Without Financial Incentives, Manufacturers and SMEs Face Decarbonization Risks Alone

  • Decarbonization
  • Policy and Legislation
  • Manufacturing

In this guest blog, Shein Han, director, compliance and sustainability, GG International Manufacturing, describes why manufacturers need the right financial incentives to decarbonize effectively.

Shein Han
April 21, 2026
  • Decarbonization is simply too expensive for APAC manufacturers, especially SMEs, to undertake alone.
  • Most decarbonization efforts today are still project-based.
  • Financial incentives present a real opportunity for decarbonization at scale.

The question comes up again and again: What should governments and industry stakeholders prioritize first for decarbonization?

As a fashion manufacturer based in Seoul, South Korea, I see how policy, financing, and implementation challenges come together in real time. In the APAC region, each country is taking a unique approach to a greener economy. These are encouraging signals, but manufacturers across the region are still facing major barriers to action.

As an Editorial Member of Cascale’s APAC Policy Member Expert Team, contributing specifically to the incentives agenda, I see a number of overlapping challenges. Fragmentation, limited interoperability, insufficient incentives, and underrepresentation of decent work issues – Cascale’s recent APAC Policy Priorities paper captures all of these issues.

Amid competing customer demands and faster turnaround times, there is little leeway for manufacturers to invest the time, energy, or resources to decarbonize their facilities. The reality is that decarbonization is simply too expensive for APAC manufacturers, especially SMEs, to tackle alone. For many SMEs, decarbonization is not a strategic choice but a financial constraint, where even well-intentioned efforts are limited by access to capital. That is exactly why incentives are critical.

Decarbonization is not a willingness issue. It is a financing issue.

Without a support mechanism such as loans or blended financing, companies cannot invest in renewable energy or low-carbon equipment.

This is one of the reasons why decarbonization incentives are a key priority in the APAC Policy Priorities Paper. The paper recognizes that many suppliers and SMEs face significant barriers due to high costs and limited access to finance, and calls for targeted support mechanisms, including subsidies, preferential financing, and investment in renewable energy and low-carbon technologies. The stated goal is to make the transition more practical, more scalable, and more inclusive across the supply chain.

Also, most decarbonization efforts today are still project-based. What we need is a system-based approach across the supply chain from now on. This is why we need to invest in expanding infrastructure, more coordinated support, and policy conditions that help solutions scale.

Incentives are also very critical. However, incentives without execution or without reliable data or without verified data are not enough on their own. We need a clear implementation framework to scale the incentives.

If I had to choose one action item for decarbonization, it would be linking financial incentives directly to the verified data. This could include preferential financing for facilities with verified emissions data, tax incentives tied to measurable reductions, or blended finance mechanisms that reduce upfront capital investment for renewable energy adoption. For example, factories with verified Scope 1 and 2 emissions data could access preferential financing rates or performance-based incentives tied to demonstrated reductions. This creates both accountability and motivation. Without such incentive mechanisms, scaling will be difficult.

If we want decarbonization to move faster across APAC, we need policies and financing approaches that reflect how manufacturers actually operate. That starts with making support accessible, practical, and tied to real progress.

Curious to learn more? Explore the full APAC Policy Priorities Paper and, for members, continue the conversation through the recent webinar featuring insights from APAC Policy MET members.

Modaes’ Move! Webinar Highlights EU PEF Approach for Apparel and Footwear

  • Policy and Legislation
  • Higg Index Tools

Cascale collaborates with Modaes’ Move! to break down EU PEF and guide Spanish brands on actionable steps for aligning with product-level environmental measurement standards.

Melissa O De León speaks with Modaes Move! in a webinar
March 26, 2026

Highlights from Move! PEFCR Webinar: 

  • Build readiness for EU compliance: What PEF means for future regulatory and reporting requirements.
  • Move from measurement to insight: Using product footprint data to inform decisions and improve performance.
  • Strengthen industry alignment: Cascale’s role in elevating shared standards for scalable, credible progress.

Cascale recently collaborated with Modaes, Spain’s leading fashion business journal, to deliver a webinar on the European Union’s Product Environmental Footprint (PEF) framework. The session, titled “PEF or How to Measure the Environmental Footprint According to the EU,” was livestreamed on LinkedIn, engaging professionals across the Spanish consumer goods industry.

The webinar trails a recent collaboration between the organizations, with Cascale participating in a PEFCR launch event in Madrid earlier this month. 

Introduced by Sònia Flotats, director of Modaes’ MOVE! platform, Melissa Ortuño de Leon – senior manager, Higg Product Tools – reinforced Cascale’s role as a technical contributor and coordinator of the Apparel and Footwear PEFCR. By translating complex regulatory developments into actionable guidance, the webinar aimed to support Spanish brands and industry-wide stakeholders in navigating evolving sustainability requirements.

Ortuño de Leon provided a clear and accessible introduction to PEF and the Apparel and Footwear Product Environmental Footprint Category Rules (PEFCR). She shared practical insights on how brands can prepare to assess the environmental impact of their products, including key requirements and implementation steps aligned with EU expectations.

Engagement was clear throughout the webinar. Attendee questions spanned the similarities between PEF and France’s mandate on Environmental Cost, the potential inclusion of traceability information, and product differentiators between organic and non-organic fabrics.

A recording of the webinar is now publicly available through Modaes’ MOVE! platform, extending its reach to a broader audience.

Looking ahead, Cascale will continue to explore opportunities to collaborate with Modaes to support industry alignment, strengthen understanding of sustainability frameworks, and enable credible, consistent measurement across the value chain.

Cascale APAC Policy Priorities

  • Policy and Legislation

Policy Guidance for a Resilient APAC Apparel and Footwear Industry

Cascale APAC Political Priorities
March 17, 2026

Experts Publish APAC Policy Priorities

  • Policy and Legislation

New paper from Cascale’s APAC Policy Member Expert Team calls for harmonized reporting, practical decarbonization incentives, and stronger alignment on decent work.

stacked rolls of fabric, earth tones
March 17, 2026

Amsterdam, Hong Kong, Oakland (CA) – March 17, 2026: Cascale today announced the publication of its APAC Policy Priorities Paper, developed by the Asia-Pacific (APAC) Policy Member Expert Team (MET) to identify key regional sustainability challenges and provide practical, aligned recommendations for policymakers and industry stakeholders across Asia-Pacific.

As the primary hub for global apparel and footwear manufacturing, the APAC region plays a critical role in delivering credible progress on climate and decent work. The paper outlines a unified industry perspective on how governments, manufacturers, brands, and multi-stakeholder initiatives can work together to strengthen policy coherence, reduce duplicative reporting burdens, and accelerate measurable impact across complex value chains.

With sustainability regulations emerging unevenly across jurisdictions — including new climate disclosure requirements, greenhouse gas inventory obligations, and evolving labor frameworks — companies across the region are navigating increasing complexity. The APAC Policy Priorities Paper calls for greater alignment to:

  • Better align national approaches with internationally recognized standards, while respecting national objectives.
  • Enable mutual recognition of credible assessments to reduce duplicative audits.
  • Promote interoperable data and reporting systems that strengthen compliance and enforcement efficiency
  • Deploy targeted incentives that accelerate decarbonization, including measures accessible to small and medium-sized enterprises (SMEs)
  • Strengthen policy attention to region-specific decent work realities, including responsible purchasing practices

The paper was co-developed by Cascale and members of its APAC Policy MET, representing manufacturers, service providers, affiliates, industry associations, and multi-stakeholder initiatives. Insights were informed by discussions at the “Aligning APAC Policy Priorities” workshop during Cascale’s Annual Meeting 2025 in Hong Kong, as well as continued input from APAC Policy MET members and ongoing member engagement activities, including regional roundtables and virtual events.

“The APAC region sits at the heart of global apparel and footwear production,” said Howard Kwong, senior manager of public affairs (APAC), Cascale. “For sustainability policy to be effective, it must reflect the operational realities of manufacturers while remaining aligned with international standards. Our members are signaling that policy ambition must be matched with practical implementation pathways.”

“Policy alignment is essential to unlocking real progress across supply chains,” said Nguyen Thi Minh Thuy, senior program manager, Textile & Manufacturing Program, IDH. “When governments and industry collaborate on consistent frameworks and credible measurement, we can reduce duplication, improve transparency, and accelerate climate and decent work outcomes in a way that works for the region.”

“Manufacturers in Asia are ready to take action, but fragmented requirements across multiple initiatives continue to increase costs and operational complexity,” said Shein Han, Director of Compliance & Sustainability at GG International Manufacturing. “Improving interoperability between tools and reporting systems will enable factories to focus their efforts where they matter most—driving better performance while strengthening support for workers.”

By bringing together diverse industry perspectives, the APAC Policy MET reinforces Cascale’s commitment to credible methodologies and tools, aligned standards, and collective action. The paper supports Cascale’s broader strategy to strengthen foundational measurement systems, combat climate change, and advance decent work through coordinated public affairs and industry engagement.

Cascale members are invited to join the “APAC Policy Priorities: Industry-Led Insights and Recommendations” webinar on April 2; click here to register on Cascale Connect.

Cascale will carry this work forward through ongoing regional engagement in 2026, including in-person dialogue with members and stakeholders to support practical implementation and coordinated policy engagement.

Media Contact: Forster Communications, cascaleforster@forster.co.uk

Industry Experts Explore Future of Apparel & Footwear PEFCR in Madrid

  • Policy and Legislation

Cascale’s Jeremy Lardeau joins policymakers in Madrid to examine PEFCR implementation, industry data readiness, and the collaboration needed to scale impact.

(L to R) Sónia Flotats, Baptiste Carriere-Pradal, Marina Prados Espínola, Maria Gonzalez-Torres, and Jeremy Lardeau at the PEFCR event in Madrid.
March 03, 2026

Following the European Commission’s approval of the Apparel & Footwear Product Environmental Footprint Category Rules (PEFCR) in 2025, industry leaders gathered in Madrid to explore what implementation will require in practice — and whether companies are ready.

Opening the session, Baptiste Carriere-Pradal, cofounder of 2B Policy, presented the foundations of the Apparel & Footwear PEFCR: a harmonized, science-based methodology built on Life Cycle Assessment (LCA). Structured around 16 environmental impact indicators, it enables brands to identify environmental hotspots across a product’s lifecycle. The methodology goes beyond carbon, incorporating durability, repairability, and duration of service, reinforcing a broader approach to product performance.

Moderated by Sónia Flotats, director of Move!, the panel that followed examined how the PEFCR connects to the evolving European regulatory framework.

Marina Prados Espínola, director at Policy Hub, framed the broader legislative landscape, noting that the Joint Research Centre (JRC) is conducting the Preparatory Study that will inform the Textile Delegated Act under the Ecodesign for Sustainable Products Regulation (ESPR). This study aims to define how environmental footprint information is measured and reported.

María Gonzalez-Torres, project officer at the European Commission, JRC, provided insight into the technical reasoning behind including footprint-based requirements alongside parameters such as durability and fiber composition. A footprint-based approach, she explained, allows regulators to capture impacts that single-attribute requirements alone may miss. The discussion also touched on comparative scoring approaches — assessing whether a product performs better or worse than the average — rather than relying solely on absolute values.

Bringing the industry perspective, Jeremy Lardeau, senior vice president of the Higg Index at Cascale, emphasized that the core challenge is no longer methodology, but implementation. While the PEFCR provides a strong scientific foundation, the real challenge lies in delivering the level of data and collaboration required to implement it meaningfully at scale.

Bridging the Industry Data Gap

A central theme of the discussion was the data availability challenge. While simplified footprint methodologies exist, they rely on minimal inputs and can miss supply chain complexity. The Apparel & Footwear PEFCR, by contrast, requires more granular product-level information, including detailed bills of materials and manufacturing data.

Many brands do not yet systematically collect or structure this data at the product level. Products are composed of multiple materials and components sourced across global supply chains, and much of the required information sits beyond a brand’s direct control. Meaningful implementation will require stronger data exchange and collaboration with manufacturers across tiers.

Lardeau highlighted the role of secondary databases in supporting Life Cycle Assessment. These datasets help fill primary data gaps and enable full product footprint calculations when supplier-level data is incomplete. However, they are not a substitute for improving primary data collection.

From Measurement to Collaboration

The conversation surfaced a key trade-off: precision versus scalability. More granular primary data improves accuracy but is harder to scale. Simplified approaches enable broader uptake, but risk losing nuance.

Ultimately, speakers agreed that footprint calculation alone will not drive transformation. The greatest opportunity for impact lies at the factory level, where improvements in energy use, material efficiency, and production practices can materially reduce environmental impact.

As Lardeau emphasized, one brand alone cannot shift the sector’s footprint. Long-term progress will depend on structured collaboration between brands and manufacturers, shared data, and tangible operational improvements.

The PEFCR defines what and how to measure. Turning that measurement into meaningful impact will depend on collective action.

OECD Forum Spotlights New Reality of Due Diligence in Garment Sector

  • Due Diligence
  • Better Buying
  • Responsible Purchasing Practices
  • Policy and Legislation

At 2026 OECD Forum, apparel stakeholders address challenges and opportunities in upstream due diligence.

Cascale staff members Jeremy Lardeau, Carolina van Loenen, Hanna Griesbeck Garcia, Orine Dsouza, and Gabriele Ballero at the OECD Forum 2026
February 25, 2026

At the recent 2026 OECD Forum on Due Diligence in the Garment and Footwear Sector held in Paris, responsible purchasing practices, upstream due diligence, and the industry’s role came into focus.

The Cascale team was privileged to contribute this year, participating in four formal sessions.

Interim chief executive officer Harsh Saini spoke at a mainstage workshop on upstream due diligence titled “Moving Beyond Direct Business Relationships” led by the OECD Centre for Responsible Business Conduct’s garment and footwear program manager Peter Higgins, and Lauren Shields, lead of sustainability initiatives. Setting the scene for the workshop, fellow speakers included Clare Woodford, Alpine Group’s vice president of impact and sustainability and Ines Kaempfer, CEO of The Center for Child Rights and Business.

During the session, Cascale’s Saini highlighted the need for greater alignment across the sector to make due diligence workable in practice. She emphasized that focusing only on Tier-1 suppliers is insufficient and risks perpetuating fragmentation and audit fatigue for manufacturers.

“For more than 30 years we’ve been asking suppliers for more and more information, yet we keep duplicating efforts instead of coordinating them,” said Saini. “If we want due diligence to work upstream, we have to move beyond Tier-1, align expectations, and stop overburdening suppliers with fragmented requests.”

She noted that collaboration between initiatives, including Fair Wear, the Social and Labor Convergence Program (SLCP), Better Buying and others, together with shared data from tools such as the Higg Index, is essential to support upstream due diligence and credible decent-work outcomes across supply chains.

The workshop featured a discussion-style format with attendees divided into groups after initial firestarter prompts on upstream due diligence. Groups included brands, manufacturers, sustainability initiatives, and trade unions, CSOs, and policymakers.

Cascale also hosted a virtual side session drawing on insights from the Better Buying Purchasing Practices Index (BBPPI) 2025, “Sustainable Supply Chains in Turbulent Times: Regional Differences in Suppliers’ Experiences of Buyer Purchasing Practices in the Age of Tariffs.”

Katie Hess, head of product at Cascale’s Better Buying, and Orsolya Janossy, senior sustainability manager at Recover, guided the conversation. The virtual session underscored Cascale’s Better Buying data, collected confidentially from suppliers in Spring 2025. It unpacked regional challenges faced by suppliers, the impact of local contexts and business environments on buyer purchasing practices, and how buyer companies can adapt to volatility – while upholding responsible practices during turbulent times.

“This isn’t just a pricing conversation,” said Hess. “It comes down to a stability and feasibility issue. When costing isn’t realistic, it becomes a due diligence issue. Compliance and decent work are what gets squeezed first.”

“What we learned is that responsible sourcing isn’t just about auditing compliance or sourcing compliance, it’s about building a win-win sustainable partnership,” said Janossy.

She showcased a case study from Recover’s suppliers in Bangladesh, where fire safety often lags. Together, they prioritized long-term stability through shared risk management and improved grievance mechanisms and training.

In a separate virtual side session, Cascale’s Jeremy Lardeau, senior vice president of the Higg Index, moderated a discussion hosted by The Industry We Want as part of a Retailer Roundtable (RRT). Representatives from Fair Wear, retailers Zalando and Boozt, and brand member Ecco also joined the conversation. The session explored the essential and often overlooked role of third-party retailers in implementing and upholding effective Human Rights and Environmental Due Diligence (HREDD). Using the RRT to foster a pre-competitive space for retailers, the session examined the role of Multi-Stakeholder Initiatives (MSIs) to share and promote best practices. Together, these efforts aim to develop aligned solutions grounded in the OECD Due Diligence for Responsible Business Conduct framework.

In addition, Gabriele Ballero, public affairs manager at Cascale participated in a multi-stakeholder roundtable co-organized by Policy Hub and SLCP, focused on the implementation of the Corporate Sustainability Due Diligence Directive (CSDDD) in the textile sector. The discussion gathered brands, manufacturers, policymakers and civil society representatives to assess the practical implications of the Omnibus changes and priorities for upcoming guidance.

Participants emphasized that the sector is not starting from scratch and that implementation should recognize credible existing tools and initiatives rather than create parallel systems. The discussion also highlighted the need for clarity around “reasonably available information,” warning that without guidance companies may over-collect data or face legal uncertainty. Stakeholders broadly supported a progressive, risk-based approach, greater interoperability across instruments, and collaboration to address deeper tiers of the supply chain while reducing audit fatigue.

Also in attendance were Cascale’s Carolina van Loenen, director of stakeholder engagement; Orine Dsouza, senior manager, Higg Facility Tools; and Hanna Griesbeck Garcia, Manager, stakeholder engagement, EMEA. As in years past, the stakeholder engagement team played a leading role in event preparation.

Sustainable Textile Policy Landscape, Legislation to Watch in 2026

  • Policy and Legislation

Cascale’s Elisabeth von Reitzenstein and Textile Exchange’s Romane Malysza presented priorities for the Sustainable Textiles Working Group at the European Parliament.

Cascale’s Elisabeth von Reitzenstein and Textile Exchange’s Romane Malysza presented priorities for the Sustainable Textiles Working Group at the European Parliament.
February 17, 2026

European textile policy has been dotted with fragmented efforts amid sweeping reform attempts. Yet, progress is happening in strides.

To promote and advance circularity and sustainability in textiles and consumer goods, the European Parliament launched the Sustainable Textile Working Group last year. The group comprises about 30 Members of the European Parliament (MEPs), including founding members Saskia Bricmont (Greens, BE), Barry Andrews (Renew, IE), and Lara Wolters (S&D, NL). It also includes civil society groups such as the Changing Markets Foundation, Fair Trade Advocacy Office, ECOS, IndustriAll Europe, and Fashion Revolution. The informal cross-party group of MEPs is working to support the implementation of the EU Strategy for Sustainable and Circular Textiles.

Recently, Cascale and Textile Exchange presented our work and key findings to the group in a structured dialogue at the European Parliament. Collaborating often, both of our public affairs teams strive to inform EU policy-making on sustainability, circularity, and environmental frameworks for the entire apparel, textile, and fashion industry.

For the benefit of the public and members, we outlined targeted actions needed today to establish European legislation as a key driver of clarity, credibility, and measurable progress in our sector in 2026 and beyond.

Textile Labelling Regulation: Consistency Builds Trust

Cascale and Textile Exchange welcome and strongly support the EU Commission’s intention to revise the EU Textile Labelling Regulation.

Clear, consistent labelling is essential for credible sustainability claims. Divergent methodologies risk confusing consumers, slowing innovation, and increasing compliance costs.

Aligning labelling with science-based methods and clear terminology strengthens trust, supports novel fiber adoption, and gives companies predictable rules for long-term investment.

Recent years have seen a rapid advancement of non-textile materials of non-animal origin used in textile applications. These materials have often been seen as alternatives to conventional animal fibers, such as silk or fur. There is currently no clear guidance on how such materials should be classified and labelled. We believe this gap should be closed and recommend the creation of a distinct category for these materials and to provide a set of clear guidelines on how to name the alternatives. Without it, consumers risk being misled on fiber innovations.

Next Steps: Support alignment with science-based methodologies, establish clear terminology, and create common naming guidelines. This is especially relevant for alternative materials such as non-textile parts of non-animal original, as well as industry testing and feedback loops.

Ecodesign for Sustainable Products Regulation: From Ambition to Coherence

The Ecodesign for Sustainable Products Regulation (ESPR) and Digital Product Passport (DPP) can transform sustainability data in textiles. Feasible recycled content targets and interoperable digital systems can increase transparency, reduce duplication, and enable SME participation.

Next Steps: Support requirements for “sustainably sourced renewable materials” (SSRM) as a distinct product aspect for ecodesign requirements in the Delegated Act for Textile Apparel. This will complement upcoming recycled content requirements, and support truly sustainable textile products entering the EU market.

Circular Economy Act: Laying Foundations for Delivery

Circularity needs strong definitions, end-of-waste criteria, and predictable secondary markets. Clear alignment across the Waste Framework Directive, ESPR, and DPP gives companies confidence to invest in circular solutions. Exploring sustainably-sourced renewable materials (SSRM) and recycled content targets are also key here.

Next Steps: Textiles must remain a priority within the Circular Economy Act, reflecting both the sector’s environmental impact and its transformation potential. Textile industry stakeholders and MEPs can support workshops, hearings, and technical briefings on how circularity is a core driver to the industry’s ongoing transformation.

Omnibus I (CSRD & CSDDD): Supporting SMEs While Preserving Visibility

Changes to reporting requirements could create upstream data gaps if applied too restrictively. A pragmatic approach — including clear guidance and meaningful Voluntary Sustainability Reporting Standards for non-listed Small and Medium Enterprises (VSME) baselines — can ensure smaller companies are supported while maintaining multi-tier value chain visibility.

Next Steps:  MEPs can secure clarity for economic operators and drive credible environmental and due diligence outcomes through engagement in the legislative process. As a note, Textile Exchange does not engage in the legislative process of the Omnibus I.

For continued guidance and information, please subscribe to public affairs updates from Cascale and Textile Exchange.

Impact of Global Water Regulation on the Consumer Goods Industry

  • Policy and Legislation

Joint Cascale-Worldly policy analysis highlights rising regulatory pressure, regional risks, and practical actions for companies navigating water scarcity.

river in the mountains, top view of the mountain river, autumn
February 04, 2026

Amsterdam, Hong Kong, Oakland (CA) – February 4, 2026: Cascale and Worldly today released Navigating Global Water Regulation: Implications for the Textile and Consumer Goods Sector, examining how intensifying water scarcity and tightening regulation are reshaping the operating environment for the apparel, textile, and wider consumer goods sector.

The analysis maps evolving water policy across key production regions in Asia, the European Union, and the United States. It connects regulatory developments to operational, financial, and reputational risks, and outlines how companies can strengthen resilience as water becomes a strategic business concern alongside climate and supply chain due diligence.

With the global apparel and textile industry consuming an estimated 93 billion cubic meters of water annually and contributing roughly 20 percent of global industrial wastewater, water regulation is accelerating in regions already facing acute stress. Governments are responding with stricter controls on water use, wastewater discharge, and pollution, particularly in major manufacturing hubs.

The report highlights significant regulatory momentum in China and Vietnam, continued but uneven enforcement across other Asian production countries, expanding disclosure requirements in the European Union, and regulatory uncertainty in the United States. Together, these trends underscore the need for companies to elevate water risk from a site-level issue to a governance and strategy priority.

“Preserving our planet’s freshwater supplies is a top priority — water is life. Across the globe, legislators are responding by introducing new regulations, and water is quickly becoming a defining constraint on how and where the industry can operate,” said Elisabeth von Reitzenstein, senior director of policy and public affairs at Cascale. “This analysis is designed to help companies move beyond reacting to individual laws and instead understand the bigger picture. When water risk is integrated into sourcing, governance, and performance management, it becomes possible to protect both business continuity and local communities.”

The report also outlines practical actions companies can take now, including mapping facilities in water-stressed basins, validating wastewater compliance, strengthening supplier data collection, and embedding water considerations into sourcing and contingency planning. These steps are increasingly critical as regulation shifts from focusing on efficiency alone toward source sustainability and foundational environmental performance.

“Water policy provides essential direction for where supply chain action matters most,” said JR Siegel, vice president of sustainability at Worldly. “Leading companies rely on Worldly’s standardized, decision-grade data to prioritize action at the facility level—strengthening risk management, investment decisions, and supply chain resilience ahead of disruption.”

Key Takeaways

  • Water regulation is accelerating globally. Governments are strengthening controls on water use, wastewater discharge, and pollution, particularly in water-stressed production regions.
  • Risk exposure is uneven but growing. Major apparel and textile hubs in Asia face tightening regulation and enforcement, while EU disclosure requirements expand and U.S. policy remains uncertain.
  • Water is now a strategic business issue. Companies are moving from treating water as a site-level concern to integrating it into governance, sourcing, and risk management decisions.
  • Data and standardization matter. Visibility into water use, wastewater management, and basin-level risk is essential to manage compliance, protect operations, and maintain credibility.
  • Early action builds resilience. Companies that invest now in efficient, compliant, and transparent water management are better positioned as scarcity and regulation intensify.

The publication reflects Cascale and Worldly’s shared commitment to supporting the industry with credible, actionable insight. Cascale’s Higg Index tools, developed in collaboration with Worldly, in addition to Worldly’s comprehensive data and analytics platform, help connect evolving regulation to measurable performance improvement at scale.

As water scarcity intensifies and enforcement strengthens across regions, the report concludes that the cost of inaction — from production disruptions to reputational damage — is likely to exceed the investment required today. Proactive, verifiable water management is increasingly a strategic imperative for long-term resilience in the consumer goods industry.

Cascale Publishes Q4 2026 Global Legislative Update: Insight on Emerging Policy Shifts

  • Policy and Legislation

Exclusive member briefing highlights global policy developments shaping climate action, sustainability reporting, and decent work.

Wind turbines on a beautiful blue sky in a mountain wind farm in Sardinia.
January 29, 2026

Cascale has published a Global Legislative Update covering Q4 2025, providing members with an in-depth briefing on recent policy and regulatory developments affecting the apparel, footwear, and consumer goods industry.

The update examines key global, regional, and national policy shifts related to climate action, sustainability reporting, circularity, and decent work.

Available exclusively on the members-only platform Cascale Connect, this update distills complex legislative activity into clear insights designed to help members anticipate risk, navigate evolving compliance landscapes, and position themselves for leadership in a rapidly changing policy environment.

Key Insights & Implications

Global: COP30 delivered limited progress on fossil fuel phase-out but launched the Tropical Forest Forever Facility (TFFF) and reaffirmed commitments on climate adaptation finance. The International Sustainability Standards Board (ISSB) advanced plans for nature-related disclosures, signaling broader expectations for corporate sustainability reporting. Such moves underscore growing global demands for transparency on climate and nature risks.

United States: Regulatory momentum remains concentrated at the state level. California continues to shape climate disclosure expectations, even as some requirements are paused, while proposed federal Environmental Protection Agency (EPA) Per- and Polyfluoroalkyl Substances (PFAS) reporting revisions could lessen near-term compliance burdens for apparel and textile products. Large companies with California operations should continue emissions reporting preparation under the California Senate Bill 253 (SB 253).

Europe: The European Union (EU) progressed its regulatory simplification agenda (Omnibus I), narrowing sustainability reporting and due diligence obligations and delaying the EU Deforestation Regulation (EUDR). New textile waste measures took effect, and preparations advanced for the definitive phase of the Carbon Border Adjustment Mechanism (CBAM) scheduled for early 2026. Meanwhile, Turkey announced a significant increase in the minimum wage, with potential cost implications for textile manufacturing.

Asia-Pacific: Regulatory activity accelerated regionwide. Indonesia formalized carbon trading rules. Mainland China advanced green priorities through its 15th Five-Year Plan, new green trade policy, and its first national climate disclosure standard, reinforcing expectations around supply-chain decarbonization. India implemented consolidated labor codes that strengthen worker protections, and Taiwan expanded carbon fee adjustments to cover key textile inputs.

The full Q4 2025 Global Legislative Update is available exclusively to Cascale members on Cascale Connect, where Cascale’s Policy & Public Affairs team translates the latest complex developments into actionable guidance and insights.

Stay informed — subscribe to Cascale’s public affairs newsletter for the latest updates, events, and public affairs activities.

Not yet a member? Explore Cascale membership today.

Cascale PEFCR Tour Adds Stops in Munich, Milan, Amsterdam

  • Policy and Legislation

At Munich and Amsterdam events, Cascale’s Elisabeth von Reitzenstein and Quinten Geleijnse highlight PEFCR as an industry milestone.

December 04, 2025

Last month, Cascale participated in the Munich and Amsterdam launch events of the European Commission’s Product Environmental Footprint Category Rules (PEFCR) for apparel and footwear.

Milan was another stop on the multi-city roadshow for the PEFCR.

The Munich event, hosted at BCG headquarters and facilitated by Quantis and 2BPolicy, gathered PEFCR experts, brands, retailers, and other industry peers for an afternoon of technical discussion, a panel on applying and scaling the PEFCR, and networking.

Elisabeth von Reitzenstein, senior director of policy and public affairs at Cascale, delivered co-opening remarks that outlined the significance of the PEFCR. Reflecting on her nearly two decades in policy decision-making procedures and public affairs, she offered ample lessons in sustainability legislation. From synthesizing various member interests and engaging constantly with policymakers in Brussels, von Reitzenstein shared that one lesson stands above all else: the need for collaboration and harmonization. She underscored how PEFCR delivers on this unifying vision, bridging science, policy, and industry together around one credible, harmonized approach. Sophie Herrmann, managing director, Germany, at Quantis, spoke after von Reitzenstein’s presentation.

At a separate event in Amsterdam, Cascale’s Quinten Geleijnse, manager of Higg Product Tools LCA, spoke on a panel relaying the technical details of the category rules.

The events follow sessions held in Brussels, London, and Paris, and is part of an ongoing series of PEF events across Europe – including a recent event in Milan and one in Madrid early next year – aimed at advancing awareness, technical understanding, and discussing future development of the methodology.

As with previous events, von Reitzenstein and Geleijnse emphasized the role of Cascale as coordinator of the PEFCR technical secretariat and its significance to the industry. The PERCR lays the groundwork for a harmonized and scientifically rigorous methodology for calculating product environmental impacts, enabling transparent and consistent information to be shared to consumers and market authorities.

In their respective sessions, attendees — including government officials, Cascale members, Policy Hub staff, NGOs, affiliates, and more  — were encouraged to engage with the PEFCR, apply it, test it, and continue driving progress in the industry.

Learn more about Cascale’s work on the Apparel & Footwear PEFCR here.