Companies will increasingly be required to measure and reduce greenhouse gas emissions using standards such as the Greenhouse Gas Protocol.

Key focus areas include:

• Carbon footprint measurement
• Renewable energy adoption
• Net-zero commitments
• Supply chain emissions reporting

Brands must demonstrate that their supply chains respect human rights and environmental standards.

Guidance from the Organisation for Economic Co-operation and Development requires companies to conduct supply chain due diligence and identify potential ESG risks.

Governments are introducing policies to reduce textile waste and promote circular production systems.

This includes:

• Recycling requirements
• Extended producer responsibility
• Sustainable product design

Sustainability reporting is becoming data-driven and digitally integrated with enterprise management systems.

Companies will increasingly rely on ESG platforms to manage:

• Sustainability metrics
• Carbon accounting
• Supply chain data
• Regulatory reporting

During this period, companies begin adapting to new sustainability reporting rules.

Key developments include:

1. Implementation of the European Sustainability Reporting Standards, which define detailed ESG disclosures for companies covered under the Corporate Sustainability Reporting Directive.
2. Large European companies will begin requesting sustainability data from suppliers.
3. Exporters may start receiving requests for:
   • Carbon emissions data
   • Energy consumption information
   • Labour and workforce disclosures

1. During this phase, ESG requirements begin extending deeper into global supply chains.
2. The Corporate Sustainability Due Diligence Directive requires companies to identify environmental and human rights risks across their supply chains.
3. Suppliers may be required to demonstrate:
   • Responsible labour practices
   • Environmental compliance
   • Ethical sourcing policies
4. Companies without structured ESG systems may face increased compliance pressure from international buyers.

1. Climate disclosure requirements will expand significantly.
2. Organizations will increasingly align their emissions reduction strategies with initiatives such as the Science Based Targets initiative.
3. Companies may be required to disclose:
   • Scope 1 emissions
   • Scope 2 emissions
   • Scope 3 supply chain emissions
4. Carbon accounting will become a standard business practice for export-oriented manufacturers.

1. By the early 2030s, sustainability is expected to become a core operational requirement rather than a reporting exercise.
2. Companies will need to integrate ESG considerations into:
   • Product design
   • Raw material sourcing
   • Manufacturing processes
   • Supply chain management
3. Circular economy policies and sustainable product standards will increasingly influence how apparel products are designed and produced.