ReportIn 2021, Aii and the World Resources Institute published “Roadmap to Net Zero,” a report evaluating the apparel industry’s emissions and calling for system-wide, collective action to reduce emissions by 45 percent by 2030 and to net zero by 2050.
We have promised to refresh this analysis annually using the best available data, and are pleased to share Taking Stock of Progress Against the Roadmap to Net Zero 2026.
SAN FRANCISCO, September 1, 2026 – Today, Apparel Impact Institute published Taking Stock of Progress Against the Roadmap to Net Zero 2026, finding that the fashion industry’s emissions went up 6.3% from 2023 to 2024 – increasing for the second year in a row.
The annual report, which quantifies emissions across the global apparel value chain, finds that the rise was, again, primarily driven by growing fiber use, especially petroleum-based polyester. However, the report notes that as the apparel industry - and its emissions footprint - continues to grow in size, energy decarbonization offers a proven path to lowering operational emissions and improving business resilience, regardless of fiber production trends.
The report draws on publicly reported examples from across the value chain, highlighting how brands and suppliers have made progress in decarbonization. In 2025, roughly 33% of the energy used by PUMA’s core factories came from renewable sources, exceeding its 2025 target of 25%. Similarly, the manufacturer Shenzhou International Group Holdings, which supplies companies including Uniqlo, reported that renewable electricity accounted for more than 60% of total electricity consumption in 2024, with 10 factories powered by 100% renewable electricity. The company also reduced its Scope 1 and 2 emissions by 16.8% between 2020 and 2024. Between 2022 and 2025, H&M Group made significant progress in phasing out coal from its supply chain, reducing the number of Tier 1, 2 and 3 supplier factories using on-site coal boilers from 118 to 10.
However, the report recognizes that systemic and financial barriers continue to limit the industry’s potential to reduce emissions at scale. Much of the sector’s emissions sit with suppliers, who often face competing business interests and lack of access to the capital needed to invest in decarbonization projects and face limits across technology, country-level renewable energy access, and grid infrastructure.
To accelerate operational decarbonization progress, Aii has issued a four-point call to action designed to scale financed, facility-level decarbonization across the apparel value chain:
Climate transition plans must be translated into specific projects, including thermal electrification, renewable electricity deployment, and energy efficiency interventions. These projects should then be focused at the facilities and production stages with the greatest emissions impact, particularly energy- and heat-intensive processes in Tier 2.
Brands, financial institutions, policymakers, and implementation partners must share the financial and operational burden of supply chain decarbonization with suppliers by facilitating access to climate finance, providing stable and longer-term purchasing commitments, and aligning commercial relationships with decarbonization objectives.
The next phase of decarbonization in the fashion sector depends on scaling already identified climate interventions to be standard practice rather than isolated examples through sharing verified results, implementation lessons, and consistently monitoring the progress of decarbonization interventions.
Circular business models should advance alongside the rapid decarbonization of manufacturing, including improvements in materials, energy efficiency, and operational carbon intensity.
These recommendations, which reflect Aii’s organizational mandate, are designed to help brands, suppliers, financial institutions, and other industry stakeholders unlock capital and deliver measurable emissions reduction projects.
“Renewable energy and electrification are crucial parts of global climate action; the fashion industry’s progress to scale efficiency and electrification technologies, and mobilizing capital more effectively, can offer a roadmap for other industries,” said Kurt Kipka, Chief Impact Officer of Aii. “Looking ahead to COP31, our hope is that industry and governments recognize the importance of clean energy and clean heat solutions to support sector decarbonization.
The full Taking Stock of Progress Against the Roadmap to Net Zero 2026 is available for download here. This work builds upon previous versions of the Taking Stock of Progress Against the Roadmap to Net Zero report, which has been updated annually since 2021.
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Apparel Impact Institute (Aii) is a nonprofit collective founded in 2017 by four industry leaders: Cascale (Formerly the Sustainable Apparel Coalition), the Sustainable Trade Initiative (IDH), Natural Resource Defense Council (NRDC) and Target Corporation. The organization emerged organically as a result of a real need that apparel brands and retailers self-identified. Gap Inc., PVH, Arvind Mills, HSBC, GIZ, Stichting Doen and Schmidt Family Foundation joined the founders in the first three years of start-up and organizational development. Aii identifies, funds, and scales proven quality solutions to accelerate positive impact in the apparel and footwear industry. Aii programs focus on areas that result in positive environmental impact from the production of apparel and footwear products to improve the industry.
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