sustainable development of asia’s garment and textile sector · dr. christina raab yangon, 31...
TRANSCRIPT
Dr. Christina Raab
Yangon, 31 March 2015
Sustainable Development of Asia’s
Garment and Textile Sector:
Market pull and push mechanisms between Europe and Asia
Please
exchange
picture
Images (left to right): YuviPanda, ILO, MADE-BY, James Butler
MADE-BY: Who we are
• Non-profit organisation, with multi-stakeholder board
• Founded in 2004 by Dutch development organisation
Solidaridad
• First fashion sustainability initiative to focus
holistically on social and environmental issues
throughout the entire value chain
• Mission: Making sustainable fashion common practice
• Service approaches include strategy setting, capacity
building / implementation, progress communication
• Team of 20 interdisciplinary professionals, with global
partner and expert network
• Offices in Amsterdam, London, Düsseldorf
• Awarded ‘Consultancy of the Year’ in the Guardian
Sustainable Business Awards 2013
Images: MADE-BY
3,164,000 tonnes
imported from Asia
74,000 tonnes
exported to Asia
Clothing trade flows between EU and Asia
Top three origins
of EU imports:
1. China
2. Bangladesh
3. India
Source: Environmental indicator report 2014, EEA
Sustainability challenges
The textile industry is the
second largest user of water
in the world.
It discharged 2.5 billion tons
of wastewater in 2010,
equalling 10,000 Olympic-
sized swimming pools.
1 trillion kilowatt hours used
every year by the global textile
industry = 10% of total global
carbon impact.
Europeans discard 5.8 million
tonnes of textiles every year,
with 75% going to landfill or
incineration and only 25%
being recycled.
2,000 different chemicals
are used in the textile industry.
Working conditions and
human rights in textile
factories remain a concern in
many producing countries.Images: Javier Morales, Peter Nijenhuis,
Horia Varlan, Roel Schroeven, Blaine O'Neill
• Growing pressures on the
environment and competition for
resources
• Risks of volatile resource prices and
supply disruptions
• Need for transition from a linear to a
resource-efficient and regenerative
economy
• Access-over-ownership business
model
Changing market dynamics:
1. Resource efficiency and circular economy
Source: Ellen McArthur Foundation
Changing market dynamics: 2. Regulatory
requirements, policy initiatives, voluntary frameworks
Guidelines for
Multinational Enterprises
Tripartite declaration
of Principles
REACH
Germany
10 Principles
Changing market dynamics: 3. NGO campaigns
Eliminating the use and release of all hazardous
chemicals from global textile supply chains and
products by 1 January 2020
Clean Clothes Campaign
Improving working conditions and
supporting the empowerment of workers
Greenpeace
Images: Greenpeace & Clean Clothes Campaign
Changing market dynamics: 4. The rise of
conscious consumerism
Consumer interest in sustainable lifestyles is increasingly becoming a driving
market force for growth and innovation in Europe an Asia
Source: Greendex 2014
Greendex Score
2014 ranking
1. Indians
2. Chinese
3. South Koreans
Changing market dynamics: 5. New approaches
to corporate sustainability strategies
Enhanced business
performance through:
• aligning core purpose with
delivering value to society
• linking sustainability to
brand value
Internal ExternalStakeholder Focus
Low
High
Su
sta
ina
bilit
y S
tan
da
rd
Compliance / Risk Mitigation
Efficiency
Legitimating
Holistic
Changing market dynamics: 6. Industry initiatives
and multi-stakeholder fora
• Collective action and collaboration on various sustainability issues in the value chain
• Partnerships for scaling and effective market transformation
Leveraging changing market dynamics:
Opportunities and solutions
The changing market dynamics bring opportunities for
Asian and European businesses and stakeholders
alike
Every exchange in the value chain provides
opportunities for innovation and competitiveness:
• Sustainable production
• More sustainable materials and products
• Responsible value chains
• Innovative business models
• Consumer empowerment
• Sector-wide collaboration
Image: MADE-BY
Partnership for Cleaner Textiles in Bangladesh
Main goal: to reduce the water footprint of the Bangladeshi textile industry
Three project components:
• Brand engagement: Capacity building, decision support guidance on procurement
• Improvements at factory level
– Awareness raising (500 mills)
– Basic Cleaner Production (200 mils)
– Cleaner Production “Deep Dive” (100 mills)
– Capacity building of local consultants
– Access to Finance
– Textile technology business centre
• Enabling environment: national association and government engagement
MADE-BY is maninly involved in the brand engagement (development of and training on the decision support guidance)
MADE-BY wet processing benchmark & guide to
textile wet processing standards
Focus water and energy use,
with selected chemical hazard
information; for process steps of
pre-treatment, dyeing, finishing,
printing
MADE-BY Environmental Benchmark for Fibres
Six parameters for ranking: Greenhouse gas emissions, human toxicity and eco-toxicity are
weighted to 20% each, while energy, water and land use has been given a 13.33% weighting.
Rising demand for sustainable cotton
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
BCI CmiA Organic Fairtrade
Sustainable Cotton Production Volume
Pro
du
ctio
n c
ott
on
fib
re (
in %
)
Retailer /
Brand
Commitment
Sustainable Cotton
IKEA 100% by 2015
Puma Up to 50% by 2015
M&S 25% by 2015
Levis 20% by 2015
Adidas 100% by 2018
H&M 100% by 2020
Otto Group 100% by 2020
C&A 100% by 2020
Retailer Demand
Source: Textile Exchange, Farm & Fibre Report, 2013
Image: AgriLife Today
Fashion from recycled ocean plastics
September 2014: “Raw for the Oceans“ denim collection
- from G-Star and Bionic Yarn
- containing yarn spun with fibers from recycled plastic garbage recovered from oceans and
coastlines
Images: Vortex Project, G-Star
Tier 2
Factory
Knitting / Dyeing Of
Natural Fibres / Dyeing Of
Synthetics
Factory
Knitting / Weaving / Dyeing
Of Natural Fibres / Dyeing
Of Synthetics / Finishing
Factory
Weaving / Desizing /
Scouring / Bleaching /
Dyeing Of Natural Fibres /
Dyeing Of Synthetics /
Finishing
Factory
Knitting
Factory
Knitting
Factory
Dyeing Of Natural Fibres /
Dyeing Of Synthetics /
Cutting
Factory
Screen Printing
Factory
Weaving / Desizing /
Scouring / Bleaching /
Dyeing Of Natural Fibres /
Dyeing Of Synthetics
Factory
Knitting / Dyeing Of Natural
Fibres / Dyeing Of
Synthetics
Factory
Knitting / Dyeing Of
Natural Fibres / Dyeing Of
Synthetics
Factory
Knitting / Desizing /
Scouring / Knitting / Dyeing
Of Synthetics / Soaping /
Washing
Factory
Knitting / Weaving /
Bleaching / Bleach Cleaning
Factory
Knitting / Scouring /
Bleaching / Knitting / Dyeing
Of Synthetics / Soaping
Factory
Knitting / Scouring /
Bleaching / Knitting / Dyeing
Of Synthetics / Soaping /
Cutting
Factory
Knitting / Bleaching / Bleach
Cleaning / Knitting / Dyeing
Of Natural Fibres / Knitting /
Dyeing Of Synthetics /
Cutting
Factory
Knitting / Bleaching / Bleach
Cleaning / Cutting
Factory
Knitting / Bleaching /
Knitting / Dyeing Of
Synthetics / Screen
Printing / Washing
Factory
Weaving / Bleaching /
Bleach Cleaning / Cutting /
Washing
Brand
Tier 1
Tier 3
Main Supplier Main Supplier
Factory
Dyeing
Factory
Dyeing
Factory
Dyeing
Overlapping SupplierUnique Supplier Non-Wet Processing Supplier
MADE-BY Supply Chain Mapping Tool
MADE-BY MODE Tracker: ‘Making Clear Progress’
• Comprehensive methodology to drive increased transparency
• Progress tracking tool for clothing industry
• Encompasses existing tools & frameworks, and where possible creating equivalencies (e.g. with GRI, Higg Index)
• 8 cubes: product, people, product waste, packaging & transportation, manufacturing, use & durability, transparency, own operations
• Extensive criteria and metrics, scheme from green to red on depth and breath of engagement, 4 levels of engagement (from beginner to pioneer)
• Roadmap for engagement and communication of year-on-year Progress
• Annual independent verification (by MADE-BY)
Closed-loop and new business models
I:CO
Consumer and business
take-back system for
textiles
Patagonia
Worn Wear Repair Truck
Tour of clothing-repair experts
Mud Jeans
Leasing of jeans and
recycling/upcycling materials
Images: H&M, Mud Jeans, Patagonia
Sector-Initiative: SCAP in the UK
Sustainable Clothing Action Plan (SCAP), led by WRAP
and funded by DEFRA
• 69 organisations signed up to the commitment,
representing more than 40% of UK retail sales
SCAP 2020 targets (baseline year 2012) for signatories
• 15% reduction in carbon footprint;
• 15% reduction in water footprint;
• 15% reduction in waste to landfill;
• 3.5% reduction in waste arising over the whole product
life-cycle.
• MADE-BY is knowledge and implementation
partner through
- SCAP Footprint Calculator for measuring and
reporting
- Steering Groups: Design, Re-use & Recycling,
Influencing consumer behaviours, Metrics
Image: Sherrie Thai
Better risk management and mitigation
• Meeting legal requirements
• Protecting social licence to operate
• Gaining greater access to capital
Cost reduction and operational efficiencies
• Increased resource efficiency
• Process consistency
• Strategic supplier relationships
Revenue growth
• More sustainable products
• Innovative business models
• Gaining access to new markets
Brand value and reputation
• Meeting stakeholder expectations
• Collaborating for transparency
• Employee retention
Sustainability as a driver for system
transformation and holistic value creation
Image: Ian Kelsall
Thank You
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United Kingdom
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fax: +44 (0)20 7323 0337