Exporting Textiles: March to Sustainability

Source: 
cKinetics

The 1990s was about the march towards manufacturing quality as the textile industry worldwide raced to adopt lean manufacturing and ISO driven quality practices. The 2000s were about ensuring ethical sourcing and labor practices. The coming decade is going to be about sustainability and optimally using natural resources to generate value in the textile supply chain.

In this report we talk about this new dimension on the cusp of being rolled out throughout the supply chain: Environmental Sustainability. Progressive brands and retailers have been exploring sustainability initiatives since the middle half of the last decade: testing initiatives first internally and now considering roll-out through their global supply chains. This report attempts to paint a picture of what the next few years are going to look like and inform industry practicioners on the shift that is afoot. 

Table of Contents
1. Preface ... 02
2. Creating Sustainable Supply Chains in the Textile Industry ... 06
3. In focus: Activity Snapshot of Textile Brands and Retailers ... 10
        3.1 Adidas ... 18
        3.2 Gap, Inc. ... 20
        3.3 H&M ... 22
        3.4 Ikea ... 24
        3.5 Levi Strauss & Co ... 26
        3.6 Marks & Spencer ... 28
        3.7 Nike ... 30
        3.8 Otto ... 32
        3.9 Carrefour ... 33
        3.10 Walmart ... 34
        3.11 Continental Clothing ... 37
4. Brands and Retailers with Supply Chain Initiatives in Planning ... 40
        4.1 Phillips-Van Heusen ... 41
        4.2 Timberland Company ... 42
        4.3 Inditex ... 43
        4.4 Primark ... 44
        4.5 John Lewis Partnership ... 45
        4.6 Lindex ... 46
        4.7 Tesco ... 47
5. Standards and Certifications ... 50
        5.1 Standards for Reporting and Capturing Emissions ... 51
                5.1.1 ISO 14000 ... 51
                5.1.2 GHG Protocol ... 52
                5.1.3 GRI Reporting Framework ... 53
                5.1.4 PAS 2050 ... 54
        5.2 Products Standards and Certifications ... 55
                5.2.1 Global Organic Textile Standard (GOTS) Certification ...56
                5.2.2 Blue Sign ... 58
6. Industry Initiatives ... 60
        6.1 BSR Working Groups ... 61
        6.2 Outdoor Industry Association ... 62
        6.3 Made-By ... 63
        6.4 TexCUTS ... 64
        6.5 Better Cotton Initiative ... 65
7. Predictions and Planning Ahead ... 66
8. Glossary and Resources ... 68
        8.1 Data Sources for the Report ... 69

 

Context

As the textile supply chain has evolved to meet changing price and quality demands from the global marketplace, so has the sophistica-
tion of buyers in tracking their suppliers. In the mid-1990s, buyers added a new dimension to their requirements, and began making de-
mands regarding health, safety and labour conditions. Global manufacturing centres have increasingly had to respond not only to local
requirements but also to global ones.

In this report we talk about a new dimension on the cusp of being rolled out throughout the supply chain: Environmental Sustainability.
Environmental Sustainability takes into account the use of water, energy, and natural resources, and seeks to minimize negative impacts
to the environment in the production of textile-based goods, as well as in their use by consumers. The long term goal of such initiatives
would be complete sustainability.

Progressive brands and retailers have been exploring sustainability initiatives since the middle half of the last decade: testing initiatives first internally and now considering roll-out through their global supply chains. This report profiles 19 such firms and what they are doing. Sustainability is about doing ‘more with less’, which means finding savings and creating business value in addition to having a positive impact on the environment. For the purpose of this report, we are looking at aspects of sustainability which concern the textile supply chain from the raw material (natural fiber or man made fiber) to the point that it is converted to finished product. The focus in the report is primarily on the following aspects: energy efficiency, carbon/ greenhouse gas emissions, water and chemcial footprint as well as logistics. We have intentionally left out raw material production and product composition since they are typically out of the control of textile suppliers and since they are vast topics in themselves to work upon.

The report is written keeping a supplier perspective in mind:
1. What are some of the progressive brands and retailers doing and planning for their supply chain?
2. How does one begin to measure sustainability and compete in this changing market?

This report also touches upon initiatives that companies have already started to engage in to improve raw materials in the supply chain, such as the Better Cotton Initiative and the Organic Exchange. In addition, the report discusses other initiatives where buyers are coming together to form a unified voice, including the Outdoor Industry Association, and working groups assembled by the Business for Social Responsibility (BSR). While much of the current work being done to increase the sustainability of the global textile supply chain is still in its early stages or being applied regionally, in the next 24-36 months these initiatives will become mainstream globally.

Report Author: cKinetics
cKinetics is a venture accelerator catalyzing rapid adoption of low energy-carbon-water sustainable growth practices in emerging economies through research, technology transfer, capital access and adaptation interventions. cKinetics seeks to use market based solutions and industry dynamics to address the most pressing issue of our time: sustainably driven growth and development.

This report has been written by cKinetics' Market Access and Insight Practice that is working on supply chain interventions that include mapping, base-lining, risk assessment and inventorization.

For additional details please write to MarchToSustainability2010@cKinetics.com

Supported by Sustainable Life Media
Sustainable Life Media is a leading producer of sustainable business conferences and educational events, with supporting products and ser- vices that include targeted e-newsletters, an online learning resource and community and more.

Supported by NITRA
NITRA is a premier textile research association focused at capacity building and extension of knowledge related to the Textile Industry. NITRA is linked to the Ministry of Textile and recognised by the Department of Scientific and Industrial Research for providing services to centralised as well as decentralised sector.

Author(s): 
cKinetics
Author: India Carbon Outlook

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