AGI Denim has long been a sustainability pioneer. The vertical mill was the first Pakistan-based company to undergo and achieve B Corp certification, and it has also established end-to-end LEED Gold certification in its facilities—covering spinning through to sewing. Now, AGI Denim is detailing its environmental and social initiatives in its debut Sustainability Report, allowing its stakeholders including employees, customers, suppliers and more to learn about its journey so far and the road ahead.
The report follows Global Reporting Initiative (GRI) guidelines, and shares the company’s framework as it relates to the United Nations’ Sustainable Development Goals (SDGs). “The United Nations Sustainable Development Goals are our guide to keeping our communities above all else,” wrote AGI Denim’s CEO Javed Ahmed in the report. “We do this by being purposeful in thought and action. We have achieved much, but we still have a long way to go.”
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AGI Denim’s report covers the 2022-23 fiscal year, which ended June 30. During this time, the company saved over 71 million kilowatt hour equivalents and avoided 19,469 tons of carbon dioxide equivalents in emissions. Looking ahead, AGI Denim intends to halve its Scope 1 and 2 emissions by 2030 and reach net zero by 2050, in line with the science-based targets it set in 2021. Contributing to its energy and emissions targets, the company uses coal-free power for production, and it continues to invest in infrastructure that further reduces carbon. For instance, in 2022, AGI Denim installed solar panels atop multiple buildings, and its fuel-efficient boilers reduce the natural gas needed to create 1 ton of steam by 17 percent.
Outside of its own operations, AGI Denim has also supported carbon sequestration in the environment through a mangrove planting project. A wetland plant, mangroves pull carbon from the air while also preventing storm surges from reaching nearby areas. Initially in 2018, the mill planted 27,000 of the trees, and in 2022 it added 2,000 more saplings—1,000 of which were donated by Wrangler and Lee owner Kontoor Brands.
Another activity area for AGI Denim is water management, and it aims to reduce freshwater consumption by 80 percent by 2027. Contributing to this target, in the 2022-23 fiscal year, the company reduced freshwater consumption by 826 million liters.
To shrink the need for new water, AGI Denim has three water treatment plants that process all of the water used in those facilities. It has also developed processes such as Double Zero, a rope dyeing innovation that creates no wastewater in the dyeing and finishing stages. Water-efficient washing machines and ozone technology from Jeanologia further reduce AGI Denim’s water usage. Down the road, AGI Denim’s ambition is to have a “net-positive” water impact by 2040.
AGI Denim is also focusing on its material choices to make a difference. By 2030, it aims for 90 percent of its materials used to be sustainable and low impact. This includes regenerative cotton, recycled fibers and more. The manufacturer’s material initiatives extend to traceability. AGI Denim was the first Asian denim producer to work with Oritain on forensic testing. In addition, the mill uses Good Earth Cotton, which is tagged and traced through FibreTrace’s platform.
Denim has historically relied on numerous chemicals to achieve aesthetic looks, not all of which were safe. Focusing on worker safety, AGI Denim has eliminated all harmful chemicals from its manufacturing processes. As of 2022, the producer also achieved Zero Discharge of Hazardous Chemicals’ (ZDHC) Supplier to Zero chemical management certification for two facilities.
AGI Denim’s worker support also extends to their broader well-being and quality of life, ranging from benefits and on-site medical care to training and education on topics like soft skills, financial literacy, technology and managerial preparation. The company also fosters a diverse and inclusive workforce. Today, men account for 76 percent of all workers and 92 percent of managers, but by 2030, AGI Denim aims to have a gender balance at the managerial level. Supporting this equity effort, the company’s SheLeads Program holds workshops to help equip female employees to take on leadership roles.
Making its commitment to social and environmental impact official, AGI Denim became a B Corp in May 2022. Before becoming certified, companies undergo a lengthy information sharing process, following which B Corp determines their impact score. Although AGI Denim only needed an 80 score to qualify, it received a 91.4. As a B Corp, AGI Denim is part of a larger movement to intertwine commercial operations with corporate social responsibility.
“AGI Denim’s Sustainability Report articulates our ambitions towards implementing cleaner technologies, integrating renewable energy sources and optimizing operational efficiencies that align with global climate objectives,” said Aisha Javed, executive director at AGI Denim. “We are increasing our focus on Diversity, Equity & Inclusion (DE&I) across the workforce, water goals, energy matrix and investment into communities.”
Click here to read AGI Denim’s full Sustainability Report.
