sustainable development of asia’s garment and textile sector · dr. christina raab yangon, 31...
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Dr. Christina Raab
Yangon, 31 March 2015
Sustainable Development of Asia’s
Garment and Textile Sector:
Market pull and push mechanisms between Europe and Asia
Please
exchange
picture
Images (left to right): YuviPanda, ILO, MADE-BY, James Butler
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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
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3,164,000 tonnes
imported from Asia
74,000 tonnes
exported to Asia
Clothing trade flows between EU and Asia
Top three origins
of EU imports:
1. China
2. Bangladesh
3. India
Source: Environmental indicator report 2014, EEA
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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 Olympic-
sized swimming pools.
1 trillion kilowatt hours used
every year by the global textile
industry = 10% of total global
carbon impact.
Europeans discard 5.8 million
tonnes of textiles every year,
with 75% going to landfill or
incineration and only 25%
being recycled.
2,000 different chemicals
are used in the textile industry.
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
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• 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
Changing market dynamics:
1. Resource efficiency and circular economy
Source: Ellen McArthur Foundation
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Changing market dynamics: 2. Regulatory
requirements, policy initiatives, voluntary frameworks
Guidelines for
Multinational Enterprises
Tripartite declaration
of Principles
REACH
Germany
10 Principles
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Changing market dynamics: 3. NGO campaigns
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
Greenpeace
Images: Greenpeace & Clean Clothes Campaign
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Changing market dynamics: 4. The rise of
conscious consumerism
Consumer interest in sustainable lifestyles is increasingly becoming a driving
market force for growth and innovation in Europe an Asia
Source: Greendex 2014
Greendex Score
2014 ranking
1. Indians
2. Chinese
3. South Koreans
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Changing market dynamics: 5. New approaches
to corporate sustainability strategies
Enhanced business
performance through:
• aligning core purpose with
delivering value to society
• linking sustainability to
brand value
Internal ExternalStakeholder Focus
Low
High
Su
sta
ina
bilit
y S
tan
da
rd
Compliance / Risk Mitigation
Efficiency
Legitimating
Holistic
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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
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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
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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)
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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
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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.
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Rising demand for sustainable cotton
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
BCI CmiA Organic Fairtrade
Sustainable Cotton Production Volume
Pro
du
ctio
n c
ott
on
fib
re (
in %
)
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
Retailer Demand
Source: Textile Exchange, Farm & Fibre Report, 2013
Image: AgriLife Today
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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
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Tier 2
Factory
Knitting / Dyeing Of
Natural Fibres / Dyeing Of
Synthetics
Factory
Knitting / Weaving / Dyeing
Of Natural Fibres / Dyeing
Of Synthetics / Finishing
Factory
Weaving / Desizing /
Scouring / Bleaching /
Dyeing Of Natural Fibres /
Dyeing Of Synthetics /
Finishing
Factory
Knitting
Factory
Knitting
Factory
Dyeing Of Natural Fibres /
Dyeing Of Synthetics /
Cutting
Factory
Screen Printing
Factory
Weaving / Desizing /
Scouring / Bleaching /
Dyeing Of Natural Fibres /
Dyeing Of Synthetics
Factory
Knitting / Dyeing Of Natural
Fibres / Dyeing Of
Synthetics
Factory
Knitting / Dyeing Of
Natural Fibres / Dyeing Of
Synthetics
Factory
Knitting / Desizing /
Scouring / Knitting / Dyeing
Of Synthetics / Soaping /
Washing
Factory
Knitting / Weaving /
Bleaching / Bleach Cleaning
Factory
Knitting / Scouring /
Bleaching / Knitting / Dyeing
Of Synthetics / Soaping
Factory
Knitting / Scouring /
Bleaching / Knitting / Dyeing
Of Synthetics / Soaping /
Cutting
Factory
Knitting / Bleaching / Bleach
Cleaning / Knitting / Dyeing
Of Natural Fibres / Knitting /
Dyeing Of Synthetics /
Cutting
Factory
Knitting / Bleaching / Bleach
Cleaning / Cutting
Factory
Knitting / Bleaching /
Knitting / Dyeing Of
Synthetics / Screen
Printing / Washing
Factory
Weaving / Bleaching /
Bleach Cleaning / Cutting /
Washing
Brand
Tier 1
Tier 3
Main Supplier Main Supplier
Factory
Dyeing
Factory
Dyeing
Factory
Dyeing
Overlapping SupplierUnique Supplier Non-Wet Processing Supplier
MADE-BY Supply Chain Mapping Tool
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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)
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Closed-loop and new business models
I:CO
Consumer and business
take-back system for
textiles
Patagonia
Worn Wear Repair Truck
Tour of clothing-repair experts
Mud Jeans
Leasing of jeans and
recycling/upcycling materials
Images: H&M, Mud Jeans, Patagonia
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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
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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
Sustainability as a driver for system
transformation and holistic value creation
Image: Ian Kelsall
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Thank You
MADE BY Benelux
Prins Hendrikkade 25
1012 TM Amsterdam
The Netherlands
tel: +31 (0)20 5230666
fax: +31 (0)20 6266132
MADE BY Germany
Königsallee 61
40215 Düsseldorf
Germany
tel: +49 (0)211 3878 9054
MADE BY UK
3-4 Bywell Place
London. W1T 3DN
United Kingdom
tel: +44 (0)20 7636 3910
fax: +44 (0)20 7323 0337