Since its beginnings at the turn of the millennium, Los Angeles-based label AG Jeans has been a pioneer in eco-friendly denim production.
Among AG’s industry-leading moves was establishing the first vertical denim manufacturing footprint on the West Coast — bringing total transparency to the factory floor and allowing for hands-on innovation testing. Under its AGoodKarma initiative, the brand focuses on continually advancing its design and manufacturing processes to achieve positive change.
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“At AG, sustainability isn’t a standalone program — it’s woven into every part of our business,” said Ron Balatbat, men’s design director at AG Jeans. “Our vertical integration gives us visibility from design through finishing, allowing us to make intentional, lower-impact decisions at every stage. It’s a holistic model where design, production and innovation work in tandem toward continuous improvement.”
AG Jeans’ ESG efforts and ingenuity were recognized with the 2025 Moss Adams Fashion Innovator (MAFI) Award, which is presented annually to a California-based apparel brand that is creatively addressing both sustainability and diversity as well as design and marketing. Although the award bears the Moss Adams name, the honor is now being presented by Baker Tilly following the 2025 merger of Moss Adams and Baker Tilly, which resulted in a combined firm under the latter’s name. “The merger aims to expand the firm’s geographic reach, industry expertise and service capabilities within the middle market, allowing us to better serve our clients going forward,” said Marco Valverde, principal at Baker Tilly.
Established in 2004, the MAFI Award grants the recipient $5,000 toward the consultancy’s services, which span accounting, advisory and assurance areas. By spotlighting a brand that is making ESG inroads, the goal is to provide an example and inspiration for the industry at large.
“The award was created as a way to give back to an industry that has been one of the pillar industries in our firms’ rich history and to recognize a company that is innovating and leading with a focus in sustainability and diversity,” Valverde explained. “Celebrating a company that is leading on sustainability incentivizes further progress, influences consumer behavior and can demonstrate the business benefits of sustainable practices.”
AG Jeans joins over 15 past MAFI recipients including Dôen and Frank & Eileen. “It’s an incredible honor for AG to receive this recognition,” said Balatbat. “We’re so grateful to Sourcing Journal for celebrating not only what we create, but how we create it, and it’s a reflection of the dedication and collaboration of our entire AG family.”
Marco Valverde (right) presents Ron Balatbat with the MAFI Award at Sourcing Journal’s LA Sustainability Summit. Kate Jones for Sourcing Journal
The award was presented to AG Jeans’ Balatbat by Valverde at Sourcing Journal’s LA Sustainability Summit on Nov. 13. Themed “A New Way of Thinking,” the second annual summit covered innovation’s role in driving change within the industry. “Innovation is essential for industry sustainability goals because it creates new methods and solutions to propel the industry forward,” said Valverde. “‘New thinking’ is required to create new materials, implement circular systems and adopt new manufacturing models that align with the sustainable goals of the industry for the long term.”
AG Jeans exemplifies this “new thinking” with its innovative technologies and its willingness to adopt strategies that go against the industry’s grain. “AG Jeans is a true trailblazer in a segment of the industry that has led the charge in making positive change,” said Peter Sadera, editor-in-chief of Sourcing Journal. “This deserving recognition is not an endpoint, but rather a signpost on their continuing journey.”
U.S.-based brands tend to ship production overseas, but since much of AG Jeans’ production happens right in Los Angeles, this allows the jeans maker more control over the methods and technologies used. Leveraging solutions such as lasers, ozone and nanobubbles, the brand saves on chemical, water and energy consumption. Owning manufacturing also unlocks opportunities to test innovations in-house.
For instance, the denim maker developed the proprietary Vapor Wash, which reduces water and chemical use by 65 percent compared to conventional wash processes and cuts energy use by 35 percent. Additionally, Vapor Wash swaps potassium permanganate and sandblasting for lasers for further environmental savings.
Manufacturing in Los Angeles also supports social responsibility and oversight. “Producing locally ensures safe working conditions, fair wages and a strong sense of community within our teams,” said Balatbat. “It supports local jobs, nurtures skilled craftsmanship and maintains transparency throughout our supply chain. Ultimately, this model allows us to embed ESG into our daily operations. It’s not a philosophy on paper, but a practice rooted in how we work.”
The ESG focus of AG’s direct-operated facility carries over to its work with suppliers. Here, the emphasis is on environmental impact through intentionality. The brand streamlines development by reducing sample rounds, which allows for material and transportation savings. Once styles are in production, AG prevents overproduction and excess through careful planning.
Another way AG is combatting waste is through reuse. As part of its Jean of Tomorrow capsule, the brand created a jean composed of 95 percent recycled materials, and it has its sights set on a 100 percent recycled jean. Although scaling circularity comes with challenges, the company seeks to grow the Jean of Tomorrow concept beyond its current capsule presence.
From Balatbat’s point of view, circularity is the key change that would yield the most impact in the industry. “A more thoughtful approach to waste would make a significant difference,” he said. “As an industry, embracing circularity and exploring ways to extend the life of our materials could move denim toward a more responsible future.”
Twenty-five years in, AG Jeans shows no signs of stopping when it comes to sustainable investment, despite a difficult landscape. “Looking ahead, our ESG priorities center on continuous refinement — strengthening our systems, deepening our partnerships and exploring new collaborations that help us push innovation even further,” said Balatbat. “One of our current challenges is the broader tariff landscape, which continues to complicate parts of the supply chain. As we navigate that, we’re actively researching innovations from global suppliers and exploring ways to thoughtfully diversify. The goal is to build greater flexibility and resilience while staying true to our sustainability commitments.”
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