Saitex, a leader in sustainable apparel and denim manufacturing, has released its 2024 Impact Report, showcasing significant progress in its journey toward net-zero operations and a more circular and socially responsible manufacturing model. The company's vertically integrated ecosystem, which includes apparel manufacturing in Vietnam and the USA, a fabric mill, and upcycling initiatives like STELAPOP, reported double-digit production growth while simultaneously reducing its environmental footprint.

A commitment to sustainable growth

In 2024, Saitex's apparel manufacturing division increased its production output by 25% compared to the previous year.Despite this growth, the company achieved a 6.8% decrease in electricity usage per garment and an 18% reduction in emissions per garment, from 5.56 kg CO2e in 2023 to 4.56 kg CO2e in 2024.This was largely due to the implementation of rooftop solar panels and targeted process optimization. Similarly, at the Saitex Fabric Mill, production more than doubled with a 124% increase, while electricity use per meter of fabric dropped by 16% and total CO2 emissions per meter decreased by 18%.

Expanding renewable energy and carbon offsetting

Saitex is actively expanding its use of renewable energy. The company's apparel manufacturing facilities achieved a 35% CO2 emission offset in 2024, an increase of 7.1% from 2023.This was a result of rooftop solar installations, which accounted for 4% of the total offset, and the Gaia tree planting initiative, which contributed 3.1%.Since 2020, Saitex has partnered with Gaia Nature Conservation, and this collaboration has been extended through 2027 with a cumulative goal of planting 139,783 trees, which is projected to offset 5,681.2 tCO2. The company's long-term goal for its apparel manufacturing division is to run entirely on renewable energy by 2027.

At the Saitex Fabric Mill, the current energy mix is 70% renewable, with 34% coming from the mill's own solar rooftop installation and the remaining 36% from the industrial park. The mill has a goal to reach net-zero operations by 2030, with a longer-term ambition of becoming carbon-positive.

Innovations in water management and circularity

Saitex has made significant strides in water stewardship. The company's laundry facility has operated as a closed-loop water system since 2016, recycling and reusing 98% of its water. In 2024, the mill's total water consumption remained consistent with the previous year, despite the substantial increase in production. The mill plans to begin construction on a closed-loop wastewater treatment system in mid-2025, which is targeted to be operational by November 2025. This system will enable near-zero water discharge and significantly reduce the need for fresh water in industrial processes.

Circularity is also a key focus for Saitex. The company successfully repurposed 40% of the sludge generated at its apparel manufacturing premises into bricks and concrete blocks for garden walkways and retaining walls. Additionally, Saitex continues to collaborate with its sister company, STELAPOP, to transform textile waste into high-performance wood alternatives. At the mill, 92% of waste is recycled, with recycled fabric being converted into carpets and fiber and yarn waste transformed into new yarns.

Social and community engagement

Saitex's community impact reach increased by 60% in 2024, reaching 13,245 people. This was driven by initiatives such as the "Every Drop Counts" program, which distributes daily meals and essential supplies to vulnerable communities, and the "Clean Water Project - Anh Chị Em (Brothers & Sisters)," which provides access to clean water in the Tra Bong district. The company also continued its support for the 4Ps program for orphanages and the REKUT program, which promotes equal employment opportunities for people with disabilities.

A new employee initiative, the "Gaia x Saitex Employee Project," engaged 4,000 employees in collecting unwanted items to be sold online to fund tree planting. The initiative demonstrated the power of collective responsibility, with 4,039 products extending their life and enabling 123 trees to be planted.

Areas for improvement and future goals

The report also highlights areas needing improvement. In 2024, gas usage per garment at the apparel manufacturing facility increased by 16% due to demand for 3D fashion and coating processes. Saitex plans to address this by replacing gas-powered ovens with more energy-efficient alternatives and transitioning to solar power for this operation once the solar roof project is fully implemented.

Water and wastewater figures at the apparel facility saw a temporary increase due to scheduled maintenance for the Reverse Osmosis (RO) system's filters, which are replaced every three years. The next filter replacement is scheduled for June 2025, with a phased approach planned to minimize disruption.

An internal audit revealed 27 cases of undeclared Sunday work at the finishing unit between September and November 2024. Saitex has responded by implementing an online overtime registration system, reinforcing training, and introducing quarterly compliance audits. All affected workers were fully compensated.

Looking ahead, Saitex is committed to its strategic goals. The apparel manufacturing division aims for 100% renewable energy by 2027 and anticipates 35% on-site solar coverage by the end of 2026. The denim mill's goal is to achieve a closed-loop wastewater system with minimal fresh water input by the end of 2025. The company's ultimate ambition is to move beyond carbon neutrality and become carbon positive.