he apparel alliance (Apparel Impact Institute, Cascale, Textile Exchange, and ZDHC Foundation) today announced the launch of Version 2 of the Supply Chain Taxonomy, an updated harmonized framework designed to improve consistency, transparency, and collaboration across the textile, clothing, leather, and footwear (TCLF) sectors of the broader apparel industry.
“Shared definitions are not just administrative; they help the industry make better decisions, improve data quality, and work from the same understanding of the supply chain. Clarifying that wet processing is accounted for across all tiers, not just Tier 2, gives the industry a more accurate picture of where emissions sit and where action is needed most.” — Alma Palacios, senior sustainability reporting coordinator at Aii
“When facilities, products, and processes are classified consistently, the whole industry benefits, from more reliable data and clearer reporting to stronger collaboration on the work that matters most. The updated Supply Chain Taxonomy is foundational infrastructure for a more aligned and effective sustainability ecosystem. It reflects what’s possible when organizations commit to alignment, and we’re confident it will support more effective progress across the value chain.” — Joël Mertens, director of environmental impact methodologies at Cascale
“Aligning on a shared language for the supply chain is fundamental to driving credible, system-wide progress. This updated taxonomy helps bring greater clarity and consistency to how materials, processes, and impacts are understood and reported, enabling more effective collaboration and accelerating the industry’s transition to preferred production systems.”— Luca Mosca, director of impact data and reporting at Textile Exchange
“No single organisation can drive industry transformation alone. Shared language is a crucial foundation to enable collaboration within the ecosystem of like-minded partners. Bringing more depth to the Supply Chain Taxonomy with this new update strengthens the common foundation of the apparel alliance to enhance clarity for the wider value chain actors as well as unlock new opportunities to create a more interoperable system.” — Maria Arroyo, sector partnership lead at ZDHC
Building on its initial release in November 2024, the updated taxonomy addresses key challenges in the original framework, including overlapping processes, undefined boundaries, and classification gaps. The result is a clearer, more detailed structure that supports consistent classifications across the TCLF value chain and future alignment across apparel alliance work and joint initiatives.
The Supply Chain Taxonomy supports the apparel industry by:
- Creating a shared framework and common language across stakeholders.
- Improving transparency and reporting through more consistent disclosures and supply chain visibility.
- Supporting compliance and risk management through clearer process ownership and environmental boundaries.
- Reducing duplication and aligning efforts across organizations.
- Enabling better benchmarking and supporting collective sustainability initiatives.
The Supply Chain Taxonomy is a jointly developed and maintained resource of the apparel alliance organizations (Apparel Impact Institute, Cascale, Textile Exchange, and ZDHC). Designed as an evolving framework, planned annual updates reflect stakeholder feedback, emerging materials and technologies, and ongoing regulatory and industry developments. While not exhaustive, the taxonomy provides a practical foundation for classifying the most common processes and products across the value chain.