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Sustainability-at-Fashion by ConsultingNirmana.pdf
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- 2. Fashion Value Chain Product Development: Ourjourney starts with market and materials research trend analysis to inform initial design concepts. This leads to developing complete prototypes, sample garments, plus costing and pricing evaluations. Supply Sourcing: Product managers choose the appropriate manufacturer partners and raw material suppliers to support the product line specifications. They secure vendor contracts considering capabilities, quality levels, lead times and cost structures. Raw Material Procurement: Sourced cotton, polyester and other textile materials enter warehouses. They are tested for quality compliance and then loaded for transport to processing facilities like dye houses and mills. Contribution: 20% GHG Emissions Textile Processing and Trimming Supply: This entails dyeing the raw textiles, performing specialised treatments, or constructing finished fabrics through weaving/knitting to customer specifications. Here, elastics, zippers, buttons and label trims are procured from third-party vendors. Contribution: 7% GHG Emissions Apparel Production: Manufacturing partners cut the fabric received, sew materials into finished labelled garments as ordered, complete quality control, and prepare shipments. Contribution: 18% GHG Emissions Shipping and Distribution: Freight forwarders consolidate garment shipments from suppliers to the brands' regional distribution centres. Products are received, stocked, and then allocated to various retail channels. Contribution: 24% GHG Emissions Retail Stores and E- commerce: Products are distributed weekly from distribution centres to physical retail locations based on sales forecasts and reordering stock levels. Dedicated e- commerce inventory helps support digital order fulfilment and returns handling. Contribution: 3% GHG Emissions Recycling, Resale and Reuse: Finally, at end-of- use, brands implement product return and recycling initiatives to keep materials in circulation for additional lifecycles. Contribution Customer Use: 21% GHG Emissions Contribution Textile Waste: 3% GHG Emissions
- 3. GHG emission of Fashion Industry GHG emission of Fashion Industry Emissions Throughout theSupply Chain Raw Material Production Manufacturing Processes Transportation Consumer Behavior Waste and End-of-Life Prevailing analyses suggest fashion contributes approximately 2-8% currently based on complex calculations spanning materials, production, distribution, usage and disposal variables. But rapid projected growth means its total footprint may expand drastically without major interventions. Fast fashion, characterized by rapid production cycles and disposable clothing, is often associated with higher emissions due to overconsumption, frequent production turnover, and shorter product lifespans.
- 4. Global sustainability tracker for fashion industry It's importantto note that these trackers may have different focuses, criteria, and methodologies, so users should explore multiple sources to understand a brand’s sustainability efforts comprehensively. Additionally, the fashion industry’s sustainability tracking landscape is dynamic, with new initiatives and tools continually emerging. Fashion Revolution's Fashion Revolution Index Measure & score brands on SC transparency, worker rights and environment impact Sustainable Apparel Coalition (SAC) - Higg Index Measure and score environment and social impact of their products including materials, water use and labour condiitions. Textile Exchange Offer brands tools and standards to measure, report their sustaiability performance. Good On You Platform and app that rates fashion brands based on their ethical and sustainability practices Cradle to Cradle Certified™ Cradle Certified™ is a certification program that evaluates factors such as material health, material reuse, and renewable energy use. EcoVadis It assesses companies based on environmental, social, and ethical criteria. The ratings are used by businesses to evaluate and improve their sustainability performance. Rank a Brand Rank a Brand is a European-based platform that ranks and assesses brands’ sustainability practices
- 5. Fashion Circularity The goal isto shift today's dominant linear "take-make-waste" fashion model to one mimicking natural cycles, where nothing is wasted and materials remain in use. Design for durability Rental and resale Takeback programs Recycled materials Upcycling Supply chain transparency Retail innovation Policy incentives
- 6. Fashion LCA Robust LCAs utilizedata models spanning these five phases documenting quantitative energy demands, emission volumes, exact chemical pollution levels, and biodiversity consequences. This supports certifications like Bluesign system, Cradle2Cradle, or Global Recycled Standard that credential apparel sustainability claims with third-party LCA audits. Disposal impact Landfill biodegradability levels if garments aren't recycled/upcycled at end- of-use. Incineration and microfiber leakage to waterways also factor depending on regional waste management infrastructure Usage impact Laundering, drying, ironing apparel through customer ownership represents up to 80% of some garments' lifetime carbon footprint, especially synthetics emitting microplastics. Proper clothing care & detergents dramatically help. Distribution impact Fossil fuels burnt and distances travelled to move garments from manufacturing hubs to retail outlets matter. A 1,000 mile plane trip emits 50x a short truck route. Complex global supply chains mean more transport environmental burdens. Production impact Energy demands, water usage, and emissions from spinning raw fibers into fabrics, dyeing processes, cut/sew/finishing at tier 2+ garment factories. Regional grid reliance on renewables vs fossil fuels affects scores. Materials impact Assessing the ecological footprint of producing the base fabrics and components - water intensity, carbon emissions, pollution, biodiversity harm, etc. For blends, evaluating impact share from each material type.
- 7. Sustainability actions by value stages Mappingrelevant sustainability efforts to each of those fashion value chain stages can showcase examples of best practices adopted at different links. Evaluating eco-material alternatives. Piloting virtual sampling. Adopting zero waste pattern cutting techniques. Assessing life cycle climate impacts. Setting recyclability targets. Product Development: Prioritising certified sustainable/ethical suppliers. Auditing working conditions. Implementing green chemistry requirements. Enforcing living wages and environmental criteria via vendor codes of conduct. Supply Sourcing: Purchasing verified recycled or organic sources for primary material inputs like cotton and polyester. Sourcing low-impact man-made cellulosic fibres. Raw Material Procurement: Reducing water/chemical usage via innovative dyeing technologies. Installing real-time tracking systems. Utilising alternative energy sources in production facilities. Converting to bluesign system or ZDHC compliance. Textile Processing: Monitoring energy, emissions, and waste outputs. Pursuing LEED-certified green factories. Expanding community engagement initiatives. Establishing worker training programs. Apparel Production: Optimising transport loads and modes. Switching to biofuels or EV fleets. Reducing air shipments and favouring ocean routes. Utilising recycled packaging. Distribution: Offering customer recycling/resale. Expanding garment care guide education and repair services. Incorporating sustainability tags on products. Training sales associates. Retail Stores: Scaling apparel takeback systems. Investing in closed-loop recycling infrastructure for blended fabrics. Supporting entrepreneur upcycling programs. End-of-use:
- 8. Sustainability @Luxury brands Many other luxurybrands have also adopted sustainable sourcing guidelines and policies to guide their future environmental and social governance, including access to healthcare, education, and clean water initiatives in their respective supply chain communities. Kering: An international conglomerate including brands like Gucci, Balenciaga, and Saint Lauren. They launched several sustainability initiatives, strategies, and targets around materials, production, ecosystems, transparency, and human rights. Prada: Launched their Re-Nylon line, using eco-friendly ECONYL regenerated nylon in many handbags and accessories. They set environmental and DE&I (diversity and inclusion) goals and released sustainability-linked bonds to support those efforts financially. Burberry: Pledged to achieve net-zero emissions, implement sustainable farming, prohibit real fur, and explore recyclable, compostable fabrics and garments. Also, it has shifted to more ethical virgin wool in partnership with local farms to support animal welfare and sustainable practices. Tiffany & Co: Established strict policies around diamonds’ origins and mining operations, traceability, and suppliers’ human rights and working conditions. Launched the “GRI” ratings to monitor suppliers’ sustainability, diversity, and social responsibility. LVMH: These brands include Louis Vuitton, Dior, Celine, and Marc Jacobs. They launched several standards, frameworks, and scorecards around ethical materials, packaging/waste reduction, and more, along with a heavy focus on internal awareness-raising and training. Requiring suppliers to meet over 23 criteria and KPIs.
- 9. Sustainability @Fast fashion brands Nearly all majorfast fashion retailers have publicly announced sweeping long-term sustainability targets to appeal to the cost and environment-conscious Gen Z/millennial customers. Execution remains inconsistent but establishes critical performance indicators to shift toward greener, circular supply chains. Industry disruption from emerging sustainable innovators likely pressures incumbents further in this direction. H&M: Huge goals for 100% recycled or sustainably sourced products by 2030 and becoming climate-positive across the entire value chain. Partner with innovators and companies supporting renewable technologies to shift production. Zara: Announced their "Join Life" collection of at least 50% sustainable fabric like recycled cotton and polyester. Some products are process- approved by industry bodies for sustainability. Pledged to shift to 100% sustainable cellulosic fibres by 2023 and eliminate single-use plastic on a 3-year timetable. Includes training programs on sustainability practices for employees. Uniqlo: Parent company Fast Retailing pledged to eliminate single-use plastics, switch to renewable electricity across stores and offices, improve factory working conditions, and make sustainability a key performance indicator in manager evaluations. Aiming for 100% recycled polyester use by 2030. Launched appealing UTME! line made of water-saving materials. C&A: Many lofty goals for 100% organic cotton use by 2020, all sustainable cotton by 2025, over 70 materials/fibres to be sustainably processed by then, and complete circular design principles adopting a "cradle to cradle" philosophy for all products..
- 10. Green washing @Luxury, @Fast Fashion Thelines between material improvement and exaggeration are often blurry. While intentions may be genuine, many brands leverage environmentally- friendly messaging without the inventory or supply chains fully supporting the scale of stated ambitions. Transparency, traceability, and third-party audits are crucial to curtailing unsubstantiated marketing claims. Consumer scrutiny is also intensifying pressure toward legitimate reform and industry regulations. Luxury: •Prada came under scrutiny from consumer watchdogs for promoting their Re-Nylon initiative and praising its "regenerative" material while still using nylon and lacking full supply chain transparency. Critics argued this overstates true environmental benefit. •Chanel faced backlash when they banned exotic animal skins but continued using lambskin and calfskin leather without clearly addressing ethical sourcing concerns. Perceived as superficial banned materials list rather than wholesale shift. Fast Fashion: •H&M has set very ambitious sustainability targets but reporting shows only about 35% of their assortment currently meets stated criteria around renewable materials as of 2021. Big unmet goals. •Forever21 launched a misleading "Forever21 Love & Care" capsule marketed as sustainable but individual products had no specific certifications or authenticity supporting most claims. •Zara uses common buzzwords around sustainability but offers little hard evidence on progress. Critics argue announcements seem more optical than substantiated by their available collection metrics so far.
- 11. Adopting sustainability practices yield positive benefits In summary,prominent industry case studies show that sustainability allows fashion brands to future-proof against climate risks or regulations and unlocks real business value - such as higher profit margins, lower operating costs, and building brand equity and customer loyalty. It's increasingly a competitive advantage rather than just a cost centre. Market Valuation & Stock Price According to McKinsey research, the top- ranking fashion companies in Dow Jones Sustainability Indices outperform peers by over 33%. For example, with solid sustainability profiles, Nike and Adidas have seen stock prices outperform rivals. Revenues & Profitability According to Nielsen, business case studies show that brands with certified sustainability attributes can command price premiums ranging from 5-66%. For fashion retailer H&M, 21% of its sales now come from sustainable collections. Cost Savings According to an MIT study, investments in eco-efficiency at apparel factories can result in cost savings from reduced water, energy and materials to $7M over five years at a mid-sized facility. Reputation and Consumer Demand Research shows that 73% of customers expect companies to make eco-friendly products and use green manufacturing processes. Accountability drives brand loyalty - so sustainability boosts reputation and sales.