Gildan Activewear's 12th Consecutive DJSI Inclusion: A Catalyst for Long-Term Growth in the ESG-Driven Apparel Sector

In the evolving landscape of global equity markets, ESG (Environmental, Social, and Governance) performance has emerged as a critical driver of long-term value creation. Gildan Activewear Inc. (TSX: GIL) has solidified its position as a leader in this arena, earning its 12th consecutive inclusion in the Dow Jones Sustainability™ North America Index (DJSI North America) for 2025Gildan Included in the Dow Jones Sustainability™ Index for the 12th Consecutive Year, [https://gildancorp.com/en/media/news/12th-dow-jones-sustainability-index-inclusion/]^[1]. This achievement, announced on January 6, 2025Gildan Activewear Inc. Recognized in Dow Jones Sustainability, [https://www.nasdaq.com/articles/gildan-activewear-inc-recognized-dow-jones-sustainability-north-america-index-12th]^[2], underscores the company's unwavering commitment to sustainability, placing it in the 98th percentile of its industry—a distinction that positions Gildan as the only apparel manufacturing company in the DJSI North AmericaGildan Activewear Ranks in 98th Percentile for Sustainability, [https://www.stocktitan.net/news/GIL/gildan-included-in-the-dow-jones-sustainability-tm-index-for-the-gnsjh48r5avi.html]^[3]. While the FTSE All-World Index remains a separate benchmark, Gildan's ESG leadership and strategic operational model suggest it is well-positioned to attract index-driven inflows and capitalize on global demand for sustainable equities.

ESG Leadership as a Competitive Moat

Gildan's inclusion in the DJSI North America reflects its two-decade integration of ESG principles into its business strategy. According to a report by S&P Global, the company's Corporate Sustainability Assessment (CSA) score as of September 17, 2024Gildan Activewear Inc. (GIL) Celebrates 12th Consecutive Inclusion in DJSI North America, [https://www.gurufocus.com/news/2647551/gildan-activewear-inc-gil-celebrates-12th-consecutive-inclusion-in-dow-jones-sustainability-index]^[4], placed it at the top of its sector, outperforming 188 peers in metrics such as carbon emissions reduction, supply chain transparency, and labor practicesGildan Makes 2025 Dow Jones Sustainability Index, [https://graphics-pro.com/news/gildan-2025-dow-jones-index/]^[5]. CEO Glenn Chamandy emphasized that ESG is “not a peripheral initiative but a core component of our long-term growth strategy,” citing the company's Next Generation ESG framework and Gildan Sustainable Growth (GSG) initiative as cornerstones of its operational DNAGildan Gains Dow Jones Sustainability Ranking for 12th Year, [https://www.images-magazine.com/gildan-dow-jones-sustainability-index-2025/]^[6].

This leadership is particularly significant in the textile and apparel sector, where ESG risks are acute. The industry accounts for 10% of global carbon emissions and 20% of wastewater, according to the United Nations Environment ProgrammeUnited Nations Environment Programme, [https://www.unep.org/resources/publication/global-environment-outlook-6]^[7]. Gildan's vertically integrated model—controlling production from raw materials to finished goods—enables it to enforce rigorous sustainability standards across its supply chain, a differentiator that reduces reputational and regulatory risks while enhancing brand loyaltyGildan Activewear 2025 Company Profile, [https://pitchbook.com/profiles/company/51421-24]^[8].

Financial Fundamentals and Index-Driven Momentum

Beyond ESG, Gildan's financial performance reinforces its investment appeal. For Q4 2024, the company reported record net sales of $822 million, a 5% year-over-year increase, and an operating margin of 21.8%, reflecting disciplined cost management and pricing powerGildan Reports Record Fourth Quarter Revenue, [https://financialpost.com/globe-newswire/gildan-reports-record-fourth-quarter-revenue-and-adjusted-diluted-eps%c2%b9-and-initiates-guidance-for-2025]^[9]. Its $7.63 billion market capitalization as of June 2025Gildan Activewear 2025 Financials, [https://gildancorp.com/en/media/news/q1-2025-results/]^[10] and $3.34 billion trailing twelve-month revenueGildan Activewear Stock Price Today, [https://www.investing.com/equities/gildan-activewear]^[11] highlight its scale and resilience in a cyclical sector.

While Gildan is not currently listed in the FTSE All-World Index, its ESG credentials align with the criteria of global indices that prioritize sustainability. The FTSE All-World Index, which includes ~4,100 companies and covers 95% of global investible market capitalizationFTSE All-World Index Overview, [https://ftse100.net/ftse-all%e2%80%91world-index/]^[12], is reviewed quarterly and favors firms with strong ESG profiles. Gildan's DJSI recognition—particularly its status as the only apparel manufacturer in the index—positions it as a potential candidate for future inclusion, which could trigger passive fund inflows similar to those seen in March 2025 when 14 Indian companies were added, generating $1.4–$1.6 billion in market inflowsFTSE Index Rebalancing: 14 Indian Companies Added, [https://www.samco.in/knowledge-center/articles/ftse-index-rebalancing-indian-equities-witness-inclusion-of-14-companies/]^[13].

Strategic Positioning in a Shifting Market

Gildan's strategic initiatives further bolster its long-term growth prospects. The company's 10% dividend increase for 2025Gildan Activewear Announces 2025 Dividend Increase, [https://gildancorp.com/en/media/news/q1-2025-results/]^[14] and $889 million in shareholder returns in 2024Gildan Reports Record Fourth Quarter Revenue, [https://financialpost.com/globe-newswire/gildan-reports-record-fourth-quarter-revenue-and-adjusted-diluted-eps%c2%b9-and-initiates-guidance-for-2025]^[15] demonstrate its commitment to capital allocation, while its recent proximity to acquiring Hanesbrands Inc. signals ambitions to consolidate the U.S. underwear marketGildan Activewear Stock Price Today, [https://www.investing.com/equities/gildan-activewear]^[16]. Analysts at MarketBeat and Gurufocus note that Gildan's stock, trading at $70.24 as of September 2025Gildan Activewear (GIL) Stock Price, [https://www.marketbeat.com/stocks/TSE/GIL/]^[17], offers a 13.04% upside potential relative to the $79.40 price target, driven by its ESG-driven valuation premiumGildan Activewear Analyst Ratings, [https://www.gurufocus.com/stock/GIL/analysis]^[18].

Conclusion: A Compelling Case for Immediate Investment

Gildan Activewear's 12th consecutive DJSI North America inclusion is more than a symbolic achievement—it is a testament to its operational excellence and alignment with global sustainability trends. While the FTSE All-World Index remains a separate benchmark, the company's ESG leadership, financial strength, and strategic agility position it to attract capital from ESG-focused investors and potentially benefit from index-driven inflows in the future. For investors seeking exposure to a resilient, ESG-aligned player in the textile sector, Gildan represents a compelling opportunity to capitalize on long-term growth.