| Textiles ( ‘Kapda' in the ‘Roti, Kapda aur | | | | One of the more established and used standard is the |
| Makaan' trio) forms one of our basic human needs | | | | Carbon Label by Carbon Trust. The UK has been |
| across all cultures around the globe. Among these, only | | | | amongst the most progressive markets in defining a |
| textiles are both non-perishable and easily transported. | | | | formal carbon footprint that can be used by |
| Thus, textiles have been part of a global market since | | | | consumers. The Carbon Label Company set up by the |
| the days of the Silk Road. Rapid shifts are happening | | | | Carbon Trust in 2007 provides information for both |
| in the way textiles are produced and supplied. One | | | | consumers as well as businesses on how to use the |
| thing that does not seem have changed is that much | | | | Carbon Label. |
| of the production is based in Asia. Wherever one may | | | | The Carbon Footprint is developed on basis of the |
| go shopping for clothes, one would inevitably find | | | | PAS 2050 guideline. Tesco, Continental Clothing, Levi |
| goods made in China, India, Bangladesh, Vietnam, | | | | Strauss & Co. are amongst those that have been |
| Cambodia, etc. | | | | testing some products with the Carbon Label. |
| The textile supply chain has evolved to meet changing | | | | Snapshots of sustainability activities of firms |
| price and quality demands from the global marketplace. | | | | The following table summarizes some of the leading |
| The sophistication of buyers in tracking their suppliers | | | | brands, their activities and scope |
| has also gone up. In the last decade, buyers added a | | | | Brand |
| new dimension to their requirements, and began | | | | Standard |
| making demands regarding health, safety and labour | | | | Target |
| conditions. Global manufacturing centres have | | | | Parameters |
| increasingly had to respond not only to local | | | | Adidas |
| requirements but also to global ones. The new | | | | ISO14001 |
| dimension being rolled out in the supply chains of many | | | | Internal tool |
| sectors across the globe including textiles is the | | | | - Embedding environmental sustainability across the |
| Environmental Sustainability. Environmental Sustainability | | | | business |
| takes into account the use of water, energy, and | | | | - Effectively managing business risks and social |
| natural resources, and seeks to minimize negative | | | | compliance in the supply chain |
| impacts to the environment in the production of | | | | - Extending engagement internally and externally |
| textile-based goods, as well as in their use by | | | | Carbon |
| consumers. The long term goal of such initiatives would | | | | Energy |
| be complete sustainability. | | | | Waste |
| Progressive brands and retailers have been exploring | | | | Sustainable materials |
| sustainability initiatives since the middle half of the last | | | | |
| decade: testing initiatives first internally and now | | | | Carrefour |
| considering roll-out through their global supply chains. | | | | GRI |
| Sustainability is about doing ‘more with less', which | | | | GHG Protocol |
| means finding savings and creating business value in | | | | Oeko-Tex Certification |
| addition to having a positive impact on the environment. | | | | Reducing energy consumption per m2 by 20% by |
| The following aspects therefore become relevant: | | | | 2020 against 2004 as baseline |
| energy efficiency, carbon / greenhouse gas emissions, | | | | Carbon |
| water and chemical footprint as well as logistics. | | | | Energy |
| For suppliers in textile industry, it is essential to | | | | Logistics |
| understand | | | | GAP |
| 1. What are some of the progressive brands and | | | | GRI |
| retailers doing and planning for their supply chain? | | | | GHG Protocol |
| 2. How does one begin to measure sustainability and | | | | - Environmental footprint assessment and setting |
| compete in this changing market? | | | | quantifiable environmental goals |
| A number of initiatives have already been started to | | | | - New supply chain waste management |
| engage in to improve raw materials in the supply chain, | | | | Carbon |
| such as the Better Cotton Initiative and the Organic | | | | Energy |
| Exchange. Some initiatives are related to buyers | | | | Waste |
| coming together to form a unified voice, including the | | | | Sustainable materials |
| Outdoor Industry Association, and working groups | | | | IKEA |
| assembled by the Business for Social Responsibility | | | | Own tool |
| (BSR). | | | | Reducing CO2 emissions and increasing share of |
| The current work being done to increase the | | | | renewable energy |
| sustainability of the global textile supply chain is still in its | | | | Carbon |
| early stages or being applied regionally, in the next | | | | Energy |
| 24-36 months these initiatives will become mainstream | | | | Waste |
| globally. | | | | Sustainable materials |
| Textile production is resource intensive | | | | Walmart |
| Textile Production is a vital global industry employing | | | | Sustainability Index |
| hundreds of millions of people, and it is also very | | | | GOTS Certification |
| resource intensive: consuming copious amounts of | | | | Reducing 20 million tonnes CO2 eq from supply chain |
| energy, water and other raw materials. According to | | | | by 2015 |
| research done by the World Wildlife Federation | | | | Carbon |
| (WWF), an average of 8,500 litres of water is needed | | | | Energy |
| to grow one kilogram of cotton, equivalent to one pair | | | | Waste |
| of jeans. Due to the hundreds of harmful chemicals | | | | Sustainable materials |
| routinely used in washing and dying fabric, the textile | | | | Logistics |
| industry is also the #1 industrial polluter of fresh water | | | | Levi Strauss |
| on the planet. | | | | GHG Protocol |
| In developing countries where large global production | | | | Global Effluent guidelines for wastewater |
| centres are based, the textile sector forms a large | | | | In the process of collecting data on its scope 1 and |
| part of their carbon inventory. As a case in point, in | | | | scope 2 emissions. Targets will be set thereafter |
| India the textile sector consumes 10% of the country's | | | | Carbon |
| energy and has increasing carbon intensity compared | | | | Energy |
| to other sectors. | | | | Waste |
| | | | | Sustainable materials |
| Sustainability in supply chain is integral for the sector | | | | Logistics |
| Because of impacts such as these, over the last few | | | | |
| years some progressive brands and retailers in North | | | | |
| America and Europe have embarked on integrating | | | | |
| sustainability into their supply chain. While there is the | | | | Peeping into the future |
| societal imperative, the greater opportunity lies in | | | | Going forward, as sustainability becomes mainstream |
| sustainability through more efficient resource utilization | | | | focus across the entire supply chain, the following |
| which in turn has a positive financial impact for every | | | | events are widely believe to happen |
| part of the supply chain. Virtually all the production and | | | | - By the end of 2011 all major textile brands and |
| manufacturing of textiles occurs in developing countries | | | | retailers will have announced initiatives that plan for |
| and hence activities being planned in the developed | | | | working with a more sustainable supply chain. Some of |
| world are having a ripple effect in bringing about | | | | the firms are already implementing measures within |
| resource conservation elsewhere. | | | | their own facilities and soon they will look to their |
| | | | | supply chain which is where the majority of the |
| Why think of sustainability | | | | environmental footprint exists. The sustainability efforts |
| From the standpoint of many North American and | | | | will move beyond the early adopters and into the |
| European firms that have a large textile product range, | | | | mainstream between 2012 and 2015. |
| almost all the environmental impact from manufacturing | | | | - Textile brands will make supplier choices based on |
| occurs offshore. Some of these companies are at the | | | | which suppliers are able to report and demonstrate |
| forefront of working towards sustainability for a | | | | sustainability measures. |
| number of | | | | - Brands and retailers may struggle initially in mapping |
| 1. Sustainability generates business value by unlocking | | | | out their supply chain but issues will be overcome soon. |
| opportunities to save on critical resources. | | | | Some of the low-hanging opportunities from a retailer |
| 2. Firms with sustainability practices get rewarded by | | | | standpoint will be logistics and sourcing. We will see |
| capital market shareholders and stakeholders. | | | | increasing activities on this front. |
| 3. Understanding supply chain risks is important in the | | | | - From a supply perspective, vertically integrated firms |
| face of impending climate legislations. Developing | | | | are likely to be early adopters of sustainability reporting |
| countries too are looking at legislations on water usage | | | | because they have easy visibility throughout their |
| and carbon. All these give rise to supply chain risks | | | | supply chain. They will also likely use this as a market |
| depending on sourcing regions. To proactively manage | | | | advantage. |
| these impacts and risks, it is essential to build idea of | | | | - There may be issues raised around non-tariff barriers |
| supply chains. | | | | by some textile exporting nations at the WTO. Market |
| 4. Attracting new consumers with new products and | | | | mechanics will have to be developed to address these |
| carbon/sustainability labelling is an opportunity that will | | | | concerns. Just like no one questions the need for |
| increase in value with consumers getting more | | | | quality products any longer, no one will question the |
| knowledgeable and savvy. | | | | need for sustainable products. |
| What does this mean for textile manufacturers? | | | | - The buzz around organic cotton will continue to |
| As the market for sustainable textiles grows, many | | | | increase. But as soon as it is public knowledge that |
| more firms will begin demanding sustainability from their | | | | organic cotton is going to remain a very small |
| manufacturers the same way they demand fair prices, | | | | percentage of the overall raw material for the textile |
| fast delivery and high quality. Currently, this means | | | | sector, we expect to see the emphasis shift toward |
| having a sustainable supply chain is a competitive | | | | other sustainable materials. There also will be a greater |
| advantage for textile manufacturers. | | | | emphasis on reducing toxics and chemicals. |
| While most suppliers selling to the brands and retailers | | | | |
| are engaged only in cut & sew, it is only a matter | | | | |
| of time before the entire supply chain is held | | | | |
| accountable. Many brands will soon start shifting focus | | | | About Us |
| beyond that and downstream to manufacturing. | | | | EcoLogic Consultancy came into existence with the |
| Already firms like Levi Strauss & Co. and | | | | purpose of "To help our clients in understanding, |
| Walmart have started collecting data from the rest of | | | | establishing sound Environment Management Systems, |
| the supply chain. | | | | and pursuing sustainable business solutions through our |
| In order to build best-practices and quantify savings, | | | | various services to abate direct and indirect impact on |
| different approaches are being taken. For instance, | | | | ecological balance." |
| Marks & Spencer is creating entire ‘eco | | | | We have demonstrated expertise in the areas of |
| factories' where it is able to demonstrate energy | | | | carbon accounting and management, energy |
| savings to the tune of 40% over comparable factories. | | | | management systems, voluntary/compliance carbon |
| Nike on the other hand is working with a set of | | | | markets, environment management and sustainability |
| strategic partner factories that are part of its MLS | | | | and carbon branding. |
| (Manufacturing Leadership), to establish benchmarks. | | | | To know more about EcoLogic, please visit |
| The signaling for manufacturers is quite clear: become | | | | To schedule a meeting and discussion with us, do |
| aware and get started on this new path! | | | | reach us on |
| Measuring and communicating | | | | Kedar - +91-9665407848 – |
| Due to regional and fragmented nature of consumer | | | | kedar@ecologicconsultancy.in |
| demand – there are a number of standards and | | | | Indrajeet - +91-9028788430 – |
| methodologies coming up in the marketplace. Most of | | | | indrajeet@ecologicconsultancy.in |
| the standards are still in the adoption phase, the | | | | Shailesh - +91-9890887670 – |
| underlying data requirements for most of them are | | | | shailesh@ecologicconsultancy. |
| quite similar. | | | | |