Sustainable Sourcing Challenges: Leather

It's time to focus on sustainable leather sourcing and one of the most complex supply chains in the apparel and footwear industries.

In this article we delve into the challenges and opportunities facing the leather production industry as it navigates EUDR and the path towards net-zero emissions.

We explore innovative technologies, sustainable sourcing practices, and the responsibility of suppliers and retailers, regarding environmentally responsible leather products. Plus we'll look at deforestation legislation from the EU that will most certainly impact the leather value chain, putting the pressure on manufacturers to map and monitor their suppliers.

Why Focus on Leather?

Leather originates from animal hides and skins, and has long been valued for its durability and versatility. However, sustainable leather production depends heavily on how the hides are sourced, processed and traced through the supply chain.

Leather is a versatile, durable, and historically significant material in fashion. However, the majority of leather production is industrialised using the most environmentally damaging processes.

Each year, the global leather industry produces approximately 24 billion square feet of leather supplying footwear, accessories and apparel markets worldwide. The global leather goods market was valued at around $253 billion in 2023, demonstrating the continued demand for leather products.

The key distinction between sustainable and unsustainable leather lies in the methods used during the processing stage.  When leather is processed using environmentally harmful methods, it can cause significant environmental damage and threaten the long-term sustainability of the industry.

For retailers dealing in leather, the question arises: What steps can we take to move closer to a sustainable future?

The Environmental Impact of Leather Production

The major problems with leather production are deforestation, water consumption, chemical use, and pollution.

Cattle ranching, the primary source of leather, drives significant deforestation and habitat destruction. The water-intensive process of raising cattle and treating hides depletes natural water reserves and causes ecological damage.

Many people think that leather is a by-product of the meat and dairy industries, but this is not necessarily the case. In fact, the production of leather often helps drive those industries. Leather provides extra profit for the meat and dairy industries driving further production which ultimately leads to more cattle farming.

The farming of cattle for meat and leather production is responsible for 80% of Amazon deforestation. Soy production is closely linked to the leather industry and is another major cause of deforestation. Approximately 80% of soy is used as feed for cattle and other livestock. Leather production is also water intensive, taking 17,128 litres of water to create one tote bag.

In addition, industrial tanning processes, which convert raw hides into durable leather, involve heavy use of toxic chemicals like chromium. Chrome tanning remains the dominant method used by around 85% of global tanneries. These processes produce large amounts of hazardous waste, leading to soil and water contamination.

However, even with these damning statistics, leather has the potential to move closer towards being a net-zero material and even offer a net-positive contribution if sustainable practices become the new norm.

What are the Options for Sustainable Leather?

Regenerative agriculture and ethical sourcing

The Regenerative agriculture approach involves raising cattle on regenerative farms that prioritise soil health, biodiversity, and carbon sequestration. Ethical sourcing ensures that cattle are raised in humane conditions, and deforestation is minimised.

An example of this is British Pasture Leather, which was founded in 2020 as the first supplier of leather that is traceable to regenerative farms in the UK.

Vegetable-tanned leather

Vegetable tanning uses natural tannins from plant materials instead of synthetic chemicals. This method significantly reduces the reliance on toxic substances and promotes eco-friendly practices. It can also enhance leather's biodegradability.

However, the vegetable tanning process is longer, more expensive, and still uses quite a bit of water. It requires a skilled workforce and has limited scalability compared to conventional methods. Despite these challenges, vegetable-tanned leather is gaining popularity as consumers demand more sustainable options.

Synthetic leather

Synthetic leather as a net-zero or eco-friendly alternative to traditional leather is a complex topic with pros and cons.

It does not contribute to deforestation for cattle grazing and produces lower greenhouse gas emissions. However, most synthetic leathers are made from plastic materials such as polyurethane (PU) or polyvinyl chloride (PVC), which are derived from fossil fuels and contribute to plastic pollution. Unlike some types of natural leather, synthetic leather does not biodegrade easily, leading to long-term waste management issues.

Alternative materials

Innovative alternatives to traditional leather are emerging rapidly.

Materials like lab-grown leather, mushroom leather (mycelium), and pineapple leather (Piñatex) offer sustainable options with lower environmental impact. Although not completely biodegradable yet, these materials often require less water and generate fewer emissions compared to conventional leather.

Innovation in Leather Processing

Revising working practices in the processing of leather can lead to significant improvements.

Reducing the environmental impact of leather processing requires collaboration betwreen retailers and suppliers in key areas:

Reduced resource consumption: waterless tanning techniques and chromium-recovery systems allow tanners to reuse water and raw materials, further minimising water use and chemical impact.

Eco-friendly chemicals: using low-impact dyes and finishing agents such as vegetable and enzyme-based tanning uses fewer chemicals than traditional chrome tanning leading to a more eco-friendly production process.

Nano-coatings for enhanced durability: using these protective coatings can extend the longevity of leather products, reducing the need for replacements and reducing waste.

Recycling leather scraps:  the leather industry generates an estimated 1.5 million tonnes of solid waste annually, much of which comes from cutting and trimming during production. Repurposing leather scraps minimises leather waste and the need for new leather.

Promoting a circular economy: the most sustainable way to use leather is to recycle and reuse leather already produced. Eco-friendly tanning can allow worn leather to be recycled or upcycled into new products.

Certification and Standards for Responsible Leather Sourcing

Certification programmes are becoming increasingly important in helping brands demonstrate responsible sourcing and supply chain transparency.

Leather Working Group (LWG)

The Leather Working Group (LWG) is a global multi-stakeholder community committed to building a sustainable future with responsible leather. The not-for-profit organisation drives best practices and positive social and environmental change within the leather supply chain. 

The Leather Working Group certification is the most widely recognised sustainability standard in the leather industry. As part of certification, LWG assesses tanneries on criteria such as water use, energy consumption, chemical management, waste treatment and traceability. 

This certification can serve as a strategic stepping stone toward more sustainable leather production.

Sustainable Leather Foundation (SLF)

The Sustainable Leather Foundation works to improve transparency and accountability in the leather industry. It also offers an audit certification via SLF Auditing Services to help leather producers and retailers ensure compliance.

The Sustainable Leather Foundation has also created The Transparency Dashboard™ to enable leather producers and retailers to demonstrate the ESG responsibility of the leather value chain. 

The Textile Exchange Benchmarking Tools

Through its Leather Impact Accelerator programme, The Textile Exchange, supports farmers and manufacturers in measuring and benchmarking performance. The Leather Impact Accelerator aims to establish a set of minimum requirements for farms and suppliers to meet, improving environmental, social and governance (ESG) performance. Their approach is to reward farms financially which meet high standards and to enable retailers to make accurate green claims.

We assess environmental, social, and animal welfare criteria, as well as traceability programs and verification.

The Textile Exchange

Institute of Quality Certification for the Leather Sector (ICEC)

Based in Italy, The Institute of Quality Certification for the Leather Sector (ICEC) is the only certification Institute in Europe and worldwide dedicated solely to the leather industry and is highly regarded for deep, technical audits, particularly for Italian luxury brands.

ICEC offers a range of certification schemes covering product traceability, sustainability, and origin verification.

These certifications help companies demonstrate compliance with environmental standards and provide assurance that leather products meet recognised quality and traceability requirements.

Global Recycled Standard (GRS)

The Global Recycled Standard verifies the recycled content of products and ensures responsible environmental and social practices throughout the supply chain. Although most commonly applied to recycled textiles, GRS can also be used for recycled leather fibres and bonded leather materials, ensuring that recycled content is accurately tracked and processed responsibly.

Together, certifications such as LWG, GRS and ICEC can help organisations demonstrate responsible sourcing practices and support compliance with emerging supply chain regulations.

Are There Incentives for Retailers and Brands to Focus on Leather?

Yes! The legislative landscape is pressing the fashion industry to clean up its environmental act, and this very much includes leather, especially with regards to deforestation and cattle grazing. The main areas of legislation coming into effect related to leather are:

EU Deforestation Regulation (EUDR)

Companies in the EU and those that sell into the EU must demonstrate their leather products are deforestation-free. This means that the farms which are used to rear the cattle and supply the hides, must not have been linked to deforestation after 31st December 2020. Our article, EUDR Compliance: Achieving a Deforestation-Free Supply Chain, explores the requirements for businesses to demonstrate that their products are deforestation-free, legally produced, and supported by a due diligence statement before entering the EU market. You can also download our EUDR Factsheet to help companies comply with EU Deforestation legislation.

EU / UK Legislation on Chemical Use

In the UK and EU, there is already legislation that applies strict controls on the presence of certain harmful chemicals in consumer leather goods. This applies to importers, manufacturers or retailers that affix branding to the product.

EU Digital Product Passport

The Digital Product Passport (DPP) is an EU initiative aimed at providing environmental information to customers purchasing textiles and footwear, and so will include leather, Incorporating chemical use and also how leather can be used in the circular economy. Read our article ‘The EU Digital Product Passport (DPP): ALL you need to know’ for more details.

How can the Fashion Industry Achieve Traceability in the Leather Supply Chain?

One of the biggest challenges in sustainable leather sourcing is the complexity of the supply chain. Leather often passes through multiple stages before reaching a finished product, including farms, slaughterhouses, traders, tanneries, and manufacturers. This multi-tier structure can make it difficult for retailers to identify the original source of hides or verify whether cattle farming was linked to deforestation.

Despite the complexity, duration, and number of suppliers involved in the production and supply of leather, improving traceability across the supply chain is a critical step towards more sustainable sourcing.

Solutions such as Segura's traceability platform enables retailers to track the entire leather supply chain, from farm to final product. helping businesses map suppliers and monitor sourcing practices.

Investing the time and effort in uncovering the people and practices involved in the supply of leather products is essential to transitioning towards a net-zero carbon-friendly future. Achieving supply chain transparency allows companies to assess environmental risks, demonstrate compliance with regulations such as the EU Deforestation Regulation, and take meaningful steps to reduce the environmental impact of leather production.

How long will it take to Transition to Sustainable Leather?

Transitioning to net zero with leather is a long-term commitment. It requires time, dedication, collaboration, and a willingness to adopt new practices. Established users of Segura have found that focusing on a few significant metrics initially and working with suppliers on these areas can bring about measurable change.

Take a closer look at your supply chain: Review your current practices. Supply chain transparency and traceability are crucial in identifying the best routes to improvement. Partner with responsible leather producers and manufacturers to build ethical, sustainable, and innovative practices. Ask suppliers to provide certifications from entities such as the Leather Working Group to validate the production and processes used.

Introduce solutions for a greener future: Adopt innovative practices like vegetable tanning, regenerative agriculture, and alternative materials to minimise environmental impact. Consider the entire product life cycle and incorporate circular practices to promote sustainability.

Engage your customers: With transparency and data, you can showcase your progress. Develop strategies to communicate your sustainability efforts, building a community of eco-conscious shoppers.

The rewards are vast – a thriving planet, a loyal customer base, and the satisfaction of leaving a lasting legacy of sustainable practices and environmental responsibility.

Read more on Net-Zero Materials Transition in the Fashion Industry, or take a deep dive into another fabric here:

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Read more about Segura’s powerful supply chain traceability tools.

About Segura

Segura is the leading fashion supply chain traceability solution, empowering fashion retailers and brands to deliver ethical, sustainable and efficient multi-tier supply chains.  

Segura provides n-tier mapping, transparency, traceability, visualisation, compliance and reporting. Segura sits in the centre of your supply chain management structure creating a central repository for all your supply chain, ESG-related data and evidence, including from third-party data sources.  

With all supply chain traceability data stored on a single platform, our customers get the right evidence in the right place to back up claims and meet regulatory compliance. 

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