Net-Zero Emissions Primer for Textile Manufacturing Firms
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Section 1 - Primer audience
The objective of this primer is to help textile manufacturing companies and organizations achieve net-zero emissions by 2050. It can be used by companies and organizations who are just starting out on their journey towards net-zero emissions. It can also be used by companies and organizations who are further along in the process and are looking for more concrete advice on what steps they can take.
This primer focuses primarily on textile mills and textile product mills (NAICS 313–314). However, some of the content may also be relevant to firms in related industries, where textile production is a key input for manufacturing of “end use” goods, including:
- apparel manufacturing (NAICS 315)
- leather and allied product manufacturing (NAICS 316)
- upholstered household furniture manufacturing (NAICS 337121)
1.1 Overview of the subsector
Companies in the textiles manufacturing subsector produce various textile products, ranging from apparel and household furnishings to specialized goods such as medical textiles, protective gear, and construction materials.
The full list of the relevant North American Industry Classification System (NAICS) codes for this subsector is found in Annex 1.
In Canada, there are approximately 850 businesses in this subsector, predominantly composed of medium and large-sized firms employing anywhere from a few to several hundred employees.
- The subsector employed over 13,800 people in 2024. More information can be found at:
- The subsector contributed a total of $1.02 billion to Canada’s gross domestic product (GDP) in 2024 (~0.05% of Canada’s total GDP).
- Total greenhouse gas (GHG) emissions from this subsector are estimated to be about 200,000 tonnes of carbon dioxide equivalent (CO2e) per year (~0.24% of Canada’s total emissions).
In most cases, textiles manufacturing firms are not major emitters individually and will not have to make significant changes to their business model as the economy shifts to net-zero emissions. However, the sector’s total emissions are still significant and must be addressed if Canada is to meet its net-zero target.
Section 2 - The shift to net-zero emissions
The purpose of this section is to provide relevant background and context on the shift to net-zero emissions, to help textile firms understand their role in the transition and prepare to develop their net-zero strategy and plan.
This section describes why planning for net zero is important, and what the shift to net-zero will look like for companies and organizations in the textile manufacturing subsector in Canada. It also introduces how to measure emissions using internationally recognized GHG emissions accounting practices.
2.1 The importance of planning for net-zero emissions by 2050
For the textiles manufacturing subsector, reaching net-zero emissions is important, since the aggregate emissions from the sub-sector are significant, even if those from individual firms may be small.Footnote 1 The sector as a whole has a role to play in the global transition to net zero.
For individual companies in this subsector, planning for net-zero emissions is important, as it allows firms to prepare for the future. Companies can:
- increase their resilience to climate risk
- identify business opportunities
- secure a competitive advantage in a decarbonizing market
- build their reputation with clients and investors
Net-zero planning is also useful to comply with evolving regulatory standards and meet conditions to participate in voluntary emissions reduction programs (such as the Government of Canada’s Net-Zero Challenge).
2.2 The shift to net-zero for the textile manufacturing subsector in Canada
This section describes what the shift to net-zero will look like for textile manufacturing as a whole in Canada. What this could look like for your company specifically is addressed in Section 3.
2.2.1 Where do emissions in the textile manufacturing subsector come from
The activities of firms in this subsector involve transforming raw materials into finished products through energy-intensive processes such as:
- spinning
- dyeing
- finishing
- drying
- bonding
Emissions associated with these operations stem from both direct on-site fuel combustion and indirect emissions across the value chain, including:
- electricity use
- raw material sourcing
- transportation
- waste
Details on where these emissions typically come from are listed below:
Category: Thermal manufacturing processes
Description: Use of heat in production (for example dyeing, drying, heat-setting, bonding).
Explanation: Direct emissions from use of energy, including natural gas, oil, or electricity for heating textile machinery and generating steam.
Relative magnitude of emissions: High
Degree of company control: Medium to high
Category: Facility heating and cooling
Description: Space and water heating for buildings and offices.
Explanation: Direct emissions from use of fossil fuels (natural gas, oil); indirect emissions from use of electricity, involving HVAC and water heating systems.
Relative magnitude of emissions: Medium
Degree of company control: Medium
Category: Electric machinery and equipment (non-HVAC)
Description: Powering motors, looms, lighting, and control systems
Explanation: Indirect emissions from electricity consumption, including machinery operation, lighting, and control systems within the facility.
Relative magnitude of emissions: Low to medium
Degree of company control: Low to medium
Category: Transport and shipping
Description: Movement of raw materials and finished goods (inbound and outbound).
Explanation: Emissions from freight transport (trucks, ships, rail) for inbound raw materials and outbound finished textile products distribution.
Relative magnitude of emissions: Medium to high
Degree of company control: Low to medium
Category: Employee travel and commuting
Description: Employee commutes, deliveries, business travel.
Explanation: Emissions from employee vehicles commuting to manufacturing facilities and company-related travel for meetings or logistics purposes.
Relative magnitude of emissions: Low to medium
Degree of company control: Medium
Category: Fiber lifecycle
Description: Emissions embedded in the production of yarns and fibers and their end-of-life management.
Explanation: Indirect emissions from producing virgin synthetic fibers (polyester, nylon). Lower emissions from recycled or bio-based materials.
Relative magnitude of emissions: Medium to High
Degree of company control: Low to medium
2.2.2 How to reduce emissions from textile manufacturing
There are several actions that can be taken to reduce emissions from textile manufacturing. Some actions are under the control of a company, whereas others are actions that need to occur across the broader economy. The main mitigation actions required for the textile manufacturing subsector to reach net-zero emissions are listed below:
Category: Thermal manufacturing processes
Actions companies could take:
- electrify process heat through electric technologies like boilers and heat pumps
- optimize processes and heat recovery
Actions across the broader economy:
- development and commercialization of high-temperature industrial electric heating (for example industrial heat pumps, thermal energy storage)
- decarbonization of provincial electricity grids
- policies or incentives for retooling industrial plants and supporting pilot demonstrations
Category: Facility heating and cooling
Actions companies could take:
- replace fossil fuel space and water heating equipment with low-emission alternatives, such as electric heat pumps
- reduce building energy demand through energy efficiency measures (for example insulation and building controls)
Actions across the broader economy:
- widespread deployment of electric heat pumps, including industrial-grade and cold-climate models
- phasing out of fossil-fuel based HVAC equipment
- modernization of building codes and retrofit incentives to support electrification and envelope upgrades
Category: Electric machinery and equipment (non-HVAC)
Actions companies could take:
- upgrade motors, compressors, lighting
- use smart controls or energy management systems (EMS)
- monitor usage to identify savings
Actions across the broader economy:
- grid decarbonization and expansion of clean power generation
- investment in local grid capacity to support load increases from electrification
- continued innovation in energy-efficient industrial equipment
Category: Transport and shipping
Actions companies could take:
- electrification of appropriate vehicles
- route / load optimization
- prefer low-carbon freight modes
- switch to low-emissions packaging
Actions across the broader economy:
- availability and affordability of zero-emission freight vehicles (medium/heavy-duty zero-emission vehicles)
- expansion of zero-emission vehicle (ZEV) charging and refueling infrastructure (for example hydrogen) for commercial fleets
- improvements in rail and intermodal freight services
Category: Employee travel and commuting
Actions companies could take:
- switch from internal combustion engines (ICE) to zero emission vehicles (ZEV) for road transport
- install electric vehicle (EV) chargers on-site
- adopt active transport (biking, walking, etc.) for commuting
- choose rail travel instead of air travel for short journeys
- avoid travel where possible and encourage remote work when possible
Actions across the broader economy:
- build-out urban mass transit systems and either electrify or shift to low-carbon fuels
- expand charging infrastructure for electric vehicles and increase availability of ZEVs
- expand and upgrade passenger rail travel networks, and switch to electric or hydrogen fuel-cell powered locomotives
- replace jet fuel with sustainable aviation fuel (SAF), hydrogen, synthetic fuels or electric propulsion
Category: Fiber lifecycle
Actions companies could take:
- use recycled or bio-based fibers
- work with suppliers on material transparency and circularity
- implement eco-design at the conception stage to reduce product impact early
- improve quality control systems to reduce defect-induced overproduction
Actions across the broader economy:
- expansion of recycled fiber supply chains (for example rPET, mechanically or chemically recycled textiles)
- development of bio-based and low-carbon textiles
- greater access to supplier GHG reporting and emissions data
The emissions mitigation actions outlined above address quantifiable emissions sources in the textile manufacturing subsector that can be calculated according to globally recognized accounting standards such as the GHG Protocol and ISO 14064. Textile manufacturing firms can also contribute through:
- Knowledge sharing: Ensuring staff receive ongoing training about climate change mitigation specific to textile manufacturing processes. This enables them to serve as industry thought leaders and publicly share insights and successes in sustainable textile production.
- Branding: A textile manufacturer can market itself as a leader in sustainable production. They can emphasize their adoption of low-carbon processes and eco-friendly materials as part of their brand identity. This can help normalize sustainable practices across the textile industry and motivate peers and consumers to support climate-conscious manufacturing.
2.3 Measuring GHG emissions
Accurately determining a company’s or organization’s emissions profile is critical to identifying where to direct mitigation actions. There are several widely accepted international resources that can be used to calculate a company’s GHG emissions. The two most prominent resources are the GHG Protocol, and the ISO 14064 standards.
2.3.1 The GHG Protocol
The GHG Protocol is the most widely used framework for GHG accounting and identifies, explains, and provides options for GHG emissions inventory best practices. It is used widely across many voluntary GHG initiatives including the Government of Canada’s Net-Zero Challenge and the Science Based Targets initiative.
The GHG Protocol adopts standard accounting categories companies can use to effectively communicate their emissions data with stakeholders, investors, and regulatory bodies.
The GHG Protocol’s categorization provides a holistic view of a company’s or organization’s entire value chain. This offers deeper insights into emissions sources and potential areas for cost and carbon reductions. These emissions categories will be referred to throughout this primer, and are as follows:
- scope 1 emissions: Direct emissions from owned or controlled sources, such as company-owned facilities and vehicles
- scope 2 emissions: Indirect emissions from purchased electricity, steam, heating, and cooling
- scope 3 emissions: All other indirect emissions that occur throughout the supply chain, from raw material extraction to transportation, product use, distribution and disposal
Scope 3 emissions
In the GHG Protocol there are fifteen categories for Scope 3 emissions:
- Category 1: Purchased goods and services
- Category 2: Capital goods
- Category 3: Fuel- and energy-related activities
- Category 4: Upstream transportation and distribution
- Category 5: Waste generated in operations
- Category 6: Business travel
- Category 7: Employee commuting
- Category 8: Upstream leased assets
- Category 9: Downstream transportation and distribution
- Category 10: Processing of sold products
- Category 11: Use of sold products
- Category 12: End-of-life treatment of sold products
- Category 13: Downstream leased assets
- Category 14: Franchises
- Category 15: Investments
2.3.2 International Organization for Standardization
The International Organization for Standardization 14064 standards can be used to quantify, monitor, report, and verify GHG emissions. Relevant standards include:
- ISO 14064-1 (GHG emissions and removals for organizations – corporate level)
- ISO 14064-3 (validation and verification of GHG statements)
The ISO 14064 series is complementary to the GHG Protocol and companies could benefit from using both sets of guidance.
Specifically, if a company wishes to have their GHG emissions inventory verified by an accredited third-party, it is recommended that they use the ISO 14064-1 standard. This ensures that their GHG emissions inventory is developed in a way that can be easily verified and compared to the inventories of other organizations.
Section 3 - Net-Zero strategy and planning for textile manufacturing firms
The purpose of this section is to help textile manufacturing firms make a strategy and a plan to reach net-zero emissions by 2050 or earlier. It also aims to helps position their company competitively in a net-zero world. This section is for companies who understand the background and context provided in Section 2 and are ready to take action.
Note that this primer is based on the typical activities of a firm in the textile manufacturing sector. While it provides a guide to simplify the process of net-zero planning, your company or organization must apply it to your own specific circumstances to develop a path forward.
3.1 Corporate strategy in a net-zero world
Before creating a detailed net-zero plan, your company should create a corporate strategy that determines broadly how your company wants to position itself in a net-zero emissions world. Your company should research and evaluate both the external competitive landscape and the company’s internal strengths and weaknesses, to determine the best path forward for the company.
Some of the questions you could ask are:
- what could the textiles manufacturing subsector look like in Canada in 2050, and how will our company fit into this future
- what aspects of our business may be the most exposed to change and risk —and where could we find strategic advantages in the transition to net-zero
- what key risks should we mitigate to ensure our company’s success as we eliminate our emissions over the coming years
- are there any new business opportunities that our company could pursue in the transition to net-zero
- does our company have any weaknesses that expose it to risk due to the effects of climate change and a changing economy
3.1.1 Net-zero business model
Next, you should reflect on if your company should make any changes to its business model.
For many firms in the textile manufacturing subsector, achieving net-zero emissions may not radically alter day-to-day operations since core manufacturing activities will remain central.
However, the materials used, the energy sources powering equipment, and the expectations of customers and supply chain partners are all evolving. This shift offers a chance not just to decarbonize, but to strategically reposition the company for long-term success. Firms that embrace:
- recycled or bio-based fibers
- invest in clean process technologies
- improve supply chain transparency
will be better placed to thrive in a low-carbon economy.
3.1.2 The competitive advantage of net-zero
Moving to net-zero isn’t just about managing risk - it also presents real opportunities.
In Canada, growing industries like green construction, clean transportation, and bio-based product development are likely to increase demand for sustainable, high-performance textiles. Firms can explore supplying specialized low-carbon textiles for use in:
- building materials
- insulation
- uniforms
- electric vehicle interiors
At the same time, domestic and international buyers are looking for suppliers who can help them meet their own climate targets.
Canadian manufacturers who demonstrate leadership through emissions reduction and material innovation will have a competitive edge in securing long-term contracts and brand partnerships.
This is also an opportunity to rethink how your company positions itself in the market. Branding your business as an eco-friendly textile provider—with third-party certifications, clear climate targets, and transparent sourcing—can attract environmentally conscious buyers. It can also serve as a powerful signal of credibility, innovation, and forward-thinking leadership.
3.2 Net-zero planning for textile manufacturing firms
Once you have an understanding of what the net-zero transition could look like globally and for your sector, and you have considered your company’s strategy in a net-zero world, you are ready to create a net-zero plan that will outline the tangible actions you can take.
This section goes over the steps your company will need to complete to create a credible and achievable net-zero plan. These include:
Step 1: Create a base year GHG inventory
Step 2: Identify GHG mitigation actions
Step 3: Evaluate and prioritize GHG mitigation actions
Step 4: Establish targets and develop an implementation timeline
Step 5: Monitor implementation and periodically revise your plan
Details on how to complete each of these steps are in the sections below.
For some textile manufacturing companies, doing a simple net-zero plan in-house is possible.
However, some companies may have more complex situations or lack the internal resources to create a credible net-zero plan. In these cases, companies may wish to seek out external expertise in clean technology, the energy transition, energy and climate policy, and finance.
For larger companies, developing and implementing a robust net-zero plan typically requires engagement from multiple departments. Planning is greatly facilitated by strong commitment and clear tone from senior management to ensure cross-functional collaboration and alignment on sustainability goals.
3.2.1 Step 1: Create a base year GHG inventory
The first step in creating a net-zero plan is creating an inventory of your GHG emissions for a one-year period, which will be your base year. To create the base year inventory, you will need to:
- set inventory boundaries for your organization
- identify your sources of emissions
- quantify your emissions over 12 consecutive months
Set inventory boundaries for your organization
Setting the inventory boundary allows you to determine what sources of emissions result from your activities and, accordingly, what emissions will need to be addressed to reach net-zero emissions.
Generally, inventory boundaries can be set through three criteria: equity share, financial control and operational control. Please refer to the following resources for details on how to set inventory boundaries for your organization:
- Environment and Climate Change Canada’s (ECCC) Net-Zero Challenge Technical Guide 2.0
- GHG Protocol Corporate Standard
Identify sources of emissions
The lists below show common sources of emissions for textiles manufacturing companies. Identify which of these sources apply to your organization.
Common sources of emissions from thermal manufacturing processes:
- steam boilers for thermal processes like heat-setting, dyeing, scouring, bonding, and finishing
- gas-fired dryers and stenter frames
- heated process water and chemical baths
Common sources of emissions from facility heating and cooling:
- space heating (furnaces, boilers, baseboard heating etc.)
- air conditioning and mechanical ventilation
- refrigerants released from AC units and heat pumps
Common sources of emissions from electric machinery and equipment (non-HVAC):
- electrical operation of looms, knitting, sewing, and spinning machines
- auxiliary systems like compressors, vacuum pumps, and motors
- lighting, control panels, IT systems, and electronic devices
Common sources of emissions from transport and shipping:
- diesel or natural gas trucks used for transporting raw materials and finished products
- rail or marine freight for long-distance supply chain movements
- air freight for urgent or overseas shipments
- emissions associated with packaging
Common sources of emissions from employee travel and commuting:
- daily commuting by employees in gasoline or diesel vehicles.
- business travel by car or plane for supplier meetings, trade shows, etc.
Common sources of emissions from the fiber lifecycle:
- emissions from fiber farming (diesel machinery, fertilizer use, irrigation)
- methane emissions from animals used in wool production
- fossil fuel consumption and emissions from synthetic fiber (for example, polyester) manufacturing
- methane emissions from landfilling
Once you have identified the sources of emissions, you will need to identify which category each emissions source falls into (Scope 1, 2 or 3), as described in the GHG Protocol.
The list above identifies the most common sources of emissions for textile manufacturing companies. The full list of scope 3 emissions should be reviewed to determine whether there are any other sources that could be relevant to your business.
Quantify your emissions
Once emissions sources have been identified, you must quantify your emissions. This is done by gathering activity data and emission factors that quantify the GHG emissions associated with each type of activity.
Activity data are quantitative measures of activities that result in GHG emissions. Examples of activity data could include:
- cubic meters of natural gas used to heat a building
- liters of gasoline used by vehicles
- kilowatt hours of electricity consumed
- kilometers travelled by airplane
- dollar amount of supplies purchased
Emissions factors are calculated ratios, that specify the amount of GHGs that are emitted per unit of activity. Multiplying the activity data by the correct emissions factor will produce an estimate of total emissions associated with this activity.
There are several reputable organizations that provide publicly available emissions factors. Environment and Climate Change Canada provides the following resources to find emissions factors:
- for electricity: National Inventory Report, Part 3, Annex 13
- for other activities: National Inventory Report, Part 2, Annexes 3 and 6
Other helpful resources to create your GHG Inventory include:
- ECCC’s Net-Zero Challenge Technical Guide 2.0
- ECCC’s Net-Zero Challenge Emissions CalculatorFootnote 2
- GHG Protocol Corporate Standard
3.2.2 Step 2: Identify GHG mitigation actions
Once the base year GHG inventory is complete, the second step is to identify possible actions your company could take to mitigate those emissions. Possible mitigation actions for each category of emissions are given in the sections below.
If none of these mitigation actions are feasible for your company, you can consider purchasing carbon offset credits.
Thermal manufacturing process
The top mitigation actions for GHG emissions from thermal manufacturing processes based on available sector information and existing studies are listed below. Further information can be found at:
- Low-Carbon Thermal Energy Roadmap for the Textile Industry
- Electrification of Heating in the Textile Industry
Reaching net-zero in thermal manufacturing processes will depend primarily on electrifying systems that currently rely on fossil fuels. Electrification offers the greatest emissions reduction potential. Over the lifetime of the equipment electrification may also deliver operational savings. Further information can be found at:
- Low-Carbon Thermal Energy Technologies for the Textile Industry
- Energy-Efficiency Improvement Opportunities for the Textile Industry
Energy efficiency measures, particularly in already electrified processes, are also essential, helping to maximize emissions cuts and reduce energy costs even further. However, energy efficiency and heat recovery alone cannot achieve net-zero emissions.
Possible mitigation actions for steam boilers for dyeing, scouring, and finishing:
- electrify steam generation using electric steam boilers
- reduce heat loss through insulation of pipes and tanks, condensate recovery, and heat exchangers for wastewater
Possible mitigation actions for gas-fired dryers and stenter frames:
- transition to electric thermal oil boilers or industrial heat pumps for process heat, particularly beneficial during equipment renewal cycles
- implement electric infrared (IR), radiofrequency (RF), microwave, or induction heating depending on specific drying or curing needs and process precision requirements
- reduce drying times and optimize cycles through improved process controls and automation
- implement heat recovery or preheating of air in dryers by recirculating air in a heat exchanger
Possible mitigation actions for heated process water and chemical baths:
- use industrial heat pumps to efficiently heat process water by recovering waste heat or utilizing ambient heat
- integrate thermal energy storage systems such as insulated water tanks or molten salt beds, utilizing off-peak electricity rates and balancing grid loads
- optimize water use and minimize heating requirements through low-liquor-ratio dyeing equipment and cycle optimization
Facility heating and cooling
The top mitigation actions for GHG emissions from facility heating and cooling are listed below. These possible mitigation actions are presented roughly in order of what will likely be the most impactful and practical, to the least.
Possible mitigation actions for natural gas space heating (furnaces, boilers):
- replace natural gas heating systems with electric alternatives such as air-source or ground-source heat pumps or connect to low-carbon district energy systems
- for the company’s office spaces, engage landlords proactively if renting, discussing plans for electrification and potential for equipment replacement
Possible mitigation actions for water heating for sanitation and processes (boilers, tank systems):
- switch from gas-fired water heating to electric water heaters or heat pump-based water heating solutions
Possible mitigation actions for air conditioning and mechanical ventilation:
- transition to heat pumps which efficiently provide both heating and cooling, reducing the need for separate infrastructure
- upgrade older air conditioning units to higher-efficiency models at the end of equipment life
Possible mitigation actions for electricity use for HVAC systems and lighting:
- improve insulation, air sealing, and building controls to reduce heating and cooling loads, indirectly reducing HVAC electricity use
- implement energy-efficient lighting and HVAC systems
Possible mitigation actions for refrigerants released from AC units and heat pumps:
- ensure proper disposal of old equipment to prevent refrigerant leakage
- prioritize replacement HVAC equipment using low-GWP refrigerants (such as R-32, CO₂, ammonia) to minimize emissions from leaks
- if renting, engage landlords about refrigerant type and inquire about low-impact refrigerants during HVAC equipment replacement cycles
Electric machinery and equipment (non-HVAC)
The top mitigation actions for GHG emissions from non-HVAC electric machinery and equipment are listed below:
Possible mitigation actions for electrical operation of looms, knitting, sewing, and spinning machines:
- upgrade aging machinery motors to high efficiency models
- integrate variable speed drives and sensors to run machinery at optimized capacity only when needed
- retrofit spinning frames or looms with automated controls to cycle down equipment during low production periods
Possible mitigation actions for auxiliary systems like compressors, vacuum pumps, and motors:
- replace inefficient compressed-air systems with high-efficiency compressors.
- install smart controls such as timers, automated logic, and sensors to run auxiliary systems only as required.
- consider an energy management system (EMS) to optimize operation and timing of auxiliary equipment.
Possible mitigation actions for lighting, control panels, IT systems, and electronic devices:
- deploy smart power management systems for IT and electronic equipment to reduce idle energy consumption.
- install automated lighting controls responding to occupancy and daylight sensors.
Transport and shipping
The top mitigation actions for GHG emissions from transport and shipping are listed below:
Possible mitigation actions for diesel trucks used for transporting raw materials and finished products:
- transition company-owned delivery vans and light-duty trucks to electric models, particularly suited to short- and medium-haul urban routes
- use hybrid or high fuel-efficiency vehicles when electrification isn't feasible yet
- optimize routes and shipment loads to reduce unnecessary fuel consumption, minimize empty trips, and consolidate deliveries
Possible mitigation actions for rail or marine freight for long-distance supply chain movements:
- increase utilization of rail freight for long-distance transport
- encourage intermodal freight combining trucking and rail to optimize emissions reductions and operational flexibility
- engage third-party logistics (3PL) providers who offer verified low-emission transport options
Possible mitigation actions for air freight for urgent or overseas shipments:
- minimize reliance on air freight by improving inventory management, forecasting accuracy, and supply chain planning
- prioritize marine or rail freight, supplemented by trucking, whenever feasible
- when air freight is unavoidable, consolidate shipments to reduce frequency and maximize payload efficiency
Possible mitigation actions for emissions from packaging:
- minimize the amount of packaging per product
- choose packaging with low raw and high recycled material content
- optimize shipment planning so that packages, pallets, trucks, and shipping containers are fully loaded
Employee travel and commuting
The top mitigation actions for GHG emissions from employee travel and commuting are listed below:
Possible mitigation actions for daily commuting by employees in gasoline or diesel vehicles:
- promote commuting via public transit where available, including subsidizing transit passes or offering incentives
- encourage active transport methods such as biking and walking, supported by on-site facilities
- facilitate and incentivize electric vehicles (EVs), including installing charging stations and/or providing financial assistance for EV purchases
- enable remote or hybrid work arrangements where feasible, significantly reducing commuting emissions
Possible mitigation actions for business travel by car or plane for supplier meetings, trade shows, etc.:
- eliminate unnecessary travel by optimizing virtual meeting use and consolidating trips when travel is essential
- prioritize rail or other low-emission transport modes over air travel for short to medium-distance trips
- prioritize direct flights when air travel is unavoidable
- establish clear corporate travel policies specifying electric vehicles for car rentals unless a conventional vehicle is explicitly necessary
Fiber lifecycle
The top mitigation actions for fiber lifecycle GHG emissions are listed below:
Possible mitigation actions for emissions from cotton farming (diesel machinery, fertilizer use, irrigation):
- shift toward mechanically recycled cotton fibers, significantly reducing impacts from cotton cultivation (for example, water use, diesel machinery, fertilizer use)
- choose from suppliers providing certified sustainable or organic cotton, lowering the emissions and chemical inputs from conventional cotton farming
Possible mitigation actions for methane emissions from animals used in wool production:
- substitute wool with recycled or alternative renewable fibers (for example, plant-based cellulose fibers), reducing methane emissions from livestock
Possible mitigation actions for fossil fuel consumption and emissions from synthetic fiber (for example, polyester) manufacturing:
- Replace virgin polyester with recycled polyester (rPET) fibers
- Transition to bio-based fibers such as polylactic acid (PLA) or bio-polyesters
- Promote and require supplier transparency and third-party certifications (Global Recycled Standard, OEKO-TEX) to verify low-carbon synthetic fiber sourcing
Carbon offset credits
Purchasing carbon offset credits is a mitigation action that can be taken when no other option is feasible.
Carbon offset credits represent GHG emissions reductions or removals generated from activities that are additional to what would have occurred in the absence of the offset project. These credits are generated from activities that go beyond legal requirements and a business-as-usual standard. Each offset credit generated by an offset project represents one tonne of CO2e reduced or removed from the atmosphere.
Today, most offsets are emissions reductions. But as the economy approaches net-zero, emissions reductions offset opportunities will decline as emissions fall across all sectors of the economy. Companies that do rely on offsets should therefore over time increase the proportion of offsets that come from carbon removals.
3.2.3 Step 3: Evaluate and prioritize GHG mitigation actions
Now that several possible mitigation actions have been identified, companies will need to evaluate and prioritize them.
Each company will have a different evaluation framework depending on various factors including their level of ambition, financial position, resourcing and management support. Companies should also consider supporting Canadian businesses when selecting mitigation strategies.
Common factors that companies should consider when evaluating and prioritizing emissions mitigation actions are listed below:
Emissions impact
Possible Pro(s):
- The mitigation action will have a significant impact on reducing the firm’s emissions
Possible Con(s):
- The mitigation action will have a small impact on the firm’s emissions
Technology maturity
Possible Pro(s):
- The mitigation action has been successfully used in real life conditions
- The mitigation action is a non-technical solution (for example walking to work)
Possible Con(s):
- The mitigation action has not yet been commercially deployed
Capital cost
Possible Pro(s):
- The capital cost is similar to or lower than the high-emitting option
- There are funding, grants or incentives available to help reduce the capital cost
Possible Con(s):
- The capital cost is much higher than the existing option
- There are limited funding options available
Operation and maintenance (O&M) costs
Possible Pro(s):
- The O&M costs are lower than the existing option (for example high efficiency equipment will have lower energy costs)
- Government policy can lower the ongoing O&M cost (for example a price on carbon can make electrification more cost effective)
Possible Con(s):
- The O&M costs are higher than the existing option (for example switching to electricity may be more expensive than natural gas)
Availability
Possible Pro(s):
- The mitigation action is readily available
- Enabling infrastructure is available (for example charging stations for EVs)
Possible Con(s):
- There are supply chain constraints, making the solution less readily available
- The enabling infrastructure is not yet in place
Timing
Possible Pro(s):
- The timing of implementing the mitigation action is logical (for example equipment is reaching the end of its lifetime and will need to be replaced anyways)
Possible Con(s):
- The timing of implementing the mitigation action is not ideal (for example equipment was recently replaced, and it would not make sense to replace it again in the short term)
Lifestyle considerations
Possible Pro(s):
- Mitigation action increases quality of life and is more convenient (for example no more pumping gas when you own an EV)
Possible Con(s):
- Mitigation action decreases quality of life and is more inconvenient (for example a longer commute)
Completing the analysis of the mitigation actions, along with understanding your company’s available resources and strategic priorities, can help identify the top mitigation actions to pursue.
You will complete this exercise based on the situation as of today, but all of these factors are constantly changing. This exercise will need to be repeated regularly as the landscape shifts.
3.2.4 Step 4: Establish targets and develop an implementation timeline
Now that you have identified your main emissions sources and potential mitigation actions, it is time to assess what is possible within specific timelines, and to set targets.
Task 1: Consider interim targets to reach net-zero by 2050
Targets provide crucial grounding for decarbonization efforts. They communicate a company’s ambition, allow the organization to coordinate its response, and provide a benchmark against which progress can be measured.
Many voluntary initiatives, including the Government of Canada’s Net-Zero Challenge, require member companies to plan their path towards net-zero emissions by 2050 or earlier. This aligns with Canada’s legislative commitments to net-zero and the recommendation of the Science Based Targets initiative.
Interim targets are important to focus attention on what can practically be done in the short term and to ensure progress. Some companies have adopted shorter term targets based on an aspiration to be a leader in their sector and/or to harmonize with Canada’s national goal of a 40-45% emissions reduction by 2030.
Interim targets are more likely to be achieved when they align with your strategic objectives and are grounded in a solid analysis of the costs, timing, and effectiveness of proposed mitigation measures.
Task 2: Draft an implementation timeline
The mitigation actions should be placed on a timeline to establish and/or confirm interim targets and to form the basis for a phased decarbonization plan.
In Step 3 you evaluated several possible emissions mitigation actions, and this evaluation can help you determine a realistic implementation timeline.
Factors that influence the implementation timeline will include:
- availability of equipment and enabling infrastructure (for example low carbon grid, EV charging infrastructure)
- technology life cycle (for example end of life of HVAC equipment, average vehicle lifetime).
- upfront cost and financing options
Task 3: Sum your emissions reductions over time
Each of the actions you have decided to take can be included in your plan together with the anticipated reductions over time. Summing up the proposed reductions at key interim dates (2030, 2035, etc.) can then allow you to validate (or establish) appropriate interim targets.
It is important to remember that net-zero emissions can only be achieved if other organizations up and down your value chain are also decarbonizing their activities at the same time. Therefore, the pathway to full decarbonization may be unclear.
Over time, as manufacturing, transport, and energy production are increasingly decarbonized, the carbon intensity of the goods and services needed by your business will decrease. Net-zero will become more achievable.
Fostering collaboration and maintaining open communication with your value chain partners will be essential to accelerating the transition and providing greater clarity around your own net-zero plan.
3.2.5 Step 5: Monitor implementation and periodically revise your plan
Full decarbonization of the economy will take time. It is hard to anticipate developments five years from now, let alone in 30 years. Net-zero planning will necessarily be an iterative process. Plans will be adjusted periodically to reflect changing circumstances – including technological, economic, social and geopolitical – and as the whole economy moves towards net-zero emissions.
You should establish a regular process for monitoring the implementation of your plan, such as:
- At least once a year: Formally review progress, assessing whether the assumptions on which the plan was based have shifted, whether the proposed actions have been taken, and the extent to which they are attaining the desired objectives
- Every five years: A new plan can be developed that draws on the lessons learned and charts the rest of the journey towards net-zero
Next steps
If you are ready to take the next step, learn more about how to join the Government of Canada’s Net-Zero Challenge.
Glossary
- Base year:
- A year in history against which a company’s emissions are tracked over time to compare it with future emissions. It must be a consecutive twelve months, either as a full calendar year or consecutive over two calendar years.
- Carbon dioxide equivalent (CO2e):
- A unit of measure for comparison between greenhouse gases (GHGs) that have different global warming potentials (GWPs). This unit of measure allows other GHGs to be expressed in terms of the GWP of one unit of CO2. To express GHG emissions in units of CO2e, the quantity of a given GHG is multiplied by its GWP.
- Decarbonization:
- The process of reducing carbon dioxide emissions from a product, process, facility, or sector.
- Direct emissions:
- Emissions from sources that are owned or controlled by a company or organization (GHG Protocol 2004: 97).
- Downstream emissions:
- Emissions from downstream activities associated with the operations of a company, including processing of sold products, use of sold products, investments, franchises, downstream transportation and distribution, end-of-life treatment of sold products, and downstream leased assets.
- Emission factor:
- A value that quantifies an average amount of emissions associated with an activity. For more details on Canada-specific emission factors, see the latest National Inventory Report for Canada.
- Emissions:
- The release of greenhouse gases (or other substances) into the atmosphere.
- Emissions inventory:
- A quantified list of emissions and emission sources for a company, organization, municipality, region, province/territory, or country.
- Energy efficiency:
- A measure of how effectively energy is used for a given purpose. It is a ratio or other quantitative relationship between an output of performance, service, goods, commodities, or energy, and an input of energy.
- Global Warming Potential (GWP):
- Allows the comparison of the global warming impacts of different gases or particles (such as black carbon). It is a measure of how much energy the emissions of 1 tonne of a gas or particle will absorb over a given period of time, compared to the emissions of 1 tonne of carbon dioxide. For the purposes of net-zero planning, use of 100-year GWP is recommended.
- Greenhouse gas (GHG):
- A gas that absorbs and re-emits radiation, resulting in the greenhouse effect, which contributes to a warming climate. For the purposes of this guidance and for the Net-Zero Challenge, GHGs include all of those that are subject to reporting for the Greenhouse Gas Reporting Program. This includes carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), sulphur hexafluoride (SF6), 13 different hydrofluorocarbons (HFCs), and 7 different perfluorocarbons (PFCs).
- Indirect emissions:
- Emissions that are a consequence of the activities of a company but occur at sources owned or controlled by another company (GHG Protocol 2004: 99).
- Inventory boundary:
- Allows a participant to determine what sources of emissions are the result of their activities and accordingly, what emissions will need to be addressed in order to reach net-zero emissions by 2050. Generally, the inventory boundary includes geographical boundaries and organizational boundaries.
- Mitigation strategy:
- A practice, process, or technology that contributes to mitigation, for example, enhancing energy efficiency and adopting renewable energy sources.
- Net-Zero Challenge:
- A voluntary Government of Canada program that encourages businesses to develop and implement credible and effective plans to transition their facilities and operations to net-zero emissions by 2050.
- Net-zero emissions:
- Achieving net-zero emissions means that anthropogenic emissions of greenhouse gases into the atmosphere are balanced by anthropogenic removals of greenhouse gases from the atmosphere over a specified period; for organizations, net zero GHG emissions is commonly considered as the condition in which emissions have been reduced such that only residual emissions remain, and offsetting is restricted to removal credits only (ISO 14068).
- Net-zero plan:
- A net-zero plan includes an emissions inventory and base year, interim targets, descriptions of the considered scenarios, pathways and mitigation strategies, and an outline of how net-zero planning will be incorporated into a company’s governance and disclosures.
- Offset credits:
- Represent GHG emissions reductions or removals generated from activities that are additional to what would have occurred in the absence of the offset project (that is, generated from activities that go beyond legal requirements and a business-as-usual standard). Each offset credit generated by an offset project represents one tonne of carbon dioxide equivalent (CO2e) reduced or removed from the atmosphere.
- Organizational boundaries:
- The boundaries that determine the operations owned or controlled by a company, depending on the consolidation approach taken (equity share, operational control, or financial control).
- Scope:
- Defines the operational boundaries in relation to direct and indirect emissions (GHG Protocol 2004: 101).
- Scope 1 emissions:
- A company’s direct emissions, principally the generation of electricity, heat, or steam, physical or chemical processing, transportation, and fugitive emissions (GHG Protocol 2004: 101).
- Scope 2 emissions:
- A company’s indirect emissions associated with the purchase of electricity, heating/cooling, and steam for own consumption (GHG Protocol 2004: 101).
- Scope 3 emissions:
- A company’s indirect emissions excluding those covered in scope 2. Also known as value chain emissions (GHG Protocol 2004: 101).
- Upstream emissions:
- Emissions from upstream activities associated with the operations of a company, including purchased goods and services, capital goods, fuel- and energy-related activities, upstream transportation and distribution, waste generated in operations, business travel, and employee commuting.
- Value chain:
- All business processes or activities involved in the production of a good or service for market, from conception to end use and beyond. A simplified value chain would include corporate services (for example, marketing, logistics), research and development, inputs, assembly, distribution, sales, and after-sales service.
- Value chain emissions:
- These are indirect emissions that may exist upstream or downstream of a company’s operations. Value chain emissions are also known as scope 3 emissions.
Annex 1: North American Industry Classification System
Based on the North American Industry Classification System (NAICS), such businesses in the textile manufacturing sector include:
3131 – Fibre, yarn, and thread mills
31311 – Fibre, yarn and thread mills
31321 – Broad-woven fabric mills
31322 – Narrow fabric mills and schiffli machine embroidery
3133 – Textile and fabric finishing and fabric coating
31331 – Textile and fabric finishing
3141 – Textile furnishing mills
31412 – Curtain and linen mills
3149 – Other textile product mills
31491 – Textile bag and canvas mills
31499 – All other textile product mills
31512 - Apparel knitting mills
3152 - Cut and sew clothing manufacturing
31521 - Cut and sew clothing contracting
31525 - Cut and sew apparel manufacturing (except contractors)
316 - Leather and allied product manufacturing
3161 - Leather and hide tanning and finishing
31611 - Leather and hide tanning and finishing
31621 - Footwear manufacturing
Annex 2: Thermal manufacturing process electric alternatives
This section provides a high-level overview of electrified alternatives for thermal manufacturing processes in the textiles manufacturing sector. It is intended to offer directional guidance only.
The suitability and performance of each technology will vary depending on specific operational contexts, equipment configurations, and facility needs. Companies are encouraged to assess the relevance and feasibility of each option based on their own technical, financial, and process requirements before making investment decisions.
Technology: Electric steam boilers
Description: Use electricity (resistance or electrode) to produce steam for process heating.
Best suited for: Any process currently using steam boilers, including:
- Dyeing
- Scouring
- Finishing
Considerations: High efficiency; clean and reliable; simple retrofit in steam-based systems.
Technology: Electric thermal oil boilers
Description: Electrified systems that heat thermal oils used in high-temperature applications (for example heat-setting).
Best suited for: Processes requiring stable high temperatures, including
- Heat-setting
- Bonding
- Coating
Considerations: Avoids pressure issues with steam; enables high-temperature heating (up to 400°C).
Technology: Industrial heat pumps
Description: Use refrigerant cycles to extract heat from waste streams or ambient sources and raise its temperature.
Best suited for: Low- to mid-temperature processes, such as:
- Pre-heating
- Washing
- Dyeing
- Drying
Considerations: Highly efficient and can reduce significantly energy costs.
Technology: Induction heating
Description: Uses electromagnetic fields to heat conductive materials directly and precisely.
Best suited for: Bonding layers, activating adhesives, mold heating.
Considerations: Excellent for localized heating; high precision; best for small-area or high-speed tasks.
Technology: Radiofrequency (RF) heating
Description: Uses alternating electric fields to generate uniform internal heating in dielectric materials.
Best suited for: Drying nonwovens, thick fabrics, adhesives.
Considerations: Effective for low-conductivity materials; equipment is specialized; mid-range capital cost.
Technology: Electric infrared (IR) heating
Description: Converts electricity into radiant heat for surface-level heating.
Best suited for: Fabric drying, surface finishing, curing coatings.
Considerations: Low maintenance; fast response; can be retrofit or modular; relatively low cost.
Technology: Ultraviolet heating (UV Curing)
Description: Uses UV light to instantly cure adhesives, inks, and coatings.
Best suited for: Coating and adhesive curing on technical textiles.
Considerations: Requires UV-reactive materials; no thermal energy needed.
Technology: Microwave heating
Description: Uses dielectric heating to volumetrically heat materials from within.
Best suited for: Drying bulky or thick, moisture-retaining fabrics.
Considerations: Very uniform drying; good for thermal-sensitive products; higher capital cost, but faster throughput.
Technology: Thermal energy storage
Description: Stores excess/off-peak electric heat (for example, in water tanks or salt beds) for later use.
Best suited for: Complementary to any electric thermal system; managing peak loads.
Considerations: Useful for grid load management; complements boilers/heat pumps; moderate cost; depends on grid pricing.