With Scope 3 emissions accounting for up to 70% of the fashion and apparel industry’s carbon footprint, the need for manufacturers to embrace sustainable practices has never been more urgent. As the industry faces growing pressure to meet climate goals, the role of manufacturers in driving real progress is pivotal. At Cascale’s recent Sustainability Summit, Chris Marshall, Director of Transparency, outlined the challenges and opportunities in supporting manufacturers as they transition to low-carbon operations. In this article, we explore why manufacturers are crucial to climate action and how brands can better support their suppliers.
The Importance of Manufacturers in Sustainable Fashion
Manufacturers are the linchpin in the fashion industry’s efforts to decarbonize. While brands often take the spotlight for their sustainability claims, the true impact lies in the factories and supply chains where products are made. According to Chris Marshall, overcoming the challenges of Scope 3 emissions—those generated in the supply chain—is essential for the industry to meet its climate targets. Manufacturers are responsible for a substantial portion of these emissions, which means their participation in sustainability initiatives is critical to any meaningful climate action.
Marshall stresses that Cascale's approach is centered on supporting suppliers at every level of the supply chain, from Tier 1 to Tier 3. Rather than creating another decarbonization program, Cascale partners with organizations like the Apparel Impact Institute (Aii) and Reset Carbon to support existing climate solutions at the facility level. By working with these organizations, Cascale helps suppliers implement effective decarbonization strategies, ensuring their alignment with broader sustainability goals.
Brand Commitment to Greener Manufacturing
A significant challenge in advancing sustainability is securing consistent investment from brands into greener manufacturing practices. As Marshall explains, manufacturers, especially Tier 2 players like textile mills, have already tackled many of the low-hanging fruit when it comes to reducing their carbon footprint. To make further strides, substantial capital expenditure (CapEx) is required—investments that many manufacturers cannot afford without support from their brand partners.
Brands must not only commit to more sustainable sourcing but also help suppliers invest in the technologies and equipment necessary to reach climate targets. This includes funding investments in energy-efficient machinery, low-carbon technologies, and the adoption of circular production practices. These investments can help manufacturers reduce emissions, improve resource efficiency, and meet their decarbonization roadmaps, which often require hefty upfront costs.
Marshall urges that the industry should focus on facilitating these investments, noting that favorable financing terms are not enough. Manufacturers are not looking for more debt; they need the support of brands that are willing to engage in long-term, meaningful partnerships.
Cascale’s Role in Fostering Responsible Purchasing Practices
In addition to supporting manufacturers’ decarbonization efforts, Cascale is committed to advancing responsible purchasing practices throughout the supply chain. The acquisition of the Better Buying Institute (BBI) highlights the organization’s dedication to fostering transparency in how brands make purchasing decisions. By helping brands understand how to make better, more responsible purchasing choices, Cascale ensures that sustainability becomes an integral part of the procurement process.
At the heart of Cascale’s mission is the goal to elevate the manufacturing industry’s voice and advocate for the inclusion of manufacturers in global sustainability conversations. Marshall emphasizes that this effort is not only about supporting manufacturers but also about positioning them as critical players in the climate action movement.
Regulatory Challenges and Industry Resilience
While sustainability regulations like the EU’s Corporate Sustainability Due Diligence Directive (CSDDD) are essential, progress in some regions has been slow. Marshall pointed out that the watering down of the CSDDD in the European Union is disappointing, but he remains optimistic about the industry’s ability to stay the course. Companies that are genuinely committed to sustainability will continue their efforts, regardless of regulatory changes, and brands with established decarbonization roadmaps are likely to push ahead with their initiatives.
This resilience in the face of regulatory uncertainty underscores the growing consensus within the industry that action is needed now. With or without legislation, manufacturers and brands must work together to accelerate the green transition, focusing on investments that enable the sector to meet its long-term sustainability objectives.
Conclusion
Manufacturers are at the heart of the fashion industry's climate strategy. To meet global sustainability targets, brands must prioritize investment in the technologies and practices that empower manufacturers to reduce their carbon footprint. By fostering transparency, encouraging responsible purchasing practices, and facilitating critical investments, Cascale is helping to shape a more sustainable future for the industry. As the call to action grows louder, now is the time for companies to take ownership of the green transition and work together to accelerate progress.