Sustainability is increasingly present in the textile industry. 83% of companies have a sustainability strategy and this is partly due to the continuous demands of customers, which has benefited innovation and transformation in the sector. However, there is still a long way to go, as only 74% of companies have established a specific scorecard.
Traceability is a set of processes, locations and trajectories of a product along the supply chain. According to the report “Shaking Sustainability in the Fashion Business”, prepared by Ernst and Young (EY), 45% of textile companies are unable to ensure the full traceability of their products.
Visibility at different stages of the supply chain is often quite opaque, and when it comes to extracting data, it requires an investment of large amounts of time as there is hardly any automation in this field. This means that companies delay the implementation of responsible practices, resulting in uninformed purchases by the end consumer.
Problems in Guaranteeing Traceability
Specifically, the first problem of traceability is due to the fact that the main apparel producers are in India, China, Pakistan or Bangladesh. When the product is made in Spain, it is much easier to trace its production, since it is possible to know the working conditions of the company and the raw materials used, in addition to reducing transportation costs.
Thus, for a garment to be sustainable, it must meet seven axes on which a company's sustainability strategy must be established: governance, risks and compliance, operations, people, communication, technology, finance and legal/tax.
EU Legal Requirements
On the other hand, an estimated 10% of global carbon emissions are a consequence of the textile industry. In addition, textile production, through dyes, is responsible for 20% of global drinking water pollution.
To curb this situation, in March this year, the European Commission presented a circular economy action plan, aiming to make textiles more durable, repairable, reusable and recyclable, since, according to the European Environment Agency, "textile purchases in the EU in 2017 generated around 654 kg of CO2 emissions per person."
The new strategy includes new eco-design requirements for textile products, clearer information, and a digital product passport and calls on companies to take responsibility and act to minimize their carbon and environmental footprint.
Is the Industry Making Progress?
Fashion Revolution published its Fashion Transparency Index 2021 for last year, which confirms that the industry is making progress in this area, but more slowly than desirable. Fashion Revolution analyzed the world's 250 largest fashion brands and retailers based on their public reporting of policies, practices and environmental and human rights impacts in their operations and supply chains.
No brand scored more than 80% of the possible 250 points. The only one that comes close is Italy's OVS (78%), which is at the top of the ranking, replacing Swedish giant H&M, in second place this year. In the 60% to 70% bracket are The North Face, Timberland, C&A, Vans and Gildan. Other well-positioned brands include Esprit, Benetton, Calvin Klein, Tommy Hilfiger, Van Heusen, Gucci, Converse, Nike, UGG, Adidas and Reebok.
Zara is placed, with 36%, behind rivals such as the aforementioned H&M (68%), Uniqlo (42%) and Primark (38%). Pull&Bear, Bershka, Massimo Dutti and Stradivarius have the same score. Further down the ranking are other Spanish companies such as El Corte Inglés (28%), Mango (26%), Desigual (21%) and Cortefiel (15%).