Textile Exchange Action Cohort Sets 2027 Material Reporting and Target Requirements

Textile Exchange published new guidance on September 9, 2026 for brands and retailers participating in its Action Cohort. Starting in 2027, participating companies will be required to report material sourcing volumes through the Materials Benchmark and set measurable targets for materials sourced through standards, certification or other programs that verify preferred production practices.

The targets should cover relevant key materials representing at least 80% of a member company’s portfolio. Textile Exchange says they should be clearly defined, time-bound, measurable, achievable and challenging. For apparel buyers, that turns a high-level materials strategy into a data and supplier-management task.

Portfolio coverage changes the sourcing conversation

An 80% portfolio threshold means companies cannot focus only on a small capsule collection. Teams need a reliable view of total fiber and material volumes, then identify which inputs account for most of the business. Cotton, polyester, nylon, manmade cellulosics, wool, down and leather may require different production programs and evidence.

Brands should define the reporting unit, period and treatment of blends before collecting data. Finished-garment quantities alone are insufficient when a style contains a shell, lining, insulation, rib, elastic and trims. A consistent bill of materials and product weight method helps translate purchase orders into material volumes.

Five intervention areas guide the targets

Textile Exchange lists shared intervention areas that include reducing or eliminating pesticide and fertilizer use, addressing deforestation and conversion, upholding animal welfare, using recycled feedstocks with an emphasis on textile feedstocks, and ensuring human-rights due diligence.

Each company can set targets suited to its own context, but the targets should contribute meaningfully to collective progress. Aggregate results will be made public, while participants receive more detailed information that allows comparison with shared targets and peer performance.

What factories and suppliers may need to provide

• Material identity: fiber composition, supplier, program or standard, and applicable chain-of-custody model.
• Volume evidence: purchase, inventory, production and shipment records that reconcile with reported quantities.
• Transaction records: certificates or platform references linked to the correct orders and facilities.
• Subcontractor visibility: nominated mills, printers, laundries, filling suppliers and other relevant processors.
• Exception control: documented substitutions, shortages, quality failures and approved corrective actions.
• Claim discipline: product and marketing claims aligned with the evidence and rules of the relevant program.

A practical preparation plan for buyers

First, establish a material baseline using the same scope and units that future reporting will use. Second, rank materials by volume and sourcing risk. Third, map existing verified programs and identify gaps between current sourcing and proposed targets. Fourth, test whether suppliers can deliver the required evidence on time.

Procurement teams should also assess commercial constraints. Preferred material programs can affect minimum order quantities, lead times, color availability, testing and cost. A target becomes more credible when it is connected to category plans, supplier capacity and an approved budget rather than managed as a separate sustainability exercise.

OEM and ODM manufacturers can prepare by standardizing bills of materials, separating verified inputs in inventory, training purchasing teams and reconciling material receipts with production output. Early checks reduce the risk that an order qualifies technically but lacks the documentation needed for reporting.

Source: Textile Exchange — Action Cohort reporting and target-setting guidance.