What on Earth #3 ??? March: EU reports, climate change updates, bankruptcy, greenwashing, gender diversity

March 2023 | EU report questions resale and recycling as sustainable solutions. Ganni and 9 other brands join a pilot project to reduce their carbon footprint. WRAP report reveals the solution to reducing environmental impact by up to 30%. Nike is pressured by investors to address forced labor claims. Allbirds says it released its first net-zero carbon shoe. Scotch & Soda has filed for bankruptcy, and more in this edition. 

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A report by the European Environment Agency has challenged the role of resale and recycling in solving the sustainability issues of the fashion industry. The report argues that resale may only have a marginal impact, and that recycling may not always be the most sustainable option due to energy-intensive processes. Instead, the report recommends a more holistic approach to sustainability, including designing products for circularity and reducing overall consumption. The report is part of the EU's wider efforts to tackle the environmental impact of the fashion industry. 

The Intergovernmental Panel on Climate Change (IPCC) has released its Sixth Assessment Report which provides an updated overview of the state of the climate system and the impact of human activities on the planet. The report highlights a significant gap between fashion industry commitments and actions to address sustainability issues. The report reveals that despite the industry's widespread commitments to sustainability, only a few companies are taking adequate action to achieve their goals. The report calls for more urgency and transparency from companies. It outlines several recommendations for closing the "ambition-action gap", including improving supply chain transparency, adopting circular business models, and investing in sustainable materials.

TOP NEWS

The fashion industry is experiencing a shift towards greater sustainability, with leading brands such as Ganni, Patagonia, and Reformation taking significant steps to reduce their carbon footprint. These companies have joined forces with Rubi Labs to launch a pilot project aimed at measuring the carbon footprint of their clothing items and identifying ways to reduce emissions at every stage of the supply chain.

Another significant development is the partnership between Carbios, a French company specializing in enzymatic recycling of plastics, and the Ellen MacArthur Foundation's Network aimed at accelerating the transition to a circular economy for plastics and textiles. The company will leverage the partnership to promote its biodegradation technology, which can break down plastics and polyester-based textiles into their basic building blocks and create high-quality recycled products.

Although brands are taking significant steps to minimize the environmental impact of their products, according to a report by UK non-profit WRAP, reducing the number of clothes that end up in landfills is more important than reducing the carbon footprint per garment. The report revealed that extending the life of clothing by just nine months can reduce its environmental impact by 20-30%. The study also highlighted the need for better design and materials, as well as circular business models that prioritize reuse and recycling.

This month, Nike and Allbirds are making headlines. Nike, the world's largest sportswear brand, is facing pressure from investors to address forced labor claims in its supply chain. The company has already pledged to improve labor conditions, but investors are urging the company to do more to address these serious allegations. Meanwhile, sustainable shoe brand Allbirds recently announced the release of its new net-zero carbon sneaker, which it claims is the lowest carbon footprint shoe ever made. The shoe is made from sustainable materials and has been certified as carbon-neutral by third-party organizations.

These developments reflect a growing trend of consumer demand for more sustainable and socially responsible business practices in the fashion industry. As sustainability continues to gain importance, brands are under increased pressure to prioritize transparency and accountability in their operations.

Adopting transparency and traceability in operations brings value to businesses more than just meeting rising consumer demand. It also builds brand integrity and improves customer experience. By incorporating sustainability into their brand values, companies can create an emotional connection with customers and differentiate themselves in the market. Furthermore, implementing sustainability frameworks that align with customer values can help companies build trust and loyalty with customers. By adopting transparent and traceable practices, companies can show customers their commitment to sustainability and help build a more ethical and responsible industry.

Scotch & Soda, a Dutch fashion brand, has filed for bankruptcy of all its Dutch entities due to a structural cash flow deficit and the negative impact of the pandemic and high inflation on its business. Despite record sales of €342.5 million in FY 21/22, the Covid crisis and other external factors accelerated severe cash flow issues, leaving the company unable to absorb the negative effects. The bankruptcy trustee will manage the bankruptcy in the Netherlands while efforts are made to continue the company's activities in its Dutch stores and find a new buyer for the company.

According to a study by the University of Alberta and the University of Boston, companies with more women on their boards are less likely to engage in greenwashing. The researchers analyzed the environmental disclosures of 1,828 US companies between 2009 and 2016 and found that the gender composition of a company's board of directors is significantly associated with the level of greenwashing. Specifically, companies with a higher percentage of women directors were less likely to make false or exaggerated claims about their environmental performance. The study highlights the importance of gender diversity in corporate leadership and its potential role in promoting environmental sustainability.

UPDATES & REGULATIONS

The EU has adopted new laws to tackle greenwashing and promote more sustainable consumption and production patterns, including requirements for clear and verifiable environmental claims on products and restrictions on single-use products. The measures are expected to increase consumer confidence in green products and services, support a more circular economy, and reduce the environmental impact of consumer goods.

The Sustainable Apparel Coalition has criticized the proposed Substantiating Green Claims Directive by the European Commission, stating that it fails to provide a standardized and clearly defined framework based on scientific foundations. The Coalition urges EU policymakers to reconsider the inclusion of the Product Environmental Footprint (PEF) method in the directive, as it is the most holistic and scientifically grounded method for assessing the environmental impact of a product.

EVENTS NOT TO MISS

MEME CIRCULATING THIS MONTH

That's all for this month.

Have a good day on planet Earth ??, 

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