From the fabric dyeing that pollutes waterways to carbon-heavy textile production and questionable labor practices, fashion has long struggled with sustainability. But that’s beginning to change. Rising demands from customers and regulators—along with the digital tools that make supply chain traceability and transparency possible—are pushing apparel companies to clean up their practices.
Garment manufacturers, suppliers, and retailers can work individually and collectively to improve sustainability for the good of their customers, communities, and bottom line. Understanding what sustainability entails, exploring sustainable strategies, and learning from real-world examples can empower apparel businesses to make better choices today and for the future.
What Is Sustainability in the Apparel Industry?
Sustainability in the apparel industry means producing clothing, shoes, and accessories in ways that are environmentally responsible, socially equitable, and economically viable. It covers the apparel lifecycle from sourcing raw materials and manufacturing to order fulfillment, reuse, end-of-life recycling, or disposal.
Apparel companies can improve sustainability by working with lower-impact suppliers and materials, enforcing fair labor practices, reducing waste and pollution, conserving energy and water, and promoting recycling and longer garment life. The goal is to create products that support people and the planet while maintaining viable and resilient business models.
Key Takeaways
- The apparel industry creates some of the most significant ecological impacts of any industry.
- Sustainability involves addressing not only environmental but also social and economic elements.
- It is an ethical issue, as well as a regulatory and commercial imperative.
- Apparel companies can pursue a variety of sustainable strategies depending on their size, market, and supply chain complexity.
Sustainability in the Apparel Industry Explained
Across industries, stakeholders—including investors, customers, and regulators—are pressing companies to adopt more sustainable practices, and the apparel arena is no exception. In this sector, sustainability considers the end-to-end lifecycle of a garment, the so-called “farm to closet” span and beyond. Each step focuses on reducing environmental harm, promoting social equity, and maintaining economic viability.
To advance sustainability, apparel makers are turning to renewable materials, ethical supply chains, and energy-efficient manufacturing. For example, using fabrics like organic cotton, hemp, bamboo, and recycled polyester can conserve resources and reduce pollution. Manufacturers are also adopting energy-saving technologies, such as solar panels and heat-recovery solutions, as well as designing zero-waste processes, upholding fair labor standards, and promoting greater supply chain transparency.
Signs of progress are visible across the industry. Certifications, such as those issued by Fair Trade and the Global Organic Textile Standard (GOTS), validate ethical and sustainable production. Innovations, such as regenerative and recycled fibers, point to a circular economy. And impact-tracking tools like the Higgs Index help companies measure the environmental and social footprint of their products and operations.
Why Is Sustainability Important in the Apparel Industry?
Sustainable practices can help fashion companies and their supply chains mitigate environmental impact. In 2025, the sector produced an estimated 1.2 gigatons of carbon dioxide emissions, according to analyses by the World Resources Institute. It also consumes 93 billion cubic meters of water each year—enough to meet the consumption needs of 5 billion people—while textile dyeing and finishing processes pollute rivers and oceans, according to figures cited by the Sustainable Textile Water Initiative. In 2023 alone, the industry generated more than 100 million tons of textile waste, much of which went to landfills or were incinerated, according to the International Textile Manufacturers Federation.
Consumers are also demanding change. Many now favor brands that prioritize ethical sourcing, waste and pollution reduction, and more transparent business practices. Companies offering circular business models and planet-friendly products are better positioned to meet these increasing expectations.
Regulations are another driver. In the US, New York has proposed a framework for incentivizing fashion retailers to adopt internationally and scientifically verified environmental and social standards. California’s Responsible Textile Recovery Act of 2024 requires brands to manage the end-of-life stage of their apparel and textile products, while its Fashion Environmental Accountability Act of 2025 proposes stricter impact reporting requirements. At the federal level, the proposed Voluntary Sustainable Apparel Labeling Act seeks to create an EPA-verified sustainability product label. In the EU, directives, such the Corporate Sustainability Due Diligence Directive and Eco-Design for Sustainable Products Regulation, mandate that apparel companies audit and disclose their environmental and social impacts as they work to improve resource use and circularity.
Sustainability Strategies in the Apparel Industry
Apparel industry challenges vary by business model, product type, supply chain, and market. Sustainability strategies need to address carbon emissions, waste, and water use while also tackling fair wages, safe working conditions, and community engagement. At the same time, companies are experimenting with practical solutions, including better forecasting and inventory control, transparent sourcing, recycled and organic materials, circular business models, and low-impact manufacturing.
Some of the most common and impactful sustainability strategies in the sector are outlined below:
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Enhanced Forecasting
Using data and advanced analytics to more accurately predict demand can help curb overproduction and reduce waste. Enhanced forecasting in the fashion industry can be especially valuable for brands with volatile or trend-driven markets. Forecasting software that integrates sales, market, and consumer data—and applies AI-powered analysis—can effectively link production to actual demand, thereby limiting production of excess inventory.
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Improved Inventory Management
Inventory management software, lean or just-in-time inventory practices, and regular audits can help apparel companies monitor stock levels, refine ordering, and cut excess inventory. Companies with large product catalogs or seasonal lines may benefit most, but nearly any company can use smart clothing inventory management practices to get a better handle on stock levels and reduce textile waste.
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Supply Chain Transparency
Tracking materials and processes through digital platforms lets fashion companies verify sustainable sourcing and identify environmental, social, or financial risks in their supply networks. Visibility is especially crucial for global brands with complex supply chains. It’s also important for companies looking to reduce Scope 3 emissions, or those generated by suppliers used by a company but outside its direct control. To achieve greater supply chain sustainability and transparency, companies can map supplier tiers, establish clear sustainability standards, require disclosures of environmental and labor practices, and implement third-party audits or digital traceability tools.
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Circular Fashion
Circular models aim to reuse, repair, resell, and recycle garments to keep materials in circulation—and out of landfills. This strategy can benefit a range of brands, from high-volume, fast-fashion brands aiming to cut waste to premium labels that seek to extend their products’ value. Some proven approaches include introducing product take-back programs and incentives, offering repair or resale services, and designing products with end-of-life recyclability or reuse in mind.
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Ethical Sourcing
Another way to improve sustainability is through purchasing materials and finished goods from suppliers that invest in fair labor practices, safe working conditions, and environmental protections. If your business's market or reputation is sensitive to environmental and social issues—as is the case for outdoor gear companies, for example—such ethical sourcing can be essential. Those that want to invest in ethical sourcing practices should establish clear sourcing criteria, seek certified suppliers, regularly audit supplier practices, and transparently list its suppliers and ethical sourcing policies.
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Recycled Materials
When apparel companies commit to increasing their use of recycled materials (for example, recycled polyester or cotton), they lower their virgin resource extraction, as well as their overall environmental footprint. This strategy can be particularly appealing to apparel brands making large volumes of basics, like plain t-shirts and jeans, or polyester-heavy products. Companies that use recycled materials should work with reputable mills and suppliers and publicize their use of these materials.
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Waste Reduction
There are numerous ways for apparel companies to cut back on waste, including decreasing the amount of unsold inventory they produce, rethinking packaging, and repurposing scraps. Waste reduction can have profoundly positive impacts. For sizable apparel makers, even small reductions translate into a significantly lower environmental impact, as well as savings in materials and disposal costs. Some best practices include tracking waste by type and source to spot problem areas, redesigning garments or products to create less wasted material, recycling scraps internally to create new fabrics or products, and partnering with third parties that will reuse garments or leftover fabric.
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Organic Textiles
Organic fabrics help to reduce pesticide use, conserve water, and support sustainable agricultural practices. They are particularly attractive to brands that prioritize environmental stewardship or that serve environmentally conscious customers. Businesses that use organic fabrics can work with certified organic farms, verify supplier’s GOTS or comparable certifications, and highlight the benefits of organic textiles to customers, employees, and even regulators.
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Low-Impact Manufacturing
Low-impact manufacturing refers to production approaches that limit pollution and resource use. It can be achieved in a variety of ways, including lean manufacturing practices, the use of renewable energy sources, implementing waterless dyeing methods, and establishing closed-loop systems. Companies with energy- or resource-intensive processes, especially for dyeing and finishing, can see significant benefits from these strategies. To pursue them, companies can assess their manufacturing procedures for “hot spots” in terms of emissions or pollution, adopt cleaner technologies, and monitor outcomes with established metrics or certifications.
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Optimized Working Environment
Apparel brands that invest in safe, healthy, and supportive production and office conditions can lower turnover, prevent labor misuse or abuse, and strengthen their reputation. Improved conditions also boost retention, productivity, and employee well-being. To move in this direction, companies should audit current working environments, involve employees in shaping improvements, and work toward social certifications, such as SA8000, which sets global standards for fair wages, safe conditions, and workers’ rights.
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Carbon Offsetting
While apparel companies may be able to cut a good portion of their CO2 footprint, some emissions are unavoidable. Carbon offsetting is a way to compensate for those emissions by funding efforts in renewable energy or reforestation projects, for example. To avoid negative publicity, companies’ priority should be reducing direct emissions first, then selecting verified offset projects and transparently communicating them as a next step in the brand’s sustainability journey. For companies with public, carbon-neutral goals, offsetting can be an important piece of the sustainability puzzle.
Examples of Sustainable Strategies in the Apparel Industry
Case studies highlighting sustainable strategies in the apparel industry increasingly abound, ranging from small startups to global manufacturers and luxury brands. Exploring the following examples may offer ideas to other companies hoping to develop their own sustainability goals and strategies.
Toad & Co.
The US-based outdoor clothing brand has combined sustainable practices with social impact for more than 25 years. On the environmental side, it:
- Adopted TENCEL fabric in 2003 and phased out acrylic, rayon, and viscose by 2008.
- Shifted its entire line to at least 80% sustainable fibers, meeting third-party eco-certifications by 2019.
- Eliminated all plastic packaging in 2024, two years ahead of schedule, with plans for all future packaging to meet Forest Stewardship Council guidelines.
- Is aiming for net-zero greenhouse gas emissions by 2050 as part of the Outdoor Industry Association’s Climate Action Corps.
Socially, the company has partnered with nonprofit Search Inc. since 1997 to support and inspire people with disabilities. Together, they cofounded Planet Access Co., a Chicago-based third-party logistics warehouse that trains and employs adults with disabilities, and later launched Search for Adventure, a program offering outdoor adventure experiences for individuals with developmental disabilities.
Mons Royale
Founded in New Zealand in 2009, the outdoor clothing company set out to replace oil-based synthetics with merino wool. Today, its apparel is sold in more than 1,000 stores worldwide. Sustainability highlights include:
- Achieving B Corp Certification in 2024.
- Prioritizing natural materials, ethical production practices, and waste reduction throughout its supply chain, furthering its mission “to create nature’s performance apparel that doesn’t f*ck the planet and inspires a life of (action) adventure”.
- Publishing its full list of partners online, along with its Ethical Trading Initiative statement and code of conduct.
Stella McCartney
This UK-based luxury brand is best known for its commitment to environmentally friendly fashion. The company experiments with innovative, planet-friendly materials, such as:
- Grape and apple-based leather alternatives made from 80% recycled raw waste, with environmental impacts 24 times lower than animal leather.
- Bag linings made from recycled plastic bottles.
- Piñayarn, a plant-based, recyclable and biodegradable textile alternative to petroleum-based products and resource-intense virgin fibers; and Living Ink, a cruelty-free, planet-friendly vegan pigment.
Stella McCartney also embraces technology to monitor and report on its goals, piloting blockchain to trace the lifecycle of a garment throughout the supply chain, and exploring tools like satellite imagery and environmental DNA to substantiate its suppliers’ sustainability claims.
ERP Insights Empower Sustainability Practices
One of the most effective ways for apparel companies to measure and manage sustainability is through heightened data visibility. An ERP platform provides a foundation for capturing, analyzing, and reporting on metrics that matter. NetSuite Apparel ERP, for instance, offers a centralized source of business data featuring analytics to monitor and report on environmental, social, and economic performance. By embedding sustainability data into core business processes, apparel companies can gain a clearer look at their resource consumption and their supply chain. With natively integrated tools for supply chain, inventory, production, order, warehouse, and financial management, NetSuite ERP helps apparel businesses connect information throughout the enterprise and exert greater control over all functions.
Consumer demand and regulatory pressures will continue pushing the fashion industry toward greater sustainability and innovation, influencing new business strategies, next-generation material development, advanced recycling methodologies, and AI-enabled analytics that increase transparency and accountability. To succeed, apparel companies must integrate all these advances into established—and often complex—supply chains and business models, all while contending with economic pressures.
Sustainability in the Apparel Industry FAQs
What are the three elements of sustainable fashion?
The three elements of sustainable fashion are:
- Environmental impact, or reducing the ecological footprint of apparel, from sourcing to production to distribution and end-of-life disposal or reuse.
- Social responsibility, which involves ethical labor practices, fair wages, safe working conditions, and community engagement.
- Economic viability, which refers to creating viable business models that can support long-term, responsible sustainability practices.
What are the four categories of fashion sustainability?
Four distinct categories of fashion sustainability include:
- Human: preserving and respecting human capital involved in the apparel business with fair wages, good working conditions, and more.
- Social: addressing the social impact of the fashion industry on communities and society with fair trade practices, community engagement, and preservation of cultural heritage.
- Economic: striving for long-term business viability without depleting natural resources through, for example, production of more durable items, circular business models, and resource efficiency.
- Environmental: focusing on controlling the industry’s impact on the planet by reducing waste and resource usage, utilizing more eco-friendly materials, and lowering emissions.
What is the most sustainable type of clothing?
There’s no single “most” sustainable type of clothing because sustainability in the apparel industry depends on materials, production processes, and supply chain practices. Materials like organic cotton, recycled materials, and emerging textiles are generally more sustainable than conventional options due to reduced water use, chemicals, and waste. One of the most comprehensive measures of a garment’s sustainability is whether it has a certification that considers all phases of the textile supply chain to verify that organic farming, environmentally responsible manufacturing, and socially ethical practices are in use. Two common standards are the Global Organic Textile Standard and the blue sign standard.
