Amidst the wave of meatless burgers and climate change protests, the world is now turning its gaze to the fashion industry to combat ethical and sustainability issues. It’s estimated that about 10% of global carbon emissions are generated by the fashion industry, therefore it shares responsibility in the combat for a greener world. At its core, we see brands and retailers continue to reap the benefits of globalization, without recognizing the consequences. While the corporate top dogs are viewed as the bad guys, responsible for mass consumerism for increased profit, what are the facts behind this outlook? Or perhaps the better question is - what can businesses do to deliver when it comes to the wider sustainability agenda? Consumers often lack verified information about how their apparel is made. Measuring the sustainability of supply chains calls for textile companies to thoroughly investigate what is happening within their supply chains and to disclose this knowledge both internally and externally. It’s essential that businesses commit themselves to a higher goal, rather than simply turning a profit. It’s no easy task to address decade-old issues within the industry, but these obstacles can, in fact, become promising vantage points when approached with the right mindset. Whether your business is small or large, measuring your sustainability practices has the potential to save you both time and money. It’s a win-win for all. Measuring KPIs for Sustainability Keeping track of key performance indicators (KPI’s) is an essential part of measuring sustainability. They allow you to keep track of any progress made, and how this can help the business to move in the right direction. The following evaluation points are considered to be the most important KPI’s when tracking sustainability:
Carbon Footprint Energy Consumption Product Recycling Rate Saving Levels due to conservation and improvement efforts Supplier Environmental Sustainability Index Supply Chain Miles Water Footprint Waste Reduction Rate Waste Recycling Rate
These KPIs prove to be helpful because they provide a clear indicator of how far a product has to travel before reaching its destination. For example, it can become apparent that certain raw materials have to travel a long distance before reaching their next destination in the supply chain, which incurs both environmental and transportation costs. As a result, this may also influence your choice of suppliers, depending on geographical location. Measuring energy consumption provides insight into the amount of energy being consumed by the business, tracking against previous months to establish the level of energy efficiency. This in turn can lead to targets for lower energy use and ultimately, a reduced carbon footprint. Measuring Sustainability in the Supply Chain Aiming for effectiveness in terms of product making, inventory management, and customer delivery is essential when striving for a competitive supply chain, as well as in terms of ecological sustainability. It’s important that when thinking of your brand, that you ask the following questions to determine how you measure sustainability:
Are you over-ordering for your inventory? How can this be improved? How many garment samples are being made? In terms of materials, how much fabric are you using, how many types of fabric, and why did you choose such fabrics? How are you retrieving data related to the businesses’ environmental impact? How can this information be used to improve its impact? What are your brand’s core ethical values? Are you making decisions that align with your customers’ beliefs? How can you scale a successful business while also making ethical decisions?
It may not be easy to recover the answers, but asking these questions will help you better communicate your brand’s approach to sustainability. By disclosing information about your own supply chain, it encourages the consumer to join your brand on that journey, ensuring that both parties are a part of the solution. Having clearer visibility into your brand’s mission will not only improve your profit margin but will also bring confidence to your customers that they’ve struck gold with a thoughtful and ethical product.