Sustainable Development of Asia s Garment and Textile Sector:
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1 Please exchange picture Sustainable Development of Asia s Garment and Textile Sector: Market pull and push mechanisms between Europe and Asia Dr. Christina Raab Yangon, 31 March 2015 Images (left to right): YuviPanda, ILO, MADE-BY, James Butler
2 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 Clothing trade flows between EU and Asia 3,164,000 tonnes imported from Asia 74,000 tonnes exported to Asia Top three origins of EU imports: 1. China 2. Bangladesh 3. India Source: Environmental indicator report 2014, EEA
4 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 Olympicsized swimming pools. 1 trillion kilowatt hours used every year by the global textile industry = 10% of total global carbon impact. 2,000 different chemicals are used in the textile industry. Europeans discard 5.8 million tonnes of textiles every year, with 75% going to landfill or incineration and only 25% being recycled. 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
5 Changing market dynamics: 1. Resource efficiency and circular economy 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 Source: Ellen McArthur Foundation
6 Changing market dynamics: 2. Regulatory requirements, policy initiatives, voluntary frameworks Guidelines for Multinational Enterprises Tripartite declaration of Principles 10 Principles REACH Germany
7 Changing market dynamics: 3. NGO campaigns Greenpeace 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 Images: Greenpeace & Clean Clothes Campaign
8 Changing market dynamics: 4. The rise of conscious consumerism Greendex Score 2014 ranking 1. Indians 2. Chinese 3. South Koreans Source: Greendex 2014 Consumer interest in sustainable lifestyles is increasingly becoming a driving market force for growth and innovation in Europe an Asia
9 Sustainability Standard Changing market dynamics: 5. New approaches to corporate sustainability strategies Enhanced business performance through: High aligning core purpose with delivering value to society linking sustainability to brand value Legitimating Holistic Efficiency Compliance / Risk Mitigation Low Internal Stakeholder Focus External
10 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
11 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
12 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)
13 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
14 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.
15 Production cotton fibre (in %) Rising demand for sustainable cotton Sustainable Cotton Production Volume BCI CmiA Organic Fairtrade Retailer Demand 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 Source: Textile Exchange, Farm & Fibre Report, 2013 Image: AgriLife Today
16 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
17 MADE-BY Supply Chain Mapping Tool Brand Tier 1 Main Supplier Main Supplier Tier 2 Knitting / Dyeing Of Natural Fibres / Dyeing Of Synthetics Knitting / Weaving / Dyeing Of Natural Fibres / Dyeing Of Synthetics / Finishing Weaving / Desizing / Scouring / Bleaching / Dyeing Of Natural Fibres / Dyeing Of Synthetics / Finishing Knitting / Dyeing Of Natural Fibres / Dyeing Of Synthetics Knitting / Desizing / Scouring / Knitting / Dyeing Of Synthetics / Soaping / Washing Knitting / Weaving / Bleaching / Bleach Cleaning Knitting / Scouring / Bleaching / Knitting / Dyeing Of Synthetics / Soaping Weaving / Bleaching / Bleach Cleaning / Cutting / Washing Knitting Knitting Screen Printing Weaving / Desizing / Scouring / Bleaching / Dyeing Of Natural Fibres / Dyeing Of Synthetics Dyeing Of Natural Fibres / Dyeing Of Synthetics / Cutting Knitting / Dyeing Of Natural Fibres / Dyeing Of Synthetics Knitting / Scouring / Bleaching / Knitting / Dyeing Of Synthetics / Soaping / Cutting Knitting / Bleaching / Bleach Cleaning / Knitting / Dyeing Of Natural Fibres / Knitting / Dyeing Of Synthetics / Cutting Knitting / Bleaching / Bleach Cleaning / Cutting Knitting / Bleaching / Knitting / Dyeing Of Synthetics / Screen Printing / Washing Tier 3 Dyeing Dyeing Dyeing Unique Supplier Overlapping Supplier Non-Wet Processing Supplier
18 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)
19 Closed-loop and new business models I:CO Consumer and business take-back system for textiles Mud Jeans Leasing of jeans and recycling/upcycling materials Patagonia Worn Wear Repair Truck Tour of clothing-repair experts Images: H&M, Mud Jeans, Patagonia
20 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
21 Sustainability as a driver for system transformation and holistic value creation 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 Image: Ian Kelsall
22 Thank You MADE BY Benelux Prins Hendrikkade TM Amsterdam The Netherlands tel: +31 (0) fax: +31 (0) MADE BY UK 3-4 Bywell Place London. W1T 3DN United Kingdom tel: +44 (0) fax: +44 (0) MADE BY Germany Königsallee Düsseldorf Germany tel: +49 (0)
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