Cascale's report titled ‘State of the Industry 2026: Decarbonization Progress in the Apparel, Footwear & Textiles Industry’, uses verified facility data from 2023 and 2024 collected through the Higg Facility Environmental Module (Higg FEM).
The analysis focuses on Tier 1 finished product manufacturing and Tier 2 material manufacturing.
Cascale introduced the Effective Energy Carbon Intensity (EECI) metric to evaluate how efficiently the sector reduces energy-related emissions, which remain the primary source of Scope 1 and 2 emissions.
Key findings from the report
- Overall improvements in EECI are minimal and remain significantly below what is needed to satisfy global climate requirements.
- Coal remains a central challenge, accounting for 31% of total sector energy consumption with no change over the past year. In Tier 2 manufacturing, coal represents the largest fuel source at 40% of the energy mix globally.
- The adoption of renewable energy within the industry remains limited and unchanged between 2023 and 2024, constituting only 2% of total consumption despite increased reporting of renewable use by facilities.
- Relatively small number of large, energy-intensive facilities produce a disproportionate share of emissions, suggesting that focused interventions may achieve greater reductions than broad, uniform strategies. Cascale urges brands and suppliers to join its Manufacturer Climate Action Program, which helps manufacturers measure emissions and set reduction targets.
The findings are consistent with global assessments, such as the United Nations Environment Programme’s recent analysis, which states current policies are not enough to keep warming below 1.5°C.
Cascale advises against shifting production based solely on national averages and instead calls for sustained collaboration with manufacturers, especially those operating in Tier 2.
Cascale Higg Index senior vice president Jeremy Lardeau said: “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.”
