Energy and carbon benchmark aims to guide apparel suppliers toward lower emissions
The fashion industry is under growing pressure to measure and reduce its environmental impact. A new Energy and Carbon Benchmark developed by Apparel Impact Institute (AII) seeks to address a long-standing challenge in the sector, how to clearly measure energy efficiency and carbon performance across textile and apparel manufacturing.
The benchmarking tool offers suppliers a structured way to evaluate their energy use and emissions at the process level. By providing clearer metrics, the system is designed to help factories understand where they stand and identify opportunities to improve efficiency and lower carbon emissions.
The launch comes at a time when emissions from the apparel sector are moving in the wrong direction. According to Aii’s 2025 industry update, emissions linked to fashion production rose nearly 8 percent in 2023 compared with the previous year. The sector now accounts for close to 2 percent of global greenhouse gas emissions.
For Aii, the rise highlights the need for stronger coordination across the value chain. Many existing climate initiatives focus on brand-level targets, while much of the industry’s emissions occur at the manufacturing stage. The benchmark aims to bridge that gap by focusing directly on supplier performance.
Measuring energy use at the factory level
The Energy and Carbon Benchmark allows detailed analysis of energy consumption within textile and apparel factories. Facilities can calculate performance across specific production processes, whether they handle a single operation such as dyeing or manage multiple activities including spinning, weaving, knitting, and finishing.
This process-level view helps distinguish between factories with different production setups. Energy intensity can vary significantly depending on materials, machinery, and energy sources. The tool accounts for these differences by generating tailored benchmark figures based on factors such as fuel type, product category, and manufacturing process.
Factories using the system can track their overall energy consumption and emissions profiles. The benchmark also allows performance monitoring at the department level, giving manufacturers insight into which parts of their operations consume the most energy.
Over time, the data enables facilities to compare their results with industry averages and with factories in other regions. The goal is to help manufacturers identify practical steps to improve efficiency and reduce emissions.
A tool for suppliers and brands
Industry participants say the benchmark can help suppliers understand their progress and communicate performance to brand partners.
Jimmy Summers, vice-president of environment, health, safety and sustainability at Elevate Textiles, said the system gives manufacturers a clearer view of their sustainability progress.
“This benchmarking tool helps suppliers to objectively determine where they are in their sustainability journey,” Summers said. “That can support cost-effective improvements that lead to better energy solutions, higher efficiency and lower emissions.”
Summers added that clearer reporting of supplier performance can help brands recognise the central role manufacturers play in achieving industry climate targets.
“By communicating supplier performance to brands, AII’s tool will help the industry further recognise the importance of suppliers in apparel’s net-zero journey,” he said.
The benchmark also encourages brands to invest more directly in decarbonisation at the supplier level. Many brands have climate commitments that depend heavily on improvements within their supply chains. Reliable and comparable data can make it easier to direct investments where they will have the most impact.
Industry collaboration during pilot phase
Several major apparel brands participated in the pilot stage of the benchmark in late 2025. These included H&M Group, Inditex, American Eagle Outfitters, Gap Inc., Target Corporation, J.Crew Group, and PVH Corp..
Manufacturers also joined the testing phase, including Elevate and KPI Mills. Their involvement helped ensure that the methodology reflects real operating conditions in textile factories.
Henrik Sundberg, climate impact lead at H&M Group, said the lack of clear efficiency standards has long slowed decarbonisation efforts in fashion manufacturing.
“When it comes to industry decarbonisation, fashion historically hasn’t been able to clearly define what good energy efficiency looks like,” Sundberg said. “AII’s benchmark establishes those baselines using data collected from the sector.”
He noted that shared benchmarks can help brands and suppliers work toward the same goals with greater transparency.
Ana Maceiras, head of value chain sustainability at Inditex, highlighted the value of detailed process-level data.
“By establishing highly granular benchmarks, this tool gives factories a transparent way to measure performance based on their production reality,” she said. “It creates a common reference framework that supports consistent decisions across the value chain.”
Building on existing industry data
The benchmark draws on verified energy performance data already used within the textile and apparel sector. Sources include the Sustainable Apparel Coalition’s Higg Index, which many brands and suppliers use to measure environmental performance.
AII developed the methodology through collaboration with manufacturers, technical experts, and industry partners. This open development process was intended to ensure the benchmark reflects the diversity of textile production systems across regions.
Kurt Kipka, chief impact officer at Apparel Impact Institute, said the aim is to make energy tracking both practical and accessible.
“This methodology provides a structured and quantitative way for the fashion industry to assess energy use and carbon reduction opportunities,” Kipka said.
He added that the institute hopes widespread adoption will encourage suppliers of all sizes to measure and report their carbon performance.
The broader objective is simple. Clear measurement can support better decisions across the supply chain. As brands, manufacturers, and investors push for lower emissions, tools like the Energy and Carbon Benchmark may help translate climate targets into practical changes on the factory floor.
