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JAAF Sustainability Newsletter
September Edition
Ramesh De Silva
September 30, 2025
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 September 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
Apparel and footwear companies are under increasing pressure to comply with a growing set of global regulations. From PFAS reporting under TSCA and REACH, to the New York Fashion Act and EU Digital Product Passports, requirements are evolving quickly—and demand consistent, reliable data from across the supply chain.
We’ll focus on what brands, retailers, and suppliers need to prepare: how to structure data for compliance, how to connect certification and testing information, and how to manage reporting across jurisdictions. We’ll also introduce the Global Textile Scheme (GTS) as one example of how the industry is beginning to organize and share data in a more systematic way. Attendees will gain a clearer picture of the data infrastructure needed to align with current and emerging laws.
Attendees of this webinar will learn:
To identify the regulatory trends driving structured data and documentation requirements.
The role of testing, certifications (like OEKO-TEX®), and supply chain inputs in compliance workflows.
How shared data models—like GTS—can support traceability and reduce reporting burdens.
Thursday, October 9, 2025 - 2:00 PM ET to 3:00 PM ET | Online - Register
The EU's Digital Product Passport (DPP) is set to reshape how companies selling into Europe manage and disclose product data. For US exporters, this will have a direct impact: the DPP will be a compliance tool for EU authorities, making it easier than ever to identify non-compliant products. Preparation will require gathering, validating, and sharing detailed product information across the supply chain.
In this session, Eurofins experts will introduce the DPP framework, outline what’s required, and explain the practical steps US businesses can take now. You’ll learn what to look for in products and testing procedures, and what to do when reports raise concerns. This session will look beyond compliance, highlighting how the DPP can be used as a tool for improving product quality and compliance strategies, and as an opportunity for US exporters to demonstrate leadership in transparency and sustainability.
Attendees of this webinar will learn:
To understand the EU Digital Product Passport framework and the implications for US exporters.
To identify key product data, testing procedures, and reporting practices needed to prepare for DPP requirements.
Strategies to leverage the DPP beyond compliance.
Thursday, October 30, 2025 - 2:00 PM ET to 3:00 PM ET | Online - Register
JAAF Insights
Colombo will host a timely and high-level discussion on the latest reforms to the German Supply Chain Act (Lieferkettensorgfaltspflichtengesetz – LkSG) and their intersection with the EU GSP+ programme and the upcoming EU Supply Chain Law. The session, led by Markus Löning, Founder and Managing Director of Löning – Human Rights & Responsible Business and former German Human Rights Commissioner, will take place on 12 September 2025 at the Atrium, Cinnamon Grand.
Sustainability In Sri Lanka
The latest draft of the Textiles and Apparel Sector Standard is now open for public feedback and there are only two weeks left to take part in the development of the Textiles and Apparel Sector Standard.
GRI delivers the world’s most widely adopted voluntary sustainability reporting framework. Nearly four out of five of the world's largest 250 companies report on sustainability using GRI. We offer our Standards as a free public good and are a not-for-profit organization.
The standard will provide a comprehensive approach to impact reporting for organizations in the textiles, apparel, and jewelry sectors. For more information about the project and the exposure draft, please visit the project website.
Please share your feedback here - Online questionnaire
Sri Lanka-headquartered MAS Holdings, one of South Asia’s largest design-to-delivery solution providers in apparel and textile manufacturing, has committed to reducing its total global greenhouse gas (GHG) emissions to net zero by 2048.
EU agrees to $ 9.4 m grant to push sustainable development
The Finance Ministry yesterday said that it had signed a Euro 8 million ($ 9.4 million) grant agreement with the European Union to support the country’s sustainable economic recovery through biodiversity conservation and waste management.
The $ 9.4 million grant, provided by the European Union, will support a project jointly developed by the Ministry of Public Administration, Provincial Councils and Local Government, the Ministry of Environment, and the EU.
The initiative will support biodiversity conservation by restoring degraded ecosystems, implementing targeted conservation strategies, and promoting sustainable land-use practices.
Global Fashion Regulations
This new resource aims to help establish a shared understanding of the appropriate use of Life Cycle Assessment (LCA), while promoting the need to move beyond current LCA metrics to capture a more holistic view of impact on people, animals, and the planet.
The paper is aimed at anyone looking to develop a greater understanding of the use of LCA data in the textile industry—particularly for brands using LCA data directly or those who rely on it for their impact modelling or progress tracking.
Read the full position paper here.
The European Union is preparing a major new piece of legislation that could reshape how companies operate across the Single Market. The Circular Economy Act (CEA) is designed to further improve circularity legislative gaps and simplify certain elements to move towards a system where resources are used more efficiently, waste is reduced, and competitiveness is strengthened.
Still under consultation, the Act is expected to create new opportunities and course-correct some obligations, making it essential for businesses to understand what lies ahead and how to respond strategically.
To guide you through this development, we have crafted a blog article that unpacks:
The policy journey that led to the CEA
The Act’s main objectives and expected scope
Key areas businesses should watch closely
The legislative timeline ahead
Recommendations to prepare and engage effectively
The EU’s sustainability agenda is no longer just about Europe. With new product rules such as the Ecodesign for Sustainable Products Regulation (ESPR), the Digital Product Passport (DPP) and Ecomodulation, Brussels is setting standards that will ripple across global supply chains.
For EU companies, compliance now depends on how well their suppliers can deliver the right data and materials. For non-EU businesses, EU market access itself may hinge on meeting requirements designed far beyond their domestic frameworks.
In our latest article, we look deeper into these scenarios, exploring aspects like:
The challenges of going green for EU and non-EU businesses
The definition of ‘manufacturer’ and the role of production tiers
The global impact of the ESPR, DPP and Ecomodulation on suppliers and manufacturers
Strategic action points for EU and non-EU players
New Waste Framework Directive revision establishes binding food waste targets and textile EPR schemes, mandating a 30 per cent reduction in food waste and producer responsibility for textile lifecycle costs
The introduction of mandatory Extended Producer Responsibility (EPR) schemes for textiles in the EU, as part of the revised Waste Framework Directive, significantly affects the fashion industry in several key ways:
• Shift of Financial Burden: EPR schemes require producers, not taxpayers, to cover the costs of collecting, sorting, and recycling the clothing and household textiles they place on the market. This necessitates that brands factor waste management expenses into their business models.
• Internalisation of Costs: The financial responsibility covers the full lifecycle of textile products. The costs of collection and treatment, estimated at approximately €0.12 per item, will be internalised and reflected in the price of new products.
• Broad Scope of Coverage: The rules apply to all textile producers, including luxury houses and online marketplaces. The scope covers clothing, footwear, accessories, hats, blankets, curtains, and linens.
• Inclusion of Non-EU Sellers: The regulations apply equally to EU-based brands and non-EU sellers that access the market through e-commerce. This forces online fast-fashion giants to comply alongside traditional European labels.
• Targeting Ultra-Fast Fashion through Penalties: The law explicitly empowers national governments to confront fast fashion and ultra-fast fashion practices. EPR systems may tie financial contributions to the environmental footprint of garments (eco-modulation of fees), penalising short-lived, cheaply made items that are difficult to recycle. Unsustainable fast fashion models will thus face higher costs.
• Incentives for Sustainable Design: Companies can benefit from lower fees if they invest in durability, repairability, or circular design. Lower contributions are also offered to those incorporating recycled materials.
• Driving Structural Change: The legislation is designed to incentivize structural change. By shifting waste management expenses to producers, lawmakers hope to steer the industry toward slower, more sustainable models and away from disposable trends, fostering circularity rather than disposability.
• Compliance Timeline: EU member states have 30 months from the directive’s entry into force to establish these EPR programs. Micro-enterprises are granted an additional year (12 months) to meet the requirements.
• Complementary Legislation: These EPR requirements complement the Ecodesign for Sustainable Products Regulation, which, starting from July 2026, will prohibit the destruction of unsold apparel, accessories and footwear.
This transparency tool, called Écobalyse, is based on a Life Cycle Assessment (LCA), but it also incorporates specific textile criteria like fibre durability, biodiversity impact, microfibre release, and end-of-life handling. The final environmental score will be presented as a numerical indicator with a standardised visual sign, similar to the well-known Nutri-Score for food. The details of this visual signage are still to be defined in a supplementary order.
Europe’s circular economy in textiles and apparel is at a crossroads. Rising volumes of discarded textiles, fragile collection systems, and the flood of low-cost ultra-fast fashion are fueling a crisis of overproduction, waste, and lost value. Despite advances in recycling technology, only a fraction of textile waste is currently recycled into new textiles, with most ending up downcycled, incinerated, or exported.
A recent study led by Warren Jasper, a professor at Wilson College of Textiles in the US, reveals how machine learning can significantly minimize waste in textile manufacturing by enhancing the precision of color predictions during the dyeing process.
Fashion Revolution has released the second edition of What Fuels Fashion? – an energy and decarbonisation report assessing 200 of the world’s largest fashion brands. With an estimated combined annual turnover of more than $2.7 trillion, these billion-dollar brands are the most powerful players determining fashion’s climate future. Tracking over 70 indicators across accountability, decarbonisation, energy procurement, financing, just transition and advocacy, the report reveals where brands lack transparency – and where urgent action is needed most.
Neighborhood Watch
United Nations Development Programme (UNDP) Bangladesh and H&M signed a deal to work on climate action and help Bangladesh achieve the Sustainable Development Goals (SDGs).
Leyla Erthur, Head of Sustainability at H&M, and Van Nguyan, Deputy Resident Representative at UNDP Bangladesh, signed the Memorandum of Understanding (MoU) on behalf of their respective organisations at the UNDP Bangladesh office in Dhaka.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged international clothing brands to adopt a unified code of conduct for social and compliance audits, instead of each buyer imposing separate requirements on export-oriented garment factories.
The call was made during a meeting with representatives of the Buyers' Forum, a platform of global apparel buyers sourcing from Bangladesh, at the BGMEA office in Dhaka's Uttara today (3 September).
In an industry often driven by trends and timelines, Shahi Exports stands out for its grounded, long-term commitment to sustainability. In this exclusive interview, Mr. Anant Ahuja, Director of ESG and Sustainability, shares how India’s largest apparel manufacturer is translating circularity from concept to commercial reality. From piloting next-gen materials to building brand partnerships rooted in trust and transparency, Shahi’s journey reflects both the promise and the complexity of scaling sustainable innovation in fashion manufacturing.
Before ESG became a buzzword, Sri Kannapiran Mills was already walking the talk. Part of the legacy-rich KG Group, this Coimbatore-based powerhouse isn’t just spinning yarn—it’s setting new benchmarks in circular manufacturing, energy efficiency, and climate-conscious investing.
Demand for recycled yarn is growing. And the number of TRUECYCLED installations in India is growing too! More and more future-facing companies are driving progress toward a more sustainable textiles industry by producing high-quality yarn from waste – through specialized equipment and process know-how from Trützschler.
A three-way partnership is disrupting commercial-scale dyeing.
Textile-to-retail conglomerate Arvind Limited, in collaboration with H&M Group and Indian innovation start-up Deven Supercriticals Pvt. Ltd., announced the inauguration of India’s first supercritical CO₂ dyeing machine at Arvind’s facility in Ahmedabad.
Deven’s flagship innovation, Suprauno, is at the center of this collaboration. The globally patented, dyeing technology uses supercritical CO₂ (carbon dioxide in a fluid state) as the medium to dye fabrics instead of water and chemical compounds.
The H&M Foundation’s Saamuhika Shakti collective action circularity initiative is setting its sights on India’s hospitality industry with a new program that will divert the sector’s textile waste away from landfills.
Through Saamuhika Shakti, the H&M Foundation has partnered with nonprofit venture builder Enviu and its Closing the Loop program known as Second Spin to transform used hotel linens and other textiles in India into yarn, recycled paper and new textiles. The venture works with waste picker entrepreneurs in India to provide dignified work within the circular value chain.
Good Fashion Fund and Pratibha Syntex: A Three-Year Journey of Sustainable Impact and Transformation
The Good Fashion Fund, managed by FOUNT, made its first investment in India with Pratibha Syntex Limited in 2021/22 for a USD 4.5 million US dollar, long-term loan supporting replacement and modernisation of key equipment in one spinning unit, washing unit and expansion of captive solar capacity. Following regular monitoring since 2022 by GFF and third-party advisors, the investment continues to demonstrate positive results documented in a deep dive case study, another first for the industry, highlighting the financial savings, decarbonization, resource efficiency and social improvements in the units of Pratibha Syntex.
Vietnam exported about US$44 billion worth of textiles and garments in 2024, ranking third globally after China and Bangladesh. The United States absorbed close to 40 percent of this output, with the European Union, Japan, and South Korea also among the country’s top markets. The industry employs more than 2.5 million workers and contributes nearly 12 percent of national export earnings, making it a pillar of Vietnam’s growth story.
General
Discover how the textile sector can shift towards sustainable models to enhance resilience and competitiveness. Explore the Fashion Impact Toolkit and accompanying digital report, developed by Global Fashion Agenda and Deloitte Global, which map the fashion value chain to highlight where circular strategies can drive meaningful progress.
By mapping potential impacts, the toolkit helps businesses remain competitive and resilient in a complex market by supporting them in integrating impact data into strategy, driving innovation to reduce impacts, and creating shared value.
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BBVA’s Turkish franchise has partnered with Ivy Decarb Marketplace to help textile manufacturers cut carbon emissions. The bank will finance companies through the platform as they shift to cleaner production methods.
Garanti BBVA has pledged 3.5 trillion Turkish lira ($102 billion) in sustainable financing through 2029, after meeting its initial 400 billion lira target ahead of schedule. "Sustainability is no longer an environmental issue: it is business itself," said CEO Mahmut Akten at the event. He argued that Turkish textile companies must decarbonize to remain competitive long-term. BBVAsurpassed its 2018-2025 financing commitment one year earlier than planned and raised its target more than double (€700 billion in sustainable business between 2025 to 2029 vs €300 billion set for the 2018–2025 period)
Rising supply chain complexity and consumer awareness of a growing environmental crisis are shaping the circular economy by embracing reverse logistics best practices, in which products, components and materials are kept in use for as long as possible.
Circularity is a multifaceted approach that touches product design, material sourcing and end-of-life management.
In recent years, the term ‘deadstock’ has been misinterpreted and overused, leaving brands vulnerable to greenwashing accusations. A new standard hopes to fix that, and maximise reuse in the process.
At first glance, fashion brands working with deadstock materials is a rare win-win for both the planet and the industry’s profit margins. When deadstock — or unsellable inventory — is repurposed, it stops the environmental damage used to produce those materials from going to waste, and in an ideal world, also displaces virgin materials. On the financial side, brands are able to recoup some of their losses from overproduction and avoid sending expensive materials to landfill or incineration.
MUD Jeans has become the first denim brand worldwide to earn the TESTEX Circularity Label, a groundbreaking certification that measures durability, repairability, and recyclability in textiles. Independent tests confirmed what we’ve always known: our jeans are built to last, designed for repair, and made to recycle proving that circular fashion is not just a vision, but a reality.
Organizations like the Good Fashion Fund are investing in Asian textile companies to implement sustainable technologies, significantly reducing carbon emissions, water consumption, and material waste, while simultaneously enhancing efficiency and competitiveness
Recycling technology uses AI-crafted enzymes to break down mixed plastics, including nylon 6,6 and polyester, otherwise destined for landfill
Samsara Eco, the startup that launched the plant in Jerrabomberra near Canberra in early September, claims to be the first company to develop “textile-to-textile” recycling – a process that extracts plastic fibres from end-of-life garments so they can be reused to create new clothing. The company did not confirm the exact production capacity of the new plant but said it will produce recycled materials for “hundreds of thousands of garments annually”.
The fashion industry is undermining the potential of sustainable cotton for farmers and the environment by relying on uncertified cotton and synthetic fibres, finds a new report published today by Solidaridad and Good On You. The 2025 Cotton Rankings, covering the cotton sourcing of the top 100 fashion brands, also reveals that the fashion industry still lacks transparency on their purchasing practices.
The fashion industry has seen its carbon emissions rise despite pledges to halve pollution by 2030 - now efforts are underway to invest millions of dollars in ambitious energy efficiency projects that will clean up dirty production lines.
The Apparel Impact Institute (AII) is a U.S.-based non-profit that works with fashion retailers, philanthropic organisations and manufacturers to promote investments in cleaner production.
Every fabric, whether NILCOTT®, a ring-spun recycled cotton blend, or CIRPAD®, a polyamide derived from car tires, is engineered according to eco-design principles. “True circularity is not one recycling loop,” Hurta insists. “It is the ability to keep materials in the market, again and again.”
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