The Textile/Apparel Industry

The “Sustainability” Challenge

ICAC International Seminar Taipei 2010

helmut.merkel@eurasia-global-concept.com
EurAsia Global Concept Ltd. Hong Kong
Topics

1. What is Sustainability ?

2. The Three Challenges of the Garments-/Apparel and Textile Industry

2.1 CO2 Reduction to stop Green House Gases

(GHG’s) Emission
2.2 Save the Water Resources of the Planet
2.3 What can we really do ?
2.3.1 What can the Governments really do ?
2.3.2 What can the Industry and the Consumers really do ?

3. How do the Markets take “Sustainability”

Summary
1. What is Sustainability ?
2.

3.

Exiting Spectacular
Illusions
Design
Buzzwords Ideas……Patterns
 No genetically
Clean Air Safe, healthy
manipulated
food
food

Enough food Enough water

Safe
environment

Schools for
These dreams are in
all children danger – and we
know it. Our
customers also know
it. Therefore there is
a growing awareness
for Sustainability
1. What is “Sustainability”
2.

3.
Sustainability Azo
Formaldehyde
Health Quicksilver
Nickel
CO2 Pollution

Social
Water Minimum Wages
Responsibility
Working hours
Holidays
Paid sickleave
1. What is “Sustainability”
2.

3. In the old days, the farmers planted oak trees around

their farmhouses to have protection from lightnings and
to have stocks of wood for furniture for all unmarried
children. For each tree, which was cut, at least one new
had to be planted – to sustain the living conditions.

In our modern World with a fast growing population, and

with limited natural resources, we are far away from
such a sustainable policy. The Green House Gases
(GHGs), caused by CO2 emission is changing our
climate dramatically. The demand of fresh water is
already higher then the supply in many regions of the
world.

The Apparel-/Garment- and Textile Industry contri-

butes a lot to this situation.
What can be done ?
1. What is “Sustainability”
2.
There is agreed consensus (World Climate
3.
Conference), that any successful program on
action of climate change must support two
objectives:

(1)Stabilizing atmospheric Greenhouse

Gases (GHGs) by reducing the CO2
Emission

(2) and Economic Growth

There is not such a program to manage the

global Fresh Water demand
 1. 2. 3.

2.1 CO2 Reduction to stop Green House Gases

(GHG’s) Emission
 1. 2.1 CO2 Reduction to stop Green House Gases (GHG’s) Emission
2.
Waste CO2 Emission of a white
Cotton Farming Ladies Longshirt 100%
3.
Cotton, Size 40-42
220 g - 11 kg CO2
Output
Cleaning/Ironing Usage Production

5 to 6 kg CO2 5 to 6 kg CO2
10.000 ––12.000
10.000 12.000l l 350 – 400 l
Water Production
350 – 400 lWater
Water
Water

In all further computations, I assume 5 kg CO2

Emissions for production – knowing it is really
Packaging
“Best Case”
Transportation
Catalogue
Distribution
1.

2. 2.1 CO2 Reduction to stop Green House Gases (GHG’s) Emission

3.

100 Shirts 0,5 tons CO2

1000 Shirts 5 tons CO2
10.000 Shirts 50 tons CO2
100.000 Shirts 500 tons CO2
1.000.000 Shirts 5.000 tons CO2
10.000.000 Shirts 50.000 tons CO2
100.000.000 Shirts 500.000 tons CO2
1.000.000.000 Shirts 5.000.000 tons CO2
minimum 5 Mn tons

3.500.000.000 liter water used …. (Production)

1. 2.1 CO2 Reduction to stop Green House Gases (GHG’s) Emission
2.

3.

1.000.000.000 Shirts 5.000.000 tons CO2

25.580.000.000 pieces about 127.089.000. tons CO2

The
min. numbers
1,56 % of theare not really
Chinese COas big as the numbers
2 Emission (8,2 bn tons 2009)
during the financial crisis – but still, we can not imagine
how big theyliter
89.530.000.000 really are.used ….
water

How much are 89.530.000.000 liter of water ?

Ho much are 25.580.000.000 pieces ?
How much are 127.089.000 tons of CO2 ?

Source: ResearchChina
Total Output 2009: 25.580.000.000 pieces
1.

2. 2.1 CO2 Reduction to stop Green House Gases (GHG’s) Emission

3.

The CO2
The major CO2 Emission in our industrializedEmission
world targets
results from providing and using Energy: are moving …
China
130 bn
The only way to reduce CO2 Emission is either 32%

(1) reduce Energy production or

(2) increase Productivity in Energy Production

Assumption: 27 Gigatons of annual CO2 abatement is consistent with a 500 million

parts per million stabilization target. 1 Gigaton = 1.000 Million tons
1.

2. 2.1 CO2 Reduction to stop Green House Gases (GHG’s) Emission

3.
1.

2. 2.1 CO2 Reduction to stop Green House Gases (GHG’s) Emission

3.
 1. 2. 3.

2.2 Save the Water Resources of the Planet

1.

2. 2.2 Save the Water Resources of the Planet

3.
Only 3% of the Earth’s Water are “Fresh Water”
1.

2. 2.2 Save the Water Resources of the Planet

3.
Even Canada is facing a “Fresh Water” Problem
1.

2. 2.2 Save the Water Resources of the Planet

3.
Only 3% of the Earth’s Water are “Fresh Water”

The Aral Lake in 1964:

Sixth biggest Lake on

our Globe.

Stalin decided to
concentrate the cotton
industry of Russia
around the Aral Lake,
also other heavy
agricultural production
1.
3
2. 2.2 Save the Water Resources of the Planet
3.

1964 1973

A dramatical change of environment can

be watched for decades now: The Aral Sea,
the fourth biggest lake on earth in 1964,
was shrinking continously …

1999
1987

Source: Aral Sea, Russia - http://earthshots.usgs.gov/Aral/Aral

1.
3
2. 2.2 Save the Water Resources of the Planet
3. Actually,

the upper part of the

lake is not the
problem
Conventional cotton requires a tremendous amount of water; in fact,
The entire lake
according to the World Wildlife Fund, some estimates indicate that it
disapeared …
consumes more water than any other agricultural commodity.
For more
Furthermore, nitrogen-heavy fertilizer runoff feeds than"dead
oceanic 30 years,
water
zones" that deprive water of oxygen and kill fish andhas been
other diverted
aquatic
from helping
species; runoff from U.S. cotton farms is currently the Amu-Darya
to feed aand
dead zone in the Gulf of Mexico the size of Newthe Syr-Darya
Jersey. FromRivers
a health
standpoint, seven of the top 15 pesticides usedfeeding
on U.S.the Aral, crops
cotton to
are deemed by the EPA to be potential or known irrigate
humanmillions of acres
carcinogens.
of land for cotton and
rice production in
Central Asia.
 1. 2. 3.

2.3 What can we really do ?

1.

2. 2.3 What can we really do ?

3.

The Challenges are too huge, to leave it to individuals,

the Governments have to step into the scene. Kyoto
and Copenhagen are not yet a break through. But,
many Countries take it already serious… also China
1. 2.3 What can we really do ?
2. Energysupply in GERMANY
3. 2009 2050

Re-generative Re-generative
Energies 16% Energies 81%
Lignite (Brown Coal) Including
25% Downdraft (Wind) 48%
Pit Coal Germany will pass a
18% Biomass 12%
new bill, called:
Natural Gas “Zero”-Emission.
13% Photovoltaics
It means 500 – 700 11%
Nuclear Energy Euro per m2 living
Other Re-gens. 10%
23% space, about 120 bn
Lignite and Pit Coal
Others Euro for Germans …
9%
5% until 2050
Others
Source: BDEW, EWI, Prognis, GWS 10%
1. 2.3 What can we really do ?
2.
Existing Wind Energy capacity – worldwide-
3.

Taipower
The company plans to start work by 2011
on building a further 162 wind power
generators which will have a total capacity
of 826 million kWh of electricity annually
and will cut CO2 emissions by 505,000
tonnes a year.

Source: “Der Spiegel”

1.

2. 2.3 What can we really do ?

3. On the “World Climate Index” (published by Germanwatch and European
Climate Network), Taiwan is on rank “47”, but the government
recognizes the issue. Rank one to three are not assigned. Sweden is on
Rank “five” – Germany on Rank “seven”.

“Carbon dioxide emissions from all

sources island-wide, from farms to
factories, should drop by 2020 to 2005
levels of about 257 million metric tonns,
or at least 30 percent below the 2020
"business-as-usual" emissions total”
without intervention, the Environmental
Protection Administration said.
"If we can reach our maximum, that would
be the most stringent goal in Asia," EPA
Executive Secretary Hsiao Hui-chuan told
Reuters in an interview.
1. 2.3 What can we really do ?
2.
Existing Photovoltaic capacity – worldwide-
3.

Many people believe, the Photovoltaics

Industry will see a similar development as
the Computer Industry 30-40 years ago !

Source: “Der Spiegel”

1.

2. 2.3 What can we really do ?

3.

The local governments

in China even cut
regional energy supply
to reach their goals
1.

2. 2.3 What can we really do ?

3.

What can Consumers do ?

Reduce frequency of Cleaning (Washing/Dry Cleaning/Ironing)

Reduce frequency of Buying new clothes ?

Check for Eco Labels ?

Eco Labels are a “first” beginning to raise the awareness

of customers, right now. I doubt we can save CO2
emission right now.
1.

2. 2.3 What can we really do ?

3.
http://www.made-by.nl/

MADE-BY offers fashion companies. advice and support for

gradually improving the social, economic and ecological conditions
throughout the whole supply chain of their collections.
1.

2. 2.3 What can we really do ?

3. http://www.sfbc.org.hk/template

SFBC sustainable fashion business consortium, based in Hong

Kong, is a consortium of companies in the textile and apparel
sector committed to promoting and increasing the use of
sustainable practices across the fashion supply chain.
1.

2. 2.3 What can we really do ?

3. http://organicexchange.org/oecms/

OE will help advance the sustainable development of textiles by creating

a specific community of practice, a set of standards and product
integrity resources, and systems that support the distribution of
knowledge and positive change across the global textile value chain.
1.

2. 2.3 What can we really do ?

3.
What can the Industry do ?

Reduce Energy and Water Consumption

Reduce Energy Consumption

Develop new Fibres: less dry cleaning, less drying, less washing ?

Use Natural Fibres ?

Use Man Made Fibres ?

Use Recycled Fibres ?

1.

2. 2.3 What can we really do ?

3.
How sustainable is Bamboo (Viscose) ?
Bamboo needs even more Water then Cotton !
1.

2. 2.3 What can we really do ?

3.

Source: Cootlook
1.

2. 2.3 What can we really do ?

3.

The three levels of actions:

- Government
- Companies
-Freitag’s
Consumersconcept is based on “recycled
materials “, Fashion, Function, Quality
Are linked to each other: The governments set the
and !Price !
rules

Companies and Consumers follow, but will only change

their behavior, if they are forced, or if the gain
something.

Companies and Consumers will not change their

behavior because of “rational” learning.
 1. 2. 3.

3. How do the Markets take “Sustainability”

1. 3. How do the Markets take “Sustainability”

2.

3.

Green Money 2010

1. 3. How do the Markets take “Sustainability”

2.

3.

NX 25 is the first “Eco Index”

of “Öko Invest” of Vienna/Austria.
It shows, “sustainable
Investments” have a better
Performance than the MSCI
World Index.

Investors and the stock Markets start to realize the

promising potential of “Sustainability” . Sustainability
becomes part of individual Business Models. This
success of the individual companies will become the
advantage of the society
Summary

- The race to stop GHGs emission and Fresh

Water Demand is on – the CO2 reduction
targets appear very ambitious.
- The Governments in many countries took action
already, to increase the market-attraction of
Sustainable Investment
- The individual Customers have a huge share of
CO2 emissions and water demand
- The Industry will have to contribute a lot with
investments and New Products, to support
- “Sustainability” as part of individual Business
Models are recognized by the Financial Markets