AMSTERDAM and HONG KONG and OAKLAND, Calif., January 28, 2026 /3BL/ – Cascale today released the State of the Industry 2026: Decarbonization Progress in the Apparel, Footwear & Textiles Industry report, finding the sector is not decarbonizing at the pace or scale required to meet global climate targets. The report analyzes verified 2023 and 2024 energy data from the Higg Facility Environmental Module (Higg FEM), with a focus on Tier 1 finished product manufacturing and Tier 2 material manufacturing. Using Cascale’s new Effective Energy Carbon Intensity (EECI) metric, the analysis assesses how effectively the industry is decarbonizing energy use, which remains the dominant source of Scope 1 and 2 emissions.
“This report makes clear that there are no shortcuts to decarbonization,” said Jeremy Lardeau, Senior Vice President, Higg Index at Cascale. “Real progress depends on true value chain collaboration, not sourcing shifts by the brands. The level of investment required to achieve the deep decarbonization 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.”
Key Findings
- Overall decarbonization progress remains slow. Verified facility data shows only marginal improvement in EECI performance over time, far below what is required to meet climate targets.
- Coal use remains a critical barrier to progress. Coal accounts for 31 percent of total industry energy consumption, remaining unchanged year-over-year. In Tier 2, coal represents the largest fuel source, accounting for 40 percent of the global energy mix.
- Renewable energy adoption remains limited and flat. Renewables account for only two percent of total industry energy consumption, unchanged between 2023 and 2024, despite more facilities reporting some renewable energy use.
- Emissions are highly concentrated. A relatively small number of large, energy-intensive facilities drive a disproportionate share of emissions, indicating that targeted interventions could accelerate progress more effectively than uniform approaches. Cascale encourages brands and suppliers to engage with the Manufacturer Climate Action Program (MCAP), providing manufacturers with a structured pathway to measure emissions, set science-aligned targets (SATs), and implement reductions.
The findings align with broader global assessments, including recent analysis from the United Nations Environment Programme, which underscores that current policies remain insufficient to limit warming to 1.5°C.
Cascale’s report cautions against relocating production based on country averages and emphasizes long-term, collaborative engagement with manufacturers, particularly in Tier 2; to achieve this, supply chain engagement is essential. On March 4 , Cascale will host a member-only webinar that includes a deep dive into the report and a discussion on how EECI can be used by organizations to analyze their supply chains; Cascale members can register here.
Cascale will publish this State of the Industry report annually to track progress and support collective action. The organization will continue expanding access to data and analytics for members and advancing programs such as the Manufacturer Climate Action Program to support science-aligned targets and measurable emissions reductions.
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.
