As of January 2022, the eminent custodian of brands like American Apparel, Goldtoe, Comfort Colors, and Peds, outlined ambitions to curtail its direct and indirect (Scope 1 and Scope 2) GHG emissions by a substantial 30% come 2030. Deepening this commitment, the Montreal-based apparel magnate now aspires to trim down its more extended (Scope 3) emissions by 13.5%. These ambitious goals have secured validation from the Science Based Targets initiative (SBTi), as revealed by Glenn Chamandy, CEO and President of Gildan, in their recent annual ESG report.
Chamandy elucidates, “In today's climate of uncertainty, proactive measures against climate change are not merely crucial; they're imperative. We’re steadfastly laying the groundwork and anticipate building on this trajectory.” Notably, Gildan's boardroom discussions on sustainability have started to bear fruit, with 25% of its senior executives' annual incentives now tethered to their strategic ESG achievements.
From their benchmark year in 2018, Gildan has impressively reduced almost 11% of its Scope 1 and Scope 2 emissions, equivalent to 753,356 tons of CO2. Tackling the broader Scope 3 emissions offers a more intricate challenge, given the company's global operational span. However, a recent deep dive into their supplier emissions infrastructure has propelled a phase of dynamic engagement, urging suppliers to champion climate-centric endeavors.
A glimpse into Gildan's vast supply chain unveils a major manufacturing hub in Honduras, augmented by diverse operations from Central America and the Caribbean to Bangladesh. 2022 witnessed the brand acquiring its maiden ISO 45001 certification in the Dominican Republic and charting plans for a state-of-the-art facility in Bangladesh. Concurrently, Gildan continues its modernization pursuits in North Carolina and has successfully integrated most yarn-producing processes internally post its strategic acquisition of Frontier Yarns in 2021.
Last year, Gildan's advocacy on a plethora of ESG subjects, ranging from human rights to economic development, was amplified by its engagements with several high-ranking U.S. officials. The brand underscored the symbiotic textile relationships between the U.S., CAFTA-DR nations, and the Caribbean.
In its sustainability voyage, Gildan is also making headway in its quest for 100% sustainable cotton utilization by 2025. The previous year saw them source over 21% of their cotton from certified U.S. suppliers – a notable leap from just above 7% the prior year. Additionally, Gildan aims to magnify its recycled yarn content to 30% by the end of this year. Their 2022 endeavors zeroed in on scouting for sustainable alternatives, product testing, and striking supply deals, leading to the integration of recycled yarns in approximately 18,000 fleece items. Notably, Unifi’s Repreve recycled polyester remains a linchpin in Gildan’s sustainable journey.
Moreover, Gildan is actively pursuing greater sustainability in packaging and trims, targeting a whopping 75% integration of recycled or certified content by 2027.
Reflecting on the past year, Chamandy avows, “The strides we made in 2022 cement our unwavering ESG allegiance. As we journey forward, aligned with our Gildan Sustainable Growth (GSG) business blueprint, our commitment to tangible progress and transparent reporting remains paramount.”
Phil
