Shanghai Challenge Textile Technology Co., Ltd. (hereinafter referred to as "Challenge") has completed the carbon footprint calculation and third-party certification for two of its fabric products—machine-washable wool knit fabric and brushed knit fabric—with support from Carbon Newture.

According to the assessment, the cradle-to-gate carbon footprint of 1 kg of brushed knit fabric (model: EFQ00319) is 16.74 kgCO₂e, while the gate-to-gate carbon footprint of 1 kg of machine-washable wool knit fabric (models: OW1H015C, OW1H015C-1, OW1H015CHG) is 6.50 kgCO₂e.

We had the privilege of speaking with Mr. Yang Shibin, President of Challenge, and Ms. Wang Junli, Senior Engineer, to learn how the company is building a sustainable competitive edge in global textile trade and advancing its green transition starting from the design and development stage.

01 Building a green manufacturing system and advancing carbon management across the supply chain

"By completing the carbon footprint calculation and certification for these two products with the support of Carbon Newture, we are not only fulfilling our responsibility to the industry but also making a contribution to society and the environment. It’s also an opportunity to examine and improve our own production and operations."

— Mr. Yang Shibin, President of Challenge

Founded in 2004 and listed on the Shenzhen SME Board in 2010, Challenge boasts an integrated value chain in knitting—from weft knitting, dyeing, and finishing to garment production. The company specializes in high-end knitted fabrics such as brushed fleece, weft-knitted wool, and functional textiles, as well as the manufacturing and sale of apparel for international premium sportswear brands. It is a vertically integrated, innovation-driven textile and apparel enterprise with global reach.

Over years of development, Challenge has become:

• The world’s largest wool supplier for Icebreaker (part of VF Corporation)

• An overseas partner of Polartec (a Milliken company) for double-sided fleece innovation

• A high-quality supplier to Uniqlo

• The largest supplier to the international school uniform brand Eton Kidd.

Challenge has built long-term strategic partnerships with many global outdoor and activewear brands.

With rising environmental awareness, sustainability has become a global trend. Recycled fabrics, eco-friendly dyeing techniques, and low-carbon production processes are now key growth drivers for the textile industry.

Challenge integrates green development into every stage of its operations—reducing resource consumption by optimizing production processes, installing rooftop solar systems, and adopting cutting-edge energy-saving technologies. The company has also prioritized R&D into biodegradable fabrics and sustainable textile design, actively promoting eco-conscious innovation.

This carbon footprint initiative will help Challenge establish a product life cycle assessment (LCA) system and optimize products and processes based on its findings. It will also inform improvement actions to raise the green and low-carbon performance of its products.

In parallel, Challenge is accelerating carbon management across the supply chain.

It has already integrated carbon emissions into its assessments, implemented footprint accounting and reduction plans, and established green procurement standards. The company prioritizes suppliers with internationally recognized environmental certifications and encourages the use of low-carbon, recyclable, or bio-based materials to reduce upstream emissions.

02 Green transition: Building a moat for sustainable textile trade

“Challenge is a foreign trade enterprise, with over 85% of its products exported to Europe and the United States. In recent years, major international sports brands have raised their requirements for green textiles, and some of our clients have also requested carbon footprint calculation and certification reports.”

— Wang Junli, Senior Engineer of Challenge

In 2024, China’s textile and apparel industry continued its shift toward high-value exports, with total exports reaching USD 301.1 billion, a year-on-year increase of 2.8%. Textile exports accounted for USD 141.96 billion, up 5.7%, with strong performance in key markets such as the US and the EU.

As the world’s largest textile producer and exporter, China now faces increasing challenges:

• The global supply chain is being rapidly restructured, presenting new opportunities,

• Meanwhile, developed countries are tightening environmental and compliance standards, significantly raising costs for exporters.

In this context, Challenge is positioning itself at the forefront of green transition, leveraging sustainability to build a defensive moat in global textile trade and actively advancing toward carbon peaking and neutrality.

Challenge was recognized as a National Green Factory by China’s Ministry of Industry and Information Technology (MIIT) in 2019, and named a Demonstration Enterprise for Green Industrial Product Design in 2023.

Thanks to its continued sustainability efforts, Challenge has earned the trust of international clients and maintains its position as a core supplier of premium knitted fabrics and apparel to major global brands.

In closing, Senior Engineer Wang Junli shared:

"Following carbon footprint certification, we will disclose this information on the . This transparency enhances our brand image, boosts competitiveness, increases client trust, and helps us achieve both economic and social value."