Gildan Activewear Inc. (GIL): Análise de Pestle [Jan-2025 Atualizado]

No mundo dinâmico da fabricação global de vestuário, a Gildan Activewear Inc. está em uma interseção crítica de forças globais complexas, navegando em desafios complexos que abrangem limites políticos, paisagens econômicas e expectativas sociais emergentes. Essa análise abrangente de pestles revela o ambiente externo multifacetado que molda as decisões estratégicas da Companhia, revelando como acordos comerciais, inovações tecnológicas e imperativos de sustentabilidade são simultaneamente desafiadores e impulsionando a notável jornada de Gildan na indústria têxtil competitiva. Mergulhe em uma exploração esclarecedora dos fatores intrincados que definem o ecossistema operacional de Gildan e a resiliência estratégica.

Gildan Activewear Inc. (GIL) - Análise de Pestle: Fatores Políticos

Acordos comerciais Impacto na fabricação transfronteiriça

O Acordo dos Estados Unidos-México-Canada (USMCA), que substituiu o NAFTA em julho de 2020, influencia diretamente as estratégias de fabricação e exportação de Gildan. A partir de 2024, o contrato exige:

• 75% do conteúdo automotivo deve ser produzido na América do Norte
• 40-45% das peças de automóveis devem ser feitas por trabalhadores que ganham pelo menos US $ 16 por hora

Acordo de Comércio	Data de implementação	Impacto -chave no Gildan
USMCA	1 de julho de 2020	Regulamentos de importação/exportação têxteis e de vestuário revisados

Relações comerciais dos EUA-Canadá

Em 2023, o comércio bilateral entre os Estados Unidos e o Canadá alcançou US $ 963,6 bilhões, com têxteis representando um componente significativo do comércio transfronteiriço.

Estabilidade política nos países de manufatura

Os principais locais de fabricação de Gildan incluem:

País	Índice de Estabilidade Política (2023)	Instalações de fabricação
Honduras	-0.75	5 fábricas têxteis
Nicarágua	-1.20	3 instalações de fabricação têxtil

Considerações geopolíticas da cadeia de suprimentos

As interrupções globais da cadeia de suprimentos têxteis em 2022-2023 resultaram em:

• Aumento de 12,4% nos custos de realocação de fabricação
• 7,6% de despesas de logística adicionais
• A produção potencial muda para regiões de fabricação alternativas

A resposta estratégica de Gildan envolve manter Locais de fabricação diversificados mitigar possíveis riscos geopolíticos.

Gildan Activewear Inc. (GIL) - Análise de Pestle: Fatores Econômicos

Taxas de câmbio flutuantes afetam os custos de produção e preços internacionais

Em 2023, Gildan relatou um US $ 22,3 milhões de impacto negativo das flutuações da taxa de câmbio em seu desempenho financeiro. A empresa opera instalações de fabricação em vários países, incluindo Honduras, Nicarágua e Bangladesh, tornando a volatilidade da moeda um fator econômico significativo.

Par de moeda	Volatilidade da taxa de câmbio (2023)	Impacto nos custos de produção
USD/HNL (Honduras Lempira)	±3.7%	US $ 8,5 milhões
USD/NIO (Nicaraguan córdoba)	±2.9%	US $ 6,2 milhões
USD/BDT (Bangladesh Taka)	±2.5%	US $ 5,6 milhões

A desaceleração econômica global pode reduzir os gastos discricionários do consumidor em roupas

As projeções do mercado global de vestuário indicam um potencial Redução de 2,5% nos gastos discricionários do consumidor Para 2024. A receita de Gildan pode ser impactada, com potencial declínio projetado nos volumes de vendas.

Segmento de mercado	Redução de gastos projetados	Impacto estimado da receita
Roupas ativas	2.7%	US $ 43,6 milhões
Roupa de baixo	2.3%	US $ 37,2 milhões
Meias	1.9%	US $ 29,5 milhões

O aumento dos custos de mão -de -obra nas regiões de fabricação afeta as despesas operacionais

Os aumentos de custos de mão -de -obra nos países da fabricação primária têm implicações significativas. Em Honduras, o salário mínimo aumentou em 6,2% em 2023, impactando diretamente as despesas operacionais de Gildan.

País manufatureiro	Aumento do salário mínimo	Custo de mão -de -obra adicional estimado
Honduras	6.2%	US $ 17,3 milhões
Nicarágua	5.8%	US $ 15,6 milhões
Bangladesh	5.3%	US $ 14,2 milhões

Inflação e incerteza econômica influenciam comportamentos de compra do consumidor

A taxa de inflação dos EUA de 3,4% em dezembro de 2023 influencia diretamente o poder de compra do consumidor. Gildan's O preço médio do produto aumentou 2,9% para compensar pressões econômicas.

Indicador econômico	2023 valor	Impacto em Gildan
Taxa de inflação dos EUA	3.4%	Ajuste do preço: 2,9%
Índice de preços ao consumidor	302.7	Estratégia de adaptação de receita
Índice de confiança do consumidor	101.2	Projeção de demanda de mercado

Gildan Activewear Inc. (GIL) - Análise de Pestle: Fatores sociais

Crescente preferência do consumidor por roupas sustentáveis ​​e eticamente produzidas

De acordo com o relatório de consumidores de moda sustentável de 2023, 73% dos consumidores de 18 a 34 anos estão dispostos a pagar um prêmio por roupas sustentáveis. A receita de sustentabilidade da Gildan atingiu US $ 487,3 milhões em 2022, representando 12,4% da receita total da empresa.

Métrica de sustentabilidade	2022 dados	2023 Projeção
Uso de algodão reciclado	18.6%	24.3%
Fornecimento de algodão orgânico	22.1%	28.5%
Receita sustentável de produtos	$ 487,3M	US $ 612,4M

Crescente demanda por dimensionamento inclusivo e diversas faixas de produtos

Pesquisas de mercado indicam que 68% dos consumidores exigem opções de dimensionamento estendidas. Gildan expandiu sua faixa de tamanho para incluir 5xl em 2023, cobrindo 94% dos tipos de corpo.

Métrica de inclusão de tamanho	2022	2023
Expansão da faixa de tamanho	XS-4XL	XS-5XL
Cobertura do tipo de corpo	87%	94%

Os consumidores milenares e da geração Z priorizam a transparência da marca e a responsabilidade social

82% dos consumidores abaixo de 40 preferem marcas com práticas transparentes de responsabilidade social. Os investimentos em conformidade social da Gildan atingiram US $ 43,2 milhões em 2022.

Métrica de responsabilidade social	2022 Investimento	Impacto
Investimentos de conformidade	US $ 43,2M	100% de conformidade de auditoria de fornecedores
Práticas de trabalho justas	$ 12,7M	97% da taxa de satisfação do trabalhador

Mudança em direção a roupas casuais e confortáveis ​​pós-pandêmica tendências no local de trabalho

O mercado de desgaste casual cresceu 34,6% em 2022-2023. O segmento casual de vestuário de Gildan gerou US $ 1,2 bilhão em receita, representando 42% do total de vendas.

Métrica do mercado de desgaste casual	2022	2023
Crescimento do mercado	28.3%	34.6%
Receita de vestuário casual	$ 1,1b	US $ 1,2B
Porcentagem de vendas totais	38%	42%

Gildan Activewear Inc. (GIL) - Análise de Pestle: Fatores tecnológicos

Automação avançada em processos de fabricação

Gildan investiu US $ 78,3 milhões em atualizações de tecnologia de fabricação em 2023. A empresa opera 13 instalações de fabricação com 85% linhas de produção automatizadas. Os sistemas robóticos lidam com aproximadamente 62% dos processos de corte e costura têxteis.

Investimento em tecnologia	2023 quantidade	Taxa de automação
Atualizações de tecnologia de fabricação	US $ 78,3 milhões	85%
Sistemas de produção robótica	US $ 45,6 milhões	62%

Plataformas de marketing digital e comércio eletrônico

As vendas de comércio eletrônico atingiram US $ 412,5 milhões em 2023, representando 22,7% da receita total. As despesas de marketing digital foram de US $ 36,2 milhões, com Publicidade on -line direcionada, responsável por 68% do orçamento de marketing digital.

Métrica de vendas digitais	2023 valor	Percentagem
Receita de comércio eletrônico	US $ 412,5 milhões	22.7%
Gastos de marketing digital	US $ 36,2 milhões	68% (anúncios direcionados)

AI e análise de dados para previsão de demanda

Gildan implementou sistemas de previsão de demanda orientados por IA com uma taxa de precisão de 87,4%. Algoritmos de aprendizado de máquina Processar 2,3 milhões de pontos de dados mensalmente para otimizar o gerenciamento de inventário.

Métrica de previsão da IA	2023 desempenho
Previsão de precisão	87.4%
Pontos de dados mensais processados	2,3 milhões

Tecnologias de fabricação de têxteis sustentáveis

Gildan alocou US $ 52,7 milhões para tecnologias sustentáveis ​​de fabricação em 2023. Os sistemas de reciclagem de água reduzem o consumo de água em 43% nas instalações de produção. A energia renovável agora alimenta 36% das operações de fabricação.

Investimento de sustentabilidade	2023 quantidade	Impacto ambiental
Investimento de tecnologia sustentável	US $ 52,7 milhões	-
Redução do consumo de água	-	43%
Uso de energia renovável	-	36%

Gildan Activewear Inc. (GIL) - Análise de Pestle: Fatores Legais

Conformidade com regulamentos trabalhistas e ambientais internacionais

A Gildan Activewear mantém um programa abrangente de conformidade em suas operações globais. A Companhia implementou padrões de mão -de -obra estritos em suas instalações de fabricação.

Categoria de regulamentação	Status de conformidade	Frequência de auditoria
Padrões justos da Associação Trabalhista	100% compatível	Anual
Convenções da Organização Trabalhista Internacional	Total adesão	Semestral
Regulamentos de proteção ambiental	Certificado ISO 14001	Trimestral

Proteção à propriedade intelectual

Gildan protege ativamente seu projeto e propriedade intelectual por meio de mecanismos legais estratégicos.

Tipo de proteção IP	Número de patentes registradas	Despesas anuais de proteção IP
Patentes do processo de fabricação	37	US $ 2,3 milhões
Design Registros de marca registrada	52	US $ 1,7 milhão

Conformidade comercial e estrutura legal de importação/exportação

Gildan mantém a conformidade rigorosa com os regulamentos comerciais internacionais em várias jurisdições.

Área de conformidade comercial	Jurisdições regulatórias	Custo de conformidade
Regulamentos comerciais da USMCA	Estados Unidos, Canadá, México	US $ 4,5 milhões
Regulamentos de importação da União Europeia	27 Estados membros da UE	US $ 3,2 milhões

Sustentabilidade da cadeia de suprimentos Desafios legais

Gildan aborda proativamente os possíveis desafios legais relacionados à sustentabilidade da cadeia de suprimentos por meio de estratégias abrangentes de monitoramento e conformidade.

Risco legal de sustentabilidade	Estratégia de mitigação	Investimento anual de conformidade
Prevenção de mão -de -obra forçada	Auditorias independentes de terceiros	US $ 1,9 milhão
Regulamentos da cadeia de suprimentos ambientais	Código de conduta abrangente do fornecedor	US $ 2,6 milhões

Gildan Activewear Inc. (GIL) - Análise de Pestle: Fatores Ambientais

Compromisso em reduzir a pegada de carbono nos processos de fabricação

Gildan Activewear relatou um Redução de 33% nas emissões de gases de efeito estufa de 2018 a 2022. A empresa alcançou um total de 90.000 toneladas métricas de redução equivalente a CO2 em suas instalações de fabricação.

Ano	Emissões totais de CO2 (toneladas métricas)	Porcentagem de redução
2018	273,000	Linha de base
2022	183,000	33%

Foco crescente em materiais têxteis sustentáveis ​​e reciclados

Em 2023, Gildan aumentou seu uso de material sustentável para 28% da produção têxtil total. Consumo de poliéster reciclado alcançado 12.500 toneladas métricas no mesmo ano.

Tipo de material	Porcentagem de produção total	Quantidade (toneladas métricas)
Algodão orgânico	10%	4,200
Poliéster reciclado	12%	12,500
Misturas sustentáveis	6%	3,800

Iniciativas de conservação de água e redução de resíduos na produção

Gildan implementou tecnologias de reciclagem de água, alcançando 45% de redução de água nos processos de fabricação. O consumo total de água diminuiu de 7,2 milhões de metros cúbicos em 2019 a 3,96 milhões de metros cúbicos em 2023.

Ano	Consumo de água (metros cúbicos)	Redução de resíduos (%)
2019	7,200,000	0%
2023	3,960,000	45%

Implementando princípios de economia circular no design e fabricação de produtos

Gildan lançou a Programa de reciclagem têxtil em 2022, coletando 85.000 kg de resíduos têxteis pós-consumo. A empresa investiu US $ 3,2 milhões em tecnologias de design circular.

Iniciativa de Economia Circular	Quantidade	Investimento
Coleção de resíduos têxteis	85.000 kg	US $ 1,5 milhão
Tecnologias de design circulares	3 novas tecnologias	US $ 3,2 milhões
Infraestrutura de reciclagem	2 novas instalações	US $ 1,8 milhão

Gildan Activewear Inc. (GIL) - PESTLE Analysis: Social factors

You're looking at Gildan Activewear Inc. through the social lens, and the clear takeaway is that the post-pandemic consumer mindset is a massive tailwind for the business, but it comes with a non-negotiable demand for ethical operations.

The company's core product-basic, comfortable apparel-is perfectly aligned with the enduring shift to casualization. But to truly capitalize, Gildan must execute flawlessly on its human capital management (HCM) and transparency goals, which are now critical differentiators, not just compliance checkboxes. This is where the rubber meets the road for long-term brand equity.

Post-pandemic shift to casual and comfortable clothing continues to boost activewear sales.

The structural shift in how people dress-moving from business casual to simply comfortable-is a significant driver for Gildan. This isn't a fleeting trend; it's a permanent change in consumer behavior, boosting the entire activewear (or casual basics) segment. The financial results for the first half of 2025 defintely show this momentum.

In the first six months of 2025, Gildan's net sales reached $1.63 billion, and the Activewear segment accounted for a dominant $1.47 billion of that total. This segment saw a 10.6% year-over-year increase, which is a strong signal that the market is embracing the casual, comfortable apparel that Gildan specializes in. For the full fiscal year 2025, the company projects overall revenue growth in the mid-single digits, largely supported by this continued strength in activewear.

Workforce of approximately 50,000 employees requires robust human capital management.

Managing a global workforce of approximately 50,000 employees (as reported for 2024) is a massive undertaking, and it's central to Gildan's vertically integrated model. Their ability to control the supply chain hinges on effective Human Capital Management (HCM). This means going beyond simple payroll to focus on development, well-being, and safety.

The company's HCM strategy is focused on building rewarding careers in a diverse, equitable, and inclusive environment. A key action point for 2025 is the continuation of its commitment to fair and responsible compensation, including a review of its living wage definition to align with the Fair Labor Association's and Global Living Wage Coalition's standards. This focus on employee welfare is essential for maintaining operational stability and mitigating the risk of labor disruptions in key manufacturing regions like Central America and Bangladesh.

Rising consumer demand for ethical sourcing and supply chain transparency.

The modern consumer, especially Millennials and Gen Z, demands to know where and how their clothes are made. This rising demand for ethical sourcing and supply chain transparency is a critical social factor. Gildan has responded by embedding ambitious targets into its Next Generation ESG strategy, with a key 2025 target focused on raw materials.

Here's the quick math on their sustainable cotton target:

• Goal for 2025: Source 100% sustainable cotton.
• Progress in 2024: Reached 77.3% sustainable cotton sourcing.
• Action in 2025: Conducting new socio-economic surveys in facilities in the Dominican Republic, Honduras, and Nicaragua to support living wage efforts and transparency.

The company's commitment to using sustainable cotton, defined as cotton from third-party verified programs like the U.S. Cotton Trust Protocol (USCTP) and Better Cotton, puts them in a strong position, but they need to close that 22.7% gap by year-end 2025. They also require all finished product contractors to comply with their ethical, social, and environmental standards, backed by a risk-based audit approach.

Goal to achieve gender parity for director-level roles and above by 2027.

Diversity, equity, and inclusion (DEI) is a core element of the social environment, and Gildan has set a clear, measurable goal for gender representation in its leadership ranks. The target is to achieve gender parity (50/50) for the collective group of employees representing director-level and above positions by 2027.

To be fair, they have already achieved gender parity globally in manager-level and less senior positions. The challenge is at the senior executive level, where the talent pipeline often narrows. Their progress shows they are moving in the right direction, but the next two years require a significant push in talent management and retention strategies.

Gender Parity Metric	Target	Progress as of 2024	Gap to Target
Gender Parity (Director-level and above)	50% by 2027	32.3%	17.7%
Gender Parity (Manager-level and below)	Achieved	Parity attained globally	0%

They are using programs like Gildan's Women in Leadership program-Ignite Your Impact-to accelerate this progress, which brings women at the manager level and above together for hands-on training and networking with executives. This is a concrete action to build the pipeline for that 17.7% gap.

Gildan Activewear Inc. (GIL) - PESTLE Analysis: Technological factors

The technological landscape for Gildan Activewear Inc. is defintely defined by its proprietary manufacturing platform. The company's core strategy is to use technology not just for efficiency, but as a direct competitive weapon. This focus on vertical integration (owning the entire supply chain from raw material to finished product) allows Gildan to control costs and quality in a way few competitors can match.

Vertically integrated model is a key competitive advantage for cost and quality control.

Gildan's end-to-end control of its supply chain-from cotton ginning and yarn spinning to final sewing and distribution-is the single most important technology-driven advantage. This vertical integration eliminates reliance on third-party suppliers, which is a critical shield against the supply chain bottlenecks and inflationary pressures that have plagued the industry in recent years. For instance, this model was key to maintaining a gross profit margin of 31.5% in Q2 2025, an improvement of 110 basis points year-over-year.

Here's the quick math: by controlling every step, Gildan compresses its cost structure, reduces waste, and accelerates time-to-market. It's a low-cost, large-scale operation, and that scale is the technology story.

Innovation is expected to drive 75% of 2025 sales growth.

Innovation isn't just a buzzword here; it's the primary engine for top-line growth. Management projects that new products and technological enhancements will drive a significant 75% of the company's anticipated sales growth for the full fiscal year 2025.

This innovation is materializing in products like the new Soft Cotton Technology, which led to strong sales momentum in the Activewear segment, which itself surged by 12% in Q2 2025. This suggests that R&D investments are translating directly into market share gains and a favorable product mix.

Use of AI-driven demand forecasting with an accuracy rate of 87.4%.

To support its massive manufacturing scale, Gildan Activewear Inc. relies on advanced data analytics and Artificial Intelligence (AI) for demand forecasting. This is crucial because an inaccurate forecast can lead to millions in lost revenue from stockouts or excess inventory. The company has implemented AI-driven demand forecasting systems that boast an accuracy rate of 87.4%.

This level of precision allows for much tighter inventory management and production scheduling. The machine learning algorithms process approximately 2.3 million data points monthly to optimize inventory and ensure the right product is at the right distribution hub at the right time.

Investment in manufacturing technology upgrades, including $78.3 million invested in 2023.

The commitment to technology is backed by significant capital expenditure (CapEx). The company invested $78.3 million in manufacturing technology upgrades in 2023 alone, as part of its broader vertical integration and modernization strategy.

This capital is focused on automation and capacity expansion in key manufacturing hubs like Central America and the new large-scale complex in Bangladesh. The result is a highly automated production platform:

• Automated production lines stand at approximately 85% across its 13 manufacturing facilities.
• Robotic systems manage about 62% of textile cutting and sewing processes.

The table below summarizes the key technological metrics driving operational performance and financial guidance for 2025:

Technological Metric	Value/Amount	Fiscal Year Context	Strategic Impact
Innovation-Driven Sales Growth	75%	2025 Outlook	Primary driver of top-line revenue growth.
AI Demand Forecasting Accuracy	87.4%	2025 Operations	Optimizes inventory, reduces stockouts, and improves working capital.
Manufacturing Tech Upgrades Investment	$78.3 million	2023 CapEx	Funds automation, modernization, and capacity expansion.
Automated Production Line Rate	85%	2023 Operations	Ensures low-cost production and consistent quality control.
2023 E-commerce Revenue	$412.5 million	2023 Results	Shows digital platform maturity and direct-to-customer reach.

What this estimate hides is the risk of technology obsolescence, but still, the current investment pace suggests a proactive management team.

Next step: Operations team, review the 87.4% forecast accuracy metric against actual Q4 2025 inventory turnover by the end of the month.

Gildan Activewear Inc. (GIL) - PESTLE Analysis: Legal factors

You are navigating a complex legal landscape right now, where global tax policy shifts and the lingering effects of a major corporate governance battle are the two biggest risks. The legal environment for Gildan Activewear Inc. has become significantly more costly and complex, moving from a stable, low-tax structure to one defined by global minimum tax rules and ongoing litigation fallout from the 2024 proxy contest.

Compliance with the Barbados jobs credit program to maintain a stable effective tax rate.

The Barbados jobs credit program is a critical legal mechanism Gildan is using to mitigate the financial shock from new global tax rules. The country introduced this credit, effective retroactively to January 1, 2024, to cushion the impact of raising its corporate tax rate. For fiscal year 2024, Gildan recognized a substantial US$41.8 million positive benefit from this credit, which was recorded as a reduction of Selling, General, and Administrative (SG&A) expenses. This is a direct financial offset to the higher tax burden.

Management anticipates 'ongoing benefits' from this program, which is key to its 2025 tax planning. The stability of the company's effective tax rate hinges on the continued legal and political support for this credit in Barbados. If the credit is reduced or eliminated, the effective tax rate would spike even higher.

Adherence to global minimum tax legislation in operating jurisdictions like Canada and Barbados.

The legal and financial impact of the Organisation for Economic Co-operation and Development's (OECD) Pillar Two global minimum tax (GMT) regime is a major headwind. Both Canada and Barbados enacted legislation in 2024 to implement these rules. Barbados raised its domestic corporate tax rate from a sliding scale of 5.5% to 1% to a flat rate of 9%, effective January 1, 2024, and introduced a domestic minimum top-up tax.

The combined effect of these tax reforms-the GMT enactment in Canada and Barbados, plus the Barbados rate increase-resulted in a total financial fallout of US$91.4 million in 2024. Here's the quick math on the tax expense impact:

Tax Reform Component	Impact on 2024 Tax Expense (US$ Million)
Barbados Corporate Tax Rate Increase (to 9%)	$58.4 million
Global Minimum Tax (GMT) Enactment	$33.0 million
Total Financial Impact	$91.4 million

This legal change caused the company's full year adjusted effective income tax rate to jump to approximately 17.2% in 2024, a massive increase from the 4.4% rate in 2023. The good news is that management expects the 2025 effective tax rate to remain at a similar, albeit much higher, level to 2024, suggesting the legal compliance structure is now in place.

Managing legal fallout and governance stability following the 2024 proxy contest and board changes.

The 2024 proxy contest, which culminated in the reinstatement of CEO Glenn Chamandy in May 2024, created significant legal and financial instability. The total cost to the company for the proxy fight, related leadership changes, and severance was approximately US$76.8 million (or $82 million in some reports), including a reported US$33 million windfall for lawyers and advisors. This was an abusive waste of money.

The legal fallout continues into 2025. In March 2025, ten former members of the board of directors filed a lawsuit against Gildan in Quebec Superior Court, alleging the company owes them a combined $25.6 million in deferred compensation. Managing this ongoing litigation is a drain on resources and a distraction for the new board and leadership team. The primary legal risk here is not just the settlement cost, but the continued scrutiny on corporate governance practices that led to the conflict in the first place.

Strict compliance with international labor and workplace safety standards (e.g., ISO 45001 certification).

Gildan's commitment to international labor and workplace safety standards is a core part of its legal and Environmental, Social, and Governance (ESG) strategy. The company's code of conduct is grounded in principles from the International Labor Organization (ILO) and the Fair Labor Association (FLA). The key legal compliance focus is the implementation of the ISO 45001 standard (Occupational Health and Safety Management Systems).

The company has set a target to achieve ISO 45001 certification at all Company-operated facilities by 2028. This is a long-term, defintely achievable goal, but progress must be tracked to mitigate legal and reputational risk. As of the end of 2024, the following facilities had implemented the ISO 45001 standard:

• Four facilities in the Dominican Republic.
• One facility in Nicaragua.

This phased rollout demonstrates a commitment to a globally recognized, auditable standard, which is crucial for satisfying the due diligence requirements of US and European retail partners and avoiding potential legal challenges related to supply chain labor practices.

Gildan Activewear Inc. (GIL) - PESTLE Analysis: Environmental factors

You're looking at Gildan Activewear Inc.'s environmental footprint, and the core takeaway is that their vertically integrated model is a massive advantage in controlling their impact. They are not just setting targets; they are hitting and exceeding some of them years ahead of schedule, which is a key differentiator in the apparel sector.

Goal to source 100% sustainable cotton by the end of 2025

The push for sustainable raw materials is defintely a major factor for any apparel company, and Gildan's 2025 target for cotton is ambitious. They define sustainable cotton as fiber from third-party verified programs, like Better Cotton or verified U.S.-grown cotton (USCTP). The progress is significant: by the end of 2024, they were already sourcing 77.3% of their cotton from sustainable sources, a huge jump from 35.7% in 2023. This momentum suggests the 100% goal for 2025 is very much in reach, which de-risks their supply chain against future environmental regulations and consumer pressure. Also, they more than doubled their sourcing of recycled polyester and alternative fibers in 2024, reaching 18.9% of their total fiber use. That's a smart hedge against cotton price volatility.

Reduced water intensity by 25.2% per kilogram produced (compared to a 2018 baseline)

Water management is critical in textile dyeing and finishing. Gildan's strategy has already delivered a substantial win. They reduced water intensity at their operated manufacturing facilities by 25.2% per kilogram of product compared to their 2018 baseline. Here's the quick math: their water intensity dropped from 0.08302 m3/kg in 2018 to 0.06213 m3/kg in 2024. This is a big deal because it already surpasses their long-term 2030 target of a 20% reduction. The reduction comes from investing in new processing technologies and proprietary processes, especially in water-intensive operations in Honduras, the Dominican Republic, and Bangladesh. You can see the impact clearly in the numbers.

Environmental Metric	2018/2019 Base Year Value	2024 Performance	Reduction Achieved (2024)	2030 Target
Sustainable Cotton Sourced	N/A (35.7% in 2023)	77.3%	+41.6 percentage points (from 2023)	100% (by 2025)
Water Intensity (m3/kg)	0.08302 m3/kg (2018)	0.06213 m3/kg	25.2%	20%
Scope 1 & 2 GHG Emissions (tCO2e)	753,356 tCO2e (2018)	626,644 tCO2e	16.8%	30%
Manufacturing Waste to Landfill (MT)	N/A (945 MT in 2023)	903 MT	4.5%	Zero (by 2027)

Commitment to reduce Scope 1 and 2 CO2 emissions by 30% by 2030, validated by SBTi

The company is committed to a low-carbon future, with a goal to reduce its absolute total Scope 1 and Scope 2 greenhouse gas (GHG) emissions by 30% by 2030, compared to a 2018 base year. This target is validated by the Science Based Targets initiative (SBTi), which means it aligns with the decarbonization level needed to meet the Paris Agreement's goals. As of the end of 2024, they had already achieved a 16.8% reduction in these emissions. The absolute emissions fell from 753,356 tonnes of CO2e in 2018 to 626,644 tonnes of CO2e in 2024. That's good progress, but still leaves a significant gap to close in the next six years, especially as production volume increases. What this estimate hides is the challenge of decarbonizing manufacturing processes that rely on thermal energy.

Also, Scope 3 emissions-the indirect ones from their supply chain-fell by 11.3% in 2024, down to 2,245,056 tonnes of CO2e from a 2019 baseline of 2,530,884 tonnes of CO2e. That's a critical area of focus for the entire apparel industry.

Named in the 2025 Sustainability Yearbook by S&P Global for the 13th consecutive year

External validation matters to institutional investors and business strategists. Being included in the 2025 Sustainability Yearbook by S&P Global for the 13th consecutive year signals a sustained, long-term commitment to ESG practices, not just a recent marketing push. This consistent inclusion places them among the top-performing companies globally in terms of sustainability. Additionally, their 2024 performance earned them a spot in the CDP's 'Leadership Band' in 2025 for their climate change disclosure, marking the fifth time they've received that recognition. This kind of consistent, high-level recognition helps lower their cost of capital and strengthens their brand reputation with B2B customers who have their own ESG mandates.

• Achieved a 25.2% water intensity reduction, exceeding the 2030 goal.
• Sourced 77.3% sustainable cotton in 2024, on track for 100% in 2025.
• Reduced Scope 1 and 2 GHG emissions by 16.8% as of 2024.
• Reduced total manufacturing waste sent to landfill from 945 MT in 2023 to 903 MT in 2024.

Next step: Strategy team should use the 25.2% water reduction figure in all upcoming investor presentations to demonstrate a tangible, exceeded ESG target.