Environmental improvements combined with financial savings

The global apparel industry is one of the most significant contributors to environmental degradation today. IDH, in partnership with Apparel Impact Institute (Aii) and Race to the Top (RttT), aims to reduce this impact.

The Tier 1 Vietnam program focuses on GHG reductions & resource efficiency of tier 1 facilities, linked to Science Based Targets (SBTs) and the Paris Agreement.

With industry collaboration, we can facilitate large scale change. We support the industry by linking financial savings to the positive environmental impact in the apparel and footwear supply chain in Tier 1 facilities.

With the Tier 1 Vietnam program, we will help facilities gain financial savings and determine the positive environmental impact potential in tier 1 facilities compared to the tier 2 results we’ve achieved. We believe that, with a smaller investment compared to tier 2 facilities, implementing environmental projects in tier 1 facilities save up to 22% of energy use (coal, gas, wood & kWh electricity reduction), as well as millions of dollars.

These results will influence tier 1 program expansion plans in Vietnam and other key countries while reducing carbon emissions without delay, as part of a larger and ongoing effort to stave off the worst effects of climate change.

At Gap Inc., we have ambitious, science-based climate goals, aligned with the core commitment of the Paris Agreement to limit global warming below 1.5°C. This is why we co-invest in programs to reduce energy and water consumption and GHG emissions. We have already seen the Race to the Top apparel program succeed to identify savings opportunities up to 22% of energy use in key textile suppliers in Vietnam. With the Tier 1 garment supplier program we can now scale this further and continue to reduce emissions in partnership with our supply chain.

Aaron Tam, Senior Manager Environmental Capability Building at GAP Inc.


The program seeks to bring a facility resource efficiency pilot program to ten Tier 1 facilities at no cost to them. During these unusual times, the pilot program will cover these costs from brand and donor contributions.

With the program, we aim to  clarify high impact issues in Tier 1 facilities for industry stakeholders by leveraging quality data, increase the pool of funding available to drive changes towards measurable impact, and raise the profile of strategic programs and initiatives that solve the defined issues.

There are clear efficiency and effectiveness benefits to both brands and manufacturers in aligning and coordinating mill improvement programs. Aii’s efforts to bring programs together and to scale can make a very positive difference.

Linda Greer, PHD Industry Expert


Throughout the program, an assessment report is drafted & facilities are guided through creating and completing an action plan.

Programs will follow a continuous improvement approach where facilities make progress over a maturity curve of 12-18 months in a cohort-based model.

At PVH, the power of collective action is at the heart of our Forward Fashion corporate responsibility strategy. We are committed to helping scale industry measurement tools and improvement approaches, and to collaborating with partners, such as IDH, who have local experience and expertise. Now, more than ever, we must continue to work alongside our industry peers and partners to maintain momentum and drive lasting positive change.

Marissa Pagnani McGowan, Senior Vice President of Corporate Responsability at PVH Corp.


Apparel Impact Institute

Founded in 2017, the Apparel Impact Institute (Aii) works to scale positive impact in the apparel & footwear industry by identifying, funding, scaling and measuring innovative programs to meet critical environmental outcomes.

IDH, as a founding partner of Aii, believes the apparel sector needs to join forces and align existing initiatives to accelerate implementation, and avoid fragmentation and duplication of similar initiatives. Together with partners including The Sustainable Apparel Coalition (SAC), Target, PVH Corp., Gap Inc. and HSBC Holdings plc, Aii has the intention to advance projects with significant environmental and social promise.


Race to the Top

The Race to the Top is an initiative that aims to reshape Vietnam’s apparel and footwear sector by promoting and embedding sustainable manufacturing practices. The Race to the Top is a collaborative effort between the Vietnamese government, the Vietnamese apparel and footwear industry, global consumer brands, civil society organizations, and international organizations. Since its inception, the program has helped inform and improve national policy and has engaged over two hundred of Vietnam facilities, helping improve their social, environmental and financial performance.


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