Gildan Activewear, Inc. (PPAI 250187, S13) has unveiled its next-generation environmental, social and governance (ESG) strategy and future goals. The Montreal, Quebec-headquartered supplier’s new approach includes commitments to make meaningful advancements by 2030 in several areas, including climate, energy and water; the circular economy; human capital management; long-term value creation; and transparency and disclosure.

“From our beginning, we have been re-imagining and building the future of responsible apparel manufacturing,” says Glenn Chamandy, president and CEO of Gildan. “This has made Gildan the company it is today, recognized for the apparel we make and how we make it. ESG has always been integrated into our business strategy and reflected in our market offering. This next generation strategy will push us to deliver even stronger ESG performance and continue to reinforce Gildan as a leading ethical, sustainable and efficient apparel company.”

Gildan positions its new strategy as a path to tackling global environmental and social priorities aimed at improving the lives of people who make the company’s garments, further protecting the environment, empowering neighboring communities and increasing the sustainability of products delivered to customers worldwide.

“Today, we are incredibly proud to unveil our new strategy and goals that were strategically developed to target key material issues that are currently faced by Gildan and, more broadly, the world,” says Peter Iliopoulos, senior vice-president of taxation, sustainability and governmental affairs at Gildan. “As a global, leading vertically integrated apparel manufacturer, Gildan has an opportunity to further its positive contributions in areas in which we can have the most meaningful impact, and from there have developed actionable key targets.”

Regarding climate, energy and water, Gildan has committed to continuing its fight against climate change by paving the way towards a low carbon future, with a goal of reducing its scope 1—direct emissions that occur from sources that are controlled or owned by an organization—and scope 2—indirect emissions associated with the purchase of electricity, steam, heat or cooling—CO2 emissions by 30% by 2030, aligned with the The Science Based Targets initiative (SBTi )—a program to drive climate action in the private sector by enabling companies to set science-based emissions reduction targets—and the level of decarbonization required to meet the goals of the Paris Agreement.

To that effect, Gildan has signed the SBTi commitment letter, joining companies worldwide in following a science-based approach in reducing carbon emissions. Gildan has also committed to addressing water-related risks linked to climate change. The supplier reports that it plans to further invest in water efficiency and implement additional water reducing, reusing and recycling options in its operations with the goal to attain a 20% reduction in water withdrawal from nature by 2031.

The supplier has also pledged to foster a circular economy to reduce its environmental impact. It says that Gildan intends to source more sustainable and transparent raw materials and enhance sustainable waste management initiatives. This includes sourcing 100% sustainable cotton by 2025 and 30% recycled polyester or alternative fibers and/or yarns by 2027. The company also plans to achieve zero manufacturing waste by 2027 and to use 75% recycled or sustainable packaging and trim materials by 2027.

Human capital management—ensuring human rights are respected in its supply chain—is also part of Gildan’s ESG plan. The company will push health and safety performance to new standards by working to improve employee safety and reducing workplace risks across its operations. To achieve this, Gildan plans to attain the ISO 45001 certification—an international standard to provide a comprehensive occupational health and safety management systems framework—at all its company-owned and operated facilities by 2028. On diversity, equity and inclusion, Gildan is setting a first-time goal to improve gender parity. The company reports that it has already attained gender parity globally in manager level and less senior positions, and by 2027 plans to achieve gender parity for roles at the director level and above.

Gildan’s ESG strategy includes a commitment to positively impact economic development in regions where it operates with meaningful community engagement. Gildan says that it intends to incrementally increase allocation of capital toward purposeful and value-driven projects in regions where the company operates and to gradually reach a contribution of 1% of its pre-tax earnings by 2026. In parallel, Gildan will also continue to facilitate and encourage employee volunteerism at all levels to further deepen local impact.

As a key part of its accountability in reaching these targets, Gildan will be transparent in sharing the journey with stakeholders. To that effect, Gildan has also committed to further enhancing and strengthening its ESG disclosure across its areas of focus, effectively allowing stakeholders to make more informed ESG-focused decisions and maintaining a high degree of trust and understanding of Gildan.

In 2022, Gildan is planning to further enhance alignment to the Task Force on Climate-related Financial Disclosures framework through a subsequent disclosure in a stand-alone report, which will detail Gildan’s climate-related governance, strategy, risk management and metrics, and targets.

“We are confident that this new strategy will propel our efforts to greater heights and allow us to become a stronger and more resilient Company,” says Claudia Sandoval, vice president of corporate citizenship at Gildan. “While Gildan embarked on its ESG journey over two decades ago, we know that the path to sustainability is ongoing, which is why we will continue our journey forward to further strengthen our programs. We also know that it is not enough to set targets. Therefore, we are developing clear and credible roadmaps to address the challenges and opportunities we face to continue to make meaningful positive impacts, and we won’t be doing it alone.

“Our success depends on the collaboration of all key stakeholders, and we are excited to foster and leverage a global, collaborative approach to bring our goals to life.”