Market Information Special Reports

Preferred Materials: Textile Exchange Definitions Guide

Textile Exchange introduced the term 'preferred materials' in 2010 to guide industry sustainability commitments, evolving to a comprehensive 2023 definition focused on reduced impacts and increased benefits for climate, nature, and people. This report presents official definitions for low climate impact, sustainably sourced renewable, and sustainably sourced recycled materials, aligned with UNDP, SDG 12, ISO 14009:2020, and the Ellen MacArthur Foundation. It also addresses the benchmarking challenges facing innovative materials that require alternative GHG modeling and Life Cycle Assessment approaches.
Preferred Materials: Textile Exchange Definitions Guide

Preferred materials sit at the heart of global textile industry sustainability commitments. Since 2010, Textile Exchange has shaped how manufacturers, brands, and suppliers categorize fibers and measure responsible sourcing. This reference report draws on Textile Exchange's official guidance to present key definitions, terminology, and benchmarking standards. Explore additional industry analysis in the market information section at textilezon.com.

How Textile Exchange Defined "Preferred" Since 2010

In 2010, Textile Exchange began using the term "preferred" to categorize fibers and materials that offer environmental or social improvements over the conventional or status quo options. This aimed to address the growing ambiguity around what constitutes sustainable or responsible materials. By doing so, Textile Exchange provided the industry with guidance to step up its sustainability commitments. Over the years, the definition of "preferred" has continued to evolve, capturing the industry's growing progress and ambition.

Textile Exchange has recently recognized the need to evolve its thinking—and that of the industry—from the concept of "preferred materials" to that of "preferred production systems." While materials may be the product of a production system, it is the way that the production system is composed and managed that drives the impact of the raw material or fiber being produced.

Community and forest conservation
Photo: Carl van der Linde

The 2023 Textile Exchange Definition of Preferred Materials

In 2023, Textile Exchange put forth the following definition of a "preferred" fiber or material:

A fiber or raw material that delivers consistently reduced impacts and increased benefits for climate, nature, and people against the conventional equivalent, through a holistic approach to transforming production systems.

A key element of this definition is that it not only focuses on reducing negative impacts, but also on driving forward meaningful, measurable, beneficial impacts. This dual focus distinguishes the 2023 definition from earlier framings of preferred fibers and materials.

Key Definitions: Low Climate Impact, Renewable, and Recycled

"Low Climate Impact" Fibers or Materials

Signatories of the Fashion Industry Charter for Climate Action are required to create and submit reduction pathways. This includes the following charter target related to raw materials:

"Source 100% of priority materials that are both preferred and low climate impact by 2030, ensuring that these do not negatively affect other sustainable development goals. This includes pursuing materials that are closed-loop recycled, deforestation-free, and conversion-free in their origins, apply regenerative practices, and that relevant verification and impact measurement mechanisms have been applied."

Definition of a "low climate impact" fiber or material:

One that generates a lower level of greenhouse gas (GHG) emissions, as measured by CO2 equivalent, when compared to the conventional method of production.

A note on GHG emissions: GHG emissions benefits can be achieved through the adoption of activities that emit lower levels of GHG emissions (reductions) or that result in carbon removals, for example through soil carbon sequestration, or a combination of both.

The Fashion Charter Raw Materials Working Group has developed reference reports to identify low-carbon sources within each fiber category:

  • Identifying Low Carbon Sources of Cotton and Polyester Fibers
  • Identifying Low Carbon Sources of Sheep Wool, Hair, Alpaca Fiber, and Silk Fiber
  • Identifying Low Carbon Sources of Man-Made Cellulosic Fibers

"Sustainably Sourced" Renewable and Recycled Materials

Where "sustainably sourced" is adapted from United Nations Development Program (UNDP) and Sustainable Development Goal (SDG) 12 and is aligned with the concept of "preferred," "recycled material" is adapted from ISO 14009:2020, and "renewable material" is adapted from Ellen MacArthur Foundation.

Textile Exchange aligns with UN and SDG 12 use of the term "sustainably sourced" here, as it is already an accepted policy term. The terms "responsibly sourced" or "preferred" would be deemed equivalent/aligned to this.

Textile Exchange definition of "sustainably sourced renewable" materials:

Material that is continually replenished at a rate equal to or greater than the rate of depletion, that delivers reduced impacts and increased benefits for climate, nature, people, and animals.

Textile Exchange definition of "sustainably sourced recycled" materials:

Material that is refined and reprocessed from reclaimed material by means of a manufacturing process and made into a final product or into a component for incorporation into a product, that delivers reduced impacts and increased benefits for climate, nature, people, and animals.

Benchmarking Innovative Materials for Decarbonization

In addition to traditional fibers from preferred production systems, the industry will also need innovative fibers and materials in order to decarbonize and transform the fashion industry. However, it is challenging to measure or accurately benchmark the benefits of new innovative fibers before they reach market scale.

Alternative approaches to traditional GHG modeling and the use of Life Cycle Assessment data and emissions factors are required to support innovators in understanding the reduced impacts or increased benefits of their models. This reflects the complexity of evaluating next-generation materials against established sustainability benchmarks.

Frequently Asked Questions

When did Textile Exchange first use the term "preferred" for fibers and materials?

Textile Exchange began using the term "preferred" in 2010 to categorize fibers and materials offering environmental or social improvements over conventional options. The definition has continued to evolve since then, with the most recent formulation issued in 2023 to reflect a holistic approach to transforming production systems.

What is the Fashion Industry Charter's 2030 raw materials target?

The Fashion Industry Charter for Climate Action requires signatories to source 100% of priority materials that are both preferred and low climate impact by 2030. This includes materials that are closed-loop recycled, deforestation-free, and conversion-free in their origins, apply regenerative practices, and have relevant verification and impact measurement mechanisms applied.

How is a "low climate impact" material defined?

A "low climate impact" fiber or material generates a lower level of greenhouse gas (GHG) emissions, measured by CO2 equivalent, compared to the conventional method of production. GHG benefits can come from emission reductions, carbon removals such as soil carbon sequestration, or a combination of both.

What standards underpin Textile Exchange's "sustainably sourced" definitions?

Textile Exchange's "sustainably sourced" terminology is adapted from UNDP and SDG 12. The term "recycled material" is adapted from ISO 14009:2020, and "renewable material" is adapted from Ellen MacArthur Foundation. The terms "responsibly sourced" and "preferred" are considered equivalent to "sustainably sourced."

How should innovators benchmark new materials not yet at market scale?

When new innovative fibers have not yet reached market scale, it is challenging to accurately benchmark their benefits using traditional GHG modeling. Alternative approaches, including Life Cycle Assessment (LCA) data and emissions factors, are required to support innovators in understanding the reduced impacts or increased benefits of their models.

Strategic Takeaways for Textile Sourcing Professionals

Textile Exchange's preferred materials framework has matured from a broad sustainability categorization in 2010 to a systems-level definition in 2023. The 2023 standard requires fibers and materials to deliver consistently reduced impacts and increased benefits for climate, nature, and people. The Fashion Industry Charter's 2030 target — 100% preferred and low climate impact priority materials — gives the industry a clear and actionable sourcing benchmark.

Your business should map its fiber portfolio against three core definitions: low climate impact (lower GHG emissions measured as CO2 equivalent), sustainably sourced renewable (replenishment rate equal to or greater than depletion), and sustainably sourced recycled (reprocessed from reclaimed material, aligned with ISO 14009:2020). For next-generation materials, LCA data and alternative GHG modeling remain the recommended evaluation tools per Textile Exchange guidance.

The industry's evolution from "preferred materials" to "preferred production systems" confirms that sustainability outcomes are determined by how production systems are composed and managed. Manufacturers and suppliers that align their sourcing with these frameworks are best positioned to meet both voluntary and regulatory expectations in the years ahead.

Source: Textile Exchange - Reports