Press Releases / New Report Finds Apparel Decarbonization Progress Off-Track

New Report Finds Apparel Decarbonization Progress Off-Track

Decarbonization
Higg FEM
Higg Index Tools

Cascale’s State of the Industry 2026 report shares new analysis of verified facility data, shows emissions rising as coal dependence and limited renewable energy adoption slow progress.

January 28, 2026

Amsterdam, Hong Kong, Oakland (CA) – January 28, 2026: 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 on Cascale Connect.

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.

Download the Report

Publications / State of the Industry 2026: Decarbonization Progress in the Apparel, Footwear & Textiles Industry

State of the Industry 2026: Decarbonization Progress in the Apparel, Footwear & Textiles Industry

Decarbonization
Higg FEM
Higg Index Tools

Cascale’s State of the Industry 2026 report shares new analysis of verified facility data, shows emissions rising as coal dependence and limited renewable energy adoption slow progress.

Download publication

January 28, 2026

Blogs / Strengthening Data Quality in the Higg FEM: How We’re Raising the Bar for Credible, Comparable Environmental Data

Strengthening Data Quality in the Higg FEM: How We’re Raising the Bar for Credible, Comparable Environmental Data

Higg FEM
Higg Index Tools

Discover how Cascale and Worldly are strengthening data quality in the Higg FEM through clearer guidance, smarter technology, and stronger verification systems in Jeremy Lardeau’s latest blog.

Jeremy Lardeau

December 17, 2025

Across the value chain, one theme keeps coming up in conversations with brands, manufacturers, policymakers, and verifiers alike: data quality matters more than ever.

Whether a facility is tracking energy use, a brand is reporting Scope 3 emissions, or a regulator is evaluating compliance, decisions depend on credible, comparable data.

This is exactly why Cascale and Worldly have made data quality a top priority for the Higg Facility Environmental Module (Higg FEM), available exclusively on Worldly. Over the past several cadences, we’ve taken significant steps to strengthen the accuracy, consistency, and reliability of Higg FEM data — and in 2026, we’re going even further.

Why Data Quality Matters Now

The Higg FEM has become the industry’s foundation for environmental measurement at the facility level. Its role is broader than a single assessment: it feeds Scope 3 reporting, informs regulatory disclosures, and guides operational improvements inside factories. That means the quality of the underlying data isn’t just a technical question; it’s a credibility question.

The Higg FEM also continues to evolve. New data points, deeper quantitative detail, and alignment with reporting standards raise the bar for everyone — which is the right direction, but it also means we must continuously tune the system to support users and prevent errors.

What We’ve Improved — Why It Matters

1. Better inputs: clearer content and stronger models

A major part of data quality is making sure staff at manufacturing facilities understand exactly what’s being asked and how to respond accurately. Based on feedback from Higg FEM users (yes, the manufacturers) and verifiers, we’ve:

Rewritten and clarified questions that previously created confusion.
Added new guidance and training materials in areas like chemical inventory management.
Updated emissions models to align more closely with the Greenhouse Gas (GHG) Protocol.
Introduced new validation rules to prevent impossible answers, such as inconsistent water usage or incorrect chemical data.
“Get to Know the Higg FEM” webinar series and live Q&A sessions offering section-by-section deep dives to help manufacturers get answers and feel confident before submitting their assessments.

By preventing errors before they enter the system, we reduce the need for corrections later — and improve the clarity of data for manufacturers, brands, and regulators.

2. Smarter technology to catch issues early

We’re working closely with Worldly, making the most of its innovative platform as a central solution to elevate data accuracy.

Automated outlier detection now flags anomalous data during self-assessment. In Higg FEM 2024, the system identified more than 12,000 potential outliers, with facilities correcting 41 percent of them.
Facilities can now see their previous cadence values, helping them recognize when their inputs look unusual.
The AI-powered Worldly Assistant provides immediate access to guidance and documentation, supporting users at the moment of data entry.
Improvements to page load times, question structures, and table-based inputs reduce friction and accidental errors.

Members are already making the most of these dynamic updates, featured in our Cascale Connect series. And, our own HowtoHigg website has also been enhanced to ensure easier access to information on how to use the tools and understand the methodology behind them.

3. A stronger, more consistent verification ecosystem

Verification is a core pillar of data quality. It’s also one of the most intensive areas of work within Higg FEM — and one where we’ve made major strides.

Cascale has 570 trained verifiers across 73 Verifier Bodies as of November 14, supported by detailed protocols, QA checks, and annual performance reviews.
In 2024 and 2025, our QA program significantly reduced avoidable verification errors through new consistency checks and verifier guidance.
We increased the number of desktop reviews, counter verifications, and duplicate verifications, giving us clearer insight into verifier performance.
New Verifier Body profiles and an expanded Quality Assurance Dashboard offer more transparency than ever before.
Our automated VPM QA Rules cut the number of verified Higg FEMs containing clear errors by more than half.

Taken together, these improvements provide stronger confidence in verified Higg FEM data — which is essential for brands using these metrics in their reporting and decision-making.

4. Preparing for the next generation of Higg FEM data quality

Looking ahead, 2026 will be an important year. We’re piloting a new approach to more frequent and timely verification of key quantitative data — such as energy use, water consumption, and shipped volumes, in cases where such frequent or timely verification is warranted (in line with our recently published Principles on the Frequency of Environmental Data Reporting). Instead of reviewing these inputs once a year, we’ll be testing quarterly verification using remote methods.

The goal is simple:

Catch issues earlier
Reduce year-end corrections
Provide more timely, fully verified data
Support manufacturers’ own internal performance management

We are also deepening technical alignment with ZDHC on verification expectations — a step toward reducing duplication and strengthening cross-industry consistency.

A Continuous Improvement Mindset

Data quality is not a destination; it’s an ongoing discipline. Every cadence teaches us something new. Every round of user feedback highlights opportunities to clarify questions or strengthen checks. And every trend in the data helps us understand where the industry is improving — and where more support is needed.

The Higg FEM is the most widely used environmental assessment for consumer goods manufacturing. That reach gives us both the responsibility and the opportunity to continuously raise the bar, and to listen to the feedback our users are giving us.

By improving content, strengthening verification, and using technology more intelligently, we’re helping facilities, brands, and policymakers work with data they can trust — and ultimately enabling more credible environmental progress across the value chain.

Blogs / When Measurement Becomes the Engine of Sustainability

When Measurement Becomes the Engine of Sustainability

Higg FEM
Higg Index Tools

Lee Green’s latest blog explores the updated Higg FEM 2025, rising regulatory expectations, and how data-driven action can strengthen resilience, competitiveness, and industry-wide progress.

A close-up view of a loom, showcasing the need for effective sustainability measurement.

Lee Green

December 10, 2025

For years, the conversation around sustainability has revolved around ambition.

We’ve talked about goals, commitments, and net zero promises by pending timelines. But ambition alone doesn’t cut it anymore; not for brands, not for manufacturers, and certainly not for the planet.

The real shift now underway is about measurement. Because what we measure, and how, is what drives real progress.

From Afterthought to Engine

Measurement has often been treated as the last step in the process: collect the data, report the results, and move on. But in truth, it should be the first. When you start with measurement — with visibility and credible data — you create the foundation for meaningful change.

That’s why the latest update to the Higg Facility Environmental Module (Higg FEM) matters. Released by Cascale earlier this month, the 2025 version introduces sharper emission factors, improved verification guidance, and new facility categories. It’s more than a technical update — it’s a reflection of where the industry needs to go: better data, better insights, better decisions.

The Regulatory Shift

Meanwhile, policy frameworks like the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) are tightening expectations across the apparel and consumer goods sectors. They’re not just about ticking boxes; they’re about showing impact.

Soon, large brands operating in the EU will need to prove how they’re managing risks, engaging suppliers, and cutting emissions, with data that stands up to scrutiny. And that means upstream manufacturers and suppliers will need to be part of that proof chain.

The question isn’t whether our industry will have to measure and report on progress. It’s whether we’ll measure well enough to turn the need for compliance into strategic outcomes that drive business value.

Aligning Data with Action

This is where the conversation gets interesting. Because if we can continue to align measurement tools like the Higg Index with regulatory readiness, we move from compliance to competitiveness. (Read about our efforts to map the Higg BRM with the European Sustainability Reporting Standards (ESRS), as another strong indication).

The 2030 vision is closer than we realize. Instead of an industry scrambling to meet disclosure deadlines, we can become one that utilizes credible data to drive smarter sourcing, targeted investment, and collaborative action. While it’s not always glamorous work, it’s the kind of work that builds resilience — in companies, in supply chains, and in the industry as a whole. Isn’t that a goal that benefits us all?

A Communications Perspective

From where I sit — leading marketing and communications at Cascale — an integral part involves storytelling through data. For too long, sustainability communication has leaned on grand ambition. Now it’s time to tell the story of progress: how we measure, how we improve, and how we make it meaningful.

The more transparent we are about the process, the more credible and impactful the message becomes.

Looking Ahead

At Cascale, our role is evolving with the industry. We’re not just providing tools. We’re helping brands and manufacturers connect the dots between measurement, regulation, and action. Because when measurement becomes the engine, and not the afterthought, sustainability stops being a side project and starts becoming business as usual.

Driving Collective Impact: How Cascale and Worldly’s Shared Value Loop Delivers Clarity and Impact

Leadership
Higg Index Tools

In this joint blog post, Cascale’s Lee Green and Worldly’s Jay Gaines outline the shared value and goals between the two organizations.

Jay Gaines

Lee Green

November 12, 2025

In an industry as interconnected as ours, progress on sustainability depends on shared purpose, credible data, and scalable action.

That’s why Cascale and Worldly work together through what we call the Shared Value Loop, a concept we revealed at the Cascale Annual Meeting 2025 in Hong Kong. The Shared Value Loop is how Cascale and Worldly turn credibility into capability, and capability into measurable progress. It’s a living system that ensures standards evolve, data scales, and insights turn into impact across the value chain.

The Shared Value Loop represents how our two organizations — one a market-driven nonprofit, the other a leading technology platform — complement one another in driving industry transformation. It’s not just a collaboration; it’s a system designed to ensure that members, customers, and the broader community all benefit from clarity, consistency, and real results.

Where Credibility Meets Capability

Cascale and Worldly play different but deeply connected roles within the sustainability ecosystem.

Cascale convenes a global industry, and ensures the integrity of the tools, the alignment of methodologies, and the industry-wide governance that keeps our systems credible and trusted.
Worldly delivers those tools at scale through a real-time technology platform, proven analytics, and industry-forward innovation; making credible data accessible, actionable, and comparable.

Together, we close the loop between standard-setting and implementation, turning ambition into measurable impact. This collaboration ensures that credible standards become widely adopted practices — moving the industry from alignment to real-world execution.

Cascale builds the foundation for credible, science-based measurement. Worldly transforms that foundation into daily usability, enabling thousands of organizations to act on shared standards, at scale.

The Eight Dimensions of Shared Value

The Shared Value Loop is built around eight reinforcing elements that move from Cascale’s foundation of governance and legitimacy to Worldly’s enablement through data and technology.

1. Tool Governance & Methodology Integrity (Cascale)

Everything starts with a robust foundation. Cascale governs the methodologies that underpin its Higg Index tools, ensuring they are science-based, globally aligned, and further enhanced through a multi-stakeholder process.

2. Market Access & Industry Relevance (Cascale)

Cascale brings together 300+ members across the value chain — brands, manufacturers, and affiliates — ensuring the tools and frameworks stay relevant to real-world challenges and business needs.

3. Legitimacy & Accountability (Cascale)

Cascale’s multi-stakeholder governance provides transparency and accountability, giving industry, civil society, and academia a voice in shaping credible frameworks that include the voices of all actors, including the manufacturers.

4. Collective Action & Impact Leadership (Cascale → Worldly)

Through shared initiatives — from decarbonization programs to responsible purchasing practices — Cascale mobilizes its members and broader global community around shared commitments and the co-creation of solutions. Worldly then operationalizes those commitments through data and insights, turning collective intent into measurable outcomes.

5. Platform & Network Scale (Worldly)

Worldly connects the world’s largest sustainability network — tens of thousands of facilities and hundreds of brands and retailers — transforming individual data inputs into collective visibility and progress. This reach is powered by years of investment in innovation and customer enablement, ensuring the Higg Index and related tools reach the hands of those driving change on the ground.

6. Analytics & Actionable Intelligence (Worldly)

Worldly’s powerful analytics and benchmarking capabilities transform raw data into trusted intelligence, helping organizations predict risks, identify opportunities, track progress, and act with confidence.

7. Reporting & Risk Management (Worldly)

The platform supports credible reporting and risk management by offering consistent data outputs that align with major ESG disclosure frameworks and emerging regulatory requirements.

8. Technology Innovation & Enablement (Worldly)

Finally, Worldly’s ongoing innovation keeps the tools future-ready, integrating new capabilities like supplier dashboards, advanced benchmarking, and AI-driven analytics to accelerate learning and performance.

Delivering Value Across the Ecosystem

This Shared Value Loop ensures that every stakeholder benefits:

Retailers and brands gain credible, comparable data to guide business decisions and meet regulatory expectations.
Manufacturers gain visibility, benchmarking solutions, and opportunities to improve and be recognized for progress. They also gain efficiencies by aligning with a widely accepted standard (the Higg Index), and stronger alignment with their customers’ sustainability goals and increased access to markets that value verified performance.
Policymakers and investors gain confidence in standardized, verifiable data.
And the planet benefits from coordinated, data-driven action rather than fragmented, duplicative efforts.

By connecting Cascale’s convening power with Worldly’s delivery capability, the Shared Value Loop creates a self-reinforcing system: the more it’s used, the stronger and more valuable it becomes.

From Shared Framework to Shared Impact

We asked, and over 3,000 of you answered our recent awareness survey. You want a clearer depiction of how Cascale and Worldly work, and what benefits are ultimately delivered to you. The Shared Value Loop ensures every action reinforces the next, from credible standards to verified data to measurable progress. It’s how ambition turns into execution, and how our shared ecosystem grows stronger with every new participant. With your help, we are creating the alignment the industry needs to deliver on its sustainability goals — faster, smarter, and at scale.

Our shared goal is simple:

To equip the consumer goods industry with the trusted data and collaborative networks needed to achieve measurable, lasting impact.

As we expand further into adjacent product categories, such as home furnishings, this model will remain our foundation — helping new sectors tap into credible measurement, scalable data, and collective action.

News Updates / Cascale Contributes to Cotton LCA Position Paper

Cascale Contributes to Cotton LCA Position Paper

LCA
Higg MSI

Leading cotton programs have released a joint LCA position paper raising awareness on data use and misconceptions, with Cascale contributing additional expertise.

October 09, 2025

In the latest effort to make cotton data more accessible and available, cotton programs have released an LCA position paper, with Cascale contributing additional expertise.

Together, Better Cotton, Cotton Australia, Cotton Incorporated, and U.S. Cotton Trust Protocol commissioned the report, with Cascale, Cotton Research and Development Corporation, and Textile Exchange as contributors. EarthShift Global, LLC prepared the report, “From Data to Impact: How to Get Cotton LCAs Right” which zeroes in on the importance of proper use and interpretation of cotton LCA data, especially in the context of differing growing regions and methodological parameters.

Cascale’s Joël Mertens, head of Higg Product Tools at Cascale, outlined the problem. “What can I really claim in terms of making change happen?” It is one thing to say, “This is my footprint,” and another to claim that switching from cotton to another fiber or blend has helped improve climate change or water scarcity. This last piece in particular is the one that is misleading. The approach that moves the sector forward is fixing the supply change instead of ignoring the problem by going somewhere else without moving the state of play.”

The work followed a joint workstream within Cascale: the Higg MSI Methodology Cotton Expert Team, to help collaboratively address cotton data gaps. The 40-page report captures a number of nuances, challenges, and positive indicators for change, hoping to help guide sustainability managers, policymakers, cotton programs, and growers.

”Real progress will come from investment in farmer-centered improvements backed by science and transparency, aligning around responsible use of LCAs,” read a line from the report’s summary.

Readers can find the report and press release on Better Cotton’s website.

Listen: Source of Good Feat. Cotton Inc’s Jesse Daystar

Blogs / Dear Brands, Here’s How You Can Unlock Deeper Insights with Higg BRM Benchmarking

Dear Brands, Here’s How You Can Unlock Deeper Insights with Higg BRM Benchmarking

Higg BRM
Higg Index Tools

With Cascale’s Higg BRM benchmark, Cascale Brand and Retailer members transform numbers into a narrative teams and leaders can act on to advance responsible business practices.

Adrián Branco

October 07, 2025

Sustainability isn’t a destination. It’s a journey of continuous improvement.

That’s why we created the Higg Brand & Retail Module (Higg BRM): to help brands and retailers track their progress, set goals, and make data-driven decisions that matter. And for Cascale members, there’s an even bigger advantage: exclusive access to our Higg BRM Benchmark.

Now in its third year, the Higg BRM Benchmark is available through our Member Analytics Portal (MAP). It’s not just another set of numbers — it’s a powerful tool to see where your company stands, how you measure up against industry peers, and further refine your roadmap. With benchmarking, we don’t just want you to ask “how are we doing?” — we encourage you to ask “how do we lead?”

Developed by Cascale, Higg BRM benchmarking complements our existing Higg BRM assessment by providing:

Comprehensive analysis of your ESG performance across Environmental, Social, and Governance pillars
Aggregated peer comparisons to better understand where your organization stands
Data-driven insights to highlight critical areas for improvement
Year-over-year performance to demonstrate progress and identify opportunities

When you stack your Higg BRM scores against peers and industry leaders, the data tells a compelling story. By comparing Higg BRM scores with other companies and industry leaders, brands can take their ESG analysis to the next level to make more informed decisions. If your organization falls below the industry average, benchmarking highlights where you can make the case for greater resources and improvements. If you’re ahead of your peers, it provides the evidence you need to safeguard budgets and showcase your leadership. With these insights, you can sharpen priorities, track real progress, and make data-driven decisions that strengthen both performance and credibility.

The Value of Higg BRM Benchmarking

We acknowledge the challenge of translating data into action. We designed the benchmarking feature to provide data insights that can be shared among internal teams and leadership in order to foster conversations, determine resource allocation, identify critical hotspots, and further develop a roadmap derived from a comprehensive view of your company’s sustainability efforts.

We understand that no two companies are on the same journey, so all use cases will look different — but every organization needs to evaluate where they’re at to understand where they’re going. That’s the power of benchmarking. Benchmarking is available to all Cascale members who complete the Higg BRM according to our membership requirements timeline, giving you the tools to track progress, learn from peers, and accelerate your sustainability journey year after year.

How Can Benchmarking Elevate Your Performance?

The benchmark transforms numbers into a narrative your teams and leaders can act on, helping you:

Share actionable insights with internal teams and leadership
Make smarter decisions about resource allocation
Identify critical hotspots in Environmental, Social, and Governance practices
Develop a detailed roadmap from year-over-year performance trends

By leveraging Higg BRM benchmarking, you can turn insights into action, drive continuous improvement, and stay ahead in your sustainability journey.

As sustainability expectations, regulations, and priorities continue to evolve, one thing remains clear: guesswork won’t get you far. You need data-driven insights to make informed decisions. Our benchmarking gives you the clarity and confidence to lead with purpose and take action that drives real impact.

Higg BRM Benchmarking Learning Session

We recently hosted a webinar for our Brand and Retailer members to dive deeper into benchmarking benefits and use cases. For deeper discussion and insights, Cascale members can visit Cascale Connect.

News Updates / New Location, Same Vision: Higg Index Resources Now Available at Cascale

New Location, Same Vision: Higg Index Resources Now Available at Cascale

Higg Index Tools

Cascale has launched a new website that now hosts the trusted Higg Index technical guidance, training, and support materials previously found on howtohigg.org.

May 13, 2025

Cascale has launched a new website that will serve as the new home for key Higg Index resources previously housed on howtohigg.org.

This transition is part of a broader effort to streamline information, improve access, and enhance the user experience for Cascale members and Higg Index users.

The Higg Index is a suite of five tools that assess and measure the social and environmental performance of the consumer goods value chain and the environmental impacts of products. Cascale owns and develops the Higg Index, which is exclusively available on Worldly, the industry’s leading sustainability data insights platform. Howtohigg.org has been a trusted resource for Higg Index technical materials, and the content remains available to all Higg Index users on the Cascale’s website at howtohigg.cascale.org.

The website update reflects Cascale’s ongoing commitment to delivering high-quality, user-informed resources. FeWe have officially launched a new website that now hosts the trusted Higg Index technical guidance, training, and support materials previously found on howtohigg.org.edback from members and users has played a central role in shaping the transition strategy, reinforcing the organization’s dedication to providing accessible, effective information for sustainability measurement and improvement.

The new website provides the same Higg Index technical guidance, methodologies, training videos, and support materials, while improving the user experience through more seamless navigation and a modernized site design. Additional platform guidance and Worldly-specific information will be found on Worldly’s Training and Support site.

Cascale and Worldly remain aligned in their support of Cascale members, Higg Index users, and stakeholders throughout the transition. While Cascale will host and maintain the new website, Worldly will continue to enhance the user experience on its platform. To maintain clarity and continuity, a redirect will be set up on howtohigg.org to direct users to the appropriate new locations.

Publications / Verification Annual Summary Report 2024

Verification Annual Summary Report 2024

Verification
Higg FEM
Higg Index Tools

Download publication

April 24, 2025

Press Releases / Cascale’s Higg FEM Reveals Opportunities for Low-Carbon Transition in Vietnam

Cascale’s Higg FEM Reveals Opportunities for Low-Carbon Transition in Vietnam

Higg Index Tools
Decarbonization
Higg FEM

Vietnam is emerging as a critical player in the global shift to low-carbon manufacturing—and new insights from Cascale’s Higg FEM show why.

Vietnamese landscape; lush green rice fields

April 17, 2025

Industry Decarbonization Roadmap (IDR) could help deliver on sustainability goals as consumer goods manufacturing continues to drive GDP growth, projected at 6.5% in 2025.

Amsterdam, Hong Kong, Oakland (CA) – April 17, 2025: Issued today, the “Vietnam Country Report: Macroeconomic, Socioeconomic, and Industry Analysis” report, developed by Cascale with support from the Apparel Impact Institute (Aii), highlights the evolving macroeconomic landscape, sustainability challenges facing apparel and footwear manufacturing, and the rapid expansion of the consumer goods market in Vietnam. A strong economic outlook coupled with bold sustainability initiatives reveals a country poised to play a crucial role in global decarbonization efforts, even as tariffs threaten to put 5.5% of Vietnam’s GDP at risk and raise prices for American consumers (New York Times, April 6). Tariffs and other key topics impacting Vietnam will be on the agenda at the Cascale Forum: Ho Chi Minh City on May 14-15, as Cascale members and non-members alike – including manufacturers, leading brands, service providers, and supply chain partners – come together for an immersive event to address urgent sustainability challenges and opportunities. The report includes critical analysis of data from Cascale’s Higg Facility Environment Module (FEM) tool, exclusively available on Worldly. It is the first in a series of actionable reports filtering Higg FEM insights through a regional lens.

In 2023, over 1,200 verified Higg FEM submissions showed coal exacerbates carbon emissions in the region: 12% of apparel and footwear facilities use coal for energy, while 94% rely on electricity purchased from Vietnam’s coal-dependent grid. Although renewable energy accounts for less than 2% of the sector’s energy use, the analysis underscores opportunities for transformation to a low-carbon economy, including through the Industry Decarbonization Roadmap (IDR) developed by Cascale and Aii.

The report shows Vietnam can couple growth with sustainable manufacturing. Vietnam’s economy is expected to grow by 6.5% in 2025, outpacing regional peers. The manufacturing sector continues to be a key driver, contributing 23.88% to GDP in 2023. Additionally, Foreign Direct Investment (FDI) remains robust, reaching US$31.4 billion in the first 11 months of 2024, signaling investor confidence in Vietnam’s economic resilience. Employing around three million workers and generating an estimated US$71 billion in export revenues for 2024, the apparel and footwear sector is a vital component of Vietnam’s economy but faces significant sustainability challenges, including high energy consumption and carbon emissions. With commitments in place for a 65-70% increase in renewable energy by 2045 – reducing greenhouse gas emissions by a projected 70-80% – Vietnam is committed to supply chain decarbonization, in line with the IDR.

The report brings Cascale and Aii’s IDR into focus as a potential solution. By uniting manufacturers, brands, retailers, and stakeholders around shared goals, the IDR emphasizes collective accountability and pre-competitive collaboration to accelerate systemic change across the supply chain. With a science-based target of reducing supply chain emissions by 45% by 2030, the IDR drives measurable progress through various interventions, solutions, and programs. The IDR ensures resources are targeted, so low-carbon sourcing and other benefits can be realized. This means prioritizing action in the 10% of facilities across the textile and apparel supply chain – including some in Vietnam – that account for over 80% of global manufacturing emissions. By aligning with these initiatives, facilities in Vietnam can play a pivotal role in the global transition to a low-carbon economy

“This isn’t merely about compliance—it’s about long-term competitiveness,” said Colin Browne, Cascale CEO. “Brands increasingly prefer suppliers who meet robust sustainability standards. Manufacturers investing in sustainability today will secure long-term brand partnerships tomorrow.”