“Ethical” and the “environmental impact” of the fashion supply chain are the new buzzwords surrounding the domain of sustainability.
As more companies display their carbon-neutral goals on corporate websites, the concern for the environment is becoming palpable. The internet is flooded with thousands of published news articles and web presentations surrounding sustainability and the demand for more transparent supply chains.
Major key players within the industry beginning to achieve progressive goals, however, many of which are playing on the consumers’ demands and environmental demands to generate brand publicity to drive sales, as well as an overall more positive brand image.
We’ve stepped into the official era of the “green supply chain”. Brands can be differentiated by the elimination of greenwashing and honestly claiming environmental responsibility, with help of the correct certification bodies. As supply chains become more transparent, the ones that greenwash are getting exposed.
New Protocol Means Brands Have to Get on Board
Not only are brands feeling the pressure from their competitors, but global regulators are obliging supply chain professionals across the entire value chain to consider requirements for ethics and transparency.
The clearest example of this is the Withhold Release Order (WRO), which was issued by the U.S Customs and Border Protection. Under the order, all shipments containing cotton and cotton products coming from the Xinjiang Uyghur Autonomous Region are to be detained.
In case you’re not aware, China has been accused of committing crimes against humanity and even genocide against the Uyghur population and other mostly-Muslim ethnic groups in the north-western region of Xinjiang. In addition, Britain has also announced that it will tighten import laws linked to XUAR human rights abuse claims.
Announcements such as this highlight the necessity of which companies must proceed to make sure their products aren’t detained at the border.
Transparent Brands are More Profitable
Green sells. In every industry, the demand is growing for sourcing information, farm to fork, and shorter supply chains. According to a poll conducted by GreenPrint, 75% of Millennials are willing to pay more for an environmentally sustainable product, compared to 63% of Gen Z, 64% of Gen X, and 57% of Boomers.
In another poll by Nielsen, it found that 66 percent of consumers, in general, are willing to pay more for eco-friendly products. We can conclude that the interest is stronger amongst the younger generations.
Unfortunately, greenwashing in the fashion industry is predominantly felt. Having been analyzed by the European Commission, it was found that 42% of sustainability claims by online retailers were exaggerated, false, or misleading. Not only is this morally corrupt, but it could breach unfair commercial practices under EU regulation.