Eco-friendly fashion is not just about the use of sustainable fibres and fabrics. Ragtrader looks at its use and implications across supply chain and logistics.
Whether you consider yourself a climate change sceptic or believer, there is no doubt the move to a carbon constrained market will heap change upon Australian textile, clothing and footwear (TCF) businesses.
IBISWorld analyst Raghu Rajakumar says low environmental impact and ethical manufacturing will be critical requirements for business success in the apparel sector over the next 10 years.
Australian TCF providers creating processes and products with a clear domestic and international 'green' value proposition will be better suited to deal with what he claims is shaping up to be the sector's most highly competitive global growth period.
But going green is not as simple as it sounds and goes well beyond finding a good steady supply of eco-materials or textiles.
With TCF manufacturers in Australia facing the lethal combination of significant tariff cuts scheduled post-2010 as well as a global economic downturn, incorporating a 'Green mindset' into the TCF supply chain is imperative to survival, says Rajakumar.
"The bottom line of TCF manufacturing, like all manufacturing industries, is influenced by efficiency and cost. TCF operators need to channel government assistance, comply with legislation and be forward thinking enough to stay ahead of government intervention and funding for innovation."
At a customer level, TCF operators need to access 'green' consumers through ethical production as a form of product differentiation. Rajakumar says apart from this, would-be investors will increasingly rank sustainability as an important factor in their investment criteria. It will also take greater precedence among employees considering whether to remain loyal to their particular organisation or seek greener pastures, he says.
The relatively small the size of Australia's TCF sector on the global scale means it should be able to adapt quickly and implement industry wide changes to create a formidable sustainable competitive advantage.
"While there are already voluntary schemes working to instil 'green' ideals in the TCF sector, stakeholders and firms in the industry need to actively embrace and uphold these ideals through all areas of the supply chain," Rajakumar notes.
Case study: Bird Textiles
When Rachel Bending first ventured into the rag trade in 2002, she had a very unique set of requirements for her employees.
"I only employed seamstresses that used solar power energy in the [manufacturing] process. Actually, one seamstress had a traditional Singer machine that ran on pedal power."
Bending carried on the sustainability theme to her Bird Textiles fabric and ready-to-wear business, which was launched in 2006 and currently supplies to 100 independent retailers across Australia. Garments are manufactured from SKAL certified organic fabrics with patterns designed in-house and hand-printed using water based dyes.
All collections are manufactured using 100 per cent renewable solar and wind power. While the process may seem well-suited to independent players, Bending says there is "no excuse" for larger firms not to apply sustainable practices.
"Solar and wind power can now be purchased through the grid and other easily accessible organisations," she argues. "It's marginally more expensive than traditional sources - perhaps no more than 5 per cent - and makes sense in the bigger Bird Textiles, a climate neutral business since 2004, offsets any remaining footprints by investing in projects which slow the process of global warming. And Bending is meticulous in calculating every single dirty step.
Just one example: "Like many fashion labels, I pay a piece work rate for any work that is outsourced. From this, I'm able to calculate how many hours of solar electricity and power is used in the process - I do all of that once a year and it takes me no longer than half a day."
Most energy expenditure comes from freight costs associated with the import of raw materials and freight of finished goods.
"I import certified woven organic cotton from India because I can't buy it here in Australia - it would be more wasteful if I bought the cotton here, shipped it overseas to be woven and then freighted it back."
The company's energy debt - which includes manufacturing, freight and operations - is roughly 38 tonnes a year and this is paid off through investment in solar panelling and renewable energy carbon credits.
"But this should always be the last option; I believe the first steps should be to look at using renewable energy and reducing waste and excess in the business," Bending says. "Then, whatever you've got left, you should look at offsetting."
Bending insists it's not a laborious process and is quick to note the commercial benefits of sustainable practices. In addition to supplying 100 retailers across Australia, the designer is in negotiations to supply a domestic retail chain with over 200 stores and a US based retailer with close to 100.
"And both approached me because of the brand's eco credentials," Bending says, adding her brand has garnered attention in key publications such as Vogue, Marie Claire, Inside Out and even a listing in Time magazine.
The brand womenswear label opened its flagship store Bird Textiles Emporium in Surry Hills, Sydney last year.
Case Study: Gorman
Environmental consultant Anthony Szatow works closely with womenswear brand Gorman to ensure its 'eco-friendly' tag is more than a marketing catch cry. The retail and wholesale label, which launched in 1999 and counts Australian department store giant David Jones among its key clients, ensures it has sustainable practices across design, production and operations.
Founder Lisa Gorman says supply chain is an integral part of this green strategy and like Bending, is an advocate of using 100 per cent accredited green power in the creation of garments. Goods are packaged using recyclable solutions such as LDPE quality polybags and in fact, garment packaging has been reduced by 90 per cent since its top-to-toe green program was launched in 2006.
While Gorman admits to being initially "overwhelmed" by tracking her carbon footprint across the supply chain - which included an analysis of individual suppliers and contractors - the designer hasn't rested on her laurels with Szatow now working with the brand's offshore partners to implement environmentally friendly strategies.
On that front, Gorman is looking into developing community-based projects to improve sustainability in collaboration with our suppliers in Vietnam. Closer to home, the label uses green light couriers as often as possible, with the combination of hybrids and bicycles keeping emissions low.
Gorman says the brand no longer considers new suppliers if they don't have an environmental policy.
"We think the way we are doing things has a better result for all involved, most importantly the planet, rather than by purchasing offsets and making the claim of 'carbon neutrality'.
"Our way is about making and influencing changes right now, and our actions are based on emission reductions rather than emission band-aids. We are forcing other companies to re-think the way they do business and we are seeing the effect flow on, broad and wide, much further than the fashion industry."
Gorman has seven stores across Australia including sites in Melbourne's GPO, Sydney's Paddington district and Brisbane's Queen Plaza.