10 September 2022, Mumbai:

The 17 Sustainable Development Goals (SDGs) are part of the 2030 Agenda for Sustainable Development. The Global Goals are ambitious & aspirational, but what's certain is that if every one of us commits to making 1 positive change it is doable & we can make a tangible impact.

In effect the Sustainable Development Goals (SDGs) are a universal call to action to eliminate poverty, mitigate the environmental scourge, protect the planet and improve the lives and prosperity of every single human being. The semblance is Goals outline the blueprint to accomplish a secure and more sustainable future for one & all.

The Goals provide a relevant and universal framework & are designed to be universal (for both developed and developing countries). It is sanguine to upfront iterate here to address the global challenges we are facing every day, including the scourge of abject poverty, inequality, climate change, environmental degradation, injustice, etc.

Call To Action

Simplistically the prerequisites for SDGs as in a call to action is successfully getting key stakeholders coherently on the same table (including employees, vendors, regulatory bodies, and investors). The SDGs present an unparalleled opportunity to bring on the same page the ongoing sustainability initiatives whatsoever an entity may have through shared value & pooled architecture fuelling the textile industry’s efforts to face & surmount impending odds in the textile global supply/value chain.

A case in point is the global apparel industry of approximately $2.5 trillion to $3 trillion with scale, scope, technical & operational capability to optimistically deliver and achieve SDGs targets, aligning local value chains well within this ever-connected globalized supply chain. Pulse Check

Given that the textile sector, which ranks among the most polluting in the world, so proportionately there is greater scope for Textile companies as one would reckon to go down the path of sustainability. Again being a sector generating huge jobs creator & an economic force multiplier. To take full cognizance of the sector where two-thirds of textile industry supply chain workers are women. Companies in the sector are therefore presented with an incredible opportunity to continue to be constructive in attaining the goal of achieving gender equality, improving economic livelihoods, and mitigating climate impacts.

Key takeaways

The time clock is ticking for this Industry to contribute as a global supply chain to the SDGs by 2030 to drive the synergies. This article was presented to showcase the demonstrability of the industry per se and how well it has currently aligned the larger purpose of integrating the SDGs into its business missions, vision & current engagement.

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06 September 2022, Mumbai:

International apparel firms are doubling down on their investments in Sri Lanka and are expanding their production capacities, sending positive signals even in the midst of a historic political crisis & economic meltdown.

Sri Lanka recently initiated a dedicated fabric processing zone in its Eastern Province, which conforms to high standards of environmental protection and sustainability. Besides strengthening the supply chain and sustainability measures, this move will also enable the country’s apparel exporters to make greater utilization of preferential tariff schemes, by increasing local value addition. Green manufacturing is not just a business buzzword; Sri Lankan apparel industry have amply demonstrated its commitment by embracin this concept arguably much before than competition.

An internationally reputed producer of accessories for the global lingerie industry - Committed to the future – out of tradition. For almost 500 years. The basis of the company’s success has been, right from the start, the clear focus on discerning niche markets, including over two decades in Sri Lanka. It is responsible for providing quality livelihoods for over 500 Sri Lankans, the best testament to any nation is the endorsement value. As per CEO of Prym Group Dr. Ansgar Nonn,” The company has benefited immensely from its presence in Sri Lanka”.

“We are closely monitoring the situation in Sri Lanka, the good bit is what we ourselves have experienced and from the reports of our teams on the ground, disruptions to our operations thankfully have been minimal.

The situation has settled down in recent weeks, but even a few months prior, when the crisis was at its peak, the local team was able to step up and demonstrate phenomenal commitment, resilence and resourcefulness to complete our orders smoothly/near uninterupted. Experientially staging that given our past experiences and the continuous success that our Sri Lankan operations have achieved despite such major obstacles, we are even more bullish on our presence in the island, and to be very frank we are currently in optimistic mindset & are factually in the process of investing in machinery and training for our local teams, in the run upto for the launch of further production capacity,” Nonn stated.

Prologue

To place it on record Sri Lanka has an incredible track record & portfolio when anyone talks about intimate wear. Nearly 5% of the global demand for undergarments on sustained basis is coming from no where else than Sri Lanka. Therefore, given its consistency nation can proudly boast of a robust pipeline of an array of range in the product line viz bras, panties, lingerie, men’s underwear and so to say women’s nightwear.

Reasserting why Sri Lanka is seen as an ideal destination for apparel manufacturing Dr. Nonn stated it was important to consider a country which already had established a higher level of technical expertise, in order to be capable of handling global most quality demanding players like meeting Prym Group’s expectations & requirement for specialized accessories for the global lingerie industry. “We realized very quickly that Sri Lanka was the perfect fit. Even at the time, talent pool Sri Lanka with a literacy rate of 92.5% is one of the most literate anywhere in apparel industry, and therefore immensely adaptable.

Moreover, industry highly regards nation’s work ethos with the industry as a whole having an inherent relentless commitment to social and environmental sustainability in line with heightened global brands’ stated sustainability goals. Considering the Geo-strategic unique tear drop island location, ideally aligned to most of the buyers needs including ours. Over the two decades we have only seen our operations grow from strength to strength, and become an integral and valued component in our global supply chain,” Nonn stated. Not to mention the most invaluable support support recieved from relevant state authorities as a including the BOI in minimizing disruptions caused by recent fuel and energy shortages is an indomitable inspiration for many apparel producing hubs.

Nonn concludes: “I have no hesitation in talking very high about the decades experience here, notwithstanding we have seen at times volatility, but consistently, our ground teams have been incredibly creative and efficient in tackling the challenges/odds we may have experienced, but nothing has ever dampened our work spirit. Reiterating the never say die spirit of the island workforce & work ethics the latest economic & political crisis nation lately has undergone has only served to bring out the best in our people, and nobody can take away credit from them. Furthermore, our workforce spirited performance only validates our underlying original decision to foray into this market, and the let us re-emphasize that prevailing crisis has only served as an opportunity to bring out the best in our people.”

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09 September 2022, Mumbai:

The textile sector, which ranks among the most polluting in the world, must look into sustainable practices to reduce resource consumption and pollution. Thus there is greater scope for Textile companies as one would reckon that by bringing down total energy use per unit of output at manufacturing plants using renewable inputs such as solar, hydroelectric, and landfill gas. Another argument for gaining currency is the credible use of decentralized renewable energy which promises to modernize and catalyze the textile industry's growth. Also, the good news is that it clearly has the potential to improve the livelihoods of millions by being a sector generating huge jobs creator & an economic force multiplier.

Time to invest in renewable energy expansion

Textile trade is now started to look at strategic investments in renewables to boost energy independence and reduce carbon footprint. Investing in renewable energy is a good long-term strategy for fund managers and green funds alike. Corporates/groups partaking in interest in the renewable energy sector reckon that it is poised to play an absolutely critical/pivotal part in the future as technology sustainably keeps advancing and demand for clean energy will only develop. A good bit is controlling carbon emissions, large-scale renewable power projects also provide demonstrable economic benefits for multi-stakeholders investors and borrowers alike.

Green Funds & Green Investing

Green Investments — Green investments typically are businesses or sovereign/pensionary funds piggy-betting on the urgent need to reduce harmful pollutants or use resources more consciously the clamor for which keeps getting louder. This paper focuses on various green funds, and green investing companies currently investing in reducing carbon emissions across the textile sector. Need of the hour is to shift to sustainable green power in order to remain internationally competitive within this turbulent market environment,” note Richard König, CEO of Enery, and Lukas Nemec, COO of Enery.

"Global players like Lenzing group in order to reduce its carbon emissions even further in line with our strategic targets, aiming in the future to rely to an even greater extent on electricity generated from renewable energies. Concepts such as these will make us less dependent on global energy markets in the medium to long term and further support our transition from a linear to a circular economy model,” comments Stephan Sielaff, Lenzing Group CEO. In 2019, Lenzing became the first fiber manufacturer to set a target to reduce its carbon emissions by 50 percent by 2030 and to be climate neutral by 2050.

Need of the day

One data point which is stood out for us while presenting this article is that" The economic rationale for investing in clean energy is clear and the message is written loud & clear on the walls".

There is an urgent need for efficient and trend-setting interaction between energy companies, regional policymakers, and industry, with a clear win-win situation for all parties involved. Furthermore, renewable energy is a panacea to combating global climate change as the crisis is already upon us.

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07 September 2022, Mumbai:

The current visit of the Bangladesh PM to the Indian side is part of the enduring high-level political engagement between the two neighbour ally nations. Both sides have shown keenness to start negotiations on a bilateral Comprehensive Economic Partnership Agreement (CEPA) later part of the year underpinning new identified sectors to consolidate & deepen their bilateral relations to expand bilateral trade and investment.

Here it is very topical to mention that CEPA will be among the trade agreements Bangladesh is prioritizing with its major trade partners, as it will lose duty benefits once the country graduates to developing nation status in 2026. To place it on records India and Bangladesh this Tuesday signed seven meaningful agreements spread across sectors, including water resources, railways, space technology, judiciary, scientific and technological cooperation, and TV broadcasting. It was a part of

Sheikh Hasina is here on a four-day state visit. Importantly sources indicate more youth exchange programmes are on the anvil. Furthermore, next month India will receive a 100-member youth delegation from Bangladesh.

One of the key takeaways from this bonhomie is that leaders of both countries have agreed to deepen further develop partnerships in sectors like the upgradation of railway projects in that country. India is in good earnest pushing for greater cooperation with Dhaka in various sectors.

Piyush Goyal, Textile Minister, stated," There is a certain inevitability that two countries for mutual gainful situation need to build resilient supply chains and explore investment growth opportunities in areas like textiles, jute products, and leather and footwear".

Perspective

Industry data reflects conspicuously that Bangladesh is India’s sixth largest trade partner with bilateral trade rising from $2.4 billion (two points four) in 2009 to $10.8 billion in 2020-21. India is the world's fifth biggest T&A/T&C exporter with a shy of 5% share of the $840 billion global market, while China has more than a third of the global market share.

Also, it is to be noted that now is the time for taking a share of the existing pie rather than anything else given global trade is shrinking & current macroeconomic variables.

Putting it in immediate context India's exports were neck to neck with nearest rival Bangladesh roughly a decade ago but over the years latter has leapfrogged- particularly on apparel/garments - amongst many of the reasons due to higher labour costs, disadvantages of lack of FTAs/LDC/MFN status etc that make Indian apparel/clothes 20% or thereabout pricier.

Two-way street

Given the common shared values, the two nations have India presents a big market opportunity for Bangladeshi apparel suppliers if the central government pursues the given policy intervention of the current dispensation. The FBCCI president said earlier that," India could be a major supplier of yarn and cotton to the garment industry in the near future and called for developing infrastructure in the Indian part of the border land ports to boost trade, according to Bangla media reports".

The paper tries to present the data analysed by Team AR from various sources to pack a punch that, India exported US $ 1.72 billion worth of cotton yarn to Bangladesh in the calendar year 2021 from that of US $ 657 million in 2020 and the US $ 539 million in 2019.

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05 September 2022, Mumbai:

One of the basic requirements of people in the current society is textiles. Globally, the textile sector has a sizable production capacity. The textile industry is an industry that deals with articles made from fibers, threads, or yarn. It is evident that The textile and clothing/apparel (T&A) industries constitute a significant piece of manufacturing production, mass employment, and forming a meatier chunk of trade in most developing countries globally.

Textiles are created to serve various purposes and are composed of multiple fiber types blended in different ratios. Fiber applications often fall into one of the following three categories: industrial, home furnishings, and apparel/clothing.
Consumer demand, which is affected by the status of the economy, plays a factor in this as well. Customers respond to changes in fashion in both apparel and home furnishings. Clothing/apparel may swiftly fall out of style due to seasonal changes, which encourages replacing and getting rid of old but still excellent quality items. In reaction to a "throwaway society," manufacturers will progressively produce large volumes of apparel with little durability.

Most textile businesses focus on creating a suitable waste management system for sustainable growth. It might significantly impact the age of home textile waste. The depletion of natural resources, rising costs, and dwindling availability of disposal sites are the driving forces behind the significance of trash reduction, reuse, recycling, and management.
It is incredibly shocking that as per industry reports every year some 9 million plastic-based wastes are disposed of in the landfill. The atmosphere is also chemically contaminated by the combustion of all the goods within the mills. Textiles produce a sizable quantity of solid waste in terms of production capacity. While it might not have much of an effect on the manufacturing sector's waste generation.
Commercially, the quantity of textile waste generated depends on how much textile product is produced; the more made, the more trash there will be. Let us reckon that Textile consumption impacts the environment through both pre-consumer and post-consumer effects, also a practice of these articles should be worn a few times before being discarded has led to nearly 85% of textiles ending up in landfills each year and here it may be sanguine to argue that you have to factor in fast fashion as a catalytic action.
Despite a long history of resource conservation in the textile sector, a significant amount of unneeded waste is still created annually. For instance, they could make it difficult for us to breathe, keep warm or cold, or grow the food we require.
Problem-solving approach
The disposal of used clothing and recycling is a critical piece of the entire textile user journey.
The trifecta of problems is the source of the waste's high level. Clothing/apparel and textiles (T&A) generate enormous amounts of garbage, which is dumped in landfills all over the world. It takes time for the garment to decompose, and certain materials, like polyester, even release chemicals into the environment.
It depends on whether we want to be part of the problem or the solution.
Pollution - Textiles contribute to the breakdown of the air and water. The chemicals and water needed to make the textile colors must be disposed of after usage. Some of the ways and means to curb and mitigate the ill effects of textile waste management are as follows:
Composting
Regeneration
Albeit It may not be a panacea today but the theme of ‘How to execute reuse and recycling of post‐consumer textile waste is more critical than ever before".
The trifecta of problems is the source of the waste's high level. Clothing/apparel and textiles (T&A) generate enormous amounts of garbage, which is dumped in landfills all over the world. It takes time for the garment to decompose, and certain materials, like polyester, even release chemicals into the environment.
Pull V/s Push
Most textile businesses worldwide typically create a department for sustainable development to carry out the waste management procedure. Increasing awareness among consumers has been once the driving force for making greener products. Increasingly it is been argued today that disposal through Landfills is how much more sustainable as arguably they are the earliest form of waste management, the moreover modern-day big revelation is that these sites per se aren't good for our planet. Notwithstanding the reality Modern landfills are aptly-engineered and managed outlets for the disposal of solid waste be it from textile.
Way Forward
The central government applies several rules, guidelines, and institutions to direct the textile industry's transition to an ecologically friendly method.
The good news is best practices like Eco-friendly textiles made from 100% recycled PET fibres and blends with MMF or a sustainable myriad of fibres are been popularly used in a variety of applications viz home textiles, apparel, furnishings, upholstery, technical textiles, and many more imaginative applications & that is where efforts are. Let us clear the air on the consumers' heightened awareness created lately on the back of global climate change showing up & having motivated consumers to come forward and contribute in this field to drive the synergies.
Today there is a strong sustainability argument pushing for Fashion and textile circular economy case.

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08 September 2022, Mumbai:

The estimated size of the worldwide textile market in 2020 was close to $1000 billion, and it is expected to rapidly increase at a compound annual growth rate (CAGR) of 4.4% from 2021 to 2028. In the upcoming years, the market is anticipated to be driven by rising demand for apparel/clothing from the fashion sector and the development of e-commerce platforms. Five of the seventeen Sustainable Development Goals (SDGs) are climate action, gender equality, responsible consumption and production, proper sanitation followed by clean water, and decent work and economic growth—which are related to the textile sector. Globally, textile firms are aggressively promoting pollution-reduction techniques and establishing emission targets to slow climate change.

A critical part of the ESG initiatives is responsible manufacturing

The textile sector, which ranks among the most polluting in the world, must look into sustainable practices to reduce resource consumption and pollution, enhance worker safety, and protect customers' right to make informed purchasing decisions. Agriculture, manufacturing, processing, fabric care, usage, recycling, and disposal are part of its supply chain. The semblance is that textile industry has started to take leadership in limited sense delivering real impact, focusing on reducing or controling its water & carbon footprint.

Therefore, the adverse effects on the environment must be considered in the sustainable growth of the textile industry, and appropriate mitigation measures must be put in place. The capacity of sustainable textiles to decrease waste by ensuring the reuse and recycling of goods while reducing the consumption of resources like land, water, and oil is crucial to the industry's survival. The textile sector should also concentrate on sustainability-related issues, such as protecting the environment and public health, workplace safety, gender equality, and satisfying customer demand for eco-friendly textile goods.

Green sourcing-supply chain

The cliche in the power corridor is," A green supply chain is a requirement for profitability as businesses stare today heigtened levels of operational and financial risk". Green Sourcing stands as a significant step in the textile industry at large. Introduction of new sustainable procedures and rules for all sourcing departments, which will increase value.

Take note of the availability of raw resources in this market and sector that might be practical and long-lasting. A critical factor in the industry that may be considered to improve its operating system is the comparison of the costs of sustainable and non-sustainable products and services.

AN ESG SNAPSHOT

Giving a quick context of challenges organizations are confronting especially in India include obtaining ESG metrics from supply chain partners and third parties to validate. Therefore, its also essential to do regular reviews and monitoring while modifying the sourcing strategy to follow the requirements and expectations of the designated organization.

Factoring in energy transition cost, supply chain sustainability commitment goals and regulatory compliance are some of the odds while reaching sustainability in the textile industry. Achieving sustainability without sacrificing commercial competitiveness, changing from a low-cost ready-made garment/apparel business to one that produces value-added goods. Promoting more investment in independent R&D and strengthening industry-institute partnerships. And increasing the ability to innovate and giving the resources needed to keep such inventions alive.

Future Roadmap

EY's one of the earlier report mentions," With the EU Strategy for Sustainable and Circular Textiles, the Commission aims to ensure that by 2030, textile products have a longer life, recyclable where possible. In line with the proposed ESPR, the Commission will introduce mandatory ecodesign requirements for textiles focusing on aspects of product design". The Companies Act, of 2013 introduced one of the first ESG disclosure requirements for companies.

The article is getting readers' trade insights sharing how the strategy will help the EU shift to a climate-neutral, circular textile economy pushing sector-producing articles meant to be environmentally sustainable. IOTs is transforming the businesses/sectors globally & AI can help business stakeholders visualize their ESG data, and visibly green hydrogen solutions to accelerate the clean energy transition can be some of the ways to transit in the direction of attaining neutrality as stated by many corporates.

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05 September 2022, Mumbai:

Consumers are now participants in a global market and this has a key impact on the consumer buying & preferences. The $3 trillion global fashion business accounts for 2% of the world's GDP. The underlying assumption as always is as festivity is lined up thus contextually its a most crucial time for the Indian advertising business as spending is expected to bring a lot more returns than usual.

Festive season to drive consumer spending: 48% will shop more during 2022 festive season vs 2021, says Axis survey. “Historically what has been witnessed is that sooner the festive season approaches reflecting a "festive spirit", driving consumers to buy leading to pushing volumes up including triggering non-discretionary buying. Its September analysis said that 48 per cent of consumers tend to shop more during the festive season as compared to the rest of the year. It also revealed that 20 per cent of the consumers plan to shop more this festive season in comparison to last year while 32 per cent plan to shop the same as the previous year.”

Covid & its impact

Beginning in China in 2020, the COVID-19 virus spread gradually but steadily over the remainder of the year before releasing additional strains in 2021 and causing successive waves of fatalities. Because of it, there have been several lockdowns, travel limitations, social withdrawal, and other COVID-acceptable behaviors worldwide. The situation put the retail sector, namely the fashion section, in chaos, having an influence on sales, profitability, inventory, jobs, and the entire ecosystem. When individuals were advised to stay at home as a preventative step to slow the spread of the illness, the disruption in worldwide fashion began. Markets, shopping centers, and other establishments were all closed down to rule out any chance of their coming out. This prevented customers from buying outside for months, pushing them to migrate to internet shopping. The fact that only necessities could be purchased online and that non-essential items, like apparel/clothing, could only be sold afterward made the situation much worse.

Post Covid consumer spending have revved up · E-commerce buying continues to be accelerated having already gone to level next in the global fashion landscape. Customers are already buying luxury items for meeting their aspirations and desires. The last few years have seen remarkable development in the fashion industry in the new emerging paradigm. The psychology of consumer behavior has undergone sea change in the new emerging digital world.

Festive Marketing:

Though currently trade expects are sanguine to be cautiously optimistic but given macroeconomic quick indicators & demand tailwind Consumer spending sentiment in urban India is likely to be higher than what was observed during last year's festive season. Brands continue to stay optimistic that improving consumer sentiments & economic resilience shall help them bounce back and as fashion industry continues to open up on the back of corona risk concerns fading. Festivity good effect

One ET report states,”Demand for discretionary products, electronics and gift items in the festive season (August to December) is expected to be 15-25% more than what it was in the corresponding period of 2019”.

With many festivals already upon us in the next two-three months, consumers have started using Debit cards, UPI and credit cards aggressively for their sustained aspirational buying as bargain offers galore.

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