Coats Group plc, the world\u2019s leading manufacturer of thread and structural components for apparel and footwear and an innovative pioneer in performance materials, is poised to pass the tipping point of using 50% preferred raw (non-virgin oil-based) materials within its products.<\/p>
According to Coats\u2019 Sustainability Report 2024<\/a>, with metrics assured by EY, the company is ahead of target in its transition to the sustainable use of materials, energy, water, waste and people; and is approaching a critical milestone in the production of the world\u2019s sustainable thread.<\/p> Last year, Coats\u2019 increased its use of eco-friendly recycled and bio-based raw materials to 46%, a rise from 31% in 2022. The rapid increase comes off the back of significant investment in innovation, and in response to heightened demand for sustainable products from fashion brands, including global apparel and footwear brands.<\/p> Coats saw revenue rise for its 100% recycled thread products by 144% to $405 million (\u00a3314 million) last year as industry adoption continues to accelerate. Global consultancy Coherent Market Insights has forecast the global sustainable fashion market will reach $33 billion (\u00a326 billion) by 2030, quadrupling in size from 20233<\/sup>.<\/p> Over the past seven years Coats has opened three Innovation Hubs around the world, based in America, Turkey and China. In 2023 it unveiled a state-of-the-art Sustainability Hub in Madurai, southeast India, designed to help develop new generation materials free from the virgin oil that are linked to the bulk of the company\u2019s emissions. Coats is on course to hit its target of using 60% recycled materials by the end of 2026 and moving away from virgin oil-based materials entirely by 2030.<\/p> The company\u2019s innovations in sustainability and the work being done in Madurai are the focus of Threads of Change, a film by award-winning film-maker Craig Leeson, which also shows how Coats\u2019 sustainability strategy is delivering a competitive advantage.<\/p> David Paja, Coats Group Chief Executive Officer, comments:<\/strong> \u201cSustainability is at the heart of Coats\u2019 DNA and business strategy. It is the biggest challenge facing our industry and we want to lead by example.<\/p> By connecting talent, textiles and technology we can show that innovation-led sustainability can not only be good for the planet, but also positive for business.\u201d<\/p> Energy<\/strong> Water<\/strong> Waste<\/strong> People<\/strong> Chris Dearing, Coats Group Sustainability Director, comments:<\/strong> \u201cAs we approach the 50% milestone for the use of preferred raw materials, we\u2019re witnessing a transformative moment for Coats and a sustainability shift that will have a positive ripple effect through the textile world.<\/p> Disposability was our industry\u2019s calling card for too long and manufacturers gave consumers precious few options to make sustainable choices. Those days have gone and if a 270-year-old business can make the change, anyone can.<\/p> We are proud of the achievements we have made over the past year, but while we celebrate the company\u2019s progress in the sustainability report, it is another step in our journey rather than a final destination. We will continue to set ambitious targets for Coats across all our five pillars as we strive to make a difference and build a sustainable future together.\u201d<\/p> To learn more about Coats sustainability mission watch Threads of Change<\/a>.<\/p>
The manufacturer, specialising in threads, yarns and structural components for apparel and footwear as well as performance materials, accelerated its transition to renewables and improved its energy efficiency in 2024. This has driven a 51% reduction in scope 1 and 2 carbon emissions, a cut of about 92,000 tonnes, on its 2022 baseline1<\/sup>, the equivalent of taking 78,000 cars off the road2<\/sup>. Coats\u2019 use of renewable electricity now stands at 74%, up from 29% in 2022 and on course to reach 100% by 2030.<\/p>
Coats increased its water recycling rate by 14% in 2024, compared with its 2022 benchmark. With two major recycling installations planned for this year, the company is expected to hit its target of recycling a third of all water it uses within its processes by the end of 2026. It has reduced freshwater extraction by more than 4.5 million cubic metres since 2019, saving enough water to fill about 4,750 Olympic swimming pools. Meanwhile its water intensity \u2013 the amount needed to manufacture products \u2013 has now fallen to 35.3 litres per kilogram, a 55% reduction since 2019.<\/p>
The FTSE 250 member is aiming to become a zero-to-landfill business by the end of next year. In 2024 it accelerated its reduction in waste disposal by 87% based on its 2022 level of 2,300 tonnes. In the sustainability report, Coats achieved a 99.8% compliance rate for its treatment of effluent in accordance with the industry-leading Zero Discharge of Hazardous Chemicals (ZDHC) standards; it is targeting sustained full ZDHC compliance by 2026.<\/p>
Coats exceeded its employee satisfaction target in 2024, as 95% of its workforce were covered by Great Place to Work certification. The company also hit its 2026 target of having 30% of females within senior leadership roles, up from 19% in 2022. It aims to reach 40% by 2030.<\/p>