The impact of fashion on the environment is increasing in line with the growth in the production of fashion items, so companies need to take action. This article examines five top fashion companies based in different countries to determine if fashion sustainability is hype or real effort.
The impact of fashion on the environment is increasing in line with the growth in the production of fashion items, so companies need to take action. This article examines five top fashion companies based in different countries to determine if fashion sustainability is hype or real effort.
The fashion industry has grown exponentially in the last few decades due to a demand for fast fashion at low prices. Fast fashion and fashion, in general, have environmental and social costs that people ignore when buying fashion products. It is no secret that fashion has a negative impact on the environment, especially in terms of water consumption and carbon dioxide emissions. However, there is a growing need for sustainable fashions. Fashion is no longer just an aspiration. Fashion has become a global economic force, worth $2.5 trillion and employing more than 75 million people. McKinsey reported in 2016 that the number of garments purchased by consumers increased by 60 percent during this period. The impact of fashion on the environment and society has also increased proportionally with the growth in production. This is a concern that needs to be addressed. This article discusses the sustainability efforts of a few top fashion companies from different nations.
OVS Sp.A.
OVS S.p.A. is the leading Italian clothing group for women, men, and children. OVS was established in 1972 as part of the Coin Group. Its network grew gradually, and by 2020, OVS had 94 percent brand recognition in Italy. OVS’s share of the Italian clothing market is 8.4%, and its share in children’s wear is over 20%. Group OVS S.p.A. and its subsidiaries manage the store network (primarily in franchising) and control product development and manufacturing. OVS has its own digital channels and sales network throughout Italy and some foreign countries. It operates with stores of different sizes and management methods (direct or franchise sales), proprietary websites that are integrated with the physical network, and marketplaces where it collaborates.
OVS, based on its goals for 2021, was rated as one of the best performers in the industry by the most respected sustainability rating agencies in terms of ESG (Environmental, Social, and Governance). OVS joined Circular Fashion Partners in 2020 to advance the transition to a sustainable fashion system. This partnership aims to promote practices that have a positive impact on the environment and economy. The sustainability strategy of the Group is built on four pillars – products and supply chains, people, customers, and stores. OVS has set specific goals and plans of development for each post.
Products and Supply Chain
The 2020 collection used 85 percent of cotton that was certified organic or produced through the Better Cotton Initiative. This set a goal of 100% usage by 2021. In the same year, 1,3 million articles were made using recycled polyester, and 30% of denim using waterless technology. This benchmark is expected to reach 100% by 2025. The water savings will be over 1 billion liters. Over 65 percent of the Group’s material collection comes from supply chains that are certified to have a reduced impact on the environment. By 2025, this is expected to reach 95 percent. OVS works with suppliers that share this vision and actively participate in the Sustainable Apparel Coalition to achieve these goals. The Higg platform, which replaced the internal auditing process, is also used to monitor supplier performance. Monitoring now covers 80 percent of production volume, with a projected 100 percent by 2022.
OVS began extending its sustainability concerns to household products a few years back. It is important to choose materials with a low footprint. In the ‘Eco by Croff’ collection, organic cotton is used in the production of bath sponges, table textiles, bed accessories, recycled glass (glasses, bottles, etc.) for bathroom and table accessories, recycled aluminum from cans to make pots and pans as well as bamboo containers. There are also deliberate efforts to eliminate all plastic packaging from OVS by 2025. This is the year that paper or recycled plastic packaging will replace plastic.
Denim – A Special Mention
In textile factories, the growing demand for denim that has a “distressed look” results in more water consumption and an increase in chemicals. Potassium permanganate is used in order to achieve a “distressed look,” which then gets dispersed. OVS, which is aware that the chemical KMnO4 is not sustainable nor safe for workers in factories, has begun to upgrade its machinery and processes. This will allow it to eliminate the use of KMnO4 and reduce the negative impact of denim clothing. Water consumption in denim fabric manufacturing has been reduced significantly through the use of a low-ratio dyeing process and by applying the most advanced environmental standards like rainwater harvesting or high-efficiency water treatment facilities that guarantee 80 percent total water reuse.
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OVS, which pays special attention to human rights protection in the supply chain in November 2021, partnered with a non-profit organization that runs campaigns and takes urgent action to address violations in the textile sector in production countries. More than 100 employees, including product managers, sourcing managers, etc., received training on international supply chains and labor law to increase their awareness of conditions and challenges in production countries. OVS also launched a platform that allows employees to carpool to reduce the greenhouse gas emissions caused by people driving to work. Installing micro-filtered water dispensers and giving employees water bottles will reduce the waste produced by single-use bottles by 60 percent and save over a ton of CO2. OVS’s ‘Health and Wellness package’ aims to educate employees on topics such as self-care and wellbeing. Topics include nutrition, first aid at home, the impact of smoking on health, and concentration exercises. OVS is a smoke-free office. Smoking is not allowed inside or on company premises. The Group has implemented policies between 2021 and 2030 to reduce the “gender pay gap” to eliminate discrimination due to differences in pay.
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OVS has a large network of customers and families that it reaches. This allows OVS to influence cultural change by encouraging consumers to make informed decisions. OVS can then inform its customers about the environmental impact of their clothes so they can make informed decisions. In order to do this, OVS has developed, in conjunction with the University of Padua, the ECO VALORE Index. ECO VALORE is composed of three indices. The first metric measures the amount of water used in the production of the product. The second measures CO2 emissions from production. The third identifies the item’s recyclable status. OVS describes sustainability by combining the three data. OVS is one of the first fashion brands in the world that has made this information public.
Stores
The OVS stores contribute equally to the environmental cause of the Group. OVS stores follow the product guidelines of the Group when choosing fittings and fixtures. The use of more sustainable materials, such as FSC-certified wood and recycled metals that can be easily recycled at the end of their useful lives is encouraged. The stores also use electricity that is energy efficient and derived from renewable sources.
H&M
Hennes & Mauritz, a Swedish fashion group that is one of the largest in the world, set an example by showcasing their sustainability initiatives. H&M Group integrated for the first year its annual and sustainability report. The Group achieved progress in areas like material sourcing and inclusion, diversity, and circular design. The Group partnered with other companies to test and scale circular processes, materials, and business models. It also worked to advance social protection and dialogue in its supply chain.
In 2021, the H&M Foundation launched a new planet strategy — Planet Positive. The plan addresses challenges within the entire earth system, including climate, water, ocean, biodiversity, and land. The Foundation invests in new research and supports innovations with a planet-positive focus. One example is its five-year ‘Planet First’ partnership with the Hong Kong Research Institute of Textiles and Apparel (HKRITA), which aims to consider all aspects of the earth’s natural support systems.
Climate Positive Approach
H&M aims to achieve net-zero CO2e emissions by 2040, taking a climate-positive approach and having a net-positive impact on biodiversity by being circular throughout the business. In 2021, H&M set up new CO2e emissions reduction goals to support its net-zero and climate-positive ambitions. Compared to the 2019 baseline, the Group was able to reduce its absolute Scope 1 and 2 emissions by 22 percent and its Scope 3 emissions by 9 percent. It also reduced production water use by 6.6 percent. Additionally, H&M engaged with the Science Based Targets Network to begin developing targets for nature and invested in projects focused on reducing the biodiversity impact of its material sourcing. The company also continued its work with WWF to set context-specific water targets and to develop the new 2030 Water Strategy.
Circularity
H&M Group is transitioning to a circular ecosystem, transforming how the company designs and creates its products and systems, works with suppliers and partners, and interacts with customers. It focuses on three interconnected areas in this regard – ‘Circular Products,’ which involves the creation of long-lasting products made from safe, recycled, and sustainably sourced material; ‘Circular Supply Chains’ – the systems that circulate products and support circular production processes and material flows; and ‘Circular Customer Journeys’ providing accessible ways to experience and engage in a circular fashion where products are used more, repaired, reused and recycled. In 2021, H&M tripled the volume of recycled materials used in its garments. It confirmed the ambition for all its products to be designed for circularity by 2025, supported by its new circular design tool, ‘Circulator.’ A blueprint for a circular fashion industry within planetary boundaries was launched, too. It is the product of a three-year research by the Stockholm Resilience Centre together with the Ellen MacArthur Foundation, funded by H&M Group.
Checking Hazardous Chemicals
H&M has a Chemical Management Roadmap to achieve zero discharge of hazardous chemicals and 100 percent safe and traceable chemicals. The company is a member of the Apparel and Footwear International RSL Management (AFIRM) Group, Zero Discharge of Hazardous Chemicals (ZDHC), and ChemSec Business Group. It follows the AFIRM Restricted Substances List and the ZDHC Manufacturing Restricted Substances List 2.0 (MRSL), as well as the ZDHC Wastewater Guidelines and Chemical Management System. H&M Group Chemical Restrictions is committed to phasing out additional potentially harmful substances. Therefore, it uses the Screened Chemistry hazard-based scoring system – a third-party toxicological assessment, to identify safer chemicals.
Educating Customers
To maximize product life and scale circular business models via circular customer journey, H&M focuses on three levers – ‘Use & Care’ under which customers are encouraged to love their fashion items for a longer period and extend the life of their fashion favorites through care and repair initiatives; ‘Access’ by offering a diverse range of access models through which customers can enjoy and experience fashion while keeping products in circulation; and, finally ‘Collect’ that supports customers to access services to donate pre-loved products so they can be reused, remade, or recycled. In 2021, H&M’s ‘Take Care’ initiative continued to offer customers in 46 markets ways to care for, repair, and customize their clothing.
Gildan
Gildan is a Canadian apparel manufacturing company based out of Montreal. The company is the world’s largest vertically integrated manufacturer of clothing. It specializes in selling its products in bulk to printers, brands, or companies who then choose to decorate them as they see fit. More than 90 percent of the company’s total revenue is generated from the products that are manufactured in its factories – a big reason to be sustainability-conscious. Gildan’s sustainability journey started earlier than most, with an already 20-year track record of implementing, measuring, monitoring, optimizing, and reporting in this regard.
During 2021, the company undertook a detailed assessment to redefine its ESG strategy in the future and push its sustainability approach even further, taking into account new technologies and advances in the industry. On January 17, 2022, the company announced its Next Generation ESG Strategy and future targets with the commitment to making meaningful advancements by 2030 in key ESG areas. The company’s Next Generation ESG strategy focuses on initiatives towards reducing its Scope 1 and 2 GHG (Greenhouse Gas) emissions in line with the Science Based Targets initiative (SBTi), reducing water intensity (a reduction in water usage/withdrawal per kilogram produced), circularity and sourcing sustainable raw materials, increasing community investment, strengthening diversity, equity, and inclusion by setting a first-time goal on gender parity and implementing a disclosure plan to gradually further align to the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. Gildan fosters a circular economy to reduce its environmental impact and intends to source more sustainable and transparent raw materials and enhance sustainable waste management initiatives.
Reduce, Recycle, And Reuse
Working on its agenda of circularity, Gildan reduces, reuses, and recycles materials, as well as uses more sustainable materials. Gildan recycles 100 percent of its textile clippings. The company uses 3D computer modeling to share product designs with its customers. This allows the customer to see the design and make changes based on the computer model rather than on a physical prototype or sample of the actual garment, which would need to be manufactured and shipped to them. By using computer modeling, resource consumption of raw materials, energy, water, and waste is reduced. There is a heightened focus on sourcing sustainable raw materials and enhancing sustainable waste management initiatives. The company has set clear targets in this direction – source 30 percent recycled polyester or alternative fibers and yarns by 2027; use 75 percent recycled or sustainable packaging and trim materials by 2027; and reduce Scope 1 and 2 GHG emissions by 30 percent.
Sustainable Materials
Gildan develops its yarns, fabrics, and garments with sustainable and responsible design in mind while also ensuring that the materials meet the quality standards and cost expectations of the customers. In addition, it continuously seeks out opportunities to use recycled and more sustainable materials in both apparel and its packaging. It also reuses materials whenever possible. In fact, 100 percent of Gildan’s fabric-cutting scraps are recycled into fiber and used in new products, such as textiles, socks, industrial materials, and mops. The company is targeting to source 100 percent sustainable cotton by 2025. Additionally, to validate sustainability in its supply chain, Gildan is working to obtain ISO 45001 certification for 100 percent of owned and operated factories by 2028.
Operational Waste Management
In addition to its Global Environment and Energy Policy and EMS (Environmental Management Systems), the company’s approach to waste management is guided by the General Solid Waste Management Procedure. At some of its facilities, the Zero Discharge Hazardous Chemicals (ZDHC) guidelines are strictly followed, with 84 percent of total Gildan waste being either recycled or repurposed. The company strives to minimize waste in how it sources, manufactures, and packages its apparel. To do this, Gildan collaborates with its customers, suppliers, and NGOs to move towards a more circular model to keep waste out of landfills. Between 2015 and 2020, 371,745 tonnes of waste were recycled and diverted from landfill. To further reduce waste sent to landfills, in 2020, the company began transitioning its sewing threads and materials used for labels to recycle polyester while also evaluating options to use 100 percent recycled materials for twill tape, zippers, buttons, and drawcords. The possibilities to create 100 percent sustainable products made from 50 percent recycled polyester and 50 percent regenerated cotton are also being explored. The efforts are on to achieve zero manufacturing waste by 2027.
Transparency
Gildan believes in enhancing and strengthening its ESG (Environmental, Social & Governance) disclosures in order to provide all stakeholders with robust, transparent, and decision-useful information. The company was ranked 25th out of 250 global brands on the 2020 Fashion Transparency Index. In 2021, Gildan continued reporting under SASB (Sustainability Accounting Standards Board), continued its TCFD journey red,efined its ESG strategy, and worked on achieving the new targets. In the first half of 2021, it officially joined the U.S. Cotton Trust Protocol, which aims to increase the supply of sustainably-grown cotton; 90 percent of Gildan cotton is sourced from the U.S. At the same time, Gildan’s Social and Sustainable Compliance Guidebook outlines its approach with respect to increasing supply chain transparency and building capacity among Gildan suppliers in order to improve labor conditions. In the current year, Gildan is planning to further enhance alignment to the TCFD framework through a subsequent disclosure in a stand-alone report, which will detail Gildan’s climate-related governance, strategy, risk management and metrics, and targets.
Climate, Energy & Water
Gildan fights against climate change by paving the way towards a low-carbon future. Its goal of reducing Scope 1 and 2 GHG emissions by 30 percent by 2030 is aligned with the SBTi and the level of decarbonization required, meeting the goals of the Paris Agreement. To that effect, Gildan has signed the SBTi commitment letter, joining companies worldwide in following a science-based approach to reducing carbon emissions. The manufacturing company is also committed to addressing water-related risks linked to climate change. As such, Gildan plans to further invest in water efficiency and implement additional water-reducing, reusing, and recycling options in its operations with the goal of reducing water intensity (usage/withdrawal per kilogram produced) by 20 percent (against the 2018 baseline) by 2030. C&A
C&A
C&A, with a 180-year-old history, is an international Dutch chain of fashion retail clothing stores that proudly claims sustainability in its DNA. The C&A brand, present in four retail markets – Europe, Brazil, Mexico, and China, has adopted a powerful ‘Wear the change’ phrase for sustainability. It helps it create local customization across all four markets, connecting customers and inspiring them to make sustainable choices. Already, over half of its collections are more sustainable, including bio-cotton, recycled materials, or Cradle-to-Cradle certified fabric. In C&A stores and its online presence, too, the company makes and provides sustainable choices. C&A’s global sustainability team collaborates with its retail market teams to develop locally relevant plans that take the Group closer to its 2028 goals. C&A is a signatory to the UNGC and U.N. SDGs, which provide frameworks and guidance for advancing its sustainability agenda that encompasses its three actionable areas – sustainable products, sustainable supply, and sustainable lives.
Sustainable Products
C&A defines its ‘more’ sustainable cotton as either sourced as certified organic cotton (Organic Content Standard, OCS or Global Organic Textile Standard, GOTS), Better Cotton, recycled cotton, or transitional cotton which is produced by farmers during the time of conversion to organic certification, usually over three years. Since 2016, C&A has steadily increased the use of more sustainable cotton from 53 percent in 2016 to 96 percent in 2020. Part of this growth came due to its switch in 2015 from the sustainable cotton program REEL to Better Cotton under the Better Cotton Initiative (BCI), which leads the industry in improving global cotton production. C&A has developed sources of more sustainable cotton by building relationships with farmers and farm groups trained by BCI in sustainable cotton farming practices. In some cases, C&A helps to facilitate the transition to organic farming. While only 1 percent of the cotton produced in the world is estimated to be organic, 40 percent of the cotton in C&A products is organic. C&A Europe market achieved the targeted 100 percent share of ‘more’ sustainable cotton in 2020; Brazil gained 92 percent from 80 percent in the previous year against the same target; and achievements in Mexico and China markets remained at 50 percent and 85 percent, respectively.
While many of its efforts have been in the direction of improving the sustainability of cotton, C&A also works to identify the environmental impacts of viscose and polyester. Since 2018, it has been using Canopy Style’s Hot Button Report, the primary fiber sourcing analysis tool for the fashion industry, to inform its viscose sourcing. C&A has sourced 100 percent of artificial cellulosic for C&A Europe and China markets from producers with the highest ‘green shirt’ ranking in the report and with annual audits confirming the low risk of sourcing from the world’s ‘Ancient and Endangered Forests’ and other controversial sources.
In 2020, C&A met and exceeded its goal, using 68 percent more sustainable raw materials. This was achieved owing to a substantial increase in recycled polyester content. By mid-2021, the chain of custody and traceability in artificial cellulosic was also increased to ensure the sourcing of these materials only from Birla and Lenzing – suppliers providing more sustainable, responsible cellulose.
C&A promoted circular fashion as well when it launched an innovative denim collection made with the first-ever
Platinum level Cradle to Cradle certified fabric. Featuring 100 percent rapidly renewable resources and fully recyclable, the small collection includes denim jackets, trousers, and shirts. Woven tops were also developed and made with 100 percent Cradle to Cradle certified fabric.
Sustainable Supply
C&A has a Sustainable Chemicals Management Programme (SCM) to control hazardous chemicals across the supply chain. The program represents a holistic chemical management approach that includes input, process, and output management. The objective of input management is for C&A suppliers to procure chemicals that meet Zero Discharge of Hazardous Chemicals (ZDHC) requirements. Process management ensures each supply chain partner has the personnel, management systems, tools, and expertise to meet ZDHC requirements. For output management, regular testing at suppliers’ production units is conducted against the ZDHC Foundation Wastewater Guidelines to ensure clean water discharge. In 2018, after completing a pilot project a year earlier, C&A rolled out the ‘Clean Chain’ tool to increase the transparency of the chemicals used in its supply chain, allowing it to determine which chemical products are being used, who is supplying them, and in what quantities. This tool provides information that drives the adoption of safer chemistry. C&A phased out its internal audit system in March 2019 in favor of the Higg 3.0 FEM industry standard, which links manufacturers, brands, and retailers together in measuring environmental impacts and provides various training and improvement resources.
These developments allowed C&A to streamline the rollout of its SCM program, which began in 2016 with 50 fabric mills, and more facilities were slowly added over the following years. In 2017, only 29 percent of facilities were meeting C&A’s requirements, while the remaining facilities were given a clear timeframe for raising their performance to continue working with the company. By 2018, the astonishing results were out when the company had more than 300 production units covered globally under the SCM program, including all major fabric mills, laundries, printers, and vertical set-ups in the C&A supply chain. By the end of 2019, 93 percent of facilities were meeting the requirements. However, due to severe mobility restrictions imposed in all countries during the pandemic, the SCM program had to be paused until July 2020.
When it comes to evaluating suppliers on sustainability, C&A’s guiding principle is transparency, supported by capacity building. Each supplier’s production unit is rated on a scale from A to E, with A being the highest rating. Production units with no serious violations are rated A and B. C&A has set an aspirational goal of sourcing 100 percent of its product volume from these suppliers only. However, between 2016 and 2019, the sourcing from A- and B-rated suppliers decreased from 78 percent to 52 percent and then increased to 65 percent in 2020. The main reason for the overall decrease from 2016 to 2020 was the significant increase in stringency level for social and labor standards. The year 2020 also saw a shift in C&A’s supplier monitoring program away from its proprietary auditing protocols to an industry-wide approach that is becoming widely adopted — the Social and Labour Convergence Project (SLCP) Converged Assessment Framework (CAF).
PVH Corp.
PVH Corp. from the U.S. is one the world’s largest and most admired fashion companies, which connects consumers in over 40 countries. It owns renowned brands Calvin Klein (C.K.), Tommy Hilfiger and Heritage brands. The U.S. Fashion Group adopts the ‘Forward Fashion’ strategy that aims to reduce its negative impacts to zero and positive effects to 100 percent and improve over 1 million lives throughout its value chain, encompassing its associates and supply chain workers, their families, and their communities. PVH’s sustainability can be seen in action through its two iconic brands – C.K. and Tommy.
C.K.
The 50-year-old brand works to be more inclusive, equitable, innovative, and circular through action across its entire business, including products, workplaces, supply chains, partnerships, and communities. In 2020, C.K. Europe more than doubled (21 percent) the use of sustainable materials from the previous year (10 percent), though, in contribution terms, it remained relatively lower than what other fashion players have achieved. In C.K. Jeans, the same year, the lower-impact denim finishing technique significantly reduced C.K.’s freshwater consumption and carbon emissions compared to conventional methods. Lower-impact washes typically have a 50 percent reduction in water use and a 30 percent reduction in energy usage compared to traditional washers.
The fashion company introduced ‘The Eco Series’ across a number of product categories, including jeans, sportswear, and performance. These programs featured the brand’s most iconic silhouettes reissued with sustainable attributes, including more sustainable cotton, recycled materials, and natural dyes. Not just those, C.K. One’s recycling program also introduced fabric from recycled plastic water bottles. The program introduced the use of ‘repreve’ fabric made from recycled plastic water bottles for men’s and women’s underwear. It also prioritized the use of innovative recycled materials in swimwear, leveraging textiles made from pre-and post-consumer waste such as ‘repreve’ and ECONYL. In 2020, 55 percent of C.K.’s swimwear offering was made from recycled materials. Moving into 2021, many of the swim programs featured 100 percent recycled materials.
Tommy Hilfiger
Another of PVH’s 35-year-old iconic brands, Tommy Hilfiger, is fully aware of the biggest challenges faced by the world today – from climate change and natural resources scarcity to racism and inequality. At the same time, the American fashion brand acknowledges the reality that no single fashion company can change all of this. However, individual participation in global efforts can surely bring the desired change. At a personal level, Tommy believes change can only be obtained by the way it works and the clothes its consumers wear via a ‘stitch-by-stitch, person-by-person, and innovation-by-innovation’ approach. Driven by this philosophy, the brand has made considerable progress on its sustainability journey over the last decade. It looks forward to accelerating it over the coming years, guided by the urge to create a fashion that ‘Wastes Nothing and Welcomes All.’ From August 2020 onwards, it has accelerated its commitments with a focus on social and environmental sustainability. Working with more than 100 associates globally, Tommy has identified 24 initial targets inclusive of the 15 ‘Forward Fashion’ targets towards 2030. The targets are focused on four pillars: Circle Round, Made for Life, Everyone Welcome, and Opportunity for All. Guided by its Rolling Innovation Plan, the brand keeps reviewing and assessing where it stands, pivoting along the way, adjusting targets, and doing everything it can to create sustainable fashion.
A year and a half back, it launched its first circular business model, ‘Tommy for Life,’ in The Netherlands. Under this model, the brand took back items from consumers as well as damaged pieces from its stores or online operations, then cleaned, repaired, and resold them, prolonging product use. Through this process, the brand was able to divert 36,429 kilos of textile waste in The Netherlands, keeping the expansion plan for 2021 in tow.
Like many other brands in the industry, Tommy Hilfiger also focuses on denim to drive transformative change through sustainable innovations. Ninety percent of Tommy’s global denim is more sustainable, and 2.1 million pieces were produced in 2020 containing 20 percent post-consumer recycled cotton. Another means of driving change undertaken by the brand is the circular innovation as demonstrated by Tommy’s Ellen MacArthur Foundation (EMF) Jeans Redesign collection, created with circular design principles like detachable buttons and the replacement of metal rivets.
Wrap up
The fashion companies are doing what they are supposed to do by law and CSR dictates, but sustainable fashion is still a long road to travel. As long as the companies are guided by revenue growth pressure instead of prioritizing resilience to save and protect the planet, its inhabitants, and their wellbeing, the so-called eco-fashion will remain a mirage.