Tardy Fashion: Both Brands and Manufacturers Remain High on Words, Low on Action

The textiles-fashion industry is living in a bubble where nature does not exist and all that babble about sustainability is just that. That's the impression one gets after reading between the lines of the annual Materials Benchmark of nonprofit Textile Exchange. Like always, there’s been a lot of progress, but a lot also remains to be done.

Long Story, Cut Short
  • There has been a lot of progress, but a lot also remains to be done. It's a sentiment that one would have gauged many times before, from many other reports from many other organisations.
  • When it comes to impact assessment, companies score high (83%) in saying that they are engaged in reducing greenhouse gas emissions. That's where numbers take a nosedive, since only 39% do any nature-related impact assessment.
The Materials Benchmark report has an intrinsic drawback—the data comes from what brands and manufacturers themselves have to say. Were there to be independent audits, the numbers would probably plummet. But that's just an argument.
Talking Heads The Materials Benchmark report has an intrinsic drawback—the data comes from what brands and manufacturers themselves have to say. Were there to be independent audits, the numbers would probably plummet. But that's just an argument. dduchon / FreeImages.net

The annual Materials Benchmark of nonprofit Textile Exchange showcases the progress of both brands and manufacturers towards more sustainable materials sourcing. This year's benchmark has just been released and comes in two parts.

Very broadly, the sentiment that emerges is this: there has been a lot of progress, but a lot also remains to be done. It's a sentiment that one would have gauged many times before, from many other reports from many other organisations.

You can call them sugar-coated pills. But one can very well understand why they are so. An organisation like Textile Exchange is not an activist outfit. Hence, the reports are what they ideally should be: straight-jacket and devoid of sensationalism. Second, it is a member-driven organisation. You cannot and should not expect such an entity to bad-mouth its members. Fair enough.

Nevertheless, the truth is there: you only need to look for it. And, the nuances that are designed to be amiss are there for you to construct.

But first, the official takeaways. 

The key trends for brands and retailers are:

  • Participants are scaling their sustainability strategies for raw materials.
  • Brands are starting to address climate impacts through goal setting and risk assessment. 
  • Sustainability programmes and standards represent accessible solutions, but there is more to do. 
  • Further progress is needed in the transition to a more circular economy. 
  • Further visibility to the countries where fibres and raw materials are produced is a must. 

The key trends for suppliers and manufacturers are:

  • Suppliers are setting strategies for materials sustainability, with risk assessments needed next. 
  • Measuring impacts is a relatively new area for participants. 
  • Participants are using more preferred materials but need to focus on key fibre types. 
  • There is untapped potential for suppliers to become leaders in circular solutions.

The Devil, however, lies in the details. A careful gleaning of the data shows that both brands and manufacturers are high on words, low on action.

How brands and retailers fare

Textile Exchange analysed the data submitted by 394 companies—including brands, retailers and their subsidiaries—for the year 2022. They represent roughly 76% of TE members.

From the overall business point of view, the numbers look quite good. A whopping 95% says "yes" to developing formal strategies, especially in relation to raw materials, with another 4% having such strategies in development. A little more than half have decoupled economic growth, and as many as 93% say the board is heavily involved, especially in specific areas such as raw materials, climate, and circular economy. However, biodiversity, freshwater, and soil health remain low on the agenda. Risk assessment (77%), stakeholder engagement (85%) and customer engagement (85) are all high on the scale.

Thereafter, the numbers start losing their coherency. It's been six years since the Ellen MacArthur Foundation released its landmark report A New Textiles Economy: Redesigning Fashion's Future. It is seen something of a gospel in the textiles-apparel-fashion industry, but even now only 58% of brands and retailers have a formal strategy in place. It's a different matter altogether that such strategies need to be evaluated in basis on how cogent and future-proof they are. Only 56% have SMART goals (Specific, Measurable, Achievable, Relevant, and Time-Bound) chalked out.

Circular business models, though in place, are not working. The report laments: "The data shows that most respondents either did not perform profitability analysis of the steps taken to implement circular business models or did not provide data. Due to the lack of data provided by the respondents, a low percentage of profitability was reported for all circular business models."

The Ecodesign for Sustainable Products Regulation (ESPR) regime is set to roll in Europe, and the issue of destruction of unsold inventory has been raging for a while. Yet, only a quarter of the respondents can estimate the full volume of unsold goods. And this when 66% of the brand/retailers were from Europe. The lethargy of brands/retailers on this aspect is unbelievable.

They talk circularity, but are far from designing for it. Only 18% design 100% for circularity, and another 17% fall in the 76–99% bracket. The rest are yet to leave the rhetoric behind.

When it comes to impact assessment, companies score high (83%) in saying that they are engaged in reducing greenhouse gas emissions. That's where numbers take a nosedive, since only 39% do any nature-related impact assessment. It would seem they live in a bubble where nature does not exist. Worse, only 50% use tools and frameworks for assessment. 

The Devil, however, lies in the details. A careful gleaning of the data shows that both brands and manufacturers are high on words, low on action.
The Devil, however, lies in the details. A careful gleaning of the data shows that both brands and manufacturers are high on words, low on action. aleheredia / FreeImages.net

How suppliers and manufacturers fare

There is a sweeping generalisation in the global textiles-apparel-fashion industry—that if brands and retailers set their own house in order, things would fall in place for suppliers and manufacturers too. One can argue about the merits and demerits of such a contention. But should it be true, it stands testimony to why the numbers don't look promising on the latter front.

Sure, as far as the paperwork is concerned, in case of suppliers and manufacturers too, strategies and commitments are well stacked up (albeit a notch lower than that of brands and retailers). About 88% have formalised a raw materials strategy, 41% have decoupled economic growth, 85% talk of board accountability, 8% have capacity building factored in, 59% conduct risk assessment, 79% talk about stakeholder engagement and 82% value customer engagement.

Much of the circularity objectives of the overall industry can be realised in this segment of the supply chain, but only 41% suppliers and manufacturers report having a formal strategy in place. Mind you, these companies are arguably the best and the cleanest in industry, since they belong to the TE ecosystem of members. Yet, just 28%—repeat 28%—have SMART goals, and only 33% follow a closed-loop process. Circularity has gone for a toss down the supply chain.

There's more than a lot to be done

The Materials Benchmark report has an intrinsic drawback—the data comes from what brands and manufacturers themselves have to say. Were there to be independent audits, the numbers would probably plummet. But that's just an argument.

Even if one were to take the numbers at face value, it is obvious that there is a yawning gap between what brands and suppliers promise (through formalised strategies and commitments) and what they deliver. And that too, in their own words.

This is as good as 2024. And if the best of brands and manufacturers still don't have even the requisite paperwork in place (as in 100% having proper goals, strategies and frameworks), one shudders to think what it might be in the unregulated sector of the market.

As of now, there's many a slip 'twixt the cup and the lip.

There’s a yawning gap between what brands and suppliers promise (through formalised strategies and commitments) and what they deliver. And that too, in their own words.
There’s a yawning gap between what brands and suppliers promise (through formalised strategies and commitments) and what they deliver. And that too, in their own words. Divyanshi Verma / Unsplash
 
 
 
  • Dated posted: 13 December 2023
  • Last modified: 13 December 2023