Threading towards a Greener Apparel Supply Chain
Written by Anamika Srivastava ( Masters student at Azim Premji University)
I urge you to go and check your wardrobe and think about all the clothes that you have bought in the last 6 months. Are there clothes you haven’t worn for a long time? Apparel is our everyday need and is one of the fastest-growing industries across the world. According to a report by BBC, by the year 2030, it is anticipated that the global population will collectively dispose of over 134 million tonnes of textiles annually. The worldwide apparel industry, with its staggering $1.3 trillion valuation, provides livelihoods for millions and wields significant influence over economies. Nevertheless, the rapid pace of fast fashion takes a toll on the environment. With the advent of fast fashion, the industry is producing more and consumers are consuming more. The mass production of apparel is causing harm to the climate and the environment around it. Fast fashion is adding more to those landfills of clothing being dumped every day.
The apparel sector contributes to 10 per cent of the overall greenhouse gas emissions, with textile manufacturing accounting for a yearly output of 1.2 billion tons of emissions. It doesn’t stop there, the manufacturing of clothing results in one-fifth of the world’s total wastewater production and an annual accumulation of 92 million tons of textile waste. After all this horrific data, we still talk about consumers consuming so much because of fast fashion, seasonal trends and whatnot. The Apparel Impact Institute is instead targeting the supply side. As stated by the World Resources Institute, the manufacturing supply chain accounts for a staggering 96 per cent of a brand’s carbon footprint, which falls under the category of Scope 3 emissions. Many companies are tapping into the zone and are aware of the environmental impact that their supply chain is causing. Nike and H&M are trying to create a greener apparel supply chain.
Why is there a need for greener supply chains?
Green Supply Chains are logistical frameworks that ensure the environmentally friendly manufacturing and transportation of items. Companies engage in the design and optimisation of their logistic infrastructure while taking into account the trade-off between profits and environmental implications. (ScienceDirect) If we consider the apparel industry, earlier the only way of choosing our clothes was if they were the preferred color and within our budget. Nowadays, “eco-friendly” products have become one of the considerations too. There is no denying that we are moving towards a world that needs sustainability in everything we do. The apparel industry has to keep up with fast fashion and sustainability. Many companies in the apparel industry are opting for cheaper ways to provide the product at the best value for money. This often leads to the deterioration of the environment and calls for going green. Globalization is forcing the industry to spread across different supply chains and hierarchies which makes the industry dependent on different partners and unable to keep track of the practices being used. Although there has been a shift in consumer behaviour as more people are becoming aware of climate change, they are opting for “eco-friendly” apparel but my question is — Are they willing to pay more for the shift?
The above graph how clothes are getting underutilized year after year. The emergence of the middle class and the increase in GDP have led to the quicker turnaround of new styles, increased number of collections offered per year, and often, lower prices. The apparel industry needs to bring in the circular economy model as the current apparel supply chain is highly linear. The circular economy model works on the principle of regenerative and restorative. Clothes, fabrics, and fibres are retained at their best value during use and re-enter the economy after usage, never ending up as trash in the circular economy. This model can reduce waste and promote sustainability. One such example is running footwear, whose sole can be recycled and reused either for new footwear or other products. This model also allows the required time and space for natural resource regeneration, because recycling product materials several times eliminates the need to continually consume original raw materials.
Companies need to look for ways for a greener supply chain and bring revolution in the fashion industry with sustainability. It is high time that we understand the environmental impact the apparel industry is causing on the environment.
Why do green products cost more?
Across nearly every phase of the eco-friendly product manufacturing and production process, including sourcing raw materials and delivering the end product, costs tend to exceed those associated with conventional products. Multiple factors contribute to this situation. Sustainable materials come with higher cultivation and manufacturing expenses, additional costs are incurred when obtaining reputable third-party certifications, and opting for organic materials is pricier than choosing readily mass-produced chemicals as alternatives. Since the demand for these products in India is still not a lot, it impacts the price of the products. As economies of scale don’t work here, low demand, low production and higher prices. The economy says, the lower the price, our ability and willingness to buy the product increases. Many consumers who are aware of the environmental impact are looking for eco-friendly apparel but we all know “eco-friendly” products will cost more. Surprisingly, the expenses of sustainable production are often around 10% of the ultimate product price. As a result, ecologically and socially sustainable manufacture of a wide range of items may be possible within the price ranges that most consumers are ready to spend. The current markup doesn’t work this way, they put a price tag that is 60–70% higher than the conventional. This takes away the willingness of consumers to pay such exorbitant prices.
Greenwashing vs Real Sustainability
The supply chain is a combination of numerous processes and opting for “greener” methods at each step can help in gradually creating an overall “green supply chain”. For instance, Indian Retailers like Reliance Retail and Tata Trent have opted for various methods that are helping them minimize their carbon footprints. Reliance Retail has invested around Rs. 7.73 crores in multiple energy-saving projects, including the implementation of efficient HVAC equipment at its stores and sites. Additionally, the company’s design approach is aimed at minimizing its environmental footprint, particularly concerning forests and traditional resources. Another interesting example is Tata Trent’s shift from diesel-based trucks to CNG trucks. Tata Trent has also increased the size of the truck to carry more in fewer trucks. These steps are negligible keeping in mind the extensive production process of the apparel industry. To reduce massive strains, certain fashion industries use greenwashing methods and practices. Greenwashing is the practice of publicising one positive practice or a tiny element of its activity while masking others that have negative environmental repercussions to promote oneself as more sustainable than it is. This is not only creating a false sense of security for customers but hiding the facts about what we are buying in the name of what.
Building a greener supply chain is challenging
Many researchers feel that to build a green supply chain, there are two things we need to care about the most — Transparency and traceability. The supply chain has different phases and each phase has its hierarchy which often works independently of each other. By working on enhancing transparency and traceability in the supply chain, the apparel industry can monitor the processes and adopt sustainable practices. The practices can be a transparent flow of information at each stage of the supply chain. The material that the production stage is using, if they are using environmentally friendly chemicals and fabrics. The transportation stage should inform their environmentally friendly ways. This flow of information will encourage others to be loyal and not do greenwashing. Sustainability is not something that will happen overnight, it is a continuous process. Manufacturers should encourage the collaborators to make their stage more sustainable and also encourage them to be transparent. Lack of transparency makes monitoring a tedious process without good outputs. Another issue with lack of transparency can be breaking the trust of consumers, as many manufacturers might claim that their products are made of sustainable materials but one stage of the supply chain might have used materials that are not good for the environment.
Transparency and traceability go hand in hand. A more transparent approach makes traceability easy. Traceability within supply chains offers multiple advantages, including the detection of operational inefficiencies, production optimization, waste reduction, and the mitigation of both financial and reputational risks. Moreover, it guarantees credibility and adherence to standards within the network. Brands can steer themselves toward a circular economy by utilizing data to make informed decisions. Through the integration of sustainable and ethical practices and the utilization of available data, clothing manufacturers can adeptly manage risks, enhance efficiency, and foster transparency across the supply chain.
The future holds “HOPE”
The fashion industry needs to knit threads of hope that focus on producing products that have better shelf-life. Longer shelf-life will reduce over-consumption. I also believe these seasonal sales on e-commerce websites are the reason for people buying more than they need. The current environment is deep into crisis, if we don’t take action now, future generations will have to suffer even more.
Sustainable production and consumption will strike a balance between meeting our needs and ensuring enough for our future generations. This entails responsible usage of resources such as water and energy, and avoiding the creation of needless waste. To achieve this, brands will need to prioritize renewable resources, consider designing products with a longer shelf life, and incorporate circular design principles into their production processes. Recognizing the importance of sustainable and environmentally friendly goods, establishing a transparent and traceable supply chain, and curbing excessive consumption, all these efforts play a substantial role in alleviating environmental deterioration and fostering sustainable, lasting economic development.
“Green represents the hue of a hopeful tomorrow; let’s colour our future with shades of green!”
References
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- Beall, A. (2020, July 13). Why clothes are so hard to recycle. BBC. Retrieved October 6, 2023, from https://www.bbc.com/future/article/20200710-why-clothes-are-so-hard-to-recycle
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