Sae-A Trading Joins Science Based Target initiative (SBTi) to Lead the Path to “Net-Zero”
Sae-A Trading joins SBTi, committing to a 42% reduction in greenhouse gases by 2030, as part of strengthening ESG management.
[December 18, 2023]
Sae-A Trading, the world’s largest apparel manufacturing company, is accelerating practical implementation towards Net-Zero by joining the Science Based Target initiative (SBTi).
SBTi is a global initiative that scientifically validates greenhouse gas reduction targets set by companies in order to help limit the average global temperature rise within 1.5℃. It was jointly established in 2015 by the Carbon Disclosure Project (CDP), United Nations Global Compact (UNGC), World Resources Institute (WRI) and the World Wide Fund for Nature (WWF).
Over 6,600 companies worldwide, including apparel brands, are participating in setting carbon emission reduction targets through the SBTi. As of November this year, approximately 400 apparel companies have declared their commitment to the SBTi.
Sae-A Trading aims to reduce direct and indirect greenhouse gas emissions (Scope 1 + Scope 2) by 42% by 2030 compared to 2022. Additionally, Sae-A Trading set ambitious goals to reduce greenhouse gas emissions produced by upstream and downstream global partners and supply chains (Scope 3) and achieve Net-Zero by 2050.
A Sae-A Trading official said, “With ESG management emerging as a necessity worldwide, participating in the SBTi with the aim of ‘carbon neutrality’ is significant in that it objectively verifies a company’s greenhouse gas emission reduction endeavors and builds credibility. Sae-A Trading is committed to enhancing global competitiveness and receive a favorable evaluation from an investor perspective through this.”
To achieve this, Sae-A Trading has been operating its own dedicated Sustainability Team since 2008, leading the way in creating shared value. Moreover, the company has already been actively working towards carbon neutrality by introducing greenhouse gas reduction facilities in its overseas subsidiaries.
Sae-A Trading has installed a total of 3.25MW of solar power generation facilities in its production facilities at Nicaragua, Indonesia, and Vietnam. In Indonesia, the company has saved a total of 5,600 tons of carbon in 2022 through the Renewable Energy Certificate (REC). As a result, greenhouse gas emissions from Scope 2 at three facilities in Indonesia were reduced by 80% compared to 2020. Additionally, Sae-A Trading is considering further solar power generation facility additions in its Vietnam facilities to achieve the SBTi greenhouse gas reduction goals.
Win Textile, Sae-A Trading’s fabric manufacturing subsidiary in Indonesia, is also making efforts to reduce Scope 2 greenhouse gases by installing 1MW solar power generation facilities and Renewable Energy Certificates. They are also converting some sewage sludge (remains produced during sewage treatment processes) into fuel and using them as an energy source. When Win Textile was newly built in 2012, it obtained the LEED (Leadership in Energy and Environmental Design) Silver Certification from the U.S. Green Building Council.
Sae-A Spinning, a subsidiary of Sae-A Trading located in Costa Rica, also obtained the LEED Silver Certification for its second spinning plant in August 2022. Furthermore, PT. Winners International, a newly established sewing factory in the Tegal region of Indonesia, attained the LEED Gold Certification in August of this year. Sae-A Trading has set a policy for all new plants to receive LEED Gold Certifications. This aim of considering the eco-friendly and sustainability aspects of new facilities from the design and construction stages, along with pursuing comprehensive sustainable management, and engaging with local communities represents the company’s strong commitment to ESG management.
Concerning the use of eco-friendly raw materials, Sae-A Trading has set a target to use 100% sustainable cotton and 50% recycled polyester by 2025, while systematically managing relevant certifications and supply chains.