Textile Insight

Over 90 percent of apparel sector emissions are classified as Scope 3, which includes indirect emissions from supply chain partners in manufacturing and distribution. ese are oen the least transparent and the most difficult to track. "Given the large number of entities operating in the value chain, gathering this data will be a significant undertaking that will take years," says the WRI report. Companies in the sector can begin their own journeys to decarbonization by establishing emission reduction targets based on science. Embracing Carbon Accounting e Science Based Targets initiative (SBTi), established in 2015, is a set of measurement rules to help companies set targets to reduce their GHG emissions in line with the Paris Agreement. Companies set reduction goals, both short and long-term, to reduce Scope 1, 2, and 3 emissions as a percentage from a baseline, as they move toward carbon neutrality. In order to decarbonize, companies must be able to track carbon emissions. Welcome to the new technology of carbon accounting. According to the Wall Street Journal, the global market for carbon-accounting soware is growing fast. e sector attracted $356 million of venture-capital funding last year, more than five times the $63 million total for 2020. is year, the funding has already reached $71.5 million. Leading tech companies such as Salesforce.com Inc. and Microso Corp. are already launching soware programs for tracking and analyzing climate data. Reducing Emissions is the Bottom Line While neutralization of CO2e emissions can be mitigated in transition by offsets or the growing technology of carbon capture, achieving zero emissions is the bottom line in creating a sustainable textile and apparel industry. "Before setting targets and strategies for carbon removals, companies need to be able to demonstrate their strategy for reducing fossil CO2 emissions," opines sustainability consultancy Quantis International. "Planting trees won't save us." ere's no time like the present. A new rule proposed by the U.S. Securities and Exchange Commission (SEC) will require public companies to disclose risks related to climate change that are reasonably likely to materially impact their businesses, as well as disclosing greenhouse gas (GHG) emissions metrics. To date, over 100 apparel and footwear companies have approved Science Based Targets to track and reduce GHG emissions, or commitments to set them. ese include Gap, Nike, Levi Strauss, Guess, Eileen Fisher, VF Corp, Walmart, Burberry, Ralph Lauren, Marks & Spencer, Target, and others. l F O C U S TO P I C : T H E J O U R N E Y TO C A R B O N N E U T R A L I T Y 10 • Textile Insight Functional Fabric Fair Special Edition ~ July 2022 textileinsight.com T H E R E ' S N O T I M E L I K E T H E P R E S E N T. A N E W R U L E P R O P O S E D B Y T H E U . S . S E C U R I T I E S A N D E XC H A N G E C O M M I S S I O N ( S E C ) W I L L R E Q U I R E P U B L I C C O M PA N I E S TO D I S C LO S E R I S K S R E L AT E D TO C L I M AT E C H A N G E T H AT A R E R E A S O N A B LY L I K E LY TO M AT E R I A L LY I M PA C T T H E I R B U S I N E S S E S , A S W E L L A S D I S C LO S I N G G R E E N H O U S E G A S ( G H G ) E M I S S I O N S M E T R I C S .

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