Climate challenges facing the clothing sector - Master of Science in Innovation and Entrepreneurship
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Climate challenges
facing the clothing sector
Program:
Master of Science in Innovation and EntrepreneurshipContent
SUMMARY............................................................................................................................... II
1. INTRODUCTION.................................................................................................................. 1
1.1 ENVIRONMENTAL CHALLENGES .......................................................................................... 1
1.2 RESEARCH TOPIC AND AIM .................................................................................................. 2
1.3 THEORETICAL POINT OF DEPARTURE.................................................................................... 3
1.4 FURTHER RECOMMENDATIONS ............................................................................................ 3
2. THE CLOTHING INDUSTRY.............................................................................................. 4
2.1 CLOTHING .......................................................................................................................... 4
2.2 THE PRODUCTION CIRCUIT .................................................................................................. 5
2.3 PATTERNS OF TRADE .......................................................................................................... 6
3. CLIMATE CHALLENGES................................................................................................... 7
3.1 GLOBAL WARMING ............................................................................................................. 7
3.2 FIBRE CULTIVATION AND ACQUISITION ................................................................................ 7
3.3 TRANSPORTATION .............................................................................................................. 8
3.4 CONSUMER HANDLING ........................................................................................................ 8
3.4 WASTE ............................................................................................................................... 8
3.5 OTHER ENVIRONMENTAL IMPACTS ...................................................................................... 8
3.6 LIFE CYCLE ASSESSMENT .................................................................................................... 9
3.7. AREAS OF CONCERN .......................................................................................................... 9
4. CREATING A BASIS FOR INNOVATION ....................................................................... 10
4.1 THEORETICAL FRAMEWORK; IDENTIFICATION AND POLICY INTERVENTIONS ........................ 10
4.2 INNOVATION AND LEARNING. ............................................................................................ 12
4.3 HISTORICAL AND EVOLUTIONARY PERSPECTIVE. ................................................................ 14
4.4 EMPHASIS ON INTERDEPENDENCE AND NON-LINEARITY. ..................................................... 15
4.5 ENCOMPASS PRODUCT AND PROCESS INNOVATION ............................................................. 16
4.6 THE ROLE OF INSTITUTIONS AND THEIR INFLUENCES ON INNOVATION PROCESSES. ............... 17
5.7 HOLISTIC AND INTERDISCIPLINARY PERSPECTIVES ............................................................. 17
6. FURTHER RECOMMENDATIONS. ................................................................................. 18
6.1 CORPORATE SOCIAL RESPONSIBILITY................................................................................. 18
6.2 GOVERNMENT INTERVENTIONS ......................................................................................... 19
6.3 WASTE HANDLING AND RECYCLING .................................................................................. 19
6.5 FIBRE CULTIVATION AND ACQUISITION .............................................................................. 20
6.6 COSTUMER AWARENESS.................................................................................................... 20
7. CONCLUSION .................................................................................................................... 21
REFERENCES .......................................................................................................................... 22
Page iSummary
The garment producing sector is a highly global and complex industry. During
production an item of clothing travels the world before its branded and displayed
in a shop. What are the driving forces behind this global industry and which path
dependant components have led to the way the industry is currently organized?
On the basis of sectoral understanding this paper deals with the environmental
impact the garment producing sector has on the global environment, and what
commercial and innovation policies are needed to turn the tendencies.
Page ii1. Introduction
Clothing is an economic success story, in particular supporting a number of
emerging markets, but one that comes with a significant environmental and social
footprint. Of the 2 million tons (value £40 billion) cloths consumed in the UK per
year, the impacts can include resource depletion, GHG emissions, waste,
chemical toxicity, pollution, child labour and sweatshop conditions. Some of the
impacts are local to the UK, but with 90%of UK consumed cloths imported, many
of the most significant ones occur overseas. (…) Last year the clothing and
textiles industry produced up to 2m tons of waste, 3.1m tons of CO2 and 70m tons
of waste water.
(Dr Dorothy Maxwell, DEFRA Sustainable Clothing Roadmap 2007)
1.1 Environmental challenges
In comparatively recent years we have become increasingly aware of the possible
devastating climatic consequences facing the world at large mainly due to
greenhouse gas emissions which affect the ozone layer and causes global
warming. Scenarios of a global rise in temperature set the backdrop for
consequences such as melting glaciers, rising sea level, and drastic weather
conditions which affect all life on Earth. Extensive evidence exists of effects
which will only increase in speed. We are now aware of the fact that we can no
longer sustain a prosperous planet for future generations unless we actively
change the patterns of the very foundation on which our modern systems of
production and consumption are based upon. The responsibility we all carry as a
collective society is to change our ways drastically if we are going to be able to
modify the direction in which we are heading. The responsibility on individuals,
governments and enterprises have a common ground in that we need to think
outside our integrated pattern of reasoning and find solutions to how we can alter
the future path and create sustainable standards of living, consuming and
producing the goods and services we rely on. Innovation is an attitude as well as a
tool for successfully exploiting new ideas, inventions and processes. This
encompassing constitution for rethinking, restructuring and establishing new
technology for utilizing raw material in new ways and implementing new answers
Page 1to existing problems based on research and analysis is part of the solution if
successfully applied.
1.2 Research topic and aim
To illustrate the complexity and what possible industrial/commercial and policy
innovations needed to meet the environmental challenges, I have chosen to focus
on a certain sector of the economy. The garment production circuit is an industry
that reaches many times around the globe. A product goes through the stages of
fibre acquisition, spinning, dying, weaving, production assembly and packaging
before its ready for sale. I do not emphasize the design and fashion side which is
the up scale part of the sector. Rather I will give a definition of the products, the
production industry at large and explain why garment production has become a
global trade. In ‘Fabric-ating Fashion’: The Clothing Industries, author Peter
Dicken explains in depth how the global clothing sector has developed over the
past thirty years. The strength of this chapter from the book: Global shift –
Mapping the changing contours of the world economy, is the thorough historical
clarifications outlining the background for the present day clothing production
sector. All though thoroughly descriptive of the global production circuit, Dickens
does not mention the environmental impact, or predict future scenarios affecting
further sectoral developments.
Understanding how the clothing production sector operates based on the recent
historical developments is crucial when it comes to understanding the industry at
large and to be able to fragment and look at each production stage in isolation. I
introduce the major contribution in relation to GHG emissions this sector has on
the climate by linking each specific stage of production to its direct impact. The
empirical data are based on the DEFRA Report on Sustainable Clothing, Mapping
of Evidence on Sustainable Development Impacts that Occur in Life Cycles of
Clothing: A Report to the Department for Environment, Food and Rural Affairs,
Environmental Resources Management (ERM) Ltd. London. This is a publication
set out to gather and analyze the current literature on clothing production and its
impact on the environment. In particular the report aims at highlighting gaps in
the available literature and how existing literature compares, and advice on which
areas are in need of further research and documentation. All though the report has
a global focus it relates much of the findings to the remaining UK textile sector.
Page 2Some of the information concerns domestic situations in the UK, but I find most
of the facts relevant as the strength of this report focus on the necessary global
perspective on international literature.
1.3 Theoretical point of departure
Future developments for any given sector to meet the needs of the present without
compromising the ability for future generations must find ways to minimise
damage on the natural world and make use of the earth's resources in a sustainable
way. Sustainable Consumption and Production (SCP), is an approach which aims
at achieving economic growth whilst respecting environmental limits. In
combination with Systems of Innovation (SI) formulated by Charles Edquist the
SCP approach form the basis for my theoretical framework. I give an account for
Edquist’ view based on the article Systems of Innovations; Perspectives and
challenges, where he employs the SI characteristics as a foundation for creating
innovation policy. In his paper Identification of Policy Problems in Systems of
Innovation through Diagnostic Analysis, Edquist sees diagnostic analysis as a
means to identify systematic problems in order to create strategic policies. The six
main recognitions forming the framework in the Systems of innovation approach
are headings for the subsequent discussion concerning innovation strategies.
Based on the preceding sectoral description and the major climate challenges
facing the clothing producing sector I will use this theoretical framework when
discussing both industrial/ commercial and policy innovations to meet the
challenges.
1.4 Further recommendations
The final section is concerned with highlighting shortcomings and recommending
further investigation into areas of potential for minimizing environmental damage.
I focus in particular on corporate social responsibility, government interventions,
waste handling and recycling, fibre cultivation and acquisition, and customer
awareness. By referring to current situations and exemplifying scenarios I aim at
showing the prominence for commercial benefit as a key driver in developing
sustainable patterns and methods of production.
I conclude by summing up the main point of this paper and exit with a closing
remark.
Page 32. The clothing industry
The total spent on clothing worldwide amounted to 1 trillion US Dollar in 2000.
Global employment was 26.5 million, and global exports of textiles and clothing
represented about 7% of world exports (DEFRA report 2007)
2.1 Clothing
As a product of constant development clothing serve a fundamental need; to
protect us from the elements and to attract attention. Fashion represents the
demand for clothing in a complex variety of social and cultural forces. As a
collective good it is highly symbolic, suggestive of self projection and perception.
Variable market factors such as income, age, social status and gender play
important roles in the demand for products. The uncertain and unpredictable
market depends on a company’s ability to calculate or influence what consumers
will buy.
The present day garment industry categorize products in 3 sections; Basic clothing
which cater for basic needs, fashion basics which have a higher level of trend
impact, and high fashion which supply smaller production units of more costly
products. In this paper I will focus on the fashion basic segment which since the
mid 90’s has been the fastest growing product category. Globally personal
incomes are unevenly distributed, the wealthy fraction of the world largely
determine the level and nature of the demand for clothing. There is a great
emphasis for designers, producers and retailers to stimulate this trend which has
created a shift from low margin basic garments to higher margin fashion basics.
Great expenditure goes into creating and promoting designer labels,
differentiating similar products and styles, and encouraging segmentation for the
demand for clothing. The rapid emergence of fashion basic’s from retailers like
the GAP in the US and Next in the UK became known as the retailing revolution
in clothing. During the nineties this trend created a paradigm shift with the
emergence of firms such as H&M and Zara amongst many, to cater to affluent
young costumers. This structural shift affected the direction of new technology
and corporate strategy which created a deep impact on clothing manufacturers.
Time saving technology and shipment directly from manufacturers to retailers is
Page 4how most significant firms operate their global buying operation today. The
concentrated purchasing power which these large retail chains represent creates a
considerable influence over clothing manufacturers. As the market for garments
has become more differentiated due to frequent changes in fashion, manufacturers
are forced to respond effectively to retail demands. Over production is a result of
mass production. The pressure to introduce new products to the market every
week redeems previous trends obsolete. Before the mid nineties a regular fashion
collection consisted of four seasons. Today retailers talk of 365 seasons in a year.
2.2 The production circuit
The clothing production industry forms a large global network in which each
stage has its exact technological and organizational characteristics and
geographical agreement. Garment production is fragmented and because of
extensive subcontracting a large number of operations are being performed
separately from the factory holding the original contract. The great variety of
products designed, play a dominant role in shaping the organizations and
geography of the industry.
Global competition intensifies the need for labour saving technologies. Reducing
production time and fabric waste are the driving factor for such technologies. The
greatest challenge for technological advancement is the nature of the production
itself; the individual labour intensive manual assembly operations. Recent
technological developments concerns computer aided technology (CAD)
effectively intensifying pattern grading, cutting, all pre assembly operations,
management and distribution. Depending on volume, quality and price, producers
of basic goods for large markets utilize economies of scale to lower costs. Sweat
shops function as short term sub contractor of low quality products. Big retail
firms organize entire systems of clothing production and place orders at factories.
Economic context: Since 1992, there has been an 80% increase in world trade.
The balance of business power is shifting to the East. Investment in companies is
becoming more global and the ownership of companies is becoming more
international and less transparent.
(DEFRA report 2007, p 21)
Page 5The clothing producing industries were among the first to take on a global
dimension as it became an important sources for employment in developing
countries. In 1962 the textiles and clothing industries became subject to a specific
international regulatory framework. Originally intended to cover cotton it was
extended to include all textiles in 1973. The Multi Fibre Arrangement (MFA)
regulated most of the global trade in textile and clothing. Provision and
implementation were major factors which came to change the global pattern of
production and trade. The principle aim was to create expansion of trade in the
textile and clothing industry which would benefit developed and developing
economies. For every single product, i.e. a pair of jeans, a quota was particular
beyond which no further imports were allowed. EU and the US negotiated tighter
import quotas on a bilateral basis and invoked anti dumping procedures to protect
their own industries. The outcome of the MFA has been immensely influential on
global trade in textile and clothing. It greatly limited the rate of growth in exports
in developing countries. As a consequence a producing country that reached its
quota ceiling in one product category was forced to switch to another or else forge
labelling to hide country of origin. Many firms relocated production to other
countries which were not participants of the MFA, or which quota was not fully
utilized. As a result MFA shaped the entire clothing industries in many
developing countries. In 2005 the Multi Fibre Arrangement (MFA) was abolished.
Trading was no longer subject to import quotas.
2.3 Patterns of Trade
Production and retailing is fragmented. International buying operations on the
other hand is very concentrated. An organization of such dimension controls and
coordinates all stages of the fashion supply chain; design, production and
planning, material supply, manufacturing, quality control, testing and logistics of
distribution. Low barriers of entry and labour intensive production methods have
made clothing manufacturing accessible to countries of low levels of economic
development. China has rapidly become the world’s largest producer of fashion
goods and employs nearly three million workers. In Asia, Indonesia, India, Japan,
Vietnam, Thailand follow suit accordingly. Mexico, USA and Brazil dominate in
America, while Italy, Portugal, Spain, Turkey, Romania and Poland still produce
in Europe. Geographical global shift is evident in patterns of trade where Asia
exports and Western Europe and North America imports.
Page 63. Climate challenges
In 2001 the energy consumed by the textile and clothing industry peaked at over
5.5 million tonnes of oil equivalent. In 2004, energy use was 11% higher than in
1990, at 4.7 million tonnes of oil equivalent. (DEFRA report 2007)
3.1 Global warming
For every kilogram of textile produced globally, 2 kilograms of CO2 is emitted
into the air. (Allwood et al, 2006) Greenhouse gas emissions (GHG) emissions are
gaseous emissions caused primarily by the burning of fossil fuels, which
contribute to global warming. In the clothing sector fossil fuels are required for
cultivating fibre, producing textiles and materials, manufacturing garments,
transportation required for distribution, consumer handling and disposal.
Greenhouse gas emissions occur at all stages of a garment’s lifecycle. The main
GHG are CO2 from energy use, and CH4 and N2O from cotton production.
Approximately 0.6kg of oil equivalent primary energy is used in the industry per
kg of output.
3.2 Fibre cultivation and acquisition
Various kinds of fossil fuels are used for the production of cotton, polyester and
wool. Crude oil is the major fuel for cotton fabric production. 60% of the total use
occurs in the wet treatments such as dying and bleaching, and 21% from cotton
cultivation activities. Due to methane emissions from sheep the global warming
potential for wool up until the manufacturing stage is significantly greater than
that for cotton and polyester. Spinning of yarn and wool scouring use mostly hard
coal which amounts to 46% and 43% of the total use. Polyester acquisition use
less of crude oil and hard coal compared to other fibre types all though the
production of yarn consumes both crude oil and hard coal. Synthetic materials use
large amounts of energy producing fibres from oil. The processing of synthetic
fibres from fossil fuels causes considerable energy use, GHG emissions and
resource depletion when compared to cotton production. In terms of fibre type,
polyester consumes the most energy.
Page 73.3 Transportation
The fragmentation of the production circuit deems it necessary to ship products
over long distances by air, land and sea. Each action produces emissions which
accounts for the majority of the transportation distribution during the life cycle of
clothing. The impacts associated with transportation are normally allocated to the
country that benefit economically from the trade. For example, impacts from
clothing transported by boat from China to the UK would be allocated to China.
Transportation within a country is allocated to the country where the
transportation occurs.
3.4 Consumer handling
Consumer handling is responsible for significant energy consumption and GHG
emissions. About two thirds of the energy is due to laundering, and the other third
is due to drying. Cotton in particular requires intense washing and drying than
synthetic materials.
3.4 Waste
Waste is produced during all stages of the garment life cycle. Roughly 90% of the
waste produced comes from consumer use and garment disposal. The majority of
waste clothing and textiles is not reused or recycled, with a significant amount
ending up in landfill areas. Non-synthetic materials can release methane when
deposited in these environments and can potentially contribute to the overall
climate change impact of the clothing life cycle.
3.5 Other environmental impacts
Degradation and contamination of soil by raw material growth or production can
lead to deforestation, soil erosion, and water contamination and can drastically
affect flora and fauna. Soil contamination is closely related to emissions to air and
water and toxicity impacts. Biodiversity is similarly affected by pesticides used in
non-synthetic material growth. This is closely related to the toxicity impact of the
process and soil contamination. The production stage of the clothing life cycle has
a significant environmental impact, particularly from the dyes and finishes
associated with production.
Page 83.6 Life Cycle assessment
Life cycle assessment (LCA) is a method for assessing the environmental impacts
of products. Studies assess the potential environmental impacts throughout a
product’s life, from raw material acquisition through production, use and disposal.
The method has been standardised by the International Standards Organisation
(ISO). The life cycle perspective ensures that any emerging policies or
interventions do not simply shift the environmental burden to another life cycle
stage. LCA is the most appropriate method to quantify environmental impacts that
occur in the supply chain of a product system. According to the DEFRA report
there are a number of factors that make quantifying the data collected from the
literature difficult. A significant issue is that there is absence of life cycle
assessments available for all materials used in the production of clothing. It is also
possible that two life cycle assessments on the same product can have
significantly different outcomes. Quantification is generally presented in terms of
different items of clothing which makes it difficult to compare their separate life
cycle data.
3.7. Areas of concern
Understanding the mechanisms and the driving forces behind the clothing
production industry is crucial when forming a departure point for innovation
policies. Environmental impacts occur at all stages in the garment sector. Fossil
fuels are required for cultivating fibre and producing textiles and materials. Also
in the manufacturing of garments, transportation required for distribution and
consumer handling and disposal. Each stage needs to be evaluated on its own, but
also in the context of its place in the production chain. Each impact can possibly
affect the performance of other stages in the life cycle. A consequence of
producing cheap textiles and clothing in developing countries which are desperate
to maintain business is the withholding of evidence which undermines the
accuracy of information. Complications which may affect production price will
most certainly mean fewer orders. The ability to compete in price is prioritized on
behalf of anything which may prevent competitiveness. The other major aspect
concerns the consumer attitudes. To find any sustainable approach it’s crucial to
inform and educate consumers on the impact of mass produced cheap quality
clothing with a short fashion horizon. Clothing meant for a short life cycles are the
most harmful product developed in the fashion sector.
Page 94. Creating a basis for innovation
In the following section I will give an account for a specific theory of innovation
which encompasses the necessary approach needed to form a basis for evaluating
commercial and innovation policies to meet the climate challenges facing the
garment production industry.
In order to find sustainable solutions much work must be applied in mapping,
systemising and methodically analysing research material, which is intricate work
in a sector of inter-disciplinary liaisons. Scientific studies on the environmental
impacts tend to look at small sub-sections of the industry which makes it difficult
to compare one study with another. Marketing information is unreliable as it often
presents a skewed view by using hype, exaggeration and distortions of the truth.
To develop a sector that meets the needs of the present without compromising the
ability for future generations, Sustainable Consumption and Production (SCP), is
an approach which aims at achieving economic growth whilst respecting
environmental limits, by finding ways to minimise damage on the natural world
and how to make use of the earth's resources in a sustainable way. By collecting
evidence to identify the environmental distress of global production and
consumption of clothing, this approach aims at highlighting the impacts
throughout the following life cycle stages: Cultivating raw materials, fibre
production, clothing production and garment assembly, packaging, distribution
and retail, use and end of life management (reuse, recycling, remanufacture,
energy recovery, treatment and disposal). (DEFRA 2007)
4.1 Theoretical framework; Identification and policy interventions
As an additional point of departure I will incorporate Systems of Innovation (SI)
which includes:
All important economic, social, political, organizational, institutional and other
factors which influence all development, diffusion and the use of innovation.
(Edquist 2005, p 182)
Page 10Charles Edquist categorizes the SI approach into six subsequent recognitions
which form an inclusive framework.
1) Innovation and learning by producing new knowledge or combining existing
elements of knowledge in new ways.
2) A holistic and interdisciplinary perspective which bridge all important
determinants of innovation.
3) Historical and evolutionary perspective. Innovations develop over time and are
influenced by many factors and feedback processes.
4) Emphasis on interdependence and non-linearity. Innovation is mainly caused
by interaction between organizations.
5) Encompass product and process innovation, a comprehensive perspective on all
categories of innovation.
6) The role of institutions and their influences on innovation processes.
By definition Edquist claims that a system consist of components and the relations
between them which should form a coherent whole. A system must perform or
achieve a result and by defining the framework it must be possible to identify the
boundaries. The Provision of R&D- creating knowledge, competence building,
formation of new product markets, articulation of quality requirements, creating
and changing organizations, networking through markets, creating and changing
institutions, incubating activities, financing and provision of consultancy.
Edquist states that “..firms normally do not innovate in isolation but interact with
other organizations through complex relations that are often characterized by
reciprocity and feedback mechanisms in several loops”. (Edquist 2005)
In his paper Identification of Policy Problems in Systems of Innovation through
Diagnostic Analysis, Edquist employ the SI characteristics as a foundation for
creating innovation policy. Diagnostic analysis is a means to identify systematic
problems in order to create strategic policies. To outline a platform design for
innovation policy, policy makers must have a solid understanding of systematic
performance which enhances the ability to identify causal factors behind
performance and how a given system operates. A global industry can strengthen
innovation policy. Public action, division of labour between public and private
actors and efficient utilization in accordance with institutional set ups have the
Page 11potential to enhance capabilities. Organizations and institutions should provide
economically relevant knowledge in order to finance and commercially exploit
opportunities as basis for innovations. Hence the objective is to identify actions
between organizations in accordance with institutional incentives based on the key
activities in SI.
To find sustainable solutions to a problem one has to begin by formulating the
essential questions. How can an industry that apparently encourages uncontrolled
consumerism be environmentally sustainable? Which products and processes have
the ability to be radically superior comparatively, and which are used as high
profile gimmicks to increase sales? Products which have less environmental
impact are commendable but don’t necessarily justify the means. Because all
clothing and textile manufacturing have a negative impact on the environment
introducing a new eco-brand only has a direct benefit if it replaces harmful
products. Every additional clothing item manufactured makes the global situation
worse. Only by replacing products with lower impact products can the situation
improve.
The successive headings deals with innovation strategies based on the six SI
recognitions. Under each heading I will discuss recommendations for innovation
policies and inventiveness, and give some examples of initiatives already being
carried out.
4.2 Innovation and learning.
Producing new knowledge or combining existing elements of knowledge in new
ways.
I consider that my company does have a responsibility for the impact on the
environment but I have no idea of how to go about doing anything or if we can
afford to spend the time and resources on this subject.
(Fashion & Sustainability, 2008, p 22)
Universities and other public research institutions in combination with cross
sectoral collaborations are means for creating resources by enhancing knowledge
and to distribute competences in various fields in a given sector. By exploiting
Page 12this recourse industry affiliates are able to make use of individual knowledge,
institutional knowledge, organizational knowledge and firm specific knowledge to
enhance a competitive edge by providing relevant strategic innovation
instruments.
The London College of Fashion is the leading educational institution in Europe on
sustainability in fashion. The Sustainability in Fashion Department conducted an
online survey in 2007. The survey was developed to assess fashion companies’
current understanding of sustainability issues, where companies currently seek
information and to understand which sustainability issues are prioritised within
the corporate environment. The survey was designed to recognise the importance
of understanding how factors differ across the various fashion sectors. The results
displayed that 90.9% of respondents considered that their company has a
responsibility for an impact on the environment. 72.7% said that sustainability is
an important issue for their company. 77.3% gain sustainability information from
magazines, press, and trade journals. 52% of companies were not aware of any
relevant sustainable information available. 19% of companies did not think that
the information available was relevant. 53.5% would be more proactive if there
was a sustainability support organization.
From the survey it’s evident that most companies are aware of the responsibility
they have for impacts on the environment. Though not all admit to it, most
importantly the majority does. Accomplishing significant reduction of
environmental impact will become a competitive edge and a strong force for
driving policies for sustainable production. Almost two thirds of the respondent
companies implement sustainability as a part of their company profile, but they
find the information on methods and technology available dissatisfactory.
Awareness alone amount to nothing unless it leads to action. The need for
educating professionals is crucial. The following examples are initiatives aiming
at just that.
The Sustainable Fashion Academy (SFA) is a non profit neutral platform offering
holistic, hands on education and training on fashion and sustainability across the
fashion product’s lifecycle. Industry players in Sweden launched a work shop
based arena for actors in the clothing and textile industry who want to lead the
Page 13development of environmentally and socially sustainable products, services and
business models. The SFA offers leading-edge expertise and support in the form
of education, training and multi-stakeholder working groups.
The Danish Fashion Institute (DAFI) in collaboration with Swedish Fashion
Council (SFC), Oslo Fashion Week (OFW), Icelandic Fashion Council (IFC) and
Helsinki Design Week (HDW) has taken the initiative to establish a network
organisation called Nordic Fashion Association (NFA). This partnership project,
intend to lead the Nordic fashion industry towards a stronger focus on responsible,
ethical and sustainable production. The project is named NICE – Nordic Initiative
Clean and Ethical which includes a number of projects and partners across the
Nordic countries where the Nordic fashion industry is the focal point of the
initiative.
BEC Design, a Danish Design School located in Copenhagen, established the
Centre for Responsible Design in May, 2008. The overall objective of the Centre
for Responsible Design is to bring the field of sustainable fashion, corporate
social responsibility (CSR) and innovation closer to micro, small and medium
sized enterprises and to educate and guide fashion and design students in their
performance towards socially and environmentally sustainable products and
processes.
4.3 Historical and evolutionary perspective.
Innovations develop over time and are influenced by many factors and feedback
processes.
By 2050, the global population will have grown to more than 9 billion, with all
the growth in developing countries, creating major shift in consumer interest.
(DEFRA report, 2007)
Are existing organizations suitable for creating and changing institutions
regarding the environment, and do they have the incentives to remove obstacles?
Historically European clothing production was located in the countries
themselves. However the clothing industries of Europe experienced a massive
decline, much due to the geographical reconfiguration and reallocation of clothing
Page 14production. Asian and Eastern European economies show great improvements due
to support services such as incubation activities, financing processes, consultancy
services and technology transfer.
Firms do not innovate in isolation but through interaction and complex relations
of reciprocity and feedback mechanisms, with a strong focus on the relations and
activities among actors, such as interaction between firms, universities and
research facilities, incubators, technology parks, and venture capitalist funds.
All though the garment sector consists of a matrix of small firms and sub
contractors, there is a trend towards increased concentration. The big fashion
producing firms are key factors in the drive for the continuous development. They
can afford to invest in new technologies and build global brands, which will give
the industry as a whole an incentive to move in a sustainable direction
4.4 Emphasis on interdependence and non-linearity.
Innovation is mainly caused by interaction between organizations.
Global Enterprises carry a major responsibility in providing sustainable solutions
to global environmental challenges. There are positive signs of cross sectoral
initiatives forming to meet this responsibility. Such an example is The World
Business Council for Sustainable Development (WBCSD). This coalition of 180
global companies committed to sustainable development published a report where
eight members and global business leaders reflected on the global challenges
facing business and society. (DEFRA report, 2007) The message from the global
leaders of WBCSD constitute the commitment to engage broadly with a range of
groups and organizations, including governments, international bodies, customers,
employees, partners, academics, civil society institutions, and the general public
to use their experiences and move to a new concept for understanding and action.
Organizing a model with the full creativity, focus and resources of business will
be a significant contribution to resolving the major issues facing the environment.
By developing technologies and products that enables the world to address its
challenges, new businesses, new markets, new livelihoods, and new customers
among the global population will arise. By positioning a global benchmark and a
global frameworks that creates universal standards and raise the bar for all
companies to operate and compete successfully in a range of countries, markets,
Page 15and cultures, maintaining consistent global standards while acting as part of the
local community. These ambitious objectives underpin that industries are
recognising their role in the challenges to improve sustainability.
4.5 Encompass product and process innovation
- A comprehensive perspective on all categories of innovation.
Presently the economics of reuse and recycling is orientated around clothing
collection destined for reuse or recycling through clothes banks, charity shops or
collections for jumble sales. Although the recycling proportion is increasing,
selling for reuse generates only about 10% of collection costs because there is a
lack of value added markets for recycling grades of textiles. Disposal costs of
residues not suitable for recycling are increasing. In addition, the cessation of the
MFA is likely to increase net volumes of clothing purchased (and hence
discarded) through reduction in the price of clothing. It will also increase the
proportion of recycling rather than resale grades, which will further weaken
collection economics and depress the sales and margins of second hand clothes.
There have been improvements in the collection and sorting of used clothing and
methods of extracting fibres from used clothing. However, the diversity of
clothing composition is a challenge for recycling methods. Wool and synthetic
materials can be pulled apart and recycled easily, but cotton and cotton blend
materials are more difficult. (DEFRA report, 2007)
By educating consumers, by e.g. labelling products according to impact, raised
awareness if implemented successfully can lead to a new market segments and
open up for profitable systems. The demand for reusing existing fibres will drive
the development of new technology which has great environmental potential.
Activities on the demand side influence formation of new product markets. Public
innovation procurements stimulate market formations as new markets emerge
because the public sector demands products and systems not yet existing.
Customer quality requirements are key drivers for new product development
which manoeuvre processes in certain directions.
Page 164.6 The role of institutions and their influences on innovation processes.
Public procurements such as subsidies and regulation have great influence on
innovation activities. Successful implementation however requires adequate
division of labour between public and private actors. Creative destruction which
by definition sees the annihilation of establishments as a mean to give way for the
new order by recreating and changing organizations through enhancing
entrepreneurship, create new firms, diversify relations and creating new R&D
facilities will strongly influence and lead to new policy agencies.
Entry and exit of organizations are important activities with regards to change,
since firms are responsible for commercialising new products. Enhancing entry
and survival of new firms which are the carriers of innovation, products and
processes, require continuous support to grow.
5.7 Holistic and interdisciplinary perspectives
Bridge all important determinants of innovation.
New products drive creation and economic growth. Opportunities and incentives
must gain support from governments to issue policies and aid development of
alternative patterns of production and nurture emerging sectoral systems of
innovation. The garment production circuit involves a large number of
contributors before it ends up in a shop. The value added in each of the production
stages must be transparent for the end consumer for when deciding on what
specific garment to buy. The holistic value of fashion is not in the product it self,
but by the story that surrounds it. Clothing becomes fashion only when it’s placed
in a symbolic system which appeals to a certain costumer group. Branding and
advertisement communicates values and lifestyle approaches which determine the
possible consumer focus. Attempts to sell products such as hemp and jute have
been stigmatized by the consumers as being too alternative because of the lack of
fashion impact. But when introduced and promoted by recognized brand names
such products have great potential. Only by bridging all determinates of a fashion
product; fibre cultivators, textile producers, garment manufacturers, designer
labels, retailers and the end consumer, can the given product be successfully
exploited in a manner which performs minimal harm on the environment. The
driving force in this context is the consumer, the multi national firm act as the
Page 17provider and the incentive and policy creators are organizational and
governmental institutions. The grounds for successfully exploiting this market, is
to recognize the economical potential, and creating incentives for consumer
demands.
6. Further recommendations.
According to the DEFRA report the focus on single aspects of the clothing life
cycle rather than the entire cycle lacks in documentation. The production circuit is
a complex global operation. It is important to understand how the industry
operates at large but also crucial to isolate and focus on each stage of the products
life cycle, and research its specific potential for environmental damage to be able
to perform a diagnostic analysis in order to create innovation policies. By using a
life cycle assessment approach I have focused on five main areas of concern;
Fibre cultivation and acquisition, transportation, consumer handling and waste. I
have related the environmental damage caused at each stage respectively and
provided data in relations to GHG emissions. As a basis for innovation I have
given an account for the main strategies regarding Sustainable Consumption and
Production, and the six basic components of Systems of Innovation as a
springboard for evaluating necessary potential strategies. Under the following
headings I highlight short comings and suggest further recommendations.
6.1 Corporate social responsibility
Consumer behaviour is not just about choice of fashion and style. It includes
values and standard to means of production and distribution. Segments of the
industry which use degrading labour practises to lower production costs have
become target of large scale campaigns which results in great loss in revenues.
Concerns about environmentally harmful means of production have become a
major issue hence consumer awareness should be a significant aspect in the
garment producing industries. CSR policies must focus on reducing the
environmental impacts. A number of high profile companies, including the GAP
and Hennes & Mauritz have created CSR policies and guidelines incorporating the
sustainability impacts of clothing. This trend of identifying, managing and
reporting on non-financial issues is well documented in the literature according to
Page 18the DEFRA report. However there was little literature detailing the effectiveness
of these policies. The standards and policies currently in place work with CSR
policies as a means to compare different companies’ performances.
6.2 Government interventions
Import substituting and export orientated measures have been a major
developmental force in the garment producing industries in the past thirty years
much due to the Multi Fibre Agreement. Governments mainly intervene by
encouraging reconstructing and rationalization through subsidies and adjustment
programmes, or by stimulating offshore assembly by granting tariff concessions
on import of products assembled abroad using domestic materials, and through
preferential trading agreements as protection from competition from low cost
producers in developing countries. However encouraging industry clusters which
can produce entire garments within geographical proximity is a mean to
restructure the sector, speeding up production time, lowering transportation cost
and significantly lower the environmental impact. Such an example is the Spanish
fashion company Zara, which operates according to an entirely different
philosophy of production than the previously described global garment production
network. More in line with the traditions of the former European textile industry,
based on vertical integration of design, production, delivery and sales, fabric is cut
in-house then sent to a cluster of local cooperatives for assembly. The production
is carried out in small quantities to avoid over supply. All though some
replenishment of stock, most lines are quickly replaced with new designs instead
to create scarcity value. The production cycle is much faster than the closest
competitor Hennes & Mauritz can achieve. An entire garment only require five
weeks for a design to become an in shop product. In a typical year Zara launches
11000 new items compared to 2-4000 items which is the case for Hennes &
Mauritz.
6.3 Waste handling and Recycling
The majority of waste textiles are landfill. Diverting textiles from landfill can
produce significant carbon benefits. The carbon benefits are nearly equal to that of
wood and greater than paper, plastic, ferrous metal and glass. Estimated carbon
benefits of diverting different waste materials from landfill is feasible by 2020 and
amounts to 500 000 tonnes. (DEFRA report 2007) Bio degradable fibres such as
Page 19banana and corn fibres, has great potential but is in need of more research and
development. The developing technologies for enabling separation of fibres in
various textile compositions have the greatest potential to revolutionize the
clothing life cycle. Reusing fibre of deposited garments to produce new textiles is
a near perfect cradle to cradle solution already successfully implemented the in
the reuse of synthetics material to produce fleece and other performance materials.
The challenge lays in the ability to separate organic fibres from synthetic fibres.
New technologies and their impact on the overall clothing life cycle need further
investigation as to the effectiveness of reducing environmental impacts.
6.5 Fibre cultivation and acquisition
The global warming potential for wool is significantly greater than that for cotton
and polyester. This is due to methane emissions from sheep. These emissions can
be reduced by feeding sheep plants high in condensed tannins. The studies into the
potential of organic cotton compared to the environmental impacts of
conventional cotton have not been documented sufficiently. A large amount of
research exists on organic cotton, but little attention paid to other alternative crops
such as hemp, flax, jute, bamboo or nettle. Synthetic fibres acquired from oil have
great recycling potential but there is a need for energy saving production methods.
6.6 Costumer awareness
According to the DEFRA report there is a gap in the research on the drivers
behind consumer trends and how these trends affect environmental impacts.
Purchasing of discount clothing is well documented, but its affect on
environmental impacts is not. Studies show a significant increase in clothing made
of organic cotton, but not why organic cotton is so popular with the consumer, and
what actual knowledge consumers have on the sustainability of clothing. This is a
considerable aspect as a large part of the environmental impact comes from the
user stage. Initiatives should focus on changing consumer habits when it comes to
the actual amount of clothing purchased and to consider sustainable methods for
care. The implementation of technologies introduced into clothing manufacture to
decrease the environmental impacts consists of computer aided manufacture used
in production to reduce the waste generated during the manufacture process. Some
technologies such as fibre surface coating are aimed at reducing the frequency
required of washing the clothing. However that depends on whether consumers
Page 20will change their washing patterns accordingly. Technologies developed to reduce
resource consumption and emissions needs to be analysed to assess whether they
have a positive or negative impact on the clothing life cycle.
7. Conclusion
The contemporary clothing producing sector is a global network developed in the
past thirty years by a complex system of drivers. The majority of clothing are
produced in Asia and imported to Western Europe and the USA. The labour
intensive low barrier of entry has made it attractive for developing countries to
extend industries for mass production of cheap products which in result has
devastating effects on the environment and is a great contributor to global
warming. Through this paper I have given an account for how the sector operates;
the motivation behind recent developments, and segmented the industry in order
to highlight areas in need of commercial and innovation policies regarding
environmental issues. I have collected data from the DEFRA report on sustainable
clothing to empirically back my suggestions of possible innovation strategies.
Already much research and development is being done in the clothing producing
sector to improve its wicked ways. Fashion which is the tool for presenting garments
in context represents big money. Big money has the power to change everything
which in combination with consumer awareness will determine the future directions
for a sustainable clothing producing industry.
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