Greenhouse Gas Inventory and SBTi – The Foundation for a Sustainable Textile Industry Strategy
The Vietnamese textile industry plays a critical role in the global supply chain, but it is also facing increasing pressure from greenhouse gas (GHG) reduction commitments and transparency requirements from international buyers. In the journey toward sustainable development, two core tools that help businesses maintain a competitive advantage are Greenhouse Gas (GHG) Inventory and the Science Based Targets initiative (SBTi).
Greenhouse Gas Inventory – The First Step to Carbon Management
A greenhouse gas inventory is the process of measuring and reporting emissions across three scopes:
- Scope 1: Direct emissions from sources controlled by the company (boilers, furnaces, trucks, generators).
- Scope 2: Indirect emissions from purchased energy (electricity, steam, heat).
- Scope 3: Emissions across the entire value chain (raw materials, logistics, product use, end-of-life treatment).
According to the GHG Protocol, an inventory helps businesses identify emission “hotspots” and develop effective reduction plans. Without inventory data, any commitment remains superficial and lacks credibility.
SBTi – Turning Data into Actionable Commitments
If inventory is about measurement, SBTi is the tool that transforms numbers into concrete targets. SBTi validates that a company’s emission reduction targets are aligned with climate science, contributing to limiting global warming to no more than 1.5°C under the Paris Agreement.
In the textile industry, major brands such as H&M, Nike, and Adidas have committed to SBTi targets and are requiring their suppliers to take similar action. According to SBTi (2024), more than 7,000 companies worldwide, across various regions and sectors, have adopted science-based targets. This clearly signals that participation in SBTi has become a global standard rather than an option.
The Link Between GHG Inventory and SBTi
GHG inventory and SBTi are closely connected as two steps within the same management cycle. The inventory provides the data foundation, helping businesses understand current emission levels and sources. Based on this, SBTi becomes the commitment pathway, enabling companies to set specific, time-bound, and internationally recognized emission reduction targets.
If the inventory is like a “map showing the current position,” then SBTi represents the “destination” and the “route forward.” Without an inventory, companies cannot set credible targets. Conversely, SBTi targets lose meaning if they are not based on transparent inventory data.
In the context of increasingly stringent environmental governance requirements, GHG inventory and SBTi function as complementary tools: measurement enables management, and commitment drives action. For the textile industry—one of Vietnam’s key export pillars—implementing GHG inventory and adopting SBTi not only supports compliance with domestic regulations (Law on Environmental Protection 2020, Decree 06/2022) but also opens opportunities for deeper integration into a sustainable global supply chain.