Water Risks Influencing the Future of the Textile and Apparel Industry. Abstract. Introduction

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1 Water Risks Influencing the Future of the Textile and Apparel Industry Karen K. Leonas, North Carolina State University & Jacqueline Sewell, North Carolina State University Abstract Water is widely used throughout the textile and apparel supply chain. It is key to wet processing from preparation to finishing and can occur during fiber, yarn, fabric or garment production. As increased water scarcity and pollution contribute to worldwide water risks, the textile and apparel industry is threatened. In addition to loss of this natural resource, the reputations of brands and retailers is also at risk. This study looks at the overall risks by geographical region and global efforts to reduce pollution and water use in the industry. Drivers influencing transformational change are identified including collaborative efforts through organizations (i.e. PaCT, ZDHC, TSC, AAFA) and evaluation of innovative technologies. Case studies supporting the adoption of new practices are included. Introduction The global textile and apparel industry uses five trillion liters of water each year for wet processing. 1 PaCT, Partnership for Cleaner Textiles, stated that the wet processing phase of a garment or textile can be close to fifty percent of its cradle to gate water use, depending on the fiber and finishing. 2 In addition to the volume of water used in textile and apparel wet processing, an estimated 20,000 chemicals can be used to achieve desired processing results. 3 Considering the current size and projected growth of the global textile and apparel industry and its acknowledged use of water and pollution of water, it is crucial to examine the challenges water risk, stress and scarcity will create for the industry, and consider potential solutions to address emerging challenges. Water risk is an overarching term that includes water scarcity and water stress, defined by the CEO Water Mandate as the possibility of an entity experiencing a water-related challenge (e.g. water scarcity, water stress, flooding, infrastructure decay, and drought). 4 The CEO mandate defines water stress as the ability, or lack thereof, to meet human and ecological demand for fresh water; compared to scarcity water stress is more inclusive and a broader concept. 5 Water Scarcity has been defined by numerous sources including the CEO Water Mandate and other organizations such as the United Nations (UN) and the Global Water Forum. The lack of availability of water is identified in each definition however why it is not available, due to physical shortage or due to lack of access, vary by definition. The World Economic Forum s yearly Global Risks Report has listed potential water crises as one of the top three global risks in terms of impact since In 2017, WHO reported that over two billion people lack access to safely managed drinking water systems, water scarcity affecting four out of ten people. 7 It is projected that by 2025, two thirds of the world s population will be living in water-stressed countries. 8 Water scarcity takes many forms, including declining groundwater tables, reduced river flows, shrinking lakes, and heavily polluted waters. With continued global population growth, water scarcity will be further exacerbated as watersheds are strained by human consumption and industrial or business demands. Businesses are now looking to mitigate the water scarcity risks through developing an understanding of potential consequences and how this will impact the textile and apparel landscape of the future.

2 Several groups are monitoring water risk, water stress and water scarcity globally and the following were used in this analysis: International Water Management Institute focuses on the sustainable use of water and land resources in developing countries. Information on economic, physical, and details on approaching water scarcity for selected countries is provided. They are a non-profit, scientific research organization focusing on the sustainable use of water and land 9, 10 resources in developing countries. World Resources International (WRI) Aqueduct s Global Water Risk map provides a measure of water stress by country. 11 World Wildlife Fund (WWF) promotes water stewardship, protecting wetlands, adapting to climate change and provides information on water risks including a water risk filter used here. 12 Water Accounting is a multi-institutional collaboration by the FFAO, UNESCO, IWMI, and CGIAR. An estimation of sources, availability, and uses of water is provided for certain countries. 13 UNESCO works to build the scientific knowledge base to help countries manage their water resources in a sustainable way through various other organizations including International Hydrological Programme (IHP), leading the UN-wide World Water Development Report and numerous Centres related to water around the world. 14 CEO Water Mandate works with business leaders to address global water challenges through stewardship program.s They partner with the UN, governments, civil society organizations and others. 15 UN Water monitors Sustainable Development Goal (SDG) 6 which aims to ensure availability and sustainable management of water for all. The UN started and integrated monitoring initiative bringing together a host of organizations including WHO/UNICEF Joint Monitoring Programme for Water Supply, Sanitation and Hygiene (JMP), and the inter-agency GEMI and UN-Water Global Analysis and Assessment of Sanitation and Drinking-Water (GLAAS). The initiative has the objective of developing methodologies and tools to monitor SDG 6 global indicators, raising awareness at national and global levels about SDG 6 monitoring, enhancing technical and institutional country capacity for monitoring, and compiling country data and reports on global progress towards SDG Relationship between Textile Wet Processing Water Risk Using sources including the WWF Water Risk Filter and the WRI Aqueduct Map and combining that with reports of The World Trade Organization s Merchandise Trade and Trade in Commercial Services, it was found that many textile and apparel clusters exist in areas currently experiencing high levels of water scarcity and water risk. 11, 18 Acknowledging the large volume of water used in textile wet processing, there are indications that these manufacturing clusters are contributing to the areas of water issues. For example, in the Dhaka Metropolitan area of Bangladesh, it was reported that the textile industry used almost double the amount of water that the population of Dhaka used in The landscape, defined as the current state as well as the future, change facing the industry due to growing water scarcity has put manufacturers and brand s supply chains at risk.

3 Relationship between Water Pollution and Water Scarcity Chemicals are used throughout the textile and apparel wet processing industry to achieve desired results that will meet the demands and expectations of consumers. Chemicals are used in a number and variety of processes including sizing, desizing, bleaching, scouring, pre-treatment, dyeing, printing, and chemical finishing, which can include processes to impart characteristics of flame retardancy, antimicrobial properties, stain resistance, and wrinkle resistance. 19 The chemicals used during these processes are typically discharged from manufacturing facilities in the textile effluent and make their way into open bodies of water. Chemicals contained in the effluent can result in a negative environmental impact and render bodies of water too polluted for industrial or personal use. The contaminated water can contain thousands of harmful and toxic chemicals, including colored dyes, and cleaning solvents, such as sulphur, nitrates, acetic acids, chromium compounds, formaldehyde fixing agents, hydrocarbon softeners, chlorinated stain removers, and heavy metals like lead and cadmium. 19 Some of these chemicals are known to alter the ph, oxygen, nitrogen, and phosphorous levels resulting in a disruption of aquatic and terrestrial life. Results of toxic effluent can include; potential contribution to rapidly growing deoxygenated dead zones, thermal pollution, increased water turbidity, hindering of water s self-purification process, reduced oxygen supply and more. 20 The relationship between the textile industry and water pollution as a result of wet processing effects can be seen utilizing the WWF water-risk map. 18 The ten countries identified as the largest textile and apparel exporters in US dollars, also have large geographic areas within high contamination risk to very high contamination risk water pollution. It was found that about 11% of the total wastewater discharge in China, the largest textile exporter in US dollars, is from the textile and apparel industry. 20 The Chinese Ministry of Environmental Protection declared 39% of the water in the seven main river basins, 58% of the water qualifying the twenty-six key lakes and reservoirs, and 55% of groundwater quality too polluted for human touch in Waste Water Treatment Infrastructure and Technology Various countries with heavy apparel and textile markets do not have strong municipal treatment systems. Figure one presents information based on a country s 2016 textile and apparel export rank, measured in US dollars, and the Environmental Performance Index (EPI) wastewater treatment results and rank. The EPI measures wastewater treatment as the percentage of wastewater that undergoes at least primary treatment, normalized by the proportion of the population connected to a municipal wastewater collection system. 22 The wastewater indicator measures and tracks water treatment from municipal facilitates, not independent wastewater treatment plants. The current wastewater rank is a country s rank out of 143, covering countries with available data. More than one country can have the same rank, for example, 38 Countries have the rank of 143, because they have zero wastewater treatment. The current wastewater score assigns a score to each country based off 100. The table shows that less developed countries have lower wastewater scores and lower ranks, demonstrating the lack of municipal wastewater treatment infrastructure.

4 Table I. Country Textile Exports Rank Apparel Exports Rank Current Wastewater Rank Current Wastewater Score China #1 #1 # EU #2 #2 N/A N/A India #3 #5 # US #4 #10 # Turkey #5 #7 # Republic of Korea #6 Below the top l0 # Pakistan #7 Below the top 10 # Vietnam #10 #4 N/A N/A Indonesia Bangladesh Cambodia Below the top 10 Below the top 10 Below the top 10 #8 # #3 # #9 # *N/A- applies to countries in which the EPI couldn t access data for or could not evaluate Technology development and implementation to address water use reduction and effluent cleanup has been seen throughout the textile and apparel industry. Some reduced water and waterless wet processing technologies are being developed in laboratories, however to date most are not saleable. In addition to best practices, there are numerous examples of current waterless technology including ozone finishing, foam application of dyes and finishes, SCCO2 dyeing and enzyme use to decrease wash cycles With increasing information and awareness regarding water risk, specifically in areas where there are numerous textile and apparel wet processing facilities, the industry is searching for ways to reduce water use in cost-effective ways.

5 Emerging technologies and best management practices can contribute to reducing the water footprint and help move the industry from a use and disposal to reuse, recycle, and resource recovery model. As there is increased attention on water risk, water is being viewed more as a valuable resource. Water recycling is an effort to move the industry toward a closed loop system, as wastewater should not be seen as waste, but rather as a commodity that can be reintroduced into the manufacturing process or returned to the environment in a cleaned state for alternative purposes. There are barriers to the implementation and adoption of cutting edge technologies including reduced product performance, cost, and issues related to scaling up for industrial use. However, there are a number of best practices that can be implemented to improve water use efficiency including losses from leaking pipes and steam through metering and leak detection, recapturing excess chemicals, recapturing heat in water flows, collecting and recovering condensation, and utilizing grey water in the first rinse after dyeing. 26 Ten best practices were outlined by NCDR s Clean by Design and five of these relate to reducing water use. After the first round of implementation, NRDC s reported that following the five best waterrelated practices can reduce water use in a mill by up to twenty-five percent with minimal investment. However, since ending the first round of implementation on the Ten Best Practices adjustments have been made and estimates now calculate a potential water savings of up to fortyfive percent. 27 Collaborative Efforts Due to the immediate issues associated with water risk, brands, NGOs, governments and industry organizations are coming together with collective thought and action to address global industrywide issues. In the textile and apparel industry, these efforts focus on industrial water use, chemical use in wet processing, and wastewater discharge. The goal to create a global movement through collaboration, rather than a single, company/organization oriented mission, has been seen in the mission statements of various organizations. Collaborative efforts are successful when created in a space that is safe and non-competitive allowing otherwise competing organizations/brands to work on shared issues towards a common goal. Creating more sustainable business practices leading to a sustainable fashion and textile industry can be achieved through resource sharing and the empowering of brands, manufacturers, retailers and raw material suppliers. In the textile, apparel and related industries there has been an increase of this collaboration and resource sharing. A few examples are described below. Water Environment Federation Water Technology Innovation Clusters Water technology innovation clusters are regional groupings of businesses, government, research institutions, and other organizations within the US that are focused on new, innovative, and sustainable technologies that lead to clean water. The object of these networks are to help address the nation's water related challenges by providing access to test beds and partners for pilot studies, and encouraging communication between companies and regulators, creating partnerships between businesses and researchers, facilitating the transfer of new technologies to the market, and creating an environment where companies and organizations can easily share ideas and solutions. The organization is a collaboration between the Water Environment Federation (WEF) and a former US EPA program called Leaders Innovation Forum for Technology (LIFT). The program states, bringing together government officials, water

6 technology developers and entrepreneurs, utility representatives, testing facility representatives, brands and companies, and more states, The Clusters Program disseminates best practices in cluster development, connects clusters to relevant WEF programs, and maintains an inventory of U.S. clusters. 28 Zero Discharge Hazardous Chemicals ZDHC s is leading an industry-wide movement against the discharge of hazardous chemicals in the textile and apparel supply chain. 29 ZDHC completed a global literature review of current chemical and wastewater discharge standards for fourteen countries that are major producers of clothing and textiles. 30 In this report also looked at the effluent limits on a number of chemicals. There was some confusion as this report highlighted the lack of consistency in information availability and presentation. However, after collaborating with others in the industry and sharing resources, ZDHC created comprehensive global wastewater discharge standard. 31 This effort promoted collaboration between twenty-four brands, fifty-nine value chain affiliates, and fifteen associates to re-direct the behavior of the textile and apparel wet processing industry. American Apparel and Footwear Association The American Apparel and Footwear Association (AAFA) has created a collaborative forum for the sharing of best practices and innovation among its members. They represent nearly four million U.S. workers and more than one thousand global brands, retailers and manufacturers. 31 AAFA provides expertise in supply chain management, trade policy, regulatory policies, and brand protection in a common and easily accessible platform within three main priorities: brand protection, supply chain, and trade. The object of the supply chain section is to keep brands and manufacturers up to date on sustainability and social responsibility, chemical management, and transportation and logistics. The organization is known for having a robust and highly used chemical RSL list, developed by AAFA s Environmental Task, responsible for guiding companies and suppliers to environmental compliance through national and international regulations, updated on a regular basis, supplemented by additional chemical management resources to guide companies toward sustainable and responsible chemical use. 32 Sustainable Apparel Consortium The Sustainable Apparel Consortium (SAC) 33 is another example of a global collaborative effort, which resulted in the creation of a comprehensive and widely used sustainability assessment tool, the Higg Index. SAC Higg 3.0 was introduced in the fall of 2018 with several moduli. The Facility Environmental Module, FEM tool measures water use, wastewater and chemical management and use, among four other hotspots and the Higg Brand Reporting Measurement tool, BRM, measures water use and wastewater, among five other categories. SAC has partnered with Clean by design, Carbon Performance Improvement Initiative, McKinsey & CO, the Outdoor Association Industry (OIA), ZDHC, and the Sustainable Trade Initiative. Each of these organizations brings a different set of expertise to the collaborative effort. This has allowed the SAC to reach a broader audience and offer increasingly expanded tools. The SAC s stated: By joining forces, we are addressing the issues on a scale equal to the challenge. No company alone can shift the existing industry paradigm. To ignite the change required to redefine how the industry is run, peers and competitors come together as a united front,

7 adhering to the Coalition s set of core collaboration values that are designed to further impactful change across the industry. 33 Outdoor Industry Association The Outdoor Industry Association (OIA), which is a membership driven organization that allows for collaboration among companies in the outdoor industry has created a Sustainability Working Group (SWG) and they have developed a Chemical Management Toolkit which contains information on hazardous chemicals, alternative green chemistry, chemical safety, building chemical management plans, and more. They have also created a task force to examine 34, 35 microfiber pollution and have developed a toolkit on this topic. The Sustainability Consortium The Sustainability Consortium (TSC), an organization built around supply chain sustainability reporting tools and key performance indicators has an alliance with the SAC to create a common vision in sustainability reporting tools for the textile and apparel sector. The Clothing, Footwear, and Textiles Committee developed a task force that identified water risk as a critical issue. As a result, the Waste Water Challenge product was created with the goal of developing the Wastewater Toolbox 101. The goal was to understand common causes of wastewater nontreatment on a global scale as well as identifying regional barriers leading to wastewater nontreatment. The goal is that the Wastewater Toolbox will be available globally that retailers, brands, and manufacturers can utilize to reduce water use through best practices, eliminate hazardous chemicals and provide information on alternative green chemical use, and access assistance for wastewater treatment operations, eliminate hazardous chemicals and provide information on alternative green chemical use, and access assistance for wastewater treatment operations. To achieve this, TSC has created a partnership with NGO s, wastewater service providers, industry partners, brands, and universities, to collect a network of information that can be applied on a global scale. 36 Partnership for Cleaner Textiles The Partnership for Cleaner Textiles (PaCT) is an organization in Bangladesh led by the International Finance Corporation (ITG) and partners with NGOs, governments, apparel brands, technology supplies, textile factories, and others and is addressing high water, energy and chemical use through the adoption of best practices. They work with over 200 textile factories to implement sustainable and resource efficient solutions Their scope is beyond just water use reduction and wastewater, some of their efforts related to water risks include: reduced wastewater generation, hazardous chemical elimination in conjunction with ZDHC, and improved chemical management and effluent treatment plant assistance. 37 Case Study: The Bangladesh Responsible Sourcing Initiative (RSI) is a collaboration among the World Bank, IFC, Government of Bangladesh, civil society, and the private sector. They have proposed a collaborative approach to making the apparel supply chain more environmentally sustainable and focused on identification of a range of cleaner production best practices, which is acceptable for most of the stakeholders and promoting multi-stakeholder partnerships working together in the

8 identification and implementation of best practices resulting in cleaner productions. 38 A pilot project was completed in four textile wet processing factories the following energy and water saving best practices were identified: 1) Eliminate water leaks and reduce hosepipe use; 2) reuse cooling water from the dyeing machine; 3) reuse process water from rinsing; 4) steam management; 5) insulate pipes, valves, and flanges; and 6) recover heat from drying operations. (NRDC 2012). 39 Ten factories working with PaCT were selected for this case study; the procedure and results were reported by Hasan and Leonas (2018). 40 IFC assigned an international consulting firm to conduct the baseline study for each factory. A set of recommendations based on the identified best practices were implemented to improve water conservation, energy conservation, (GHG) emission, and effluent water release. For this paper, those related to water will be reported. Factories were monitored monthly for six to 12 months during the implementation. Water conversation and effluent were measured at the beginning and end of the project. A reduction in water consumption after the implementation of best practices was shown in nine of the ten factories with a reduction ranging from 10 to 54 percent. Wastewater generation was reduced in all ten factories in this study after the implementation of the recommended best practices. The range in reduction was from 7 to 59%. It is noted that there is a link between wastewater consumption and effluent generation therefore the results were not surprising. 41 This case study demonstrates the importance of collaborative efforts in the development of best practices including support during implementation. Programs like PaCT, which has proven successes, have been growing over the years. The following graph shows PaCT s cumulative water savings from 2014 to Figure 1. Example of PaCT s Program Water Savings. 42 Conclusion Addressing water risk is of critical importance to the textile and apparel wet processing industry as large quantities of water are currently used to produce products that consumer s desire. The practice of using high volumes for processing, along with the variety of chemicals is being evaluated by the industry as there is increased awareness of water risk through scarcity and pollution. These risks impact the population and business so it is important all sections for the fashion, textile, apparel and retail supply chain including brands, retailers and manufacturers,

9 along with supporting organizations, governments, NGOs work collectively to develop new technologies in processing and effluent treatment to address this issue. This is a shared concern and although and it is exciting to see the increase in collaboration, this is a complex problem and will require input from many different sources to develop and implement solutions. References 1. Maxwell; McAndrew; Ryan. The State of the Apparel Sector Special Report on Water; The Global Leadership Award in Sustainable Apparel (GLASA), Sagris, T.; Abbott, J Water Resources Group- An Analysis of Industrial Water Use in Bangladesh with a Focus on the Textile and Leather Industries; World Bank Group, NRDC. Encourage Textile Manufacturers to Reduce Pollution (accessed Jul 30, 2018). 4. CEO Water Mandate. What Do Water Scarcity, Water Stress, and Water Risk Actually Mean? (accessed February 18, 2019) 5. UN Water. Water Scarcity. (accessed February 18, 2019) 6. World Economic Forum. The Global Risks Report 2017.; 12; World Health Organization. 2.1 Billion People Lack Safe Drinking Water at Home, More Than Twice as Many Lack Safe Sanitation billion-people-lack-safe-drinking-water-at-home-more-than-twice-as-manylack-safe-sanitation (accessed Jul 29, 2018) 8. United Nations Department of Economic and Social Affairs. Focus Areas: Water scarcity (accessed Jul 26, 2018) 9. IWMI. International Water Management Institute. Who Are We? (accessed August 16th, 2018) 10. IWMI. International Water Management Institute. Data and Tools. (accessed August 16th, 2018) 11. WRI. Aqueduct Water Risk atlas/?#x=8.00&y=0.28&s=ws!20!28!c&t=waterrisk&w=def&g=0&i=bws-16!wsv- 4!SV-2!HFO-4!DRO-4!STOR-8!GW-8!WRI-4!ECOS-2!MC-4!WCG-8!ECOV- 2!&tr=ind-1!prj-1&l=3&b=terrain&m=group&init=y (accessed Jul 26, 2018). 12. WWF. World Wildlife Fund. (accessed February 18, 2019) 13. Water Accounting. (accessed August 23, 2018) 14. UNESCO. United Nations Education, Scientific, and Cultural Organization. (accessed February 18, 2019) 15. CEO Water Mandate. Mission and Governance. (accessed August 23, 2018) 16. UN Sustainable Development Goals Knowledge Platform. Sustainable Development Goal 6. (accessed February 18, 2019) 17. UN Water. About the Integrated Monitoring Initiative for SDG6. (accessed February 18, 2019) 18. WWF. The Water Risk Filter (accessed Jul 26, 2018).

10 19. Kant, R. Textile Dyeing Industry an Environmental Hazard. 2011, Bomgardner, M. M. Cleaning the clothing industry June 27, 2016 Issue - Vol. 94 Issue 26 Chemical & Engineering News (accessed Jul 29, 2018). 21. China Water Risk. Pollution Status China Water Risk. (accessed July 20, 2018). 22. EPI. Environmental Performance Index Wastewater Treatment Results (accessed Jul 26, 2018). 23. Mojsov, K. Application of Enzymes in the Textile Industry: A Review. II Internation Congress "Engineering, Ecology, and Materials in the Processing Industry 2011, VF. Wrangler, Lee Invest to Transform Denim Manufacturing (accessed Jul 26, 2018). 25. Heida, L. Can Waterless Dyeing Processes Clean Up the Clothing Industry? try_pollution (accessed Jul 26, 2018). 26. Greer, L. Clean by Design - NRDC s Green Supply Chain Initiative to Clean up the Fashion Industry; NRDC, Greer, L.; Keane, S.; Lin, C.; An, Z.; Yiliqi; Tong, T. The Textile Industry Leaps Forward with Clean by Design: Less Environmental Impact with Bigger Profits; NRDC, WEF. Water Environment Federation. Water Technology Innovation Clusters Program. (accessed February 18, 2019) 29. Zero Discharge of Hazardous Chemicals. ZDHC (accessed Jul 30, 2018). 30. Zero Discharge of Hazardous Chemicals. ZDHC Wastewater Guidelines; American Apparel & Footwear Association. American Apparel and Footwear Association - Advocacy that Fits (accessed Jul 31, 2018). 32. American Apparel & Footwear Association; RSL Task Force. Restricted Substance List (RSL); 19; AAFA, 2018; p SAC. Higg Brand & Retail Tool Sustainable Apparel Coalition (accessed Jul 26, 2018). 34. Outdoor Industry Association. OIA - Together We Are A Force (accessed Jul 31, 2018). 35. Outdoor Industry Association. Chemicals Management Toolkit (accessed Jul 31, 2018). 36. The Sustainability Consortium. Clothing, Footwear & Textiles The Sustainability Consortium (TSC) (accessed Jul 30, 2018). 37. PaCT. Partnership for Cleaner Textiles Brochure. 38. The Bangladesh Responsible Sourcing Initiative; The World Bank South Asia: Environment and Resources Unit. The Bangladesh Responsible Sourcing Initiative- A New Model For Green Growth It; The World Bank, NRDC. Encourage Textile Manufacturers to Reduce Pollution (accessed Jul 30, 2018).

11 40. Hasan & Leonas. Collaborative Approach for Water & Energy Conservation: Clothing Industry of Bangladesh. Volume 10, Issue 4, JTATM Journal of Textile and Apparel, Technology and Management. (accessed February 18, 2019) 41. Zero Discharge of Hazardous Chemicals. Wastewater Quality Guideline Literature Review; PaCT. What is PaCT? (accessed Jul 26, 2018).