JAAF Sustainability Newsletter

December Edition

Dear Reader,

Thank you for being a part of JAAF’s sustainability newsletter. This newsletter is a part of JAAF’s efforts to respond to and serve Sri Lanka Apparel’s evolving needs especially through bridging the knowledge gap that exists in the Environment, Social and Governance Space.

So Welcome! to the December JAAF Sustainability Newsletter, featuring a selection of the latest developments in the sustainability space as it relates to the apparel industry in Sri Lanka. Through this information bridge JAAF aims to curate and communicate the latest developments in sustainability from across the apparel and textile sectors.

We look forward to your ongoing support and encourage you to engage with us by sharing this newsletter with your colleagues and peers in Sri Lanka and afar. You can also subscribe to this newsletter directly by clicking the link below.

Don't hesitate to contact us at [email protected] if you would like to partner or better yet share the developments in sustainability with our community.

Events

Understanding The Impacts Of The EU Eco Design Directive For Apparel And Textile Manufacturers

In this webinar we will take a look at what the EU Eco Design directive is and how it will impact your business, even if it does not affect you directly.

Jan 21, 2025

OECD Forum on Due Diligence in the Garment and Footwear Sector

Sector stakeholders will have the opportunity to explore pragmatic solutions for meeting new regulatory requirements on due diligence through building on existing, effective due diligence practices and standards.

11-12 February 2025, Paris & Online

JAAF Insights

Introducing “InStitch”, JAAF’s new quarterly magazine! Check out the inaugural issue for the latest insights, stories, and updates from Sri Lanka's apparel industry. Click the link above to read, and stay connected for future issues.

Sustainability In Sri Lanka

Germany’s Supply Chain Act could marginalise Sri Lanka’s small and medium enterprises (SME) in the apparel industry as the cost of auditing and acquiring certifications increase, industry representatives and analysts have said.

“Industry stakeholders make clear that most apparel manufacturers in Sri Lanka are SMEs, and that the top 20 companies in the industry account for around 80 percent of the exports,” attorney-at-law Shyamali Ranaraja told a forum on the act’s implications.

The "Circularity in Action" Training of Trainers (ToT), organized by the International Trade Centre under the GTEX Phase II initiative, took place from December 16–19. This training aimed to equip trainers with the knowledge and skills needed to implement circular economy models in Sri Lanka's textile and clothing sector.

The four-day insightful training, funded by the Swiss State Secretariat for Economic Affairs (SECO), provided nearly 90 participants with a comprehensive understanding of circularity in textiles.

The sessions were facilitated by Rudrajeet Pal, Professor of Textile Value Chains at The Swedish School of Textiles, University of Borås and Guillaume Lamothe, Managing Editor at International Trade Centre(ITC).

Sri Lanka’s textile, garment, and leather industries came together for a one-day workshop organized by JAAF and Solidaridad Network to address the European Union’s Corporate Sustainability Due Diligence Directive (CSDDD). A major highlight of the event was the signing of a Memorandum of Understanding (MOU) between JAAF and Solidaridad. This partnership is designed to help Sri Lankan suppliers meet the new EU requirements, ensuring their continued competitiveness in the European market.

Additionally, Shahid Sangani, Secretary of FAAMA was acknowledged for his efforts working behind the scenes to support the program.

Sustainability In Textiles

Innovated by Balena, a next-gen material science company, BioCir® Flex is a non-toxic, compostable, recyclable and biobased alternative to conventional plastics seen in our new S-Wave Sport trainers, debuted as part of the Autumn 2025 collection. It absorbs impact, responds to motion and is as durable as TPU and flexible as rubber, and is dyed with natural cinnamon.

Global Fashion Regulations

The circular economy is not just a purported $4.5 trillion business opportunity. It can also dramatically speed up climate action, reduce waste and benefit nature. Yet businesses can’t realize this potential without a common standard to define and measure circularity.

That’s the logic of scores of businesses from Amazon to Volkswagen, “big green” groups and governments backing the creation of the Global Circularity Protocol for Business (GCP). The concept of the circular economy, which reshapes the “cradle to grave” waste of industry in favor of recirculating or even regenerating resources, is maturing and suiting up.

We responded to demand for updated guidance by publishing new sector-specific resources, as well as launching technical publications to support standard development.

The global apparel and footwear sector produces more greenhouse gas emissions than the shipping and aviation sectors combined.

Our guidance supports companies to set science-based targets and reduce the fashion industry's emissions footprint. Learn more and set a target today.

The third-year Textiles 2030 Annual Progress Report provides an overview of the progress made and challenges faced through Textiles 2030, between 2023 and 2024

The results for the third year of Textiles 2030 present a complex picture of industry progress. Positive strides have been made by signatories to reduce carbon emissions (-8%) and water use (-9%) per tonne of product on the market, with signatories applying more improvement actions than in any previous year of the agreement. These switches include moving to less impactful fibres, increasing the use of recycled materials, record levels of textile collections, and circular business model pilots and collaborations.

textiles-2030-annual-progress-report-23-24.pdf9.17 MB • PDF File

Two of the most significant pieces of EU legislation addressing sustainability-related due diligence and reporting are the Corporate Sustainability Due Diligence Directive (CS3D) and the Corporate Sustainability Reporting Directive (CSRD). The CSRD and CS3D were designed to intersect and complement one another.

Under the European Green Deal, and considered an extension of (or replacement for) the EU’s 2018 Non-Financial Reporting Directive (NFRD), the CSRD is the cornerstone of the EU’s vision for a sustainable economy, environment, and society.

Since Jan. 5, 2023, the EU has been like a strict school teacher dishing out homework to companies, requiring them to disclose information on what they see as the risks (and opportunities) arising from social and environmental issues, and the effect of their activities on people and the environment.

Neighborhood Watch

To drive change and eradicate the environmental impact of fashion and building, countries including Cambodia, Costa Rica, Ecuador, India, Mongolia, Pakistan, Peru, and Trinidad and Tobago have joined forces.

The six-year, US $ 45-million project was started by governments taking part in the Global Environment Facility (GEF)-funded Integrated Programme on Eliminating Hazardous Chemicals from Supply Chains with the goal of changing the supply chains in their building and fashion industries.

Global producer of recycled cotton fiber Recover is set to open a new manufacturing facility in Vietnam as part of its expansion strategy.

Set to be fully operational by early 2025, the new facility sees Recover bring its large-scale recycling technology to Vietnam and leverage the production of more sustainable materials within the local textile production market.

Located in the Dong Nai province, Recover selected its new facility strategically, as Vietnam is the third-largest textile exporter worldwide. Recover selected this region in particular as once opened, the factory will be conveniently positioned near both textile waste sorting and manufacturing operations, lowering expenses and minimizing the environmental impact linked to transportation.

A new report reveals garment workers in Bangladesh, Vietnam, and Pakistan face increasing extreme heat due to climate change. New EU regulations hold retailers accountable, pushing them to fund factory cooling improvements. Only a few brands currently have heat safety protocols, but experts stress the urgency for broader action to protect workers and prevent economic losses.

For Bangladesh, EU is an important market as about 50-55% of the exports of Bangladesh mostly textile and clothing are destined to EU.
EU green deal adopted on December 11, 2019 aims to make their textile and footwear and other industrial production carbon neutral by 2050, one of the primary goals undertaken to address SDGs, objectives of which are to somehow connected with all 17 SDGs.
EU believes that these policies will help them to move from huge costly take, make, break and throw away models while the introduction of eco design can bring billions of euros in consumer savings. Bangladesh if wants to be in the EU market will have to increase its recyclability, reusability in a compliant manner and thus policies needs to be aligned with these requirements.

The apparel industry, a vital pillar of India’s economy, stands on the cusp of a historic growth opportunity with the market expected to expand to $300 billion by 2047. However, to capitalise on this boom, the industry must arm itself with emerging technologies to navigate the unprecedented challenges of a rapidly evolving marketplace, including fragmented supply chains, escalating costs, rising competition and mounting sustainability concerns.

The Vietnam Textile and Garment Association (VITAS), with ILO support, has launched a working group to enhance skills development in the textile and garment sector.

The group, consisting of 19 members from industry, education, and trade unions, aims to address skill mismatches, improve training quality, and foster partnerships between businesses and training providers.

General

Sustainability goes beyond just committing to net zero.

Swapping paper for email, eliminating plastic straws, pledging to lower carbon emissions, setting a plan, and sharing green initiatives with your team—all of these actions matter.

But they’re not enough.

Sustainability and ESG (Environmental, Social, and Governance) can be confusing—and often overwhelming. The truth is, sustainability is a complex landscape, where every decision impacts both people and the planet in profound ways. The ESG framework helps to simplify this complexity, offering a clear focus on three key areas:

  • Environmental: Actions like reducing carbon emissions

  • Social: Efforts to care for employees and the community

  • Governance: Ensuring transparency in decision-making

By using this framework, businesses can navigate the breadth of sustainability issues and make meaningful, long-term impact.

When founders, executives, and changemakers commit to real ESG efforts, revenue and results will follow.

Key carbon terms

Excited to share some key carbon terms that are essential for understanding and addressing climate change! Take a look at the 10 basic carbon terms you need to know:

1. Carbon Footprint: This term refers to the emissions impact from human activities, primarily carbon dioxide. Understanding our carbon footprint is crucial in making more sustainable choices in our daily lives.

2. Carbon Neutrality: Achieving carbon neutrality involves balancing the amount of carbon dioxide emitted into the atmosphere with the amount removed or offset. It's a critical goal in mitigating climate change and preserving our planet for future generations.

3. Carbon Offset: By investing in projects that reduce or capture equivalent greenhouse gases, carbon offsetting helps to compensate for emissions and restore environmental balance. It's a proactive way to combat climate change.

4. Carbon Sequestration: This process involves trapping carbon dioxide through methods like reforestation, soil improvement, or technology. By reducing atmospheric carbon, carbon sequestration plays a key role in combating climate change.

5. Carbon Trading: A market-based approach that allows entities to buy and sell permits to emit a certain amount of greenhouse gases. Carbon trading incentivizes emission reductions and promotes a more sustainable economy.

6. Carbon Pricing: Putting a monetary cost on carbon emissions is a powerful tool to encourage businesses and individuals to reduce their carbon footprint. By internalizing the cost of emissions, carbon pricing drives innovation towards cleaner technologies.

7. Decarbonization: The process of reducing carbon emissions from various sectors such as energy, transportation, and industry is essential in mitigating climate change. Decarbonization efforts are crucial for transitioning to a low-carbon economy.

8. Carbon Disclosure: Companies disclosing their carbon emissions and climate-related risks to investors and the public demonstrate transparency and commitment to sustainability. Carbon disclosure fosters accountability and drives climate action.

9. Carbon TAX: Government levies on carbon emissions are designed to encourage emission reductions and fund sustainability initiatives. Carbon taxes play a significant role in shaping behavior towards more environmentally friendly practices.

10. Carbon Market: A platform where carbon emissions are assigned a monetary value, carbon markets facilitate the trading of emission credits. Understanding the dynamics of carbon markets is key to accelerating the transition to a low-carbon future.

Publications & Resources

Fashion leaders polled in our annual BoF–McKinsey State of Fashion Executive Survey were just as pessimistic as last year. Just 20 percent expect improvements in consumer sentiment in 2025, while 39 percent see industry conditions worsening.

the-state-of-fashion-2025-v2.pdf11.43 MB • PDF File

A new report, the Circularity Gap Report (CGR) Textiles, authored by Circle Economy and funded by the H&M Foundation, provides an in-depth view of the current circularity in clothing and textiles. The CGR Textiles urges immediate action to reduce the textile industry’s environmental impact by embracing circular economy principles such as reuse, recycling and slow fashion.

Global Fashion Agenda (GFA), with support from Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and the H&M Foundation, has launched the Upstream Circularity Playbook, now available in six languages. This comprehensive resource draws on extensive case studies across multiple countries to provide a globally accessible, step-by-step guide specifically tailored for garment manufacturing regions.

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