Textile Supply Chain - Sustainability
Textile Supply Chain - Sustainability
Textile Supply Chain - Sustainability
Textiles ( ‘Kapda’ in the ‘Roti, Kapda aur Makaan’ trio) forms one of our basic human needs across
all cultures around the globe. Among these, only textiles are both non-perishable and easily
transported. Thus, textiles have been part of a global market since the days of the Silk Road. Rapid
shifts are happening in the way textiles are produced and supplied. One thing that does not seem
have changed is that much of the production is based in Asia. Wherever one may go shopping for
clothes, one would inevitably find goods made in China, India, Bangladesh, Vietnam, Cambodia,
etc.
The textile supply chain has evolved to meet changing price and quality demands from the global
marketplace. The sophistication of buyers in tracking their suppliers has also gone up. In the last
decade, buyers added a new dimension to their requirements, and began making demands
regarding health, safety and labour conditions. Global manufacturing centres have increasingly
had to respond not only to local requirements but also to global ones. The new dimension being
rolled out in the supply chains of many sectors across the globe including textiles is the
Environmental Sustainability. Environmental Sustainability takes into account the use of water,
energy, and natural resources, and seeks to minimize negative impacts to the environment in the
production of textile-based goods, as well as in their use by consumers. The long term goal of such
initiatives would be complete sustainability.
Progressive brands and retailers have been exploring sustainability initiatives since the middle half
of the last decade: testing initiatives first internally and now considering roll-out through their
global supply chains. Sustainability is about doing ‘more with less’, which means finding savings
and creating business value in addition to having a positive impact on the environment. The
following aspects therefore become relevant: energy efficiency, carbon / greenhouse gas emissions,
water and chemical footprint as well as logistics.
1. What are some of the progressive brands and retailers doing and planning for their supply
chain?
2. How does one begin to measure sustainability and compete in this changing market?
A number of initiatives have already been started to engage in to improve raw materials in the
supply chain, such as the Better Cotton Initiative and the Organic Exchange. Some initiatives are
related to buyers coming together to form a unified voice, including the Outdoor Industry
Association, and working groups assembled by the Business for Social Responsibility (BSR).
The current work being done to increase the sustainability of the global textile supply chain is still
in its early stages or being applied regionally, in the next 24-36 months these initiatives will
become mainstream globally.
In developing countries where large global production centres are based, the textile sector forms a
large part of their carbon inventory. As a case in point, in India the textile sector consumes 10% of
the country’s energy and has increasing carbon intensity compared to other sectors.
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 beyond that and downstream to manufacturing. Already firms like Levi Strauss & Co.
and Walmart have started collecting data from the rest of the supply chain.
In order to build best-practices and quantify savings, different approaches are being taken. For
instance, Marks & Spencer is creating entire ‘eco factories’ where it is able to demonstrate energy
savings to the tune of 40% over comparable factories. Nike on the other hand is working with a
set of strategic partner factories that are part of its MLS (Manufacturing Leadership), to establish
benchmarks.
The signaling for manufacturers is quite clear: become aware and get started on this new path!
One of the more established and used standard is the Carbon Label by Carbon Trust. The UK has
been amongst the most progressive markets in defining a formal carbon footprint that can be used
by consumers. The Carbon Label Company set up by the Carbon Trust in 2007 provides information
for both consumers as well as businesses on how to use the Carbon Label.
The Carbon Footprint is developed on basis of the PAS 2050 guideline. Tesco, Continental
Clothing, Levi Strauss & Co. are amongst those that have been testing some products with the
Carbon Label.
By the end of 2011 all major textile brands and retailers will have announced initiatives that
plan for working with a more sustainable supply chain. Some of the firms are already
implementing measures within their own facilities and soon they will look to their supply chain
which is where the majority of the environmental footprint exists. The sustainability efforts will
move beyond the early adopters and into the mainstream between 2012 and 2015.
Textile brands will make supplier choices based on which suppliers are able to report and
demonstrate sustainability measures.
Brands and retailers may struggle initially in mapping out their supply chain but issues will be
overcome soon. Some of the low-hanging opportunities from a retailer standpoint will be
logistics and sourcing. We will see increasing activities on this front.
From a supply perspective, vertically integrated firms are likely to be early adopters of
sustainability reporting because they have easy visibility throughout their supply chain. They
will also likely use this as a market advantage.
There may be issues raised around non-tariff barriers by some textile exporting nations at the
WTO. Market mechanics will have to be developed to address these concerns. Just like no one
questions the need for quality products any longer, no one will question the need for
sustainable products.
The buzz around organic cotton will continue to increase. But as soon as it is public knowledge
that organic cotton is going to remain a very small percentage of the overall raw material for
the textile sector, we expect to see the emphasis shift toward other sustainable materials.
There also will be a greater emphasis on reducing toxics and chemicals.
About Us
EcoLogic Consultancy came into existence with the purpose of ‚To help our clients in
understanding, establishing sound Environment Management Systems, and pursuing sustainable
business solutions through our various services to abate direct and indirect impact on ecological
balance.‛
We have demonstrated expertise in the areas of carbon accounting and management, energy
management systems, voluntary/compliance carbon markets, environment management and
sustainability and carbon branding.