Fashion is a significant source of greenhouse gas emissions. McKinsey estimated the industry produced about 2.1 billion tonnes of emissions in 2018, around 4% of the global total (McKinsey & Company, 2020).
Much of the attention goes to factories, shipping and fast fashion. For natural fibres such as wool, the carbon footprint starts much earlier: on the farm.
What the research says about wool's carbon footprint
A peer-reviewed life cycle assessment of a woollen garment looked at its full life, from the farm through processing, use and end of life (Wiedemann et al., 2020). It found that wool production on farm made up the largest share of the garment's impacts.
Methane from the sheep alone accounted for about 48% of the garment's total value-chain greenhouse gas emissions. Processing accounted for about 24%, and retail and garment use for about 13% (Wiedemann et al., 2020).
Methane from sheep is produced during digestion, so it is linked to the animals, their feed and how pastures are managed, rather than to energy use on the farm.
The study expressed its results per wear, about 0.17 kg CO₂-e each time the garment was worn. That framing matters: a garment that is worn many times and kept for years spreads its footprint across more use (Wiedemann et al., 2020).
Why the farm matters most
The pattern is familiar across agriculture. For many products made from crops or livestock, the largest climate lever sits on the farm. That changes who matters in the conversation: growers, agronomists and land managers, not just mills and brands.
For growers, this cuts both ways. It means more scrutiny of on-farm emissions, but it also means the farm is where improvement counts most, and where brands may be willing to invest.
It also explains why fashion brands with climate targets are starting to look upstream. Their Scope 3 emissions, the emissions in the goods they buy, include what happens in the paddock. We explain Scope 3 in more detail in Scope 3 emissions in agriculture, explained.
Australian wool is already responding
Australia's wool industry is exploring what this could mean in practice. Australian Wool Innovation is running a three-year pilot of an insetting framework, supported by a $4 million Federal Government grant, that would connect brands with Scope 3 targets to woolgrowers who can reduce emissions on farm (Sheep Central, 2024; Australian Wool Innovation, n.d.).
Under the model being tested, brands provide upfront capital, woolgrowers implement practices that lower emissions, and an independent third party verifies the results each year (Australian Wool Innovation, n.d.). It is still a pilot, and the detail is being worked through. If you're new to the term, see our explainer on insetting vs offsetting.
Where DuraTerra fits
We work at the soil end of the value chain. We are developing a biological soil input for broadacre farming, with pasture systems as a future target application. We have not yet trialled it in pasture or wool systems, and we make no claims about its effect on wool's carbon footprint.
What the research shows is why the farm, and the soil beneath it, deserve a place at the centre of fashion's climate conversation.
Note: Percentages are shares of value-chain greenhouse gas emissions reported by Wiedemann et al. (2020) for the garment studied. Results for other garments and systems will differ.
Frequently asked questions
What is the biggest source of a wool garment's carbon footprint?
In the garment studied by Wiedemann et al. (2020), on-farm wool production was the largest share, with methane from sheep accounting for about 48% of total value-chain emissions.
How much does processing contribute?
About 24% of the garment's value-chain greenhouse gas emissions in the same study.
What is the Woolmark+ insetting program?
A three-year pilot by Australian Wool Innovation to test a framework in which brands fund on-farm emission reductions by woolgrowers, with independent annual verification.
References
- Australian Wool Innovation (n.d.) Woolmark+ Australian Wool Insetting Program. Available at: https://www.wool.com/sustainability/australian-wool-insetting-program/ (Accessed: 20 October 2026).
- McKinsey & Company (2020) Fashion on climate. 26 August. Available at: https://www.mckinsey.com/industries/retail/our-insights/fashion-on-climate (Accessed: 20 October 2026).
- Sheep Central (2024) 'Federal Government backs climate-smart sheep and wool', Sheep Central, 25 October. Available at: https://www.sheepcentral.com/federal-government-backs-climate-smart-sheep-and-wool/ (Accessed: 20 October 2026).
- Wiedemann, S.G. et al. (2020) 'Environmental impacts associated with the production, use, and end-of-life of a woollen garment', The International Journal of Life Cycle Assessment, 25(8), pp. 1486–1499. doi:10.1007/s11367-020-01766-0.