JAAF Sustainability Newsletter

March 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 March 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

40th IAF World Fashion Convention

Join us for the 40th IAF World Fashion Convention, a landmark event bringing together the brightest minds and most influential leaders in the global apparel and textile industry. This year’s convention will take place on October 24–25, 2025, in the enchanting city of Yogyakarta, Indonesia.

JAAF Insights

TexKonnect Podcast Series: Amplifying the Voice of the Textile Industry - Powered by CEMS-Global USA's Textile Series of Exhibitions

In Episode 3 of TexKonnect, the podcast dedicated to exploring the dynamic world of textiles and apparel, we are honored to welcome Mr. Yohan Lawrence, the Secretary General of the Joint Apparel Association Forum of Sri Lanka (JAAF). As the apex body representing Sri Lanka's textile and apparel industry, JAAF plays a pivotal role in shaping the future of one of the nation's most influential sectors.

Join us as we delve into an insightful conversation about Sri Lanka's evolving textile and apparel landscape, the challenges and opportunities facing the industry, and how JAAF is driving sustainability, innovation, and growth. Mr. Lawrence shares his expertise on navigating global market trends, enhancing supply chain resilience, and the strategic initiatives positioning Sri Lanka as a leader in responsible manufacturing.

This episode is a must-listen for industry professionals, entrepreneurs, and anyone passionate about the future of textiles and apparel.

Tune in to Episode 3 of TexKonnect – Where the Threads of Innovation and Inspiration Weave Together!

An initiative by CEMS-Global USA, bringing you closer to the global textile community.

(Supporting Video Footage Courtesy: Export Development Board of Sri Lanka, InQube Sri Lanka)

The International Trade Centre in collaboration with JAAF recently organized a stakeholder meeting and a training with suppliers and manufacturers in Sri Lanka’s apparel sector. The session aimed to provide valuable insights and support them in enhancing their social and labor practices.

In this video, Reshma K T from SLCP explains the program’s role in driving collaborative efforts to enhance social and labor practices across the apparel supply chain and also shares key highlights from the discussions held during the training and stakeholder meeting.

Sustainability In Sri Lanka

The multi-faceted initiative, spearheaded by the company’s ReFactory arm, will extend across four Sri Lankan provinces – North West, North Central, Uva and Eastern. It aims to reintroduce cotton cultivation in the country for the first time since the 1970s, support and grow traditional artisan skills and techniques in communities, as well as drive planet-friendly innovations in fabric production and treatment.

In parallel, MYGroup plans to establish a materials recycling hub focused on tackling the scourge of ocean plastic around Sri Lanka’s coastlines.

For the textiles elements of the initiative, the ReFactory team has partnered with the Sri Lanka arm of Fibershed, a global non-profit consultancy focused on sustainable, localised systems for producing textiles and clothing. Fibreshed Sri Lanka advocates for and promotes the use of local fibres, natural dyes, traditional labour and techniques, ensuring these practices are preserved, modernised and scaled for the long-term.

All elements of the Sri Lanka initiative are aimed at employing and fairly compensating local artisans and workers, revitalising traditional industries and strengthening local economies, but with a keen focus on environmental responsibility to foster the long-term growth and transition of the country’s textiles and fashion industries toward a sustainable future.

The German supply chain act or Act on corporate due diligence has been effective from January 2023 to facilitate best practices in the industry.

Sri Lanka is ahead of its competing neighbour countries such as India and Bangladesh in industry standards, best practices and human rights protection, Gajanayake said.

However, there is a tendency for small and medium enterprises getting marginalized through the act as the costs to be borne for certification are significant on the economies of SMEs.

Global Fashion Regulations

In 2012, WRAP introduced a methodology to help businesses calculate displacement rates - the rate at which buying, renting, or repairing an item through a circular business model displaces the purchase of a new item.

Originally designed for resale, this methodology has since been adapted by various organisations, while others have deployed their own approaches, leading to variations in how displacement rates are measured. These inconsistencies reduce how useful the calculations are, with the potential to mislead consumers and over- or under-state environmental savings.

To address this, WRAP has developed ‘Displacement Rates Untangled’ – an updated methodology for measuring displacement rates, to bring about greater consistency and standardisation across the industry.

“The good news is that it’s not too late to build a more circular, more sustainable fashion sector,” says Elisa Tonda, Chief of the Resources and Markets Branch of the United Nations Environment Programme (UNEP). “But we need everyone pulling together if we’re going to make the systemic change necessary to transform the fashion industry into a force for environmental good.”

On 30 March, the world will celebrate the International Day of Zero Waste, which this year focuses on fashion and textiles. Ahead of the observance, we spoke with Tonda about five ways to make the sector more sustainable.

Current changes to supply chain due diligence obligations, sustainability reporting and CO2 offsetting mechanism

The European Directive on due diligence obligations in the supply chain is to be toned down and harmonised with the German Supply Chain Act. However, neither will kick in until 2028 since German politicians are likely to suspend the German law in 2025. At the same time, the recently intensified EU Sustainability Reporting Standards (ESRS) are to be significantly reduced again (80% fewer companies and up to 35% fewer submissions) whilst the information on the taxonomy will also affect fewer companies in future and be designed more pragmatically. Finally, the CO2 border adjustment mechanism (CBAM) will only affect 10% of importers (but 99% of emissions).

EU member states are to transpose CS3D into national law by July 2026. Germany will do this by appropriately adjusting the Lieferkettensorgfaltsgesetz (LkSG), among other things. Steps for these adjustments and other developments concerning CS3D implementation are expected to take shape in 2025.

In a year when tariffs and consumer confidence are constantly fluctuating, the fashion industry is focused on staying prepared. Within the first quarter alone, the new U.S. presidential administration’s approach to trade policy has reversed course multiple times, and brands are thinking about how they can adapt to this uneven landscape.

These topics all emerged as key themes during the American Apparel and Footwear Association’s annual executive summit earlier this month. This year’s event was titled “Trust & Transformation” and featured discussions on preparing and dealing with change as the industry and outside forces — such as technology and the new administration — move even faster.

RMIT sustainable fashion experts have collaborated with brands to create guidelines aimed at eliminating wasteful designs and promoting durable fashion that supports reuse and recycling.

The new guide, Refashioning: accelerating circular product design at scale, outlines steps for makers to transition from linear to circular design, focusing on maximising the lifespan of products and materials.

This three-part series unpacks The Upstream Circularity Playbook – exploring the technical innovations, systemic shifts, and real-world solutions shaping the future of textile recycling. Faith Robinson, Head of Content at GFA, hosts in-depth conversations with leading experts, to demystify how waste can be transformed into new resources, offering practical guidance for brands, manufacturers, policymakers, and innovators alike.

Neighborhood Watch

India stands amongst the leading countries globally in textile and apparel manufacturing and is expected to cross over USD 350 billion in value by the end of the decade. Presently the industry contributes to 2.3% of GDP and roughly 13% of the total industrial output. According to a report from Wazir Advisors, the market size for 2024-25 is estimated to be USD 184 billion with domestic markets contributing to ~80% (USD 147 billion), while exports contributing to ~20% (USD 37 billion). Key export markets include the United States of America, the United Kingdom, United Arab Emirates and several countries in Europe, besides markets in South Asia such as Bangladesh. As a source of employment, the industry is estimated to employ over 45 million workers and supporting the livelihoods of an additional 100 million individuals.

bizpando AG, operator of a compliance platform, has joined forces with the Aid by Trade Foundation (AbTF) and the International Cotton Advisory Committee (ICAC) to launch a project to promote carbon credits in cotton production. The aim is to empower African smallholder farmers through effective agricultural techniques and digital solutions to improve soil quality, sequester CO₂ and create additional sources of income.

General

Texas Instruments (TI) unveiled what it claims to be “the world's smallest microcontroller (MCU)” at Embedded World 2025. The tiny new MSPM0C1104 measures just 1.38 mm², which TI says is about the same size as a black pepper flake. TI is targeting medical wearables and personal electronic applications for the new MSPM0C1104, which it claims is 38% smaller than the most compact rival MCUs and will cost buyers just 20 cents a piece in bulk.

Ravel, a textile recycling startup based in Seattle, recently closed its preseed funding round. The round was led by At One Ventures, with significant participation from Collateral Good and backed by Collaborative Fund, Climate Capital, Better way Ventures and Moonstone VC.

Ravel says the funding marks a critical step in its mission to bring sustainable, closed-loop “purification recycling” for blended textile materials, adding that its process addresses two of what it claims are the fashion industry’s biggest challenges—the effective recycling of blended material scrap and a price-competitive solution for low-impact sustainable raw materials.

Responsible for between two to 10 percent of global emissions, the fashion industry has what the Apparel Impact Institute (Aii) believes to be an “immense opportunity” to decarbonize.

With a crossroads on the horizon—electrification against immediate action—the industry advocate has published its following roadmap outlining steps industry players can take in the near-, mid-and long-term to implement electrification effectively in pursuit of net zero.

H&M Group said it remained fully committed to its sustainability agenda as published its sustainability report for the financial year 2024 today (27 March), outlining its progress in its sustainability strategy.

In the report, H&M shared that it had cut its scope 1 (direct) and 2 (indirect) emissions by 41% in its operations, and scope 3 (indirect) emissions by 24% in its supply chain. This keeps the group on track to meet its goal of a 56% reduction in emissions by 2030 and net-zero by 2040.

The share of recycled or sustainably sourced materials used by the Swedish retail giant for its commercial products was recorded at 89%. Of these, 29.5% came from recycled sources, just shy of the group's 30% goal for 2025. Recycled polyester made up 94% of all polyester used.

H&M is phasing out onsite coal, as outlined in the report. The retail group, which owns Weekday, Cos, and Arket, has been "actively working with suppliers to phase out on-site coal boilers", which are often used to produce steam and power factory processes.

The number of its direct garment suppliers and their suppliers (tier 1 and 2) reporting the use of these boilers in 2024 has fallen since 2022, from 118 to 27. H&M's goal is to eliminate on-site coal use from all of its garment suppliers by 2026, in order to contribute to a fossil free supply chain.

Freshwater use in its tier 1 and 2 factories decreased by 9.5% from the 2022 baseline, bringing the company within 0.5% of its 2025 target. This progress was largely driven by an increase in water recycling, which now stands at 19.6%.

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