1 Global Recycled Standard (GRS) is an international product standard that establishes third-party certification requirements for: recycled content; processing and distribution process management; social and environmental practices; and chemical regulations.
2 The Global Organic Textile Standard (GOTS) is a global standard set by leading international standards organizations to ensure that textile products are “rightly organic” from raw material harvesting, to environmentally friendly and socially responsible manufacturing and labeling that provides consumers with a credible guarantee.
3 Recycled Claims Standard Certification (RCS) is an international certification that assesses whether or not a final product contains at least 5% recycled materials in its raw materials.

Maintaining our policy of maximizing the use of certified materials which take responsibility for environmental preservation and working conditions, the percentage of certified raw materials used in this collection is 84.1%.

Figure 1 shows that after recycled polyester, the next most used material is wool (10.39%), followed by cupro (5.1%). Compared to VOL.4 (the same Fall/Winter season), we were able to increase the use of certified materials by 7.6 percentage points, and increase the volume used by 2.14 times. In terms of items, the number of garments increased from 111 (VOL.4) to 195 (VOL.6). 182 of the 195 garments are made entirely or partially of certified materials.

Key ways we were able to increase the use of certified materials included changing a number of our fabrics from virgin polyester4 to recycled polyester, as well as from regular cotton to certified organic cotton. Even as the number of product numbers continues to increase, we have maintained a high rate of use of recycled materials by considering and carefully selecting which materials used in standard products can be replaced with recycled and other certified fibers. Figure 2 below illustrates this increase in certified materials from VOL.4, both in volume and as a percentage of total materials.

The main reason we focus on usage of certified materials in our garments is that we believe we can contribute to building a recycling-oriented society and transformation in the fashion industry. Rather than the linear economy of use and discard, our approach is based on re-use and rebirth of resources. A linear model creates more waste and is greenhouse gas intensive, making it important for the sustainability of the industry to switch to a circular approach.

In 2023 we opened directly managed stores in Yaesu, Roppongi and Hankyu MENS Osaka, giving more customers the opportunity to learn about CFCL and encounter our products. As our business grows and raw material usage increases, we will ensure a continued conservative approach to resource use by further increasing the use of recycled and certified materials in our garments.

4 Virgin polyester is a synthetic fiber created through a chemical reaction involving petroleum, and it’s the most common form of PET (polyethylene terephthalate). Mainstream research shows that emissions of greenhouse gasses are on average 50% higher than those of recycled materials.

In 2020 (the same year CFCL was founded) the Japanese government declared its intention to achieve carbon neutrality – a state of zero overall greenhouse gas emissions – by 2050. Recognizing the importance of decarbonization and lowering emissions, we continue to work toward our goal of achieving carbon neutral status as a company by 2030, 20 years in advance of the nationwide goal.

In pursuit of this goal, we have again conducted a Life Cycle Assessment (LCA) of our products, an initiative we have undertaken every season since VOL.1. The assessment includes calculation of greenhouse gas emissions arising across the entire life cycle of 82 out of 195 garments (approximately 42%). This report is divided into the following three key topics:

I. LCA Calculations for Garments made with Animal Fiber
II. LCA Calculations for Garments made with Plant-based Recycled Fiber
Ⅲ. LCA Calculation for Garments which we transitioned from Virgin to Recycled Polyester (with a 20% reduction in emissions)

I. LCA Calculations for Garments made with Animal Fiber

The scope of our LCA calculation has been expanded to include wool, an animal fiber that has been used since VOL.2 (mainly in Fall/Winter collections). In our supply chain at present, raw wool is sourced from Australian farms, spun, washed and processed in China then dyed and machine-woven into garments in Japan.

To analyze the greenhouse gas emissions and wider social impacts of wool use, we asked our suppliers to cooperate with us in an examination of this portion of our domestic and international supply chain. Despite undertaking this process (discussed in more detail in the COMMUNITY section below), we were unable to identify the specific farms from which raw materials were procured; the amount of energy used in the spinning process; and other specific data points, particularly in the international supply chain. We therefore referred to LCA literature on Australian wool production as a proxy for our calculations. The results are shown in Figure 3 above.

As Figure 3 highlights, wool products generate relatively high emissions (with 53.06kg-CO2e for the TW MILAN RIB Tailored Jacket for example). For comparison, according to the Japanese Ministry of Environment’s LCA data, an average clothing item emits around 25.5kg-CO2e over its lifetime.1 In the case of woolen garments, emissions from the procurement of raw materials account for over 79% of the total. Figure 4 highlights this point below.

1 Results of the Ministry of the Environment’s “Fashion and Environment” survey.

The higher emissions associated with wool products stands out compared to CFCL’s other garments. Figure 4 highlights the emissions during the offshore raw material procurement process (including sheep rearing, grazing, wool shearing, scouring, top-making, spinning etc.) are the major cause of this. The raw material procurement stage creates 79-88% of total emissions for the above garments, a level similar to some polyester items made from virgin polyester derived from petroleum.

Given the difference in environmental impact, we continue to use recycled polyester in as many garments as possible, with emissions of less than 5.0 Kg-CO2e for most of our POTTERY series. To address the situation for garments currently made with wool, switching to recycled wool is an action we are taking into consideration. We recognize Japan’s capacity for producing recycled wool, and its potential to be employed in our future manufacturing.

As we examined the wider wool supply chain, we found issues of transparency in various aspects, not just carbon emissions (see COMMUNITY below for more details). Moving forward, we seek to gain full visibility on the environmental impacts of production, both in terms of greenhouse gas emissions and water consumption. CFCL will continue to work to ensure transparency in the selection and use of materials, from raw material procurement to processing and garment manufacturing.

We are aware that the results of LCA calculations for woolen garments may have a negative impact on sales of some items. Regardless, we are committed to providing transparency on what we currently consider negative results, with an onus to keep improving; and the hope that this will positively influence procurement policies in the apparel industry. We evaluate our success in this process not just by positive change within our own supply chain, but also by the change we, together with our customers, peers, suppliers, media and academics are able to make within the industry as a whole.

II. LCA Calculations for Garments made with Plant-based Recycled Fiber

The large majority of CFCL’s products are made from recycled polyester. In VOL.6, 82.3% of all fabrics are made of polyester, 78.5% of which is recycled polyester made from plastic bottles. Since virgin polyester is emission intensive, we have been actively selecting recycled polyester for the majority of our garments.

A portion of our garments however, including those presented in Figure 5 above, are made with yarn composed of a combination of recycled plant residues and virgin polyester. In the past, our LCA analysis has focused only on recycled polyester in our core products. After working with our suppliers over the last two years, we are now able to calculate the emissions stemming from these plant-based fiber items too.

The plant fiber items we have calculated for this collection are CFCL’s core products that have been made since VOL.1, including the HIGH GAUGE SHORT SLEEVE TEE SHIRT and GARTER LONG SLEEVE TEE. The LCA results are shown in Figure 5. Compared to LCA calculations for recycled polyester products, the emissions on a weight basis are marginally higher (POTTERY DRESS short sleeve for example emits 3.49 kg-CO2e/1 pc (540 g), as calculated in VOL.4).

In this supply chain, the following two issues need to be addressed in the future:

1. the portion of virgin polyester remaining in these items; and
2. the quantity and quality of energy used in manufacturing these materials.

In order to address these issues, we are planning to firstly explore how we can replace the remaining portion of virgin materials in these items with recycled materials. As for energy used in manufacturing, we are continuously working with production plants on the procurement of renewable energy (largely from solar and wind). Finally, in the future we will continue to report on our production initiatives with suppliers, not only for our core products but for a wider range of items.

III. LCA Calculation for Garments which we transitioned from Virgin to Recycled Polyester (with a 20% reduction in emissions)

In accordance with our policy of maximizing the use of recycled material in our garments, in VOL.6 we made noteworthy progress within the MILAN RIB jacket and pants series. A key issue for this series in previous seasons was the low recycled material usage rate of around 18%. After two years of working with suppliers to replace the virgin polyester with recycled polyester, we were able to manufacture the MILAN RIB series with 100% recycled polyester in VOL.6. Figure 6 shows the greenhouse gas emission calculation results for the MILAN RIB in VOL.6.

After increasing the use of recycled polyester in VOL.6, emissions have been reduced by approximately 20% over the lifecycle. The jacket is produced with approximately 37% lower emissions than a typical women’s jacket, which emits 18 kg-CO2e per jacket.2

2 CFP eligible products (product details)｜CFP Program (cfp-japan.jp)

Figure 7 illustrates which processes have significantly reduced greenhouse gas emissions. Substituting virgin polyester with 100% recycled polyester has led to a decrease in the percentage of emissions from raw material procurement from 44% to 36% and 37% to 23% for the pants and jacket respectively. The move to recycled polyester has reduced greenhouse gas emissions within the raw material procurement process for these items by approximately 70%.

As the recycled material usage rate has changed from 18% to 100%, the number of recycled PET bottles used has increased by a multiple of five (Figure 8). This contributes to our goal in progressing a recycled-oriented, circular economy.

At the same time, it is also important to acknowledge that a large percentage of greenhouse gas emissions come from energy sources other than the raw material procurement process, including electricity used in the processing of materials and the manufacture of products. Combining multiple yarns and producing accessories like buttons and zips further adds to energy consumption. Moving towards carbon neutrality, reducing greenhouse gas emissions not only in one stage but throughout the entire life cycle is a key reason we undertake LCA calculations.

To achieve our sustainability objectives, there’s still considerable work ahead. This includes enhancing transparency in raw materials procurement, expanding the utilization of recycled and certified materials, scaling up the adoption of renewable energy sources (primarily solar and wind power), and implementing a system to prevent product disposal by facilitating collection and recycling. Our focus remains steadfast on reducing emissions across all these fronts.

※Databases and references used in LCA calculations:
・Considering LCA from Plastic Waste Management Institute (PWMI)
・Environmental impacts associated with the production, use, and end-of-life of a woolen garment, S. Wiedemann, L. Biggs, B. Nebel, K. Bauch, K. Laitala, I. Klepp, P Swan, & K. Watson.
・Handbook of Life Cycle Assessment (LCA) of Textiles and Clothing (Woodhead Publishing Series in Textiles)
・Higg Product Tools Material Sustainability Index
・IDEAv2.3 (LCI database IDEA version2.3, National Institute of Advanced Industrial Science and Technology Research Institute of Science for Safety and Sustainability, Sustainable Management Promotion Organization, LCA Research Group Safety Science Research Division,)
・Japan Containers and Packaging Recycling Association (JCIA), 2015 Annual Report
・Japan Containers and Packaging Recycling Association, Analysis of PET Bottle Recycling Effectiveness (FY 2016; Revised version as of July, 2017)
・Calculation results based on data from Utsumi Recycle Systems Co.

As outlined in the beginning of the report, VOL. 6 has seen an increased use of the animal fiber wool, which now accounts for 10.39% of total materials. In order to maintain the integrity of our wool supply chain moving forward, we must ensure our procurement practices are based on thorough stakeholder engagement. These stakeholders range from the animals themselves to the sheep farmers and people involved in each stage of the yarn processing, all of whom are now within our wider community of impact. To gain understanding of our stakeholders and the issues they face, we carried out various enquiries, initially with the assistance of our wool suppliers in Aichi, Japan. Figure 9 provides a visual representation of the wool supply chain and associated key issues.

Animal welfare

Animal welfare is a key issue in any animal-based fiber supply chain. In the case of wool, an animal welfare issue of particular importance is mulesing – the practice of cutting off part of the skin and flesh of a lamb’s rump to prevent the breeding of parasites. Non-mulesing refers to sheep rearing without this procedure. Despite enquiry with our suppliers, we have been unable to identify whether the wool we are currently sourcing is from non-mulesing farms. Our priority going forward is therefore to work with our suppliers to identify and select producers who are committed to non-mulesing practices. Furthermore, we need to be conscious of the quality of living conditions in which the sheep are reared, including quality of feed, living space and pasture conditions. There are various issues to be addressed when it comes to animal welfare, but at present our priority is to select producers who are committed to non-mulesing and providing high quality living conditions for their sheep.

Work environment / Processing methods

Ensuring the rights of workers is an issue that spans the entirety of the supply chain. When we investigated whether the human rights and quality working conditions of staff at our suppliers were being upheld, we found little transparency in this area. Likewise, information was scarce regarding the wider environmental impacts of the offshore farming and manufacturing process, including total electricity use and water consumption. Under current procedures with our suppliers in Aichi, it was not possible to make direct communication with overseas producers. Despite being one of the world’s three largest wool production centers, issues including equipment age and shortage of staff made gathering information a challenge. Improving transparency and communication channels throughout this supply chain is important for CFCL moving forward.

Within the current general market for wool in Australia, raw wool is collected at an auction house for wholesale in bulk, with no traceability to its farm of origin. This could be changed by initiating direct trade with producers – an option we are investigating. In the current structure however, neither the trading companies nor affiliated companies in this process have access to information on many important aspects of the wool itself. This is a key reason as to why CFCL, as a B Corp company, maintains a policy to maximize production locally in Japan.

In addition, to meet our design and quality standards, our wool is currently treated with shrink-proofing. This process involves the application of chlorine-based chemicals to the fiber; production and use of which has negative environmental impacts. We would therefore like to explore alternative methods of treatment that do not rely on these chemicals, whilst maintaining product quality.

Wool has many favorable characteristics, such as moisture absorbency; heat generation; fullness and texture; deodorizing properties; luster; and elegance when made into garments. Although technology to develop synthetic fibers similar to wool has advanced, we consider wool to hold a number of valuable qualities that are still yet to be replicated.

In future material procurement, we will cooperate with partners who can address and provide certainty on the issues raised throughout this report. Discussions have already begun with suppliers about new, more transparent and direct procurement sources for wool, with a goal to switch sources from VOL.10 (Fall/Winter 2025). CFCL will work to continue to fulfill our accountability to our customers and wider community when designing, manufacturing and selling our products.