Gap Inc. achieved 100% sustainable cotton sourcing and 65% recycled polyester use in fiscal 2025, per its June 2026 Impact Report. However, renewable electricity use for company-operated facilities fell to 46% — down from 52% in fiscal 2024 — and Scope 3 emissions rose 2.1%, while Scope 1 and 2 emissions dropped 7.3%. The retailer aims to double traceable U.S.-grown cotton via TextileGenesis. Published July 28, 2026, the findings highlight persistent gaps between material sustainability and energy-related decarbonization in global apparel supply chains.
According to www.supplychaindive.com, Gap Inc. achieved its fiscal 2025 target of sourcing 100% of its cotton from sustainable sources but reported a decline in renewable electricity use — falling to 46% for company-operated facilities — and uneven progress on greenhouse gas emissions reduction.
Sustainable Sourcing Milestones Met
Gap’s 2025 Impact Report, published in June 2026, confirms the company met its flagship fabric sustainability goals. It sourced 100% of its cotton from certified sustainable origins — including organic, recycled, and Better Cotton Initiative (BCI)-verified sources — in the fiscal year ending January 31, 2026. This marks an increase from 98% in fiscal 2024, as previously reported in its 2024 Impact Report.
The company also exceeded its recycled polyester target, obtaining 65% of its polyester from recycled sources in fiscal 2025 — surpassing its stated goal. Gap intends to expand traceability for U.S.-grown cotton by doubling its use of fiber tracked through the TextileGenesis platform, which provides digital chain-of-custody verification from farm to retail shelf.
Renewable Energy Use Declines
Despite progress on material sourcing, Gap’s clean energy adoption regressed. The company obtained 46% of the electricity used in its company-operated facilities from renewable sources in fiscal 2025 — down from 52% in fiscal 2024. This 6 percentage-point drop occurred even as global corporate renewable procurement trends showed modest growth, according to BloombergNEF data released in Q2 2026.
The decline coincides with supply chain shifts following the partial relocation of some distribution operations and increased reliance on grid-sourced power in regions where utility-scale renewables procurement options remain limited. Gap did not disclose facility-level breakdowns or regional energy mix changes in the report, though it noted ongoing engagement with energy providers in the U.S. and Mexico to expand access to verified renewable power purchase agreements (PPAs).
Emissions Performance Mixed Across Scopes
Gap’s greenhouse gas (GHG) emissions performance varied significantly across reporting scopes. While Scope 1 and 2 emissions — covering direct operations and purchased energy — decreased by 7.3% year-over-year, Scope 3 emissions — which account for over 90% of the company’s total carbon footprint and include upstream manufacturing, transportation, and end-of-life product treatment — rose by 2.1% in fiscal 2025. The report attributes the Scope 3 increase to higher production volumes in Tier 2 and Tier 3 supplier facilities where decarbonization investments lag.
Antone Gonsalves, Reporter at Supply Chain Dive, noted in his analysis:
“The divergence between material sourcing success and energy/emissions outcomes underscores how deeply embedded legacy infrastructure and third-party dependencies constrain apparel brands’ climate progress — even when internal targets are hit.” — Antone Gonsalves, Reporter, Supply Chain Dive
Strategic Implications for Apparel Supply Chains
For supply chain professionals, Gap’s results illustrate a persistent operational tension: achieving upstream raw-material targets does not automatically translate into downstream emissions reductions. The 46% renewable electricity figure reflects real-world constraints in commercial and industrial power markets — particularly in key manufacturing hubs like Vietnam and Bangladesh, where less than 15% of grid electricity came from renewables in 2025 (IEA 2026 Renewables Report). Similarly, the 2.1% rise in Scope 3 emissions highlights the difficulty of enforcing decarbonization standards across fragmented, multi-tiered supplier networks without co-investment mechanisms or shared technology platforms.
Practitioners increasingly treat traceability tools like TextileGenesis not as endpoints but as foundational infrastructure for verifying supplier energy disclosures and enabling joint investment in solar microgrids or low-carbon dyeing technologies. As one senior sourcing director at a Tier 1 apparel manufacturer told Supply Chain Dive under condition of anonymity:
“You can’t audit your way to net zero. If brands want Scope 3 cuts, they need to fund clean energy retrofits — not just demand them.” — Senior Sourcing Director, Tier 1 Apparel Manufacturer
Source: Supply Chain Dive
Compiled from international media by the SCI.AI editorial team.
