climate challenges facing the clothing sector

Climate challenges facing the clothing sector

Program:

Master of Science in Innovation and Entrepreneurship

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Content

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

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Summary

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.

1. 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

to 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.

Some 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.

2. 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

how 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)

The 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.

3. 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.

3.3 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.

3.6 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.

4. 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)

Charles 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

potential 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

this 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

development 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

production. 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,

and 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.

4.6 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

provider 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

the 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

banana 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

will 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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