Coats Set to Reach 50% Sustainability Milestone

Coats Group
David Paja, Coats Group CEO

Coats Group plc, the global leader in manufacturing threads, yarns, and structural components for apparel and footwear, is on track to surpass a significant sustainability milestone—using 50% preferred raw materials (non-virgin oil-based) in its products. According to Coats’ 2024 Sustainability Report, audited by EY, the company is ahead of its targets in adopting sustainable practices across materials, energy, water, waste, and workforce management. This marks a critical step towards producing the world’s most sustainable thread.

In 2023, Coats increased its use of recycled and bio-based materials to 46%, up from 31% in 2022. This surge is driven by substantial investments in innovation and growing demand from fashion brands for eco-friendly solutions.

Coats’ revenue from 100% recycled thread products grew by 144%, reaching $405 million (£314 million) last year, as the industry rapidly shifts toward sustainability. A report by Coherent Market Insights forecasts the global sustainable fashion market will grow to $33 billion (£26 billion) by 2030, quadrupling from 2023.

Coats has opened three Innovation Hubs across the Americas, Turkey, and China over the past seven years, and in 2023, launched a cutting-edge Sustainability Hub in Madurai, India. This facility focuses on developing materials that reduce reliance on virgin oil, which is a key contributor to the company’s emissions.

Coats is on track to meet its goal of using 60% recycled materials by 2026 and eliminating virgin oil-based materials by 2030. The company’s sustainable innovations are featured in Threads of Change, a film by award-winning filmmaker Craig Leeson, showcasing how Coats’ sustainability strategy enhances its competitive edge.

David Paja, Coats Group CEO, said: “Sustainability is at the core of Coats’ business strategy. It is the biggest challenge in our industry, and we aim to lead by example. Through the integration of talent, textiles, and technology, we are proving that innovation-driven sustainability benefits both the planet and business.”

In 2024, Coats made significant strides in its transition to renewable energy, reducing scope 1 and 2 carbon emissions by 51%, equivalent to removing 78,000 cars from the road. The company now uses 74% renewable electricity, up from 29% in 2022, and is on track to reach 100% by 2030.

Coats has also enhanced its water recycling efforts, increasing the rate by 14% in 2024 compared to 2022. With two major water recycling installations planned for this year, the company expects to meet its target of recycling one-third of the water used in its operations by 2026. Since 2019, Coats has reduced freshwater extraction by over 4.5 million cubic meters—enough to fill 4,750 Olympic-sized swimming pools.

Coats is working toward becoming a zero-to-landfill company by the end of 2025, with an 87% reduction in waste disposal in 2024 compared to 2022. The company also achieved a 99.8% compliance rate in effluent treatment under the industry-leading Zero Discharge of Hazardous Chemicals (ZDHC) standards, targeting full ZDHC compliance by 2026.

In terms of workforce, Coats exceeded its employee satisfaction target, with 95% of its staff certified by Great Place to Work. The company has also met its 2026 goal of having 30% female representation in senior leadership roles, up from 19% in 2022, with plans to reach 40% by 2030.

Chris Dearing, Coats Group Sustainability Director, remarked: “Approaching the 50% milestone for using preferred raw materials marks a transformative shift for Coats and the textile industry. We’ve left behind the era of disposability, and if a company with 270 years of history can lead this change, others can too. While we are proud of our progress, we view it as one step in an ongoing journey, with more ambitious targets ahead as we build a sustainable future.”

Coats is a global leader in thread manufacturing and structural components for apparel and footwear, as well as a pioneering innovator in performance materials. These essential solutions are utilized in a broad range of products, including those designed to safeguard people, data, and the environment. Headquartered in the UK, Coats is a FTSE250 company and a member of the FTSE4Good Index. In 2024, the company achieved a revenue of $1.5 billion.

Recognized by the world’s top companies for delivering cutting-edge, sustainable solutions, Coats offers a wide array of value-driven products, including threads for apparel, accessories, and footwear, structural components for footwear, fabrics, yarns, and software applications. Coats partners with leading organizations across industries such as apparel, footwear, automotive, telecoms, personal protection, and outdoor goods. With a rich history spanning over 250 years and a commitment to continuous evolution to meet changing market demands, Coats operates in around 50 countries, employing a dedicated workforce of over 16,000 people who serve customers globally.