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A Sustainable Apparel Business

A SUSTAINÀBLE Apparel Business Robert Kuhn, President There has been a good deal of publicity about the efforts of certain companies in the apparel industry to address the complex sustainability challenges facing this group. But just what is a "sustainable" apparel company, from an environmental responsibility standpoint? At a high level, it's a company that mitigates the four primary environmental impacts associated with all types of business activity: greenhouse gas emissions; water quality and availability; chemicals/toxins and waste. From a more detailed perspective, here are some of the hallmarks of a environmentally sustainable apparel business: ENVIRONMENTAL IMPACT GREENHOUSE GAS EMISSIONS PRIMARY SOURCES IN APPAREL EXAMPLES OF STRATEGIES TO ADDRESS ISSUE • Manufacturing of materials, including fabric milling • Completing GHG emissions inventory for entire value chain • Assembly of products, including cut and sew operations • Identifying GHG emissions "hot spots" from this inventory • Warehousing and transportation of products • Working with suppliers and others to decrease impact • Travel associated with product marketing • Creating "virtual" product launch events ENVIRONMENTAL IMPACT WATER QUALITY AND AVAILABILITY PRIMARY SOURCES IN APPAREL EXAMPLES OF STRATEGIES TO ADDRESS ISSUE • Growing natural fibers • Measuring entire life-cycle water footprint of product(s) • Processing of materials • Identifying water "hot spots" from this information • Washing products during lifetime • Re-engineering processes to decrease direct and embedded water ENVIRONMENTAL IMPACT CHEMICALS AND TOXINS PRIMARY SOURCES IN APPAREL EXAMPLES OF STRATEGIES TO ADDRESS ISSUE • Dying and tanning of materials • Conducting a "single impact" lifecycle assessment of product(s), focusing on chemicals • Identifying opportunities to remove chemicals from • Dry-cleaning products during lifetime materials • Designing products to minimize need for dry-cleaning ENVIRONMENTAL IMPACT WASTE PRIMARY SOURCES IN APPAREL EXAMPLES OF STRATEGIES TO ADDRESS ISSUE • Product packaging · Eliminating item-level packaging from manufacturer to retail, where possible (i.e., dematerialize) · End-of-life disposal · Exploring eco-friendly packaging substitutes • Designing products to last longer and/or be recyclable While a suite of best-in-class approaches to these issues is developing rapidly, the current truth is that the exact solution to any one company's problems is also highly dependent on specific organizational and supply chain characteristics. Some questions that must be considered in order to craft an appropriate strategy include: Is this a mass merchant apparel company or better classified as a “fashion house?" The closer the company comes to the latter characterization, the tougher it might be to make product-related changes. What is the new-product introduction cycle? Some companies that have rapid product re-introductions must rely almost exclusively on air transport in order to get the goods to market quickly; this is an issue from an environmental standpoint because of the significant greenhouse gas emissions associated with air transport. How amenable to eco-friendly products is the company's core market? Perhaps a few "green" products can be introduced into each collection. Is the company culture one that embraces leadership in product design from a sustainability standpoint? Here, we look for leadership on this topic to come from top management. What is the value chain associated with the company's apparel products? And what about licensed product? Here, it's important to create a process map to understand how everything works and determine the exact scope of the sustainability initiative. In our experience, there is a lot of low-hanging fruit to pick in this industry that can create a more sustainable result. On the other hand, with a significantly-Asian supply base, designers tightly linked with existing materials sources and significant brand concerns for many players in this industry, changes don't necessarily come easily. It's an exciting opportunity, for sure. KUHN ASSOCIATES MANAGEMENT ADVISORS, LLC Building Susainable Besinesses 100 Park Avenue, Suite 1600, New York, NY 10017 | Phone: 212-343-1006 | Email: [email protected] | Web: www.kuhnassociatesllc.com

A Sustainable Apparel Business

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Robert Kuhn, of Kuhn Associates Management Advisors, LLC , said, “There has been a good deal of publicity about the efforts of certain companies in the apparel business to address the complex sustai...

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