Apparel Impact Institute (Aii) has introduced a new benchmarking tool aimed at improving how energy consumption and carbon emissions are measured across the global fashion supply chain.
The tool, called the Energy and Carbon Benchmark, is designed to provide standardized metrics for evaluating energy use and emissions at textile mills and apparel manufacturing facilities. Industry experts say the initiative could help brands and suppliers better understand where emissions are generated and identify opportunities for decarbonisation.
The launch comes as the fashion industry faces increasing pressure to reduce its environmental footprint. According to Aii’s 2025 progress update, emissions from the apparel sector rose by nearly 8 percent in 2023 compared with the previous year. The industry now accounts for close to 2 percent of global greenhouse gas emissions.
Aii said the new benchmark aims to bring greater transparency and comparability to sustainability performance across the supply base. One key feature of the system is its ability to measure emissions at the process level, allowing factories with different production setups to be assessed more accurately.
Textile manufacturing often involves multiple stages, including spinning, dyeing, finishing and garment production. Many factories operate only one stage of production, while others combine several processes at the same facility. Traditional measurement tools have struggled to capture these differences, making it difficult to compare performance across suppliers.
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The Energy and Carbon Benchmark addresses this issue by separating and evaluating emissions based on specific production activities. By doing so, it allows brands and suppliers to identify the most energy-intensive processes and focus improvement efforts where they can have the greatest impact.
The tool can analyse a factory’s total energy consumption and emissions profile, while also breaking down performance by department or production stage. It also enables comparisons across different facilities, regions and manufacturing models.
Aii said this approach is intended to help companies develop more targeted strategies for reducing energy consumption and lowering carbon emissions within textile supply chains.
The benchmark was tested in a pilot program in late 2025 with participation from several major apparel brands and manufacturing partners. Companies involved in the trial included H&M Group, Inditex, AEO Inc., Gap, Target, J.Crew Group and PVH, along with suppliers such as Elevate Textiles and KPI Mills.
The Apparel Impact Institute said feedback from the pilot program helped refine the methodology and ensure that the benchmarking system reflects real manufacturing conditions.
The benchmark also builds on existing industry datasets and sustainability measurement tools. Aii said the methodology incorporates verified energy performance data from sources including the Higg Index as well as direct assessments conducted at textile mills.
Industry experts say reliable benchmarking is becoming increasingly important as brands adopt climate targets and work toward reducing supply chain emissions.
Most of the fashion industry’s environmental impact occurs during manufacturing, particularly in energy-intensive processes such as textile processing, dyeing and finishing. These activities often rely on fossil fuels or energy-intensive heating systems.
By providing clearer visibility into where emissions occur, benchmarking tools could help guide investments in cleaner technologies, energy efficiency improvements and renewable energy solutions.
The Apparel Impact Institute said the Energy and Carbon Benchmark is intended to support collaboration between brands and suppliers by creating a shared framework for evaluating performance.
The organization also hopes the tool will encourage more consistent reporting of energy use and emissions across textile supply chains.
As sustainability requirements from regulators, investors and global brands continue to grow, improved measurement and transparency are increasingly seen as critical steps toward reducing the fashion industry’s environmental impact.
