This article appeared in edited format in Ecotextile News February/March 2016 edition.
A widely known climate change joke goes as follows:
Two planets meet. The first one asks: “How are you?”
“Not so well”, the second answered, “I’ve got a terrible case of Homo Sapiens.”
“Don’t worry,” the first replied, “I had the same. That won’t last long.”
The COP21 Climate Agreement that was reached this past December in Paris, and which comes into effect in 2020, is a milestone in global sustainability efforts. Contrary to most expectations, the framework was signed by all states, and aims to ensure that global warming does not exceed 2 °C above pre-industrial levels, with an additional aim to cap this at 1.5 °C. Much of this will – in the vision of those sitting around the table – happen through investment in the area of renewable energies.
Yet, to quote the words by Eric Liedtke, responsible for global brands at Adidas: “World leaders forging an agreement is wonderful, but we shouldn’t need to be told to do the right thing. The industry can’t afford to wait for directions any longer.” (Source)
In this article hence I would like to look at what might be the single most relevant question:
Does the global fashion and textile industry, really make a difference?
In other words: Are we indeed doing enough to gain ground in absolute terms and becoming truly ‘more sustainable’ globally. Or, is all we do just taking the metaphorical step ahead followed by two to the back, meaning we effectively lose ground?
To give the esteemed reader the rather depressing answer straight away:
Looking at the available information – economic in particular – would suggest that probably we’re not doing nearly enough, and that we’re loosing terrain as we speak.
The following list may give a few hints as to why this could be:
- Fast Fashion is generally doing very well. For example:
- Primark sales are said to have risen some 13% over its last financial year, which ended on 12 September 2015. This in contrast to slower business overall recorded by ABS Holding, Primark’s mother company. Also: Primark is successfully investing in business expansion across EU geographies, in addition to the US.
- Inditex had yet another very successful year: Revenue rose 15% excluding currency shifts in the nine months through October 2015 and continued at that rate in the start of the final quarter. (Source)
- H&M continues to grow and expand: November 2015 sales rose 4% in local currencies, only the second time this year that the retailer’s monthly growth has fallen below 10% (Source). Notably, they company is doing well in crisis hit Russia with a good 15% growth. (Source)
- ‘Growth’ – making and flogging more and more material ‘stuff’ within a materially finite system – remains the global politicians’ sole panacea for successful economic and prosperous development. For example:
- Bangladesh: According to a recent World Bank study, in the event the local RMG industry in Bangladesh is able to capture the attrition of about 20 per cent of China’s apparel exports, Bangladesh’s export volume will increase by at least $29 billion creating 5.4 million new jobs and 13.5 indirect employments. (Source)
- Vietnam: As a result of the TPP the country’s gross domestic product will be boosted 11%, or $36 billion, as a result of the world’s largest trade pact. Exports may soar 28%. (Source)
- United Kingdom: Policy Area UK Economy. All parts of the economy are growing – but the government still has a huge amount to do by continuing to create jobs and supporting businesses to grow. (Source)
- The quality of above ‘growth’ and its side effects is rarely, if at all, scrutinized on macro-economic levels. Some of the results:
- United Kingdom: A more nuanced picture of the UK’s social and economic performance indicates deterioration in the quality of jobs on offer, the natural environment as well as widening economic inequality. (Source)
- Liberia: the country’s reliance on iron ore and rubber exports to China, for example, means that plummeting commodity prices are adding to the country’s economic woes just as it tries to recover from the deadly Ebola epidemic and years of civil war. (Source)
- Absolute measurement do not exist, all we have is relative data points:
- Impact Investment Indices: While all of listed companies report reductions/improvements in relative terms on a year-on-year basis, there is little insight about whether those improvements actually offset their increased footprint consequence of their corporate growth strategies.
- Collaborative industry developed tools: While all of such organization report take up by members and beyond – meaning: ‘usage’ numbers increase – as of yet there is no way of telling whether or not such tools actually contribute to absolute progress towards a more sustainable economy and society.
So far the conclusion indeed is: there is little that would allow for anything else than a rather cynical quoting of the introductory joke. We are definitely not nearly making sufficient progress, and old habits resp. arguments, continue to prosper far and wide.
This said: It would though be pure cowardice not to grab on to and at least develop the few opportunities and achievements that objectively exist – in addition to recognising the very genuine hard work and goodwill of many, many an individual.
So – while not always quantifiable as of yet, where and what are those pockets of achievements that are novel, that indicate a step change never seen before in this shape or form, and that indicate a new path is being tackled?
Here a few areas that could represent hints towards that the future might not be a copy of the past:
- Increasingly qualified news coverage, specifically also in B2B media
- Print and online editions of renowned textile, apparel and retail magazines offer with increasing frequency founded, and well researched – if sometimes somewhat old fashioned – coverage.
- Examples of such magazines are: The Business of Fashion, the International Leather Maker, or the Sourcing Journal, in addition to major mainstream media.
- The finance industry is onto the topic with ESG factors increasingly being accounted for in the mainstream.
There is mounting evidence that ESG factors, particular social responsibility, can help corporations to produce returns that outperform the broader market. In fact, the Global Sustainable Investment Association (GSIA) suggested that sustainable investment assets have expanded 61% between 2012 and 2014. As a consequence more and more ‘run of the mill’ mainstream investors use ESG factors:- Black Rock, known as a cutthroat investor, launched in October 2015 a major impact investment fund. (Source)
- Survey results support an increased emphasis on ESG in pension funds’ investment programmes (Source). In fact, many well-known pension providers offer already a reasonable range of ‘ethical’ options particularly to their institutional, but also private clients.
- Some traditional private banks started to market themselves as ‘sustainable’ and explicitly use ESG criteria in their assessment of investment universes. Examples: J Safra Sarasin (Source).
- Others have gained reputation as specialists in this area, market themselves predominantly to high net worth and institutional investors. Example: Triodos or Globalance Bank.
- Industry collaborations that are unique and novel in how they bring industries together. Examples are:
- Fashion, textiles: Sustainable Apparel Coalition, Zero Discharge for Hazardous Chemicals as two of the pioneers.
- Jewellery: Responsible Jewellery Council is a not-for-profit standards setting and certification organizations. It has more than 600 members that span the jeweller supply chain from mine to retail.
- Toy industry: The International Council of Toy Industries (ICTI) and the Toy Industries of Europe collaborate to ensure labour standards and safe production conditions through a factory audit and accreditation scheme.
- Legislators using their tools to change the ‘lowest common denominator’ (law), specifically – but not only – in Europe. For example:
- Internationally: OECD Guidelines for Due Diligence towards responsible supply chains in the apparel and footwear sector currently being finalized (Source). These are planned to be part and parcel of future trade agreements.
- European Union: flagship initiative on responsible management of the supply chain in the garment sector; the Circular Economy Strategy and Package (Source) as well as efforts with regards to product as well as organizational product environmental footprint assessment. (Source)
- India: Zero Liquid Discharge requirements (Source)
- China: ‘Water Pollution Prevention Ten Action & Control Action Plan’ (Water Ten) (Source)
Looking at the above, there is no doubt that indeed there are promising activities going on, lead and implemented by genuine, hard working and committed individuals.
Yet, I cannot help feeling that these efforts are just minor drops trying to appease an already ravaging conflagration.
Like many industries – and governments – fashion and textiles has reached a pivotal point it needs to prove that commitments are indeed worth the digital bytes they are stored in.
Sticking to the commitments may require quite tough decisions, notably also by governments and businesses, and these will affect each and everyone of us in our daily lives – across all geographies.
Personally, I’m not overly optimistic that we will excel at anything else but burying our heads in the sand. Facing up and acting would mean bringing fairly profound, and on an individual level uncomfortable, decisions to bear fruit for the larger good.
It remains to be seen if we can make this happen. There is no doubt that our societies are in principle capable of achieving it. Provided we are willing to act with absolute priority, total accountability and no excuses for our actions, as businesses, governments, and – most importantly – individuals.
