Amidst the call for growth and development, the 37th International Cotton Conference Bremen in Germany sounded a cautionary note against fostering competition with synthetic fibres.
Recognising the defensive stance of cotton against alternatives like polyester, industry stakeholders advocated for a strategic approach that leverages consumer demand to bolster cotton processing capabilities. Yet the demand for degrowth threatened to derail any initiatives to increase production—and arguably, rightly so. In answering, business development managers at the Commerzbank AG, Manual Höchemer and Lennert van Mens, discussed why ESG and sustainability are increasingly driving corporate strategy and investments.
“The impact on your strategy, investment-decisions and financing is both direct, and indirect through your customers and other business partners, as well as through the financial sector with e.g. banks and investors. What can you do, not only to secure and defend your competitive position, but also to realise the potential and opportunities from this transformation?” they questioned.
The three-day conference at the Bremen Parliament House right next door to the Bremen Cotton Exchange, focused on scientifically founded and practically useful new insights into key issues surrounding cotton production, cotton quality, textile processing, innovative cotton-based products and the chain connecting all.
At a pivotal crossroad
The textiles industry stands at a pivotal crossroads, grappling with the dual demands of growth and sustainability, and the discussions at the cotton conference shed light on the intricate dynamics and emerging trends within the sector.
From the apprehensions raised by forthcoming legislation to the imperative of rigorous scientific data collection, with over 40 speakers, the conference served as a platform for industry leaders to chart a course towards a more environmentally conscious future.
Colin Iles, a veteran in the cotton commodity trading sphere, kicked off the conference with a stark reminder of the precarious state of global cotton production, the effects of climate and the knock-on influence on prices.
Reflecting on the cotton ‘shortage’ of 2011, Iles underscored the urgent need for increased production to meet escalating demand. He emphasised the role of improved infrastructure and cultivation techniques in cotton farming, with a nod towards the potential of regions like Brazil to emerge as key players in the global cotton market, while Heinz Zeller from Hugo Boss painted a fulsome vision of responsible regenerative farming.
Despite the typical financial reticence of the banking industry in relation to the textiles sector, Höchemer and van Mens presented a promising set of measures that seek to support the ESG strategies. They were keen to see positive business cases that align with the Paris Agreement, UNSDGs regulation and reporting while fulfilling supply chain expectations, and also ensured that “green financing” is readily available. However, they said that business cases require positive foresight and scientific validation.