NTU Decarbonisation Forum | The Textiles Industry

Close-up of cotton placed on folded apparel with a tag featuring a recycling icon and the text '100% organic cotton'

The textile industry accounts for 2-8% of global GHG emissions and exceeds the carbon footprint of international flights and maritime shipping combined. While decarbonisation initiatives are driven mainly by multinational brands and retailers headquartered primarily in North America and Europe, over 70% of value chain emissions originate from upstream activities. Therefore, it is crucial to shift the focus to production countries. ASEAN is one of the largest textile producers globally, with exports reaching almost USD 56 billion in 2023. Supply chain shifts from China to ASEAN further accelerate the industry’s growth.

While many other sustainability considerations exist in the textiles industry, such as water consumption and labour conditions, this playbook primarily focuses on greenhouse gas (GHG) issues. It outlines practical steps for ASEAN firms to reduce greenhouse gas emissions in the textiles and apparel sector, organised into three sections:

  • What solutions exist today to help decarbonise the textiles and apparel sector?
  • What obstacles prevent ASEAN firms from adopting these solutions?
  • What are the recommendations for how ASEAN firms and other stakeholders can collaborate to overcome these obstacles?

Hosted by the Centre for Sustainable Finance Innovation (CSFI), the NTU Decarbonisation Forum featured multi-stakeholder dialogues that bring together investors, industry professionals, and regulators to discuss the decarbonisation of textiles and apparel, and buildings sectors in ASEAN.

Dr. Matthew Dearth is an Associate Professor (Practice) of Sustainable Finance at Nanyang Technological University (NTU).  Before transitioning to academia full-time, Dr. Dearth was Managing Director at Silvercrest Asset Management (Singapore) and head of the Singapore office. His 30+ years of finance industry experience also includes leadership roles at Marshall Wace, Goldman Sachs, and Booz Allen & Hamilton.

Karen Taubenberger is an MBA student and Research Assistant at Nanyang Technological University (NTU). As a Research Assistant, she has conducted research in decarbonisation of hard-to-abate industries like textiles & apparel and built environment.