Misto hits 18% sustainable SKUs as PFAS letters go to Tier 1

Misto Holdings has published its seventh sustainability report, a 138 page document that tracks the environmental and social footprint of the FILA sportswear brand from raw cotton sourcing to store fixture disposal. It also spells out, with unusual numerical specificity, how far the company’s influence into its supply chain currently extends.

The number that matters most is 18

FILA Re:Deuce, the sustainable product initiative Misto Korea launched in 2024, covered 18% of total stock keeping units (SKUs) by the end of 2025. That is up 5 percentage points versus the prior year, and the company aims to reach 30% by 2030.

A product qualifies under Re:Deuce if it meets minimum content thresholds for recycled, organic or responsibly sourced materials. The criteria are set out in the FILA Sustainable Product and Marketing Guidebook, now in its second edition after an April 2025 revision, with a third edition planned for the second half of 2026.

The category breakdown is more mixed than the headline figure suggests. Footwear was roughly 7% Re:Deuce in 2025, essentially flat versus the prior year. The report links this to the technical challenge of meeting material thresholds while also meeting performance specifications. Apparel drove most of the improvement. Accessories reached about 22%, up 9 points. Underwear, added to the framework in 2025, is an early mover, with plant based regenerated fiber content among the qualifying inputs.

Packaging moved faster than product. All newly ordered paper packaging in 2025 used 100% FSC certified paper. Clothing polybags now contain 50% recycled material. These are easier wins, and the report does not oversell them.

No factories, one big problem

Misto’s business model is asset light by design. It owns no production facilities; everything is made by external suppliers through an OEM based supply chain. That keeps the company’s own Scope 1 and 2 greenhouse gas emissions relatively contained. Both fell in 2025, and Misto has formalized a target to cut them 21% by 2030 from a 2024 baseline.

The harder work is Scope 3, which is where most of the group’s climate exposure sits. In 2025, Misto expanded the categories it actively tracks from 5 to 9 of the 15 standard GHG Protocol categories, adding purchased goods and services (meaning Tier 1 supplier manufacturing) to the reported scope for the first time.

An ESG data platform introduced during the year is meant to systematize collection. Of 28 suppliers that submitted energy data in 2025, 15 were already shifting some share of electricity use to renewables, mainly through solar generation, power purchase agreements or renewable energy certificates. That group represents roughly 96% of the footwear Tier 1 supply chain and about half of apparel Tier 1 by manufacturing volume.

The gaps are structural, not negligent. Supplier surveys in 2024 and 2025 identified the main constraints on renewable adoption as insufficient national infrastructure and a lack of guidance. These issues are concentrated in the countries where most of Misto’s production sits, including Vietnam and China.

The supply chain audit program covered 437 suppliers in 2025

Nineteen suppliers returned findings that required corrective action. The largest cluster was occupational health and safety, with 17 items, largely fire equipment maintenance, evacuation signage and sewing machine safety devices. Five suppliers were terminated or rejected outright after zero tolerance violations, a category that includes forced labor, child labor, structural safety failures and improper wastewater management.

On chemicals, the company moved from monitoring to commitment. In April 2026, Misto issued a PFAS non use commitment letter and collected signed confirmations from all Tier 1 suppliers. PFAS are widely used in water repellent and waterproof coatings for apparel and footwear. They are persistent in the environment and face growing regulatory pressure under EU REACH and EU POPs frameworks.

The licensee question

The most remarkable shift in the 2025 report may be the extension of Misto’s compliance standards to its licensee supply chain. Starting in 2025, licensee Tier 1 suppliers were brought under the same registration procedures, audit requirements and corrective action protocols as Misto’s directly contracted factories. For a brand that operates largely through licensing outside Korea and Greater China, as FILA does, this is a meaningful tightening of what the trademark owner can require from third party operators that carry its name.