel sector is such that

emissions could grow from 2.5 billion tons CO2e (current) to

3.1 billion tons CO2e by 2030. Rather than contribute to a

decrease in emissions, this sector is likely to increase.

The reduction initiated by the key players will have to be

followed by changes throughout the sector. This decade is

crucial.

Emissions in 2019

(Million T CO2 eq)

Emissions in 2030

(Million T CO2 eq)

580

But, there are also some tailwinds that could accelerate

decarbonization of the sector

Levers,thatleadersinthe

sectorscantakeadvantage

ofinthenearterm

Nationalmandates

emerging

Several jurisdiction are framing pathways for

emissions reductions into law:

• 17 countries have incorporated net-zero

goals into law

• 27 countries have made pledges and 5

have policy development underway

These can drive / accelerate manufacturer

investment plans to adopt clean technologies.

Emergingconsumer

awareness

Consumers have been slow to engage.

However, increasingly surveys are showing

that Gen Z (1997-2012) especially in North

America and Europe are growing up believing

Climate Change to be an existential threat.

It remains to be seen how that translates into

purchase decisions as they come into their

earning years.

Greeningelectricity

grid-30%impact

Many countries across the globe are aiming

for a zero emission grid by the mid-century.

As electricity gets decarbonized so will yarn

conversion and parts of fabric production

(about 30% of the sector’s emissions).

If electricity becomes green and inexpensive,

it could also pave the way for large scale heat

-pump adoption in fabric production.

Reducingimpactof

fibers

Preferred fibers are gaining traction: from

recycled polyester to better cotton. Recycled

materials are becoming more available.

Additionally, key polyester and MMCF

manufacturers are making plans to go carbon

neutral.

Fiber choices will be crucial in determining

the pathway for the sector.

Alternatefuelsin

selectregions

Half the energy consumed in fabric

production is thermal energy. Presently that

is a significant source of emissions as fossil

fuels are used.

In select regions there is a move towards

cleaner bio-based fuels: renewable natural

gas, biomass, etc.

Carbonmarketsand

climatefinance

The last few years have seen:

• Investors adopting ESG principles,

requiring their investments to address

climate issues

• Emergence of ‘green’ lines of capital

seeking to invest in green projects.

• Carbon markets are re-emerging, that

form potential revenue streams for

alternate fuels/ green tech

Methodology

Methodology and Data sets used

Mass-flowtraced

acrossthesector

The research supporting this briefing is based on

developing (and tracing) the mass flow from the

time a fiber is produced to the time a product is

manufactured.

There were two components that were

reconciled:

1. Top-down view on the ‘expected mass’ that

ought to be there in the different production

processes. The starting point here is the fiber

produced annually and projecting it across the

various processes.

2. A bottom-up view to trace the ‘actual mass’

based on tabulating the production and capacity

of the manufacturing facilities / companies.

This provided a granular view on details like

location, production efficiency and latest

emission factor.

Using #1 and #2, a mass-balance was constructed

for the different processes and for the overall

textile and apparel ecosystem. This helped

determine areas where there was sufficient

information to make informed projections (high

confidence); and areas where the estimations in

the projections have higher variance (lower

confidence). Overall, the analysis presented in

this briefing note, takes the data points where

confidence on accuracy is high.

Datasourcesand

extrapolations

The following core data-sets have been used:

1. Company public disclosures – annual reports,

sustainability reports, press releases

2. Fiber data- from Textile Exchange, UN

Comtrade Database, Regional Export Promotion

Councils

3. Commitments presented on SBTi and reduction

plans from CDP

4. Emission factors from the cKinetics comMIT

database

Determining current emissions of companies

Where companies provided the information on

emissions, that was used directly.

In cases, where the textile/ apparel sector

operations were part of a larger conglomerate or

where information was not disclosed, the

emissions were estimated by using either the

production or revenue; and applying the relevant

emission factor for the process.

Estimating future emissions (by 2030 and 2050)

Where companies have stated goals for 2030

and/or 2050 emissions, those were used directly.

Where companies had goals for 2025 or beyond,

those goals were extrapolated.

In both case, the production was assumed to

increase at the industry growth rate.

Companyprofiles

developed

In addition to looking at the goals, the emission

reduction plans for each of the companies were

enumerated.

This helped establish confidence on goals at a

company level. That was done by comparing the

reduction plans with:

1. the best-available-techniques in the process/

industry

2. the peer group within that industry to

understand further scope that may exist in a

company or in a sector

Presently work is under-way to compile this

analysis and make it available to clients. It will be

provided as part of cKinetics’ comMIT database.

Organizations

Key organizations analyzed and profiled

Textile/ Apparel Retailers and

Brands

Adidas

ASICSCorporation

AuchanHolding

BurberryLimited

Decathlon

FASTRETAILING

GapInc.

Guess,Inc.

H&MHennes&MauritzAB

IKEA

Inditex

Kering

LeviStrauss&

LojasRennerS.A.

lululemon

LVMH

Marks&Spencer

NIKE,Inc.

PUMASE

PVHCorp.

TargetCorporation

TJMaxx(TJXcompanies)

VFCorporation

Walmart

Cotton sourcing

ADMCotton

Bunge

Cargill

CofcoIntl

Ecomtrading

GlencoreAgriculture

LouisDreyfus

NamoiCotton

Olam

Omnicotton

MMCF production

BirlaCellulose

CelaneseCorporation

DaicelCorporation

EastmanChemicalCompany

FormosaChemicals&Fiber

IndoramaVentures

KelheimFibresGmbH

LenzingAG

SateriHoldingsLimited

ShandongYamei

SilverHawk

TangshanSanyou

XinjiangZhongtaiTextileLtd

YibinGrace

Polyester Production

Alpek

AsiaPacificfibers

BillionIndustrial

BombayDyeing

FarEasternNewCentury

FujianJinlun

HengliGroup

Huvis

JiangsuSanfangxiangGroup

LealeaGroup

MitsuiChemicals

NanYa

NingboDafa

Reliance

RongshengPetroChemical

SiNopecYizhengChemical

Fibre

TongkunGroup

TorayIndustries

WilliamBarnet&Son(Limited

Liabilitycompany)

XinFengMingGroup

ZhejiangGuXianDaoIndustrial

Fiber

ZhejiangHengyiGroup

Material Conversion

AdityaBirlaYarn

AdvanceDenimLimited

AksaAkrilikKimyaSanayiiA.S.

AlokIndustriesLimited

AmberTextileMills

AnhuiAnliMaterial

TechNology

ArtisticGroup

ArvindLtd

AsahiKaseiCorporation

BestPacificTextile

BeyteksTekstil

BillionRiseKnitting

BlackPeony

BondexInt'L

BrimadonaIndustrialCoLtd

BrosTextile

CalikDenimTekstilSanayiVe

Ticaret

ChiaoHwaIndustry

Color&TouchCo

CrescentTextileMills

DeLicacyIndustrialCo

DollarIndustries

EagleNice(International)

Holdings

EclatTextileCo

ErdemTekstil

EsquelEnterprisesLtd

EverestTextile

FareastCorp

Feroze1888MillsLimited

FormosaTaffetaCo

FountainSet(Holdings)

Limited

FountainSetLimited

FulltechFiberGlassCorp.

GadoonTextiles

GarwareTechnicalFibres

Limited

GratefulTextileCo

HWearTextiles

HimatsingkaSeideLimited.

HongdaHigh-TechHolding,

Huafufashion

HuafuGroup

HyosungCorporation

IbrahimFibresLimited

IlshinSpinning

IndahJayaTextile

IndoCountIndustriesLimited

Interloop

IsraqSpinningMills

JiangsuGuotaiInternational

GroupHualianIndustry

JiangsuLianfaImp&Exp

JiangsuLianfaTextile

JiangsuLugangCulture

JindalWorldwideLimited

Jungwoovina

KamHingInternational

Holdings

KamaHoldingsLimited

KewalKiranClothingLimited

KingdomHoldingsLimited

KOLONMATERIALS

KPRMills

LanFaTextile

Li-ChengEnterprise

LuThaiTextile

M.L.Dyeing

MahmoodTextileMills

MarzottoSpA(Italy)

MenderesTekstilSanayive

TicaretANonimSirketi

NewWide(Hk)Int'LCo

NiceDyeingFactory

NienHsingTextile

NishatMills

NomanTextilesMillsLtd

OrtaAnadoluTicaretVe

SanayiIsletmesiT.A.S.

P.TKahatex

PacificTextilesHoldings

Limited

PageIndustriesLimited

ParamountTextile

PFNonwovensa.s.

PTPolychemIndonesiaTbk

PTTificoFiberIndonesia

PtWinTextile

RaymondLimited

RecronMalaysiaSdnBhd

ReginaMiracleInternational

Riopele

Rupa&

SOneTextile

SaebanTextileCo

SankoPazarlamaIthalat

IhracatANonimSirketi

SankoTextile

SapphireTextileMills

SewangTextileCo

ShanghaiTiqiaoTextile

SnsFashion

SoenmezPamukluSanayii

ANonimSirketi

SportkingIndia

SquareTextiles

SritexIndonesia

TaihanTextile

TainanSpinning

TaiwanPaiho

TatFungTextileCo

TexhongTextileGroup

Tex-RayIndustrial

TexwincaHoldingsLimited

ThaiPolyesterCompany

Limited

ThaiWacoalPublic

TopSportsTextileLimited

TridentGroup

UniversalIncorporation

VakkoTekstilveHazirGiyim

SanayiIsletmeleriA.S.

VardhamanTextiles

VishalFabrics

WeiqiaoTextileCompany

Limited

Welspun

Winnitex

XingyeLeatherTechNology

XinlongHolding(Group)

YakjinIntertex

YoungTextile

ZheJiangJasanHoldingGroup

ZhejiangSaintyearTextile

ZhejiangTaihuaNewMaterial

ZhejiangXinaoTextilesInc

ZigShengInd

Contact

To learn more about the study or the analysis, contact:

Pawan Mehra, Managing Director

Rekha Rawat, Director, Sustainable Industries

Projects+SBT@cKinetics.com

www.cKinetics.com

Cupertino, California, USA

New Delhi, India