Gildan Achieves 100% Sustainable Cotton and 25% Water Cut in 2025 Sustainability Report

Gildan Activewear has published its 22nd Sustainability Report covering 2025 performance under its Next Generation Sustainability strategy, reporting that it achieved its goal of sourcing 100 percent sustainable cotton, surpassed its water intensity reduction target for the second consecutive year with an approximate 25 percent cut in water withdrawn per kilogram of fabric compared with a 2018 baseline, and increased recycled polyester and alternative fibre sourcing to 25.2 percent. The Canadian apparel manufacturer also strengthened workplace safety credentials with nine Gildan-operated facilities achieving ISO 45001 certification by the end of 2025. The performance was delivered alongside continued external recognition from leading sustainability rating agencies and benchmarks, reinforcing Gildan's positioning as one of the more advanced sustainability reporters in the global apparel sector.

 

Progress Against Core Sustainability Targets

 

The 100 percent sustainable cotton milestone represents a significant achievement for a company that operates one of the largest vertically integrated apparel manufacturing footprints globally. Gildan defines sustainable cotton as cotton provided through third-party verified programmes that support environmental or social sustainability improvements, including verified United States grown cotton through USCTP, Better Cotton, organic cotton, recycled or regenerative cotton, and fair-trade cotton. The company also began using a third-party platform to strengthen cotton traceability, addressing one of the most persistent challenges in apparel supply chain sustainability.

The water performance is particularly notable in an industry where water consumption is one of the largest environmental impacts. Achieving a 25 percent reduction in water intensity over seven years requires sustained investment in dyeing technology, water recycling infrastructure and operational optimisation. Combined with the rising share of recycled polyester and alternative fibres in the materials mix, these results indicate measurable progress against the operational efficiency objectives that underpin most credible apparel sustainability strategies.

 

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Health and Safety Certification Expansion

 

Gildan strengthened its commitment to occupational health and safety with nine Gildan-operated facilities achieving ISO 45001 certification by the end of 2025. ISO 45001 is the international standard for occupational health and safety management systems, requiring rigorous risk assessment, employee engagement and continuous improvement processes. Achieving certification at multiple facilities provides external validation of the company's workplace safety practices and supports its position with customers conducting supplier due diligence.

For an apparel manufacturer with significant operations in Central America, the Caribbean and Asia, the certification programme also addresses regions where worker safety has historically been a sensitive topic for the global apparel industry. By voluntarily pursuing external certification beyond local regulatory requirements, Gildan provides reassurance to brand customers, investors and other stakeholders concerned about supply chain integrity. This dimension is increasingly important as mandatory human rights due diligence frameworks expand across major markets.

 

External Recognition and Ratings Performance

 

Gildan continued to be recognised by leading sustainability ratings and benchmarks throughout 2025 and into early 2026. The company was included in the Dow Jones Best-in-Class North America Index for the 13th consecutive year and in the 2026 Sustainability Yearbook by S&P Global for the 14th consecutive year. These long-standing inclusions reflect sustained performance across a wide range of environmental, social and governance metrics over more than a decade.

The company also received an A- score from CDP for its 2025 Climate Change disclosure, indicating leadership-level performance on climate-related reporting and management. Additional recognition came from MSCI, ISS ESG, TIME and Corporate Knights, alongside the FUNDAHRSE Socially Responsible Company Seal 2025. The diversity of the recognition reflects the breadth of Gildan's sustainability practices across climate, social, governance and supply chain dimensions, providing third-party validation that supports the company's market positioning.

 

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Strategic Context and the HanesBrands Integration

 

Gildan's results for 2025 cover Gildan-operated assets only and do not include data from HanesBrands, which the company is in the process of integrating following acquisition. Glenn J. Chamandy, President and Chief Executive Officer of Gildan, said the Next Generation Sustainability strategy has guided the company's approach since its launch in 2022 and noted that the combined organisation will set revised goals and scale sustainability efforts to reflect continued growth. The integration represents one of the most significant strategic developments in the apparel sector in recent years.

The HanesBrands transaction substantially expands Gildan's brand portfolio, which already includes Gildan, Hanes, Comfort Colors, American Apparel, ALLPRO, GOLDTOE, Peds, Bali, Playtex, Maidenform, Bonds and Champion under an exclusive licensing agreement for the United States and Canadian printwear channel. Integrating sustainability programmes across the combined entity will require alignment of metrics, targets and reporting boundaries. The credibility of revised post-integration targets will depend on how rigorously the combined operations are assessed against a unified baseline.

 

Outlook for Apparel Sector Sustainability

 

The Gildan report reflects a broader trend in which leading apparel manufacturers are providing increasingly granular performance data against multi-year sustainability commitments. As regulatory frameworks including the European Union's Corporate Sustainability Reporting Directive and product environmental disclosure requirements tighten, the depth and quality of reporting will become increasingly important to competitive positioning. Companies that combine strong external ratings with verifiable operational progress are likely to retain stronger customer and investor confidence.

Whether Gildan can sustain its performance trajectory across the enlarged combined entity will depend on how effectively HanesBrands operations are aligned with the existing sustainability framework and how ambitiously revised targets are set. Continued execution would reinforce the company's reputation as one of the leading sustainability reporters in the global apparel manufacturing sector. The next phase of corporate sustainability competition in apparel will be defined by how credibly companies can demonstrate measurable progress at scale across complex global supply chains.

 

Source: GLOBE NEWSWIRE