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JAAF Insights

Sustainability In Sri Lanka

Past Progress and Key Barriers

• Failure to Meet Targets: The fashion industry is currently not on track to meet the 2030 goal of reducing greenhouse gas emissions from fiber and raw material production by 45 per cent.

• Rising Emissions: Despite sustainability pledges, clothing production emissions increased by 7.5 per cent in 2023, reaching nearly 944 million metric tons, driven largely by increased polyester usage.

• Significant Funding Gap: Decarbonising the supply chain is hindered by a lack of capital; for instance, the Apparel Impact Institute's Fashion Climate Fund has only raised approximately 7.8 per cent of its $2 billion target.

• Structural and Economic Barriers: Progress is stalled by a focus on short-term quarterly results and a "business as usual" approach that prioritises profit over long-term environmental resilience.

• Inadequate Labour Protection: While heat stress is a growing health crisis for garment workers in hubs like Bangladesh and Pakistan, most brands have failed to integrate worker-led adaptation or mitigation into their climate plans.

• Technical Implementation Stagnation: Many companies are "stuck" at the commitment phase and have struggled to transition into the concrete implementation of large-scale transformation investments

Proposed Changes to Regulations Affecting the Fashion Industry

•The "Omnibus" Simplification: The European Union has finalised a package that significantly narrows the scope of the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).

• Higher Compliance Thresholds: Sustainability reporting under CSRD will now primarily apply to larger entities with over 1,000 employees and €450 million in turnover, exempting many smaller firms.

• Diluted Due Diligence Requirements: The revised CSDDD has dropped the requirement for companies to adopt climate transition plans and has deleted earlier provisions for EU-wide civil liability.

• Protection for Smaller Partners: New "protected undertaking" concepts prevent large corporations from passing disproportionate reporting burdens onto smaller suppliers who lack the resources to comply.

• Chemical Restrictions: In the United States, Washington state has moved to prohibit intentionally added PFAS ("forever chemicals") in apparel and accessories effective from 1 January 2027.

• Traceability and Labelling: India is set to announce mandatory labelling rules for textiles, while the EU has delayed its landmark anti-deforestation law to December 2026.

The Outcome of COP30 on the Fashion Industry

•Limited Brand Engagement: Representation from fashion brands was described as "thin" and disappointing, with very few companies participating in official discussions or side events in Belém, Brazil.

• Fossil Fuel Omission: The final COP30 agreement was widely criticised for removing the term "fossil fuels" from the draft resolution, opting instead for separate, non-binding roadmaps.

• Global Circularity Protocol (GCP): A major development was the debut of the GCP, a science-based framework supported by brands like Nike to accelerate the shift toward a circular economy.

• Focus on Health and Adaptation: The summit reinforced that the "climate crisis is a health crisis," highlighting the need for mandatory climate adaptation for health to protect workers from extreme heat stress.

• Funding for Transition: Advocacy groups hosted events focused on financing a "just transition" for manufacturing hubs like Bangladesh, emphasizing that technical solutions require appropriate financial backing.

Future Changes Affecting the Fashion Industry

Impending Compliance Deadlines: Large EU companies must begin reporting under the revised CSRD for financial years starting 1 January 2027, while full CSDDD compliance is required by July 2029.

• Shift Toward Verified Data: The industry is moving from static reports to "decision-useful" information supported by AI-powered ESG tools that trace data lineage and ensure audit-ready accountability.

• Advanced Traceability Technologies: Innovations such as "Fibarcode"—photonic fibres woven into fabric—are being developed to identify material composition and manufacturing origins to facilitate better recycling.

• New Industry Standards: The Textile Exchange’s Materials Matter Standard, which consolidates various sustainability criteria into a unified system, will become mandatory for certified sites on 31 December 2027.

• Physical Climate Risks: Ongoing and worsening extreme weather events, such as floods and landslides in Asian production hubs, will increasingly disrupt supply chain resilience, forcing brands to prioritise adaptation.

• AI Integration: Operational AI will likely be used to cut energy waste in buildings and manufacturing sites, though its own carbon footprint will require careful management through "GreenOps"

Decarbonising China’s Textile and Apparel Manufacturing Sector - With its scale, strong climate policy foundation, and extensive network of textile industrial parks, China remains not only one of the most influential players in global apparel and textile manufacturing but also a linchpin for enabling the sector’s ambitious 2030 goals.

• Advanced Recycling: Researchers at TU Wien developed a non-toxic method using menthol and benzoic acid to efficiently separate cotton and polyester blends.

• AI and Digital Tools: AI-driven digital pattern-making optimises fabric layouts to the millimetre, significantly reducing cutting-room waste.

• Innovative Design: Modular clothing allows users to swap interchangeable parts (sleeves, collars, panels), extending the life of a garment by allowing parts to be replaced rather than discarding the whole item.

• Regenerative Materials: Brands are experimenting with textiles made from algae, mycelium (mushroom leather), and fruit waste, which are biodegradable and reduce reliance on petroleum-based synthetics.

• On-Demand Manufacturing: To prevent overproduction and dead stock, brands are adopting models where clothing is produced only after it is ordered

What Really Changed for Sustainable Fashion in 2025? - In 2025, sustainable fashion shifted from promises to systems, including textile responsibility laws and labor enforcement, as well as long-term material commitments and resale infrastructure.

Zero-Waste Clothing: How Brands Will Innovate in 2026 - Zero-waste clothing is no longer a niche concept reserved for experimental designers or small-batch sustainable labels. As the fashion industry faces immense pressure to reduce its environmental footprint, the idea of producing garments without generating textile waste has transformed from an environmental ideal into a strategic necessity.

Majority of UK retailers now reporting GHG emissions, BRC finds - The British Retail Consortium (BRC) has revealed that 91% of UK retailers have established a baseline for greenhouse gas (GHG) emissions and are publicly reporting their data.