Coats Group, a manufacturer of thread, is about to surpass the tipping point where 50 per cent of its goods will be made from preferred raw (non-virgin oil-based) resources.
The company is ahead of schedule in its shift to the sustainable use of materials, energy, water, waste, and people, according to Coats’ Sustainability Report 2024, which includes measurements guaranteed by EY. It is also getting close to a significant milestone in the creation of the world’s sustainable thread.
The percentage of environmentally friendly recycled and bio-based raw materials used by Coats rose from 31 per cent in 2022 to 46 per cent last year. The sharp rise is the result of large investments in innovation as well as the increased demand for sustainable products from fashion firms, including international clothing and footwear companies.
As industry acceptance continues to pick up speed, Coats’ revenue for its 100 per cent recycled thread products increased by 144 per cent to $405 million (£314 million) last year. The worldwide sustainable fashion market is expected to quadruple in size from 2023 to reach $33 billion (£26 billion) by 2030, according to global consultant Coherent Market Insights.
In Madurai, southeast India, it opened a cutting-edge Sustainability Hub in 2023 with the goal of assisting in the development of novel materials devoid of virgin oil, which is responsible for the majority of the company’s emissions. Coats is on track to meet its goals of employing 60 percent recycled materials by the end of 2026 and completely phasing out products derived from virgin oil by 2030.
The firm increased its energy efficiency and hastened its shift to renewable energy sources in 2024. As a result, scope 1 and scope 2 carbon emissions have decreased by 51 per cent, or roughly 92,000 tonnes, compared to its 2022 baseline. This is the same as removing 78,000 automobiles from the road. Currently, 74 per cent of Coats’ electricity comes from renewable sources, up from 29 per cent in 2022, and it is expected to reach 100 per cent by 2030.
When compared to its objective for 2022, Coats’ water recycling rate grew by 14 per cent in 2024. The corporation is anticipated to meet its goal of recycling one-third of the water used in its operations by the end of 2026, with two significant recycling installations scheduled for this year. Its water intensity, or the quantity required to produce goods, has decreased by 55 per cent since 2019 to 35.3 litres per kilogramme.
According to the sustainability report, Coats treated wastewater in accordance with industry-leading Zero Discharge of Hazardous Chemicals (ZDHC) requirements, achieving a 99.8 per cent compliance rate. By 2026, the company hopes to maintain full ZDHC compliance.
With 95 per cent of its employees certified as Great Place to Work, Coats surpassed its 2024 employee satisfaction goal. Additionally, the business met its 2026 goal of having 30 per cent of women in senior leadership positions.
