Climate Change Data

TAL Apparel

Climate Impact & Sustainability Data (2020, 2021-2022)

Reporting Period: 2020

Environmental Metrics

ESG Focus Areas

  • Ethics
  • Social
  • Health & Safety
  • Environment

Climate Goals & Targets

Supply Chain Management

Responsible Procurement
  • Due diligence
  • Raising awareness of ethical, social, health & safety and environmental responsibility

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Reporting Period: 2021-2022

Environmental Metrics

Total Carbon Emissions:53,185 tCO2e/year (2022)
Scope 1 Emissions:21,066 tCO2e/year (2022)
Scope 2 Emissions:32,119 tCO2e/year (2022)
Scope 3 Emissions:258,480 tCO2e/year (2022)
Water Consumption:531,455 m3/year (2022)

ESG Focus Areas

  • Social sustainability issues
  • Sustainable products
  • Resource efficiency
  • Climate change

Environmental Achievements

  • Reduced water intensity by 64% compared to 2011 baseline (18.39 L/piece in 2022)
  • Achieved 80 points average score across factories in Higg FEM 2022 verification.
  • Converted steam boilers from heavy fuel oil to natural gas in Thailand.
  • Implemented energy efficiency projects (air compressor, chiller optimization, equipment upgrades, insulation upgrades).
  • 80% reduction in water usage in EcoWash process (from 11 L/piece to 2 L/piece).

Social Achievements

  • More than 500 employees trained on managerial leadership competencies in 2022.
  • Three factories completed Higg FSLM verification in 2022 with scores ranging from 80% to 87%.
  • Implemented COVID-19 response measures in Thailand and Vietnam, including factory shutdowns and participation in the Factory Sandbox Scheme.
  • TAV Limited achieved Fair Trade USA certification in 2022.
  • Implemented various health and safety awareness initiatives across factories.

Governance Achievements

  • Won the INSEAD ‘Business as a Force for Good’ Award in 2021.
  • Delman Lee elected as Chair of the SAC Board of Directors in 2022.
  • Active participation in SAC strategic councils and METs (BRM, Transparency, Higg FEM 4.0, Higg FSLM).

Climate Goals & Targets

Long-term Goals:
  • Commit to science-based targets in line with the SBTi Net-Zero Standard.
Medium-term Goals:
  • Achieve an average of 80 points across factories in Higg FEM 4.0 by 2025.
Short-term Goals:
  • Further reduce water intensity to 14.06 litres per standard piece by 2025.

Environmental Challenges

  • Supply chain disruptions due to the COVID-19 pandemic and US-China trade tensions.
  • Record high costs of raw materials, manufacturing, and transportation.
  • Extended supply chain lead times due to port congestions.
  • COVID-19 outbreaks in Thailand and Vietnam leading to factory shutdowns and absenteeism.
  • Increased inventory levels due to strong consumer demand tapering in Q4 2022.
  • Credit crunch faced by retailers impacting timely payments to vendors.
  • Stricter auditing requirements for content claim certifications.
  • Reduced demand for recycled fibers in 2021.
  • Challenges in finding recyclers for fabric scraps in Thailand.
Mitigation Strategies
  • Worked closely with customers to understand their needs and be flexible.
  • Implemented COVID-19 prevention guidelines and emergency response measures.
  • Implemented the Factory Sandbox Scheme in Thailand.
  • Provided financial support to employees impacted by COVID-19.
  • Relaxed the four-month rolling average 60 hours per week working hour policy through the end of 2022.
  • Rationalised content claim certifications to focus on customer requests.
  • Exploring waste-to-fuel options for fabric scraps.
  • Working internally on converting fabric scraps into usable fibers (Innogreen).

Supply Chain Management

Supplier Audits: 65 subcontractors screened in 2021-2022

Responsible Procurement
  • Sustainable fibre material guidelines aligned with Textile Exchange’s PFMM.
  • Use of bluesign® approved chemicals.

Climate-Related Risks & Opportunities

Physical Risks
  • Droughts and floods
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Investment in renewable energy (solar PV system).

Reporting Standards

Frameworks Used: GRI Standards

Certifications: bluesign® system partner, Global Organic Textile Standard (GOTS), Organic Content Standard (OCS), Global Recycled Standard (GRS), Recycled Claim Standard (RCS), Fair Trade USA (TAV Limited)

Sustainable Products & Innovation

  • Enro reusable face masks
  • Innogreen program

Awards & Recognition

  • INSEAD ‘Business as a Force for Good’ Award (2021)
  • Certificate from the Ministry of Trade and Industry (ETG, 2022)