BUILDING A BUSINESS CASE FOR SUSTAINABLE APPAREL PRODUCTION SYSTEM

Chandrima Chatterjee
Director Apparel Export Promotion Council chandrimag@gmail.com

Why is Sustainable Production Systems Important?

Environmental Triggers :

Growing consume awareness of the ecological impact of present production systems and increasing expectations about transparency Regulations like REACH( EU) and Toxic Substance Control Act ( USA) Threat of global warming Increasing demand for energy efficient products Management Triggers :

Brand Image Internal efficiency of Industry In long run profitability increases Cost effectiveness Increasing Sales through market differentiation.

Sustainable Production Systems

Social Triggers : Social compliance as an important tool for sustainable production Many a time mandated by buyers Better management systems Lower attrition rates Higher productivity hence higher returns to all stakeholders in the factories

Trends that have adversely impacted Eco friendly quotient

Expansion and production of textiles and consumption has lead to - increase in pollution - water shortages - depletion of fossil fuels & raw material - drastic climatic changes High energy consumption and harmful emissions -Sourcing from low cost countries require more fuel for transportation

- cheap clothes & fast fashion has led to throw away mentality

Present Situation
Environment Challenges Carbon emission contributes directly in global warming that will bring unimaginable catastrophic changes in the environment due to rise in temperature . Per capita Green House Gas Emissions(GHG)(in Metric Tones of Carbon Dioxide) : United States = 18.9 China = 4.9 India = 1.4 (Source: International Energy Agency)

The Domestic Market In India

1. Boyant economic growth, rising per capita income, growing disposable income have lend to booming domestic apparel market. 2. The domestic apparel market in India is growing quite strongly, and much faster than markets in the USA and the EU. 3. Consumer expenditure on clothing has increased phenomenally 4. Retail boom has lead to large specialized apparel retail outlets. 5. Expansion of retail chains in turn, fuelled local demand for branded apparel foreign and now some domestic brands too.

Eco friendly clothing , is still to catch up. At present no premium on sustainable apparel - Eco friendly clothing a small part of the Branded apparel market that too as a positioning strategy.

A growing domestic market for apparel highlights the need for ensuring sustainability into this sector

Carbon emission in textile value chain

Spinning Weaving Knitting Dyeing
0% 7% 9% 3% 2%

Printing

Garment

Sizing

41%

38%

Clothing is responsible for approximately one ton of each individuals CO2 emissions (including washing and drying)

 Eco Friendly chemicals which consumes less energy are being used for garment production. Organic Cotton is being used for garments like T-shirts . Adopting carbon projects that will prevent future greenhouse gas emissions like Renewable energy project Resource Conservation Project Waste Reduction Project Forestry Project

Strategies for reducing carbon emission in clothing sector

Using tracking and reporting systems

Methods evolved for restraining adverse impact on eco system

Recycling of used textiles and clothing Voluntary Eco-Labels : vary according to stages of production & supply chain and vary from country to country. Life cycle based eco labels are adapted different countries Carbon trading is another incentive based system to encourage low emission levels in production systems. Action plan for apparel producers 1. Know your products life cycle. The most comprehensive carbon footprint denotes the total amount of CO2 emitted throughout a process or in a products lifetime. 2. 4. 5. Choose organic and sustainable fibers- one big way of reducing the CO2 impact of your products. Utilize more recycled fibers. The environmental impact of recycling worn-out polyester into new polyester fiber, for instance, is significantly lower than making that same fiber anew. Its not just green designs and fabrics that helps sustainability. Non-toxic dry cleaning, eco friendly washing techniques, better consumer cycles, etc need to be addressed for a comprehensive sustainability approach. Green manufacturing and recycled materials will be a short term trend unless specific standards are set for the industry

Initiatives that Indian apparel industry can take:

Low Water Footprint It can take more than 20,000 liters of water to produce 1kg of cotton, equivalent to a single T-shirt and pair of jeans.

Encouraging cotton cultivation in monsoon fed areas or rain harvesting are ways to reduce
this. Reducing water consumption through water efficient system of effluent treatment is another solution. Biodegradable Packaging Packing in biodegradable PVC-free packaging, using 100% recycled cardboard boxes are small easy to contribute. Transportation Water transportation, instead of air freight reduces carbon footprints

Carbon Labeling Should develop independent accreditation bodies for verifying carbon
emission levels of apparel. Wash Cool Apparel that can be washed cool can save up to 80% of the energy used by a conventional cotton against apparel which is washed in hot water

Social Issues - Challenges

The seasonal nature of the industry requires flexibility Labour laws , not in tune with this required flexibility Small size of firms not able to absorb cost of compliance

No premium for compliance unit values remain unchanged, only requirements are increasing
Non transparent supply chain results

Social Issues Solutions and initiatives

Sharing responsibility among all stakeholders Greater transparency in value chain Factories need to invest in better human resource systems need longterm commitment of buyers to a country and a factory Explore ways to expand organised sectors presence Strengthening management systems Engaging in productivity enhancement

AEPC Initiative
AEPC initiative for industry. sustainable and better compliance levels in the

-Driving the Industry towards Sustainable Human Capital Advancement (DISHA) .

-Objective

-to set good compliance standard and work on an incentive based model
-reduce the burden of manufactures -increase the national competitiveness. -AEPC feels there is a strong business case in improving the compliance levels in the industry. -Better image, better productivity, lower attrition and greater export demand are some good business reasons

Sustainable to inclusive :
India should concentrate more on fairer employment and impact of sustainable fashion on local farmers. Globally eco- fashion has benefitted farmers with better prices and phytosanitary conditions in farmlands Greater transparency and accountability across every level of business practice is the road ensure both sustainability and inclusiveness.

INCLUSIVE NATURE OF INDIAN TEXTILE SECTOR

Indian textile industry employs over 38 million people, making it the second largest
employment providing sector after agriculture.

In unorganised sector it is the largest employment provider.

Women employment in the sector is considerably high.

The sector provides many opportunities by seasonal employment, thus conducive to rural
marginal workers and displaced agricultural workers The low skill and entry level requirements ensures easy access to BPL families.