Do you know? It is estimated that the apparel and textiles industry alone accounts for 2% of global carbon production.

2. • There is a need to increase sustainability, transparency, and
digitalization in the sourcing process.
• It is in the interests of all businesses to make their sourcing
operations as modern, ethical, and open as possible.
• Sustainability shouldn’t be viewed as a buzzword or public
relations tool to satisfy the perceived social leanings of
millennial consumers.

3. • Crafting a more sustainable supply chain will enable a company
to save both time and money.
• In the global sense, companies in the garment industry have a
responsibility to streamline operations due to the large
amount of waste and pollution they produce.
• Production of a cotton t-shirt requires 2,700 liters of water.
• Textile industry accounts for 17-20% of industrial water
pollution.

4. • There is evidence that cutting water usage can lead to savings.
• Reducing power and water consumption, shrinking the gaps
between factory floor and retail space is simply more cost
effective.
• The apparel and textiles industry alone accounts for 2% of
global carbon production.
• If current consumption patterns remain unchanged, that figure
could skyrocket to a staggering 26% of global carbon
production over the next thirty years.

5. • Climate change has already extracted economic costs across
the world with abnormal rains, flooding, and droughts.
• In a 2017 study, Tufts University cited data projecting that if
global pollution rates remain unchanged it could ultimately
cost the world around “11-14% of global GDP annually.”
• If we focus those effects specifically on the apparel industry, it
is projected that companies could lose 3% of earnings unless
substantial changes are made.

6. • Companies such as H&M and Inditex, as well as Nestlé and
Unilever, have embarked on expansive transparency programs
in an attempt to set standards across their respective
industries.
• Some consumers report being willing to pay more for a brand
that is transparent or even switch to a more transparent brand.
• Outside of the purely economic payoffs, engaging in a
transparent supply chain also helps companies reduce risks
and improve conditions.

7. • Consumers largely hold brands responsible for any issues or
incidents that occur within the supply chain, like pollution,
poor working conditions, or risks to the lives and health of
workers.
• The destruction of marine and plant life, as well as an increase
in cancer rates reportedly caused by water pollution from the
Sateri Chemical Fiber Co., Ltd. in Jiangxi, China, is an example
of the damaging risks.

8. • A factor that could help in both of the previous areas is increased
digitalization.
• Adopting digital technologies could add an estimated $4.8
trillion in value for the consumer industries while increasing
productivity three fold.
• 14 industries saw more than $363 billion in returns from 2015-
2016 with digitalization.
• Digitalization could generate roughly “$100 trillion in value to
business and society over the next decade.”

9. • An increase in new digital technologies allow for safer, more
efficient production that produces less waste and better
working conditions.
• Communication across digital platforms reduces the need for
air travel for every inspection or showcasing saving time,
money, and fuel.

10. • Digital applications for logistics, analytics, and storage
processes could cut carbon dioxide production by an estimated
26 billion metric tons over a roughly ten year period.
• By the year 2030, digitalization efforts, such as 3D printing,
irrigation technology, and process management software,
could save about 300km3 of water.
• Companies such as Levi Strauss have already attempted to
address this issue by altering their manufacturing process to
reduce water usage by upwards of 1 billion liters.

11. • While the results of going digital, transparent, and sustainable cannot
always be measured in cash figures, the benefits should be quite clear.
• Businesses in all industries will suffer losses if global pollution, carbon
emissions, and water consumption are not reduced.
• Adjusting operations to address these concerns will have a monetary
benefit simply by having companies consume fewer resources.
• Transparency helps companies mitigate risk and ensure product quality.
Digitalization is the linchpin for all of this, helping companies to achieve
these changes, while also advancing into the future.

12. References
• Accenture & World Economic Forum. (January 2017). Unlocking Digital Value to Society [PDF file]. Retrieved
from http://reports.weforum.org/digital-transformation/wp-content/blogs.dir/94/mp/files/pages/files/170328-
dti-unlocking-digital-value-to-society-slideshare.pdf
• Accenture & World Economic Forum. (June 2016). Societal implications: can digital create valuefor industry and
society? [PDF file]. Retrieved from http://reports.weforum.org/digital-transformation/wp-
content/blogs.dir/94/mp/files/pages/files/dti-societal-implications-slideshare.pdf
• Accenture & World Economic Forum. (May 2018). Maximizing Return on Digital InvestmentsExecutive Summary
[PDF file]. Retrieved from http://reports.weforum.org/digital-transformation/files/2018/05/201805-DTI-
Maximizing-the-Return-on-Digital-Investments-Slideshare-1.pdf
• Behind the Brands. (2018). Transparency. Retrieved from
https://www.behindthebrands.org/issues/transparency/
• Changing Markets Foundation. (June 2017). Dirty Fashion: How pollution in the global textiles supply chain is
making viscose toxic [PDF file]. Retrieved from http://changingmarkets.org/wp-
content/uploads/2017/06/CHANGING_MARKETS_DIRTY_FASHION_REPORT_SPREAD_WEB.pdf
• Codur, A.M. & Harris, J. & Roach, B. (2017). The Economics of Global Climate Change [PDF file]. Retrieved from
http://www.ase.tufts.edu/gdae/education_materials/modules/The_Economics_of_Global_Climate_Change.pdf

13. References
• Ellen MacArthur Foundation. (2017). A new textiles economy: Redesigning fashion’s future [PDF file]. Retrieved from
https://www.ellenmacarthurfoundation.org/assets/downloads/publications/A-New-Textiles-Economy_Full-Report_Updated_1-12-
17.pdf
• Fashion Revolution. (23 April 2018). Fashion Transparency Index [PDF file]. Retrieved from
https://issuu.com/fashionrevolution/docs/fr_fashiontransparencyindex2018/70
• Gleick, P.H., Ajami, N., Christian-Smith, J., Cooley, H., Donnelly, K., Fulton, J., … Srinivasan, V. (2013). Total Renewable Freshwater
Supplyby Country (2013 Update). In The World’s Water (Volume 8). Retrieved from http://worldwater.org/wp-
content/uploads/2013/07/ww8-table1.pdf
• Global Fashion Agenda & The Boston Consulting Group. (2018). Pulse of the fashion industry [PDF file]. Retrieved from
http://www.globalfashionagenda.com/publications/
• Kant, R. (2012). Textile dyeing industry an environmental hazard. Natural Science, 4(1), 22-26. Retrieved from
https://file.scirp.org/pdf/NS20120100003_72866800.pdf
• Label Insight. (2016). Driving Long-Term Trust and Loyalty Through Transparency [PDF file]. Retrieved from
http://www.labelinsight.com/hubfs/2016_Transparency_ROI_Study_Label_Insight.pdf
• Natural Resources Defense Council. Encourage Textile Manufacturers to Reduce Pollution. Retrieved from
https://www.nrdc.org/issues/encourage-textile-manufacturers-reduce-pollution
• Newell, A. (23 February 2016). Quenching Cotton’s Thirst: Reducing the Use of Water in the Cotton Lifecycle. Retrieved from
https://www.triplepundit.com/special/cotton-sustainability-c-and-a-foundation/water-cotton-lifecycle/
• Water<LessTM. Retrieved from http://levistrauss.com/sustainability/products/waterless/
• World Economic Forum. Introducing the Digital Transformation Initiative. Retrieved from http://reports.weforum.org/digital-
transformation/introducing-the-digital-transformation-initiative/
• World Wildlife Fund. (16 January 2013). The Impact of a Cotton T-Shirt: How smart choices can make a difference in our water and
energy footprint. Retrieved fromhttps://www.worldwildlife.org/stories/the-impact-of-a-cotton-t-shirt

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