Athleisure Industry ESG Thematic Report, 2023

Environment, Social and Governance (ESG) in the Athleisure Industry

A whole new era of changes in sustainability are driven by forces of change by the governments, corporations, and consumers in terms of environmental, social and governance.

The wide range products of the athleisure industry are made from various materials, which are artificial fibers. The sourcing of these materials is a challenge that negatively impacts the market in the environment of ESG. The other important factor that adversely affects the industry is the degrading aspect of the waste into the environment. Key leaders of the industry are aware of the negative aspects of the products, focusing on creating and executing the policies and strategies that bring positive outcomes in ESG.

Increasing waste produced by the manufacturing process, such as water waste, material waste and product waste, which primarily contain artificial non-biodegradable fibers impacted the industry in terms of ESG. The United Nations’ Sustainable Development Goals (UN SDGs) is a comprehensive framework that helps companies in this market obtain a perspective on the impact of their products and operations on ESG parameters.

ESG Trends

The extraction of materials such as polyester and nylon for manufacturing the products of the athleisure industry is one of the key challenging factors in the industry. The mentioned materials are sourced from different kinds of sources such as coal, natural gas, which strains the environment, since the extraction process leaves intense amounts of carbon footprint, contributing to the increase of global warming and climate change.

Another major challenge in the athleisure industry is the waste management of the artificial fiber materials, when improperly managed contributes to plastic pollution. According to a report, at least 14 million tons of plastic was found in the oceans, and around 380 million tons of plastic is produced each year on an average.

A report has stated that at least 80% of the ocean debris is made up of plastic, disposed of irresponsibly from the packages. A study suggests that the improper disposal of nylon and polyester into the ocean disintegrated itself into micro particles and took part in the food chain process, reaching the human population through food. These aspects act as hurdles in achieving the UN SDG goals of climate action and protection of seas and oceans.

In response to the negative impact on ESG in this industry, one of the key players of the market has introduced a new product line, in which most of the products are made from recycled polyester and nylon, reducing the dependence on the extraction process, moving towards net zero emissions.

For tracking, analyzing, reducing, and treating water waste, tools are being used which give help in water treatment. Usage of organic cotton is another approach used by athleisure industry companies for reducing the usage of nylon and polyester. The approaches help the companies of the market for promoting the UN SDG goals of responsible consumption and production (SDG12), clean water and sanitization (SDG 6) and climate action (SGD 13).

Growth of the Athleisure Market

The athleisure market at global scale was economically valued at USD 306.2 billion as of 2021 and is forecasted to expand with a CAGR (compound annual growth rate) of 8.9% from 2022 to 2030. Historically, the usage of synthetic fibers sourced from oil and natural gas and the products being non-bio-degradable has impacted the market in terms of ESG. In recent times, the leading companies of the athleisure market have made policies and strategies to counter these effects, bringing positive outcomes in the sphere of ESG.

Key Companies in this theme

    • Vuori

    • PANGAIA

    • Outerknown

    • lululemon athletica

    • HanesBrands Inc.

    • EILEEN FISHER

    • Patagonia, Inc.

Scope of the Athleisure Industry ESG Thematic Report

    • Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape

    • Key insights on infrastructure developments and ESG issues affecting the theme

    • Identify key initiatives and challenges within the industry

    • Identify ESG leaders within the industry

    • Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process

    • Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key aspects of the Athleisure Industry ESG Thematic Report

    • Offers a global perspective of the market and the policies and measures taken by the players, for overcoming the challenges faced in terms of Environment, Social and Governance.

    • Key insights into the sustainability practices of major players in the market.