New Climate Action Program Gives Apparel Brands Step-by-Step Guide to Decarbonization

Last week, at its 2023 Annual
Meeting in Boston,
the Sustainable Apparel Coalition (SAC) — a
global multi-stakeholder alliance uniting over 280 retailers, brands,
manufacturers, governments, academics and nonprofit affiliates — launched the
Manufacturer Climate Action Program (MCAP). In collaboration with
industry leaders NIKE and Target Corporation, the SAC introduced MCAP as
a critical component of its Decarbonization
Program
— designed to catalyze support and drive the sector toward ambitious and
necessary CO2 emissions reductions.

The textile and apparel
industry
faces the urgent need for collective action to achieve the SAC’s goal of cutting
global CO2 emissions by 45 percent by 2030, and ultimately striving for net-zero
emissions by 2050.

“As a convener of the consumer goods industry, we have a unique opportunity to
rally our community’s collective strength and drive transformative change to set
science-aligned targets — averting the worst climate impacts,” said Joyce
Tsoi, SAC’s Director of
Collective Action Programs. “Through our Decarbonization Program, we co-create
solutions and foster collaborations necessary for systemic change within global
supply
chains
— recognizing that addressing this challenge requires that no single entity can
tackle this challenge alone. MCAP represents a key initiative — uniting
manufacturers globally to accelerate action towards science-aligned emissions
targets, significantly reducing global CO2 emissions at scale. By partnering
with industry leaders and offering scalable solutions, we can empower our
industry to confront emission reductions and instigate the change we need to
support low-carbon transition.”

MCAP evolved from both Target’s Supplier Engagement Program and the
Supplier Climate Action
Program
(SCAP), which was co-developed by NIKE and its suppliers and in consultation
with World Resource Institute (WRI). MCAP’s mission is to enable
manufacturers to start their decarbonization journey by providing an
intermediate pathway for them to measure carbon emissions and develop
science-aligned targets for Scope 1 and 2, where they have direct control.

Notably, MCAP excludes Scope 3 emission measurements — because they often create
a barrier for manufacturers taking steps toward setting science-aligned targets.
By focusing on Scope 1 and 2 emissions initially, the program aims to provide
manufacturers with a manageable starting point for their decarbonization
journey.

MCAP will enable manufacturers to reduce energy use, save money and meet
the business expectations of their customers while facilitating the
sharing of learning and rapidly scale best practices. The program will take a pragmatic approach, providing a stepwise process to build
manufacturers’ capability to accelerate target setting, and comprises four core
elements:

• First, manufacturers set, validate, and disclose company-wide
  science-aligned emission reduction goals.

• Second, manufacturers receive recommendations and training on developing
  climate-risk assessments for their operations — including physical and
  transition risks, documenting these risks to bridge connections with value
  chain partners, including brands.

• Next, manufacturers receive guidance for developing their decarbonization
  plans — responding to the industry’s growing call for transparency and
  enabling effective allocation of investments and resources.

• Finally, fostering a culture of transparency and accountability, MCAP
  encourages manufacturers to annually disclose their progress and share
  reports publicly. This commitment to openness will ensure accountability
  within organizations and nurture a collective culture of growth and
  innovation.

These four elements form the core of MCAP — empowering manufacturers to take
substantive actions in reducing emissions to combat climate change, improving
operational efficiency and growth, and further advancing sustainability
throughout the industry.

Noel Kinder, Chief
Sustainability Officer, at NIKE, Inc, said: “At our size and scale, we have a
responsibility to drive impact. With a challenge like climate change, we know we
can’t do it alone. NIKE’s SCAP was designed to help suppliers take a leadership
role in addressing their climate risk. Working with SAC and Target to develop
the MCAP program is the next step in scaling impact across NIKE’s supply chain
and the industry.”

MCAP is open to both SAC members and non-members, in a concerted effort to
accelerate the number of manufacturers with science-aligned targets. What sets
MCAP apart is its comprehensive approach to supporting manufacturers in a
stepwise manner. The program meticulously integrates key management tools into
the program, tailored specifically to meet the unique needs of manufacturers.
These tools include guidance on measuring emissions, assessing risk,
benchmarking performance, and leveraging these insights to inform strategic
planning.

By establishing these fundamental building blocks, MCAP equips manufacturers
with the essential resources they need to develop effective plans and accelerate
meaningful climate action.

The long-term vision for MCAP is to help manufacturers eventually secure
science-based targets that encompass Scope 1, 2, and 3 emissions. MCAP serves
as the crucial first step on this journey, providing the necessary tools and
guidance to propel manufacturers toward a more sustainable and climate-resilient
future.

“Supply chain emissions amount, on average, to more than 70 percent of a
company’s greenhouse gas (GHG)
emissions.
To set, and achieve, ambitious emissions-reduction targets across the value
chain, companies need to support their suppliers,” says Liz
Cook, EVP for Governance
& Development at WRI. “Programs like the MCAP, and companies like Nike and
Target, set out to do this by helping suppliers build their capacity to mitigate
and become more resilient to climate change. Beyond MCAP, WRI is pleased to
partner with NIKE to accelerate renewable energy solutions in strategic global
markets — a key strategy for achieving these objectives. This work is critical
to scaling climate action globally.”

The SAC acknowledges that the textile industry alone accounts for up to 8
percent of global carbon emissions and is committed to a minimum 45 percent
reduction of GHG emissions by 2030. The launch of the MCAP comes on the heels of
the newly launched Fossil Fuel Fashion
campaign
— which highlights the urgent need to extricate fashion from its dependence on
fossil fuels, which will be a critical step in decarbonizing the industry.
Synthetic fibers such as polyester and nylon, derived from oil and gas, will
account for 73 percent of fiber production by 2030. While fashion innovators are
consistently developing new,
plant-based
and
circular
alternatives to these ubiquitous textiles, they still represent a significant
revenue stream for the fossil fuel industry — giving it ongoing license to
operate in a world needing to rapidly
decarbonize.

In the meantime, the SAC is actively gathering manufacturer interest in MCAP and
plans to begin program implementation in 2024. Progress of MCAP — including
information on how many manufacturers have joined the program and the progress
made — will be tracked and shared on the SAC website.