Wool Insetting Program Receives $4 Million Grant | Woolmark+

Woolmark’s Insetting Program Awarded $4 Million Grant

The Australian Government Is Supporting the Wool the Company’s Sustainability Effort through Woolgrower Partnerships

The Woolmark Company has received AU$4 million in funding from the Australian Government to launch an innovative Australian Wool Industry Insetting Program, part of the new Woolmark+ roadmap. The initiative seeks to connect global apparel brands with Australian woolgrowers committed to reducing greenhouse gas emissions through nature-based solutions.

With Woolmark leading the effort, this program is set to develop and trial a unique insetting framework to drive emissions reductions directly within the textile supply chain. This approach, known as insetting, contrasts with traditional offsetting by focusing on sustainability measures that reduce emissions internally within the industry, rather than external compensation.

In collaboration with Pollination, a climate change investment and advisory firm, and Landcare Australia, a land management non-profit, Woolmark’s program will create and scale a model for GHG emission reductions that benefits both woolgrowers and brands. A key goal is establishing a system to connect international fashion and textile brands with Australian wool producers actively working on emissions reduction projects. This alignment helps brands reduce their Scope 3 emissions—indirect emissions from their supply chain.

“We want to offer woolgrowers an option and brands a solution that allows emissions reductions to remain within the textile supply chain,” said Woolmark Managing Director John Roberts. “Brands are increasingly seeking ways to address their Scope 3 emissions, but scaling these efforts has been a challenge. Insetting presents an exciting opportunity for brands to meet their emissions targets in a way that aligns with the Science Based Targets initiative (SBTi) while simultaneously supporting Australian woolgrowers. We’re grateful to the Australian government for their support of this game-changing initiative.”

The program aims to dismantle barriers for woolgrowers looking to reduce emissions, such as lack of guidance, access to capital, and limited market engagement. By addressing these challenges, the initiative will empower woolgrowers to manage more than 65 million hectares of Australian land with sustainable practices, contributing to long-term emission reductions across the wool value chain.

Pollination’s Director, Lara Phillips, underscored the program’s potential, stating, “By supporting nature-based solutions such as environmental plantings and best-practice flock management, the project will lay the foundation for scalable, high-integrity emissions reductions that deliver environmental and economic benefits for Australian woolgrowers.”

Landcare Australia, which has been at the forefront of environmental land management for over three decades, is also enthusiastic about the initiative. CEO Dr. Shane Norrish noted, “Supporting woolgrowers to understand their opportunities in emerging environmental markets as well as providing on-ground implementation support for environmental plantings will help reduce emissions while increasing biodiversity within the wool value chain.”

Funded through the Climate-Smart Agriculture Program under the Natural Heritage Trust, Woolmark’s initiative is currently seeking participation from Australian woolgrowers and global fashion and textile brands interested in collaboration to achieve GHG reductions.