Brand–Supplier Shared Responsibility: Advancing Renewable Energy Transition in Pakistan's Textile Sector
Proposes a shared-responsibility model in which international brands co-invest in renewable energy, offer long-term purchase agreements, and provide technical support to their Pakistani textile suppliers.
Summary
This 39-page ADS report proposes a Brand-Supplier Shared Responsibility Model for renewable energy transition in Pakistan's textile and sports & apparel sectors. It documents the sectors' economic weight (about 60% of national exports, 8.5% of GDP, 40% of the industrial labour force), profiles the textile and sports apparel industries' energy mix and export trends, reviews global brand-led decarbonization initiatives such as H&M's and the Fashion Pact's Future Supplier Initiative, and sets out a three-pillar model, direct co-investment, procurement reform, and joint MRV/data transparency, through which international buyers can share the costs and risks of their suppliers' green transition.
Key Points
- 1Pakistan's textile and sports apparel sectors contribute about 60% of national export earnings and 8.5% of GDP, employing 40% of the industrial labour force.
- 2The textile industry's energy mix is 42% grid electricity, 23% natural gas, 20% coal, and 15% renewables (ADS Report, 2025).
- 3Pakistan's textile exports rose from about $8 billion in 2004 to a peak of $29 billion in 2024 before dipping slightly in 2025.
- 4Potential expansion of the EU's CBAM to textiles beyond 2028 could impose compliance costs exceeding €350 million annually on Pakistani exporters.
- 5The report proposes a three-pillar shared responsibility model: direct financial/technical co-investment by brands, procurement reform (5-10 year sourcing contracts), and joint MRV/data transparency for Scope 2 and 3 emissions.