Having weathered economic recessions, the rise of athleisure, and the Covid-19 pandemic, the denim supply chain remains committed to the sustainability initiatives it has spent years and millions investing in—with no intention of throw in the towel. Economic uncertainty and global trade disruptions continue to strain corporate budgets—and sustainability efforts are feeling the pressure. But rather than abandoning their goals, many companies are simply recalibrating.
Companies in the denim supply chain are not seeing sustainability projects scrapped. Instead, brands and manufacturers are becoming more selective—targeting initiatives that deliver the biggest environmental impact and the strongest business value.
Related Stories
“Sustainability is no longer a nice to have; it’s a business imperative especially with the in-coming legislation, and that mindset is helping to buffer against short-term economic turbulence,” said Barbara Oswald, Bluesign chief commercial officer.
At the same time, suppliers accustomed to competing on volume rather than value are feeling the squeeze. In contrast, companies that have embedded sustainability into both their business model and brand ethos may be better positioned to navigate the pressure.
“We recognize today’s constant instability,” said Eda Dikmen, Soorty’s senior marketing and communications manager. “The level of economic, climate and political concerns cannot be neglected, and neither can the growing demand for ‘more for less.’ And this is exactly why we don’t approach sustainability as a choice but rather keep it central to our strategy.”
This is a pivotal moment for mills to remain steadfast in their sustainability strategies. “Sustainability is not a peripheral goal for us; it’s a core part of who we are. In the face of adversity, we move forward with clarity, resilience, and purpose,” said Abdul Jabbar Athar, US Group’s director of projects and sustainability.
That shift in mindset is echoed across the supply chain. “Ultimately, we believe that by prioritizing transparency, scalability, and circularity, companies can stay on track with their sustainability goals while building resilience and cost-efficiency for the long term,” said Alfredo Ferre, Recover chief product, innovation and sustainability officer.
Internal changes
That’s not to say that sustaining momentum hasn’t become more challenging—even when sustainability is built into the DNA of companies. To stay on course, Lahore, Pakistan-based US Group is streamlining operations, prioritizing high-impact initiatives and fostering deeper collaboration across teams and suppliers, according to Jabbar Athar. “While financial discipline is essential, we continue to invest where it matters most. “Our customers still expect responsible leadership, and we remain committed to delivering it,” he said.
As a supplier, Cone Denim’s chief sustainability officer Jimmy Summers said it is imperative to shift quickly with changes in the market and our customers’ requests. “Despite this uncertainty, we have stayed true to our sustainability initiatives because we believe it is the clearest route to long-term success. No matter how regulations ebb and flow, we have seen that consumers are consistently demanding more sustainable products, and that is what we will continue to deliver,” he said.
Maintaining consistent investment is difficult, especially as clients pivot away from experimental technologies, according to Sundus Sohail, Naveena Denim Mills sustainability manager. The newly vertically integrated firm is streamlining processes by linking sustainability KPIs into operational performance. “We’re also exploring external funding, partnerships, and carbon-reduction-linked incentives to offset the burden,” she said.
Rising operational costs, currency fluctuations, inflation, tariffs and energy cost have impacted the pace and scale of Naveena Denim Ltd.’s environmental initiatives. Umair Masood, the mill’s director, said the company is taking strategic measures to optimize its sustainability investments to ensure long-term viability. The Lahore-based mill continues to move forward through phased implementation, technology upgrades and collaborations with expert solution providers while remaining grounded in the current economic realities.
“Considering the ongoing challenges and constraints, progress toward these sustainability goals may require more time than originally planned,” Masood said.
While some mills are adapting their pace to cope with today’s economic pressures, others are leaning into sustainability as a strategy for resilience and long-term growth.
Soorty stands behind its motto: denim as a force of good. Sustainability is a powerful way for the Pakistani company to build resilience and efficiency. “With the scale we operate at, making the right choices has a measurable impact, helping make this motto a reality,” Dikmen said.
Investments help the vertically integrated operation design bespoke solutions, from traceability tools to resource-efficient manufacturing techniques or regenerative seed labs, ensuring better-performing operations and results over time. Dikmen said these solutions are designed to drive impact, efficiency and sustainable growth.
“This forward-thinking approach helps us meet the increasing demand from customers and brands for verifiable data, which is now proven to be essential for trust and authenticity,” she said.
“The global economic climate and financial constraints are absolutely influencing how companies like ours manage their sustainability investments. Rising input costs, currency volatility, and inflationary pressure are being felt across the board,” said Raffay Bin Rauf, Sapphire Finishing Mills Ltd.’s sustainability head.
However, instead of pulling back, the Pakistani mill has shifted to smarter, leaner sustainability strategies. “We’re investing automation, process optimization, and workforce upskilling to reduce external consultancy reliance and long-term costs. These measures help us maintain momentum while staying agile and financially resilient. The goal isn’t to reduce our sustainability ambition, but to streamline how we execute it,” he said.
Similarly, Artistic Milliners—with operations in Pakistan, Mexico, Guatemala, and the U.S.—remains firmly committed to its sustainability goals. Murtaza Ahmed, CEO of Artistic Milliners, has emphasized the company’s philosophy that reducing waste and improving circularity recovers money lost in the bottom line.
“We don’t view sustainability as a cost center that can be cut; it is a core driver of our business efficiency and a hedge against future risk,” added Baber Sultan, Artistic Milliners’ director of product development and research. Investments in energy efficiency, water recycling and waste reduction directly improve operational profitability. For instance, the implementation of Kaizen principles in Artistic Milliner’s central warehouse simultaneously reduced fuel costs and CO2 emissions 40 percent.
“In challenging economic times, this integrated approach to sustainability becomes more critical than ever, making our business more resilient, efficient, and valuable to our partners,” Sultan said
Client concerns
While the impacts of the U.S. trade war are indeed real and unfolding across industries, the resulting price volatility has also given denim brands a convenient pretext to push for cost reductions and scale back sustainability efforts. Yet, a deeper look behind the scenes reveals a supplier-client relationship long driven by a relentless focus on low cost over long-term responsibility.
Mills report clients “ticking the box” of what it takes to be perceived as a responsible brand. While they often request recycled cotton, BCI-certified materials or low-impact dyes, there is frequently little willingness to pay a premium or invest in the innovation required to bring meaningful change to market.
“Despite continued rhetoric around sustainability, most brands remain highly price sensitive,” said Jabbar Athar. “While sustainability is often emphasized during strategy or initial discussions, cost continues to dominate final decisions in both product development and bulk orders.”
He added that retail pressures, inventory overhangs and cost-cutting measures are prompting brands to prioritize affordability. Most clients request sustainable options, but in the absence of a marketing push or regulatory driver, orders usually default to cost-effective basics.
Brands are also navigating their growth targets amidst these uncertainties, which naturally influences their investment strategies.
“We observe a nuanced landscape among brands,” Dikmen said, adding that it’s a “complex operating environment.” She noted that while some partners are genuinely open to deeper collaboration and shared investment in sustainable fabrics and technologies—recognizing their long-term value—others remain more cautious, preferring that the production side bears much of the responsibility.
Increasingly, Turkish mill Isko is hearing that brands want transparency, proof of impact and ready-to-market, next-generation solutions that can easily be integrated into their supply chains, but Utku Varol, Isko’s sustainability manager, said the reality is more complex.
“Some brands are indeed under more short-term commercial pressure, which can influence their sourcing decisions. However, many of our partners remain strongly committed to sustainability—particularly when solutions are both scalable and accessible,” he said.
Panther Denim sees a wide range of approaches among brands. Tim Huesemann, Panther Denim sales director, described how some clients treat BCI as a baseline and only allow recycled synthetics, while others prioritize organic or regenerative cotton and place strict limits on all synthetic materials. Many brands are also developing their own internal sustainability standards for fabric development, while a few have yet to implement specific sustainability requirements.
“That said, it’s encouraging to see that most brands are moving toward more sustainable practices, even if their approaches vary,” he said.
While high-end brands and ones that built their brand on sustainability remain fully committed even at higher costs, Stafford Lau, Prosperity Textiles director, said mass market brands are seeking cost neutral solutions. As such, the Chinese mill is “actively developing more affordable, sustainable alternatives and emphasizing long-term savings in terms of durability, compliance with future regulations,” he said.
Lau added that brands can take cost-saving steps to mitigate current and future challenges. He suggests focusing on high-impact, lower-cost initiatives first like energy efficiency upgrades before large solar investments. Incorporate blended materials (i.e. recycled cotton and conventional cotton) into collections before leaping into high percentage of sustainable material and leverage government grants and tax incentives for green projects.
While there is understandable budget caution across the industry, Bin Rauf said sustainability hasn’t disappeared from brand priorities. Instead, he said its evolving.
“More than ever, our clients are asking for traceability, verified data and transparency. Tools like Life Cycle Assessments (LCAs) and Digital Product Passports (DPPs) have become crucial differentiators,” he said. However, there is a growing disconnect between brand sustainability and sourcing teams. While sustainability departments champion responsible practices, Bin Rauf said sourcing teams often make final decisions based on price. “This misalignment can delay or derail sustainability-driven decisions, especially in cost-sensitive markets,” he said.
Despite conversations suggesting that brands are becoming more cautious about sustainability investments, Tonello is experiencing the exact opposite when it comes to its sustainable finishing technologies.
“Brands and laundries are looking for technologies that help them save water, energy, chemicals and time. That translates into more efficient operations, lower running costs, and faster ROI—factors that are critical to remaining competitive today,” according to Alberto Lucchin, Tonello’s marketing and sustainability manager.
Additionally, technologies like laser and ozone allow clients to expand the range of creative effects they can achieve on garments. Lucchin said this combination of environmental impact reduction, process efficiency, and aesthetic flexibility is exactly what the market is asking for right now.
Better together
The feedback Artistic Milliners receive from partners is a clear and consistent demand for more innovation in sustainability and transparency, not less. “The narrative that sustainability is a discretionary spend is outdated. For leading global brands, it is a non-negotiable aspect of brand value, consumer trust and regulatory preparedness,” Sultan said.
However, sustainability is not a path brands have to walk alone. From co-creating the world’s first Cradle to Cradle Certified Gold denim with G-Star Raw to promoting equality with Gap Inc. through the P.A.C.E. program to receiving the 2024 Power of Partnerships Award from Levi Strauss & Co., Artistic Milliners has a long history of working with partners to scale sustainable initiatives.
“These are not fair-weather relationships; they are deep-seated partnerships built on a shared commitment to pushing the boundaries of what’s possible. Brands are not just buying sustainable products; they are investing in resilient, transparent, and ethical supply chains. That is where the future lies, and that is where we are squarely focused,” Sultan said.
Budget constraints are real for some of Bluesign’s partners, especially in regions facing inflationary pressures or supply chain disruptions. However, Oswald said the feedback is not about stepping away from sustainability, it’s about finding smarter, more efficient ways to implement it.
“Many clients are asking us to help them optimize their use of the Bluesign system, streamline assessments, and identify cost-effective improvements. This is where our collaborative approach becomes especially valuable,” she said.
Challenging times also often bring out the best in collaboration. Oswald is seeing more cross-industry partnerships, shared innovation platforms and joint sustainability initiatives—all steps Bluesign actively encouraging pilot projects or open dialogue between brands and suppliers. “The more we collaborate, the more resilient and impactful our sustainability efforts become,” she said.
Echoing this, Laura Vicaria, program director of the Denim Deal, emphasized that collaboration becomes even more essential during times of uncertainty—precisely the foundation on which the Denim Deal was built.
Collaborative models such as Denim Deal, can help reduce development costs and avoid duplication. The public and private organization unites brands, manufacturers, recyclers and policymakers in its mission to catalyze the production of jeans containing at least 20 percent post-consumer recycled (PCR) cotton.
“Economic uncertainty can slow down innovation, but we believe sustainability and resilience go hand in hand,” she said. “Being part of the Denim Deal enables brands to share knowledge, pool resources, and access ready-made solutions like plug-and-play supply chains.”
While Recover continues to see momentum around recycled materials, the Spanish company recognizes that meaningful progress depends on scalable, credible solutions, especially in a tough economic environment. Without clear standards or transparency, implementation can become fragmented and may not deliver the intended impact. That’s why the mechanical textile recycler advocates for industry-wide adoption of standardized benchmarks and robust traceability systems.
“A key part of this is our commitment to the Global Recycled Standard (GRS), which ensures the authenticity and integrity of our recycled cotton fiber across the entire supply chain. This allows brands to make informed, confident choices even when facing market uncertainty,” Ferre said.
“We’re also supporting our partners through practical innovations like our close the loop model, which enables brands to utilize their own post-industrial textile waste as input for future production. This not only reinforces a truly circular approach but can also help offset material costs, an increasingly important consideration given today’s economic pressures,” he added.
Regulation pressures
For any company operating in Europe or the U.S., verifiable sustainability is no longer optional.
“This is not only consumer preferences anymore; it’s being driven by fundamental shifts in consumer behavior towards more conscious, informed choices as well as a high scrutiny from legal authorities,” Dikmen said. “Regulations like the EU Green Claims Directive, UK Green Claims Code, and lawsuits in the U.S. are setting new precedents, demanding facts, numbers, and robust data to validate environmental assertions.”
This pressure from end-customers and regulatory bodies is empowering responsible producers like Soorty at scale. “It validates our strategic investments in transparency and traceability, providing a compelling standing point for brands to engage with partners who can offer this verifiable proof,” Dikmen said. “We believe this evolving landscape ultimately drives the industry towards authentic, evidence-based progress, as sustainability becomes integral to brand resilience, long-term growth, and maintaining trust in an increasingly transparent world.”
Though some regulation deadlines have been postponed, Besim Özek, director of strategy and business development for Bossa, said policymakers are not backing down. However, the delays are slowing efforts. As the EU delays, brands are also delaying, Özek said. On the other hand, U.S. brands seem less motivated compared to their EU counterparts.
“My personal belief is that sustainability will remain a crucial topic for the industry globally, including the EU and beyond,” he said. “The green revolution may move more slowly than I had hoped, but it’s certainly not stopping.”
AGI Denim is noticing a shift in how brands, particularly in the U.S., are approaching sustainability. While not completely stepping away from it, Salima Hemani, the Pakistani mill’s head of sustainability, said many are placing greater emphasis on technologies that offer clear, consumer-facing benefits such as enhanced comfort, durability and moisture management.
“Technologies that are easily communicated at the point of sale or directly improve the wearer’s experience tend to be prioritized. While sustainability remains an important consideration, brands are increasingly looking for solutions that combine performance with a compelling and accessible story,” she said.
The delays are a non-issue for chemical company Rudolf Group. “We welcome the current delay in the reporting obligation. This allows us to build global structures in a planned manner and not look for quick solutions. We are continuing to pursue our goals and want to drive forward intrinsically sustainable growth,” said Alberto DeConti, head of Rudolf fashion division.
Adapt and innovate
While uncertainty may temporarily reshape budget priorities, the denim industry’s commitment to sustainability remains steadfast. Efforts to scale circularity, adopt natural and renewable materials, and encourage more conscious consumption not only endured the pandemic—they emerged stronger. In fact, many players across the supply chain came out of the global health crisis with a clearer understanding of their long-term sustainability goals.
“Our industry moves in longer, more mature cycles. Immediate reactions may slow down certain investments, but the structural need for sustainability remains,” said Alves de Oliveira, founder and strategic director of the consultancy Be Disobedient. “In fact, challenging times often lead to smarter innovation. For companies that see sustainability not just as a trend but as part of their core DNA, it becomes non-negotiable, regardless of market pressure. What changes is how we innovate, with sharper focus, more purpose and long-term vision.”
This article was published in SJ Denim’s fall issue. Click here to read more.
