Gildan Sets Science Based Targets, Increases Use of US Verified Cotton
Gildan has solidified its commitment to cutting supply chain greenhouse gas (GHG) emissions.
In January 2022, the American Apparel, Goldtoe, Comfort Colors and Peds owner announced its aim to reduce its Scope 1 and Scope 2 GHG emissions by 30 percent by 2030. This year, the Canadian apparel company added to that commitment, pledging to reduce Scope 3 emissions, encompassing partners across its supply chain, by 13.5 percent. The Science Based Targets initiative (SBTi) validated those goals, CEO and president Glenn Chamandy wrote in Gildan’s 19th annual ESG report this week.
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“This work is increasingly important in ensuring we are well positioned to adapt to the uncertainties related to climate change and we will continue to build on this foundation over the coming years,” he added. Last year, the company tied 25 percent of senior executives’ strategic objectives, including progress on ESG targets, to their annual incentives.
Since announcing its first GHG reduction targets last year, the company has slashed 10.9 percent of its Scope 1 and Scope 2 emissions from a 2018 base year, representing 753,356 tons of CO2. The company’s Scope 3 reduction efforts are less mature because they encompass facilities across multiple continents. Last year, Gildan assessed its supplier base to better understand their existing GHG emissions reporting structure, which led to an “engagement phase” that encouraged material suppliers to drive climate action initiatives.
Gildan’s supply chain includes its largest manufacturing operation in Honduras, where the majority of products are produced, as well as textile, sewing and sock production across Central America, the Caribbean and Bangladesh. The company obtained its first ISO 45001 certification at one of its sewing facilities in the Dominican Republic in 2022, and it plans to begin production at a new complex in Bangladesh this year. Meanwhile, yarns are spun in the U.S., and Gildan said it continues to modernize its facilities in North Carolina. Acquiring Frontier Yarns, a long-term Gildan supplier, in late 2021 has allowed the company to bring most yarn-making activities in-house.
Gildan said it engaged with legislators on a number of ESG-related issues last year, from job creation to economic development and human rights, and will continue these efforts this year. The company hosted the Under Secretary for Economic Growth, Energy, and the Environment at the U.S. Department of State, as well as the U.S. Deputy Assistant Secretary for Textiles, Consumer Goods and Materials Industries, Critical Minerals and Metals at its North Carolina yarn-spinning facilities, and spoke to the importance of co-production between the textile and apparel industries of the U.S., CAFTA-DR countries and the Caribbean. It also hosted the Commerce Department and the International Trade Administration at its Honduran facilities, to discuss the importance of the trade agreement in facilitating economic development across the region.
The company has also made progress in its goal of exclusively using sustainable cotton by 2025. Last year, Gildan sourced over 21 percent of its cotton supply from U.S. suppliers verified by the U.S. Cotton Trust Protocol and Better Cotton, up from just over 7 percent in 2021. It has also set the goal of increasing the percentage of recycled yarns to 30 percent by 2021, achieving 1.6 percent in 2022. Gildan said its efforts last year centered on identifying suppliers of recycled polyester and other alternatives, testing the materials, and signing supply agreements. It incorporated recycled yarns into about 18,000 fleece products. Unifi’s Repreve recycled polyester, made from plastic bottles, is one of Gildan’s key alternative feedstocks.
Packaging and apparel trims, including cartons, polyester, paper and cotton-polyester trims, are another area where the company aims to integrate more recycled content. Gildan aims to use 75 percent recycled or certified sustainable trims and packaging by 2027, and last year it said it achieved a little over 14 percent.
“Looking back at 2022, I am pleased with our continued commitment to ESG across our operations and our enhanced processes and cross-functional collaboration and accountability,” Chamandy wrote. “ESG is one of the three core pillars of our Gildan Sustainable Growth (GSG) business strategy, and as we continue our journey towards achieving our 2030 ESG targets, we are committed to delivering and reporting on our progress.”
