可持续发展的原材料将推动时尚和服装品牌的盈利能力（英文版）--波士顿VIP专享VIP免费

下载本文档

阅读 865
格式 pdf
大小 10.54 MB
约31页
2023-11-21
收藏
点赞(0)
海报
举报

Sustainable Raw Materials

Will Drive Protability for

Fashion and Apparel Brands

October 2023

Beth Jensen and Megan Stoneburner from Textile Exchange

Catharina Martinez-Pardo, Jocelyn Wilkinson, Haazah Khodabocus, and Lidia Durbiano

from Boston Consulting Group

Mireille Faist, Stefan Frehland, Philipp Meister, and Marcial Vargas-Gonzalez from Quantis

Quantis, a BCG company, is a leading sustainability

consultancy pioneering approaches to solve critical

environmental challenges. We partner with leading

consumer goods and nancial services organizations

who are serious about reducing their environmental

impacts to future-proof their businesses and prosper

in a new planetary economy. Our unique approach

combines deep environmental expertise, strategic

business knowledge, and enterprise transformation

skills to help organizations shape policies, practices

and business models that align with the planet’s

capacity while building resilience, unlocking

innovation, and optimizing performance. Our dynamic

and visionary team of environmental, business

and communications experts will guide you on the

journey from business as usual to business at its best.

Discover Quantis

Boston Consulting Group partners with leaders in

business and society to tackle their most important

challenges and capture their greatest opportunities.

BCG was the pioneer in business strategy when it

was founded in 1963. Today, we work closely with

clients to embrace a transformational approach

aimed at beneting all stakeholders—empowering

organizations to grow, build sustainable competitive

advantage, and drive positive societal impact.

Our diverse, global teams bring deep industry and

functional expertise and a range of perspectives

that question the status quo and spark change. BCG

delivers solutions through leading-edge management

consulting, technology and design, and corporate and

digital ventures. We work in a uniquely collaborative

model across the rm and throughout all levels of the

client organization, fueled by the goal of helping our

clients thrive and enabling them to make the world a

better place.

Textile Exchange is a global non-prot driving

benecial impacts on climate and nature across

the fashion, apparel, and textile industry. It guides a

growing community of brands, manufacturers, and

farmers towards more purposeful production from the

very start of the supply chain.

Its goal is to help the industry to achieve a 45%

reduction in the emissions that come from producing

bers and raw materials by 2030. To get there, it

is keeping its focus holistic and interconnected,

accelerating the adoption of practices that improve the

state of our water, soil health, and biodiversity too.

For real change to happen, everyone needs a clear

path to benecial impact. That’s why Textile Exchange

believes that approachable, step-by-step instruction

paired with collective action can change the system

to make preferred materials and bers an accessible

default, mobilizing leaders through attainable

strategies, proven solutions and a driven community.

At Textile Exchange, materials matter. To learn more,

visit textileexchange.org.

04 Pending Regulations Will

Inuence Operations

• The Multiple Impacts on Operations

• Investor and Consumer Perspectives

• Honing In on Lower-Impact Materials

08 The Rising Materials Gap

• The Strain on Preferred Raw Materials

• What Drives the Materials Gap?

• Closing the Gap

10 How to Capture the $100 Million

Opportunity

13 Navigating the Raw-Materials

Landscape

• Figuring Out Your Raw-Materials Impact

• Figuring Out How to Change Your

Raw-Materials Impact

19 The Materials Manifesto

• Invest in and Embed Full Traceability

to De-Risk Supply Chains and Fully

Understand Materials Impacts

• Use a Science-Based Approach to

Strengthen Decision Making and

Satisfy Stakeholders

• Diversify the Materials Portfolio to

Spread Risks and Future-Proof

Operations

• Build a Business Case That Leads to a

Triple Win—for Brands, for Suppliers,

and for Nature

• Supply Chain Relationships Will

Make or Break Brands Going Forward.

Strengthen Them Diligently.

• Ensure That Knowledge, Tools, and

Incentives Are Engrained Throughout

the Company

24 Appendix: Explaining the Net

Prot Opportunity

26 About the Authors

Contents

/31

下载本文档

文本预览下载提示常见问题

SustainableRawMaterialsWillDriveProfitabilityforFashionandApparelBrandsOctober2023BethJensenandMeganStoneburnerfromTextileExchangeCatharinaMartinez-Pardo,JocelynWilkinson,HaafizahKhodabocus,andLidiaDurbianofromBostonConsultingGroupMireilleFaist,StefanFrehland,PhilippMeister,andMarcialVargas-GonzalezfromQuantisBostonConsultingGrouppartnerswithleadersinTextileExchangeisaglobalnon-profitdrivingbusinessandsocietytotackletheirmostimportantbeneficialimpactsonclimateandnatureacrosschallengesandcapturetheirgreatestopportunities.thefashion,apparel,andtextileindustry.ItguidesaBCGwasthepioneerinbusinessstrategywhenitgrowingcommunityofbrands,manufacturers,andwasfoundedin1963.Today,weworkcloselywithfarmerstowardsmorepurposefulproductionfromtheclientstoembraceatransformationalapproachverystartofthesupplychain.aimedatbenefitingallstakeholders—empoweringorganizationstogrow,buildsustainablecompetitiveItsgoalistohelptheindustrytoachievea45%advantage,anddrivepositivesocietalimpact.reductionintheemissionsthatcomefromproducingfibersandrawmaterialsby2030.Togetthere,itOurdiverse,globalteamsbringdeepindustryandiskeepingitsfocusholisticandinterconnected,functionalexpertiseandarangeofperspectivesacceleratingtheadoptionofpracticesthatimprovethethatquestionthestatusquoandsparkchange.BCGstateofourwater,soilhealth,andbiodiversitytoo.deliverssolutionsthroughleading-edgemanagementconsulting,technologyanddesign,andcorporateandForrealchangetohappen,everyoneneedsacleardigitalventures.Weworkinauniquelycollaborativepathtobeneficialimpact.That’swhyTextileExchangemodelacrossthefirmandthroughoutalllevelsofthebelievesthatapproachable,step-by-stepinstructionclientorganization,fueledbythegoalofhelpingourpairedwithcollectiveactioncanchangethesystemclientsthriveandenablingthemtomaketheworldatomakepreferredmaterialsandfibersanaccessiblebetterplace.default,mobilizingleadersthroughattainablestrategies,provensolutionsandadrivencommunity.AtTextileExchange,materialsmatter.Tolearnmore,visittextileexchange.org.Quantis,aBCGcompany,isaleadingsustainabilityconsultancypioneeringapproachestosolvecriticalenvironmentalchallenges.Wepartnerwithleadingconsumergoodsandfinancialservicesorganizationswhoareseriousaboutreducingtheirenvironmentalimpactstofuture-prooftheirbusinessesandprosperinanewplanetaryeconomy.Ouruniqueapproachcombinesdeepenvironmentalexpertise,strategicbusinessknowledge,andenterprisetransformationskillstohelporganizationsshapepolicies,practicesandbusinessmodelsthatalignwiththeplanet’scapacitywhilebuildingresilience,unlockinginnovation,andoptimizingperformance.Ourdynamicandvisionaryteamofenvironmental,businessandcommunicationsexpertswillguideyouonthejourneyfrombusinessasusualtobusinessatitsbest.DiscoverQuantisContents04PendingRegulationsWill19TheMaterialsManifestoInfluenceOperations•InvestinandEmbedFullTraceability•TheMultipleImpactsonOperationstoDe-RiskSupplyChainsandFully•InvestorandConsumerPerspectivesUnderstandMaterialsImpacts•HoningInonLower-ImpactMaterials•UseaScience-BasedApproachto08TheRisingMaterialsGapStrengthenDecisionMakingandSatisfyStakeholders•TheStrainonPreferredRawMaterials•WhatDrivestheMaterialsGap?•DiversifytheMaterialsPortfolioto•ClosingtheGapSpreadRisksandFuture-ProofOperations10HowtoCapturethe$100MillionOpportunity•BuildaBusinessCaseThatLeadstoaTripleWin—forBrands,forSuppliers,andforNature•SupplyChainRelationshipsWillMakeorBreakBrandsGoingForward.StrengthenThemDiligently.•EnsureThatKnowledge,Tools,andIncentivesAreEngrainedThroughouttheCompany13NavigatingtheRaw-Materials24Appendix:ExplainingtheNetLandscapeProfitOpportunity•FiguringOutYourRaw-MaterialsImpact26AbouttheAuthors•FiguringOutHowtoChangeYourRaw-MaterialsImpactSustainableRawMaterialsWillDriveProfitabilityforFashionandApparelBrandsRawmaterialsmakefashionandapparelbrands.Andcanbreakthem,especiallyastheworldconfrontsclimateandsustainabilitychallengesandespeciallybecauserawmaterialscanconstituteasmuchastwo-thirdsofabrand’sclimateimpact.1Theindustrymusturgentlyaccelerateitseffortstoreduceitsgreenhousegas(GHG)emissionsby45%by2030.Gettingrawmaterialsright,fromasustainabilityperspec-Fashionandapparelbrandsmustpreparetomeetthesetive,cansupportregulatorycompliance—andleadbrandsupcomingregulations.Theneedisurgent,andtheindustrytoanewsourceofprofitability.Failingtodosocanleaveknowsit:morethan85%ofleadingbrands(bysales)havethematacompetitivedisadvantage,especiallygiventhatpubliclydeclareddecarbonizationtargetsfortheirsupplyaproduct’sfinalcostislargelydeterminedbyitsrawchains.2Todeliver,theyneedastrongraw-materialsstrate-materials.gy.Informulatingthatstrategy,onekey—andthorny—questionis,WheredoweplaceourbetswhenselectingtheFromorangehazeinNewYorktofloodinginPakistanrightrawmaterials,especiallygiventhatsupplyisoftenandrecord-breakingheatwavesaroundtheMediterranean,precariousandwillremainso?(Seethesidebar“Demysti-theeffectsoftheclimateemergencyaredevastatingfying‘Sustainable’and‘Preferred’RawMaterials.”)communities—andsupplychains—globally.ThefashionandapparelindustryhasapivotalroletoplayinmeetingBrandsthereforefaceabroadtwo-partchallenge:theyglobalclimateandGHGemissionreductiontargets,andmustdoubledownondrivingcarbonreductionwhilepre-theindustry’simpacthasnotescapedtheattentionofparingforupcomingregulations.Successonbothcountskeystakeholders,includingconsumers,investors,andreliesonarobuststrategyforpreferredrawmaterials—legislators.onethathelpsbrandslockinasupplyofsustainablemate-rialsforthefuture.Puttingthatstrategyinplacenow—andNeverbeforehastheindustryfounditselfthetargetofputtingitintoimmediateaction—promisestopayoff.suchintensifyingregulationfocusedontheenvironmentalBrandsthatactnowtosecureapreferred-raw-materialsimpactofproductsandtheirmaterials.Onthebasisofsupplyforthefuturewillbepositionedtocaptureanesti-BCG’sconversationswithexperts,webelievethatoverthematedaverage6%profitupliftafterfiveyears.Infact,atnexttwotofouryears—atimeframethatwecanconcep-thehighendoftherangeinourmodel,afashionbrandtualizeasjustfourcottonharvestsoreightfashionweekswith$1billioninannualrevenueshasthepotentialtotapaway—morethan35newpiecesofsustainability-linkedacumulativeopportunityofapproximately$100millionregulationareexpectedtogointoeffectaroundtheworld,overfiveyears.targetingimportrestrictions,productdesignguidelines,labelingrequirements,andmore.(SeeExhibit1andthesidebar“AboutThisReport.”)1.Quantisanalysisbasedonexpertinsights,coveringimpactsfromTier4toTier2withinthecorporatecarbonfootprintsoffashionandapparelbrands.2.BCGanalysisbasedon36fashionandapparelorganizations,includingbrandsandparentorganizations,representingmorethan10%oftheindustry’srevenues.1SUSTAINABLERAWMATERIALSWILLDRIVEPROFITABILITYFORFASHIONANDAPPARELBRANDSExhibit1-FashionandApparelBrandsWillContendwithMoreThan35PiecesofSignificantNewLegislationintheNextTwotoFourYearsUK2France2Netherlands2Norway1Germany1Switzerland1IncludingtheGreenClaimsCodeEuropeanUnion9Canada2Including:•RegulationonIncludingtheUS5Japan1regulationonMexico1China1deforestation-supplychainfreeproductstransparencyBrazil1•ExtendedProducerResponsibility(fromtheWasteFrameworkDirective)Spain1India1Australia2NationalactionplanforIncludingtheModernclimatechangeSlaveryActSocialTraceabilityEnvironment#ofpiecesofsustainabilitylegislationwithineachregionSource:BCGResearch.AboutThisReportThispublicationisajointinitiativeofBostonConsultingToprovideaninformedanalysis,weconductedinterviewsGroup(BCG);TextileExchange,aglobalnonprofitwithindustryexperts,gathereddataandinsights,devel-drivingpositiveimpactonfashion’sclimatechange;andopedbusinessmodels,andcreatedaMaterialsManifestoQuantis,BCG’ssustainability-focusedconsultancy.Thiscomprisingsixprinciplestoguidebrandsinfuture-proof-publicationoffersaperspectiveonthechallengesandingtheirmaterialsstrategy.opportunitiesforfashionandapparelbrandsastheytransitiontolow-climate-impactrawmaterialstoenableThisreportprovidesavaluableresourceforfashionandcompliancewithupcomingregulationsandtomeetScopeapparelbrandsseekingtoestablishrobuststrategiesin3climatetargets.relationtorawmaterialsinafast-evolvingcontext.Ourassessmentfocusesonthetopfiverawmaterials,whichtogetheraccountforthelargestGHGfootprintintheindustry:cotton,wool,bovineleather,manmadecellu-losicfibers(MMCFs),andsyntheticmaterials.BOSTONCONSULTINGGROUP+TEXTILEEXCHANGE+QUANTIS2Demystifying“Sustainable”and“Preferred”RawMaterialsWhatare“sustainable”or“preferred”rawmaterials?Toenableatrulycircularsystemandmitigatetheriskofsourcingraw-materialsinputsfromoutsidetheindustry,Therealityis,therearenoabsolutedefinitionsatthesustainablysourcedrecycledmaterialsshouldprioritizemoment.Eventhematerialwiththelowestenvironmentalmaterialsfromtextilewaste,ratherthanfromdivertingandsocialimpactcouldhaveunintendedtradeoffsorwastefromotherindustrieswiththeirownrobustcollec-couldputsignificantpressureontheplanetifoverused.tionandrecyclingsystems(suchasplasticbottles).InSeptember2023,TextileExchangeupdateditsholisticCrediblethird-party-certifiedmaterialscansupportbrandsdefinitionofpreferredrawmaterialsandfibers:thosethatintheirpreferred-raw-materialsstrategies,intermsofboth“deliverconsistentlyreducedimpactsandincreasedbene-impactandtraceability.AlthoughaccesstoGHGreductionfitsforclimate,nature,andpeopleagainsttheconvention-impactdataassociatedwiththesematerialshasoftenalequivalent,throughaholisticapproachtotransformingbeenlimitedinthepast(partlybecausestandardshaveproductionsystems.”(SeeTextileExchange,“Preferredtraditionallybeenpractice-based,ratherthanout-FibersandMaterials:Definitions,”2023,p.7.)come-based),somecertifiedsolutions,includingrecycledandorganic,haveavailableimpactreductiondata.RecentWhilethewidernatureandpeopleconsiderationsareeffortsarebeginningtofurtherclosethegapontheindus-absolutelycriticaltothepositiveimpactthefashionandtry’sunderstandingofimpactdatarelatedtostandardsapparelindustrycanhave,thispublicationfocusesonandcertifications;forexample,BetterCottonreleaseditsreducingclimateimpactwithintheindustry;thus,inthisfirststudyofGHGemissionsin2021,andTextileExchangedocumentthetermpreferredmaterialsreferstomaterialsisevolvingitsstandardstomoredirectlylinkpracticestowithreducedclimateimpacts.outcomesalongwithconductingnewlifecycleassessmentstudiesonseveralofitsexistingstandards.TherearetwoprimarypathwaystowardGHGimpactre-ductionsinrelationtorawmaterials:Energyusewithinthemanytextile-manufacturingprocess-esandfacilitiesisanotherconsiderationfromaGHG•Usingsustainablysourcedrecycledrawmaterialsperspective.Obviously,renewableenergyispreferableand(thisgoesforallnonrenewablematerialsbutisalsotheeliminationofcoal-firedpowerandotherfossil-fu-anincreasinglyimportantpathwayforrenewablerawel-poweredsourcesisanimmediateconcern,withactionmaterials)tobetakenacrosstheindustry.•Usingsustainablysourcedrenewablerawmaterialsthatarecontinuallyreplenishedatarateequaltoorgreaterthantherateofdepletion.3SUSTAINABLERAWMATERIALSWILLDRIVEPROFITABILITYFORFASHIONANDAPPARELBRANDSPendingRegulationsWillInfluenceOperationsThependingregulationshavegreaterdepthandSuchperformancehassignaledtopolicymakersthatcer-breadththanthefashionandapparelindustryhastainindustries,includingfashionandapparel,aremakingseenbefore,anditisanticipatedthatbrandsmaylimitedprogressinthetransitiontowardasustainablestrugglewithwhatistocome.ABCGreviewofbrandsinfuture.Consequently,policymakershavecarvedoutantheluxuryindustryfoundthatcurrentlyjust15%complyactiveroleforthemselvesbysettingcleardirectivesforthewithalltheguidelinesofaflagshipsustainability-linkedindustryondefiningthefuturefromasustainabilityper-regulation(the2015UKModernSlaveryAct).3spective.Giventheever-evolvingnatureofthescienceanddatathatinformtheseregulations,aswellasongoingglobalissuessuchaswar,inflation,andeconomicuncer-tainty,theseregulationsarenotperfect.However,industryleaderswelcomethefullecosystemtransformationthatthesedirectivesdemand.Manybrandsarelookingtoregulationasawaytoensurealevelplayingfieldacrossbrandsandtocollectivelyraisethebarforallactorsinthemarket,withoutdisruptingcompetition.3.BCGanalysisconductedon76brandsacrossluxurysectors(includingfashion)toassesstheadherencetotheUKGovernmentModernSlaveryStatementguidelines(takenasarepresentativesamplefortheworldwideindustry).BOSTONCONSULTINGGROUP+TEXTILEEXCHANGE+QUANTIS4TheMultipleImpactsonOperationsAnyregulatoryinfractionhasthepotentialtoharmabrand’sbottomlineand,crucially,couldtarnishabrand’sUpcomingregulationswillcovereveryaspectoftheopera-reputation.Insomeinstances,brandsmayfacelawsuitsortionsofmanufacturers,brands,andretailersinthefashionsignificantfines.SaidBaptisteCarriere-Pradal,acofounderandapparelspace.Alllifecyclestagesoftheproductwillof2BPolicy,aconsultancyonEUpolicies,“ThelatestGer-beregulated:manregulation—duediligenceaspartoftheSupplyChainAct—haschangedtherulesofthegamebyincreasingthe•Thewayproductsaresourced(forexample,toexcludemagnitudeofpenaltiesandsettingtheblueprintforevenhumanrightschallenges)granularviolationstobereviewedpubliclyandforbrandstobeheldtoaccount.”•Thewaytheyaredesigned(forinstance,theEU’sEcode-signforSustainableProductsRegulation)Worse,productsmaybedeniedentrytomarketsuntilbrandscansatisfynewrequirementsandlabelinglaws.•Thewaytheyaremarketed(forexample,theEU’sGreenThisamountstoanoverallmaximumriskexposureof8%ClaimsDirective)ofEBIT.4Potentiallylosingearningsofthismagnitudeposesathreattothebusinessmodelofanybrand(espe-•Thewaytheyarediscarded(forexample,theEU’sWasteciallythosethatrelyonwholesalechannels).FrameworkDirectiveandtheExtendedProducerRe-sponsibility)InvestorandConsumerPerspectivesOperationally,thiswillrequireorganizationstoknowtheirAcrosstheboard,investorsandconsumersarewelcomingimpact,discloseareductionplan(suchastheoneoutlinedtheregulatorychanges.Toguidetheirdecisions,whetherbytheEU’sCorporateSustainabilityReportingDirective),aboutinvestinginbrandsorpurchasingproducts,theyareinformconsumersabouttheenvironmentalperformancewatchinghowbrandsreact.oftheproducttheyarebuying(asdescribedintheFrenchClimateLaw),andtakeallnecessarymeasurestoimproveInvestorsexpectbrandstodemonstrateastrongriskmiti-theirenvironmentalandsocialperformance(seetheEUgationstrategyandaflexibleapproachtocatertoupcom-CorporateSustainabilityDueDiligenceDirective).ingregulatoryrequirements.“Evenbeforeconsideringconsumersensitivities,investorsarebecomingincreasinglyThiswillleadtoasignificantchangeinmanyindustrystringentinthefaceoftighterlegislationandregulation.players’valuechainoperations,dataflows,andITsystems.Theyarepayingverycloseattentiontohowabrandorientsitselfarounditsenvironmentalfootprint,”saidLucaSolca,Withintheautomotiveindustry,theadventofsustainabili-asenioranalystatBernstein.ty-relatedregulationsengenderedrapidchangesimilartowhatthefashionandluxuryindustrymightexpect.“Regu-Forconsumers,whomayhavebeenperplexedbyamyriadlationhasbeenacatalystforcircularityintheelectricofsustainabilityclaimsinthepast,clearerguidanceshouldvehiclebatteryspaceandischallengingthetraditionalmakepurchasingdecisionsmucheasier,particularlygivenunderstandingofbusinessasusual,”notedBCG’sJohannathatseveralpiecesofregulationrelatedirectlytotheprod-Puetz,whoworksintheindustrialgoodsandclimateanductsandmaterialswithinabrand’sportfolio.Undertheenvironmentfields.“Currently,theratioofrecycledmateri-EU’sGreenClaimsDirective,forexample,brandswillneedalsusedinelectricvehiclebatteriesiseffectively0%,andtodisclosetheenvironmentalperformanceandrecycledbyregulationitneedstoreachmorethan10%formanycontentoftheirproducts.materialswithintenyears.Thereishighcompetition—leadingtohighcost—formaterialsandtechnologiesasFurthermore,althoughemergingregulationscanbecom-automotivebrandsscrambletoinnovate,setup,andindus-plexandevenconflicting,policyexpertsagreethattrace-trializeclosed-looprecyclingsystems.”abilitywillbeakeydeliveryandcompliancemechanismforallormostoftheseregulations.Theoriginofrawmate-Forfashionandapparelbrands,BCGpredictsthatregula-rialswillbecomeakeydatapointtotrackandmanagetionswillmostimmediatelytargetfiber-to-fiberrecyclinggiventhatmostregulationswilldemandunprecedentedandthelowest-carbon-impactrawmaterials.levelsofinformationaboutwhereandhowproductsaremade.Forexample,theFrenchClimateLawobligesbrandstoshowthe“eco-performance”ofallproducts.Conse-quently,by2026,consumersonParisianwholesalefloorswillbeabletocomparebrandsandproductsonthebasisofaconsistentmethodology.4.BCGanalysis,foranaverage-sizefashionbrandintheEU.5SUSTAINABLERAWMATERIALSWILLDRIVEPROFITABILITYFORFASHIONANDAPPARELBRANDSNewandemergingregulationswillhelpstandardizemessagingtoconsumersaboutproducts’sustainabilitycredentials,potentiallyallowingconsumerstocomparebrandtobrandatthepointofpurchase.BOSTONCONSULTINGGROUP+TEXTILEEXCHANGE+QUANTIS6Indeed,brandsmustreadythemselvesforalevelofscruti-Butnavigatingthelandscapeofpreferredmaterialscanbenynotseenbeforegiventheincreasedempowermentofcomplexgivenanabundanceofclaimsfromsuppliersconsumersintandemwiththesteadyincreaseinconsum-(withvaryinglevelsofrobustnessandimpactmeasure-ers’appetiteforsustainability.In2023,65%ofsurveyedmentanddelivery),lackofdataregardinghowspecificconsumerssaidthatsustainabilityinfluencedtheirpur-materialslinktothedeliveryofscience-basedtargetschasinghabits(anincreaseof4percentagepointssince(criticalmeasuresthatwewilldiscussinmoredetaillater),2019);thepercentagewasevenhigheramongGen-Zers.andthewidespreadlackofconnectivitybetweenraw-mate-rialssuppliersandbrands,whichoftenleavesfiberoriginsFedericaLicini,theheadofsustainablebusinessattheunknown.Furthermore,althoughregulatorsarebeginningonlinefashionretailplatformFarfetch,canattesttocon-todevelopapproachestoenableconsumers’understand-sumers’intensifyinginterestinsustainability.“Farfetchingoftheclimateimpactsofmaterials,thenuancesin-customerscontinuetointentionallyengagewithandulti-volvedintryingtodefinewhatmakesamaterial“pre-matelypurchasesustainableproducts,atrendthatisferred”canleavebrandsinthelurch.reflectedintheconsistentgrowthofsalesovertime.Notonlyisthiscustomercohortexpanding,butalsothespec-Evenifabrandhassincereintentionsandiswillingtotrumofconsumersisbroadeningtoincludebothearlyinvestandmakeoperationalchanges,thesolutionstoadoptersofandnewcomerstosustainableconsumption.”thesechallengesmaycontinuetoeludethem.Buttherearewaystocloseinonsolutions,beginningwithaddress-HoningInonLower-ImpactMaterialsingthe“materialsgap.”Tosetthemselvesuptoeffectivelyrespondtothecomingregulationsandtodevelopacompetitiveedge,brandsmustembedsustainabilityconsiderationsandrequire-mentsacrosstheirbusinesses—intodesign,procurement,manufacturing,labeling,marketing,businessmodels,andfinancialplans.Fromamaterialsperspective,beyondcomplianceandriskmitigation,brandsmustthinkcarefullyabouttheirproductandmaterialsapproach,includingpayingcloserattentiontotraceabilityandlabeling.Theregulatorypushfortheuseoflower-impactmaterialswillincreasedemandforthesematerialsand,hence,potentiallyputpressureongrowersandfarmerstoaccelerateatthesamerate.Therefore,securingsupplyisoftheutmostimportanceforbrands.7SUSTAINABLERAWMATERIALSWILLDRIVEPROFITABILITYFORFASHIONANDAPPARELBRANDSTheRisingMaterialsGapInrecentyears,brandshavebeenmakingpledgesand,thatthedemandforlower-impactmaterialsisincreasingsettingtargetsaimedatreducingtheirclimateimpactintandem.targetingGHGemissions.TheStrainonPreferredRawMaterialsInthisrespect,thefashionandapparelindustryisoneofthemostadvanced.Approximately400brandshavecom-Tohitsharedglobaltargetsrelatedtorawmaterialsandmittedtosetorhaveapprovedscience-basedtargetsfibers,suchasreducingGHGemissionsby45%by2030,throughtheScience-BasedTargetsinitiative(SBTi)—theandtocomplywithupcomingregulations,brandsandhighestrepresentationofanyindustry,accordingtotheretailerswillneedtoconvertthemajority—ifnottheen-ApparelImpactInstitute.tirety—oftheirrawmaterialstopreferredsources.5Howev-er,Tier4suppliershaveyettoreceiveastrongenoughThen,movingbeyond“carbontunnelvision”(thetendencysignalthatbrandswillcommittoandinvestinthesemate-tofocusonlyonCO2),brandshavebegunbroadeningtheirrials.Thus,raw-materialsproducers,farmers,andgrowerspledgestoreducetheirnatureandsocialimpactsbyin-currentlydon’thaveanincentivetotakeontherisksasso-cludingfactorssuchasworkerwell-being,animalwelfare,ciatedwithincreasingthesupplyofpreferredrawmateri-andimpactstofreshwaterandland.als,especiallywhentheirlivelihoodsareatstake.Conse-quently,thesupplyofpreferredrawmaterialsconstitutedGiventheincreasingnumberofimpactgoals(particularlyonlyabout19%oftotalglobalproductionin2021.6relatedtoclimate)thatfocusonrawmaterials,it’sobviousBOSTONCONSULTINGGROUP+TEXTILEEXCHANGE+QUANTIS8BasedonmodelingfromTextileExchangeandBCG,theAdditionally,climate-change-relatedsupplyissues(suchaspreferred-raw-materialsdemand-and-supplygapwillrisetofloodinginPakistanandIndiaanddroughtintheUS)asmuchas133milliontonsin2030.(SeeExhibit2.)ThisleaveproducerswithresourceconstraintsanddegradedcanbeconceptualizedasmorethansixtimestheIndianland,hinderingtheirabilitytogrowandproviderawmate-productionofthesamematerialsin2021.7rialsinlinewiththerapidscalingofeconomiesthatisneededtoclosethematerialsgap.WhatDrivestheMaterialsGap?ClosingtheGapInpart,it’sthelackofaunitedfrontwithintheindustrytoachievescaledfinancialinvestmentandclearmarketThesolutionistoinvestinthesupplyofpreferredrawdemand.Thismakesitimpossibletounlockeconomiesofmaterialsnow,therebysecuringresourcesandfuture-proof-scale.Farmers,growers,andinnovatorsaredependentoningbrands’businessmodels.Thiswillbeessentialtonewwaysofworkingthatresultinindustry-wideaccount-acceleratingthesustainabilitytransitionandensuringthatabilityandrequirefinancialinvestments,securities,andbrandswillrealizetheir2030climatetargetsandotherincentivestoprovidestabilityforbusinesses,livelihoods,goals.andcommunities.Thissituationisnothelpedbythecurrentglobaleconomicslowdown,theresettingofclimatetargets,andthelackofincentivesforraw-materialsproducers.Oneraw-materialproducertoldus,“Itisincreasinglycommontofindbrandsrenegingonsourcingcommitments,cuttingorders,chang-ingtheirsourcingstrategies,orretractingtheircommit-mentsasaresultofchallengedmargins,limitedbudgets,andanever-changingmarket.”Thesescenariosleaveraw-materialsproducersinthelurchinalreadytroubledeconomictimes;it’snosurprisethattheymightbein-clinedtodecreasetheir(oftenmoreresource-intensive)productionofpreferredrawmaterialstosidesteplosses.Exhibit2-WithoutInvestmentandFocus,thePreferred-Raw-MaterialsGapCouldReachSome133MillionTonsin2030KeyAssumptionsProjectedsupplyanddemandofglobaltextilematerialsacrossallsectors(millionsoftons)•Theannualgrowthratefortheconventional-andpreferred-raw-materialssupplyis3%.163163•Allbrandsandretailershavesetambitionsof125100%preferredmaterialsfor2030(basedonouranalysisofthetopbrands).133•Thescaleofpreferred-raw-materialsprograms102163willremainlargelyunchanged.Conventional•The%ofpreferred-raw-materialsproductionvs.totalmaterialsproductionwillremainlargelyPreferred2330thesame.202120302030DemandSupply~19%Productionvolumeofpreferredrawmaterialsin2030Sources:TextileExchangeandBCGanalysis.Note:SeeTextileExchange,“PreferredFiber&MaterialsMarketReport,”October2022,formoreinformation.Theexhibitshowstheglobalproduc-tion(allsectors)ofleather,plantfibers,animalfibers,manmadecellulosicfibers,andsyntheticfibers.Itdoesnotdifferentiatebetweentheirusages(thatis,itcoversapparel,home,andfootwearuses).Recycledleatherandalternativeleathersarenotincluded.5.TextileExchange,“MaterialPathways:AcceleratingactiontowardsClimate+goals,”2023,p.3.6.TextileExchangedatabasedon2021productionvolumeofglobalfibersandleather.7.BCGanalysis,wheredataispubliclyavailable.9SUSTAINABLERAWMATERIALSWILLDRIVEPROFITABILITYFORFASHIONANDAPPARELBRANDSHowtoCapturethe$100MillionOpportunityForthelastcentury,thefashionandapparelindustry•Changingecosystems(involving,forexample,extremehasbeenprimarilyfocusedondrivingdownthecostofweather),asaresultofclimatechange,arejeopardizingrawmaterials.Thisobjectivehasoftencomeatthetheavailability,accessibility,andpriceofrawmaterials.expenseofthemostvulnerablepeople,theirlivelihoods,andtheplanet.•Theindustryfacesincreasedcompetitionfromthefoodsector,whichalsohaslanduseneedsasitseeksfertileTheworldisnowataturningpoint.Theunderlyingre-groundforgrowingcrops.9sourceandregulatoryparametersthathaveshapedtheindustry’sthinkingoverthelasthundredyearsaretrans-Brands’businessmodelsmustadaptandtransformac-forming.Potentiallossesloom:cordingly,notonlytoavoidthecostofinactionbutalsotoproactivelybuildsecurityandresiliencewithinsupply•Upcomingregulationscouldput8%ofEBITatriskforchains.brandsthatdonotcomplybyadjustingtheirmaterialsportfoliomix.88.BCGanalysis,foranaverage-sizefashionbrandintheEU.9.EconomicResearchService,“CottonSectorataGlance,”[website](2022),accessedSeptember19,2023.BOSTONCONSULTINGGROUP+TEXTILEEXCHANGE+QUANTIS10BrandsthatacttodaybysettingclearprocurementtargetsThisopportunityistheoutcomeofthreedrivers:withrespecttotheirrawmaterialsandbysignificantlyincreasingtheshareofpreferredrawmaterialsintheir•AnnualGrowth.ThebrandinScenario1hasaslowerportfoliostandtocaptureasignificantupside.BCGfore-annualgrowthrateowingtoincreasedpressureonsalescaststhatamidsize,high-streetfashionbrandwithannualandproductavailabilityasaconsequenceofregulatoryrevenuesofapproximately$1billioncanrealizeanetprofitnoncompliance(forexample,productsmightbebannedofapproximately$100millionoverafive-yearperiodbyfromenteringmarkets)orlackofrawmaterialsavail-investingmoresignificantlyinpreferredmaterials.Onability.Incontrast,thebrandsinScenarios2and3haveaverage,byYear5thiswouldresultinanetprofitupliftofinvestedtoimplementsustainabilitymeasuresandhave6%.(SeeExhibit3andtheappendixformoreinformation.)thereforesecuredaccesstocorerawmaterialsandwillcontinuetogrow,perindustrystandards,atapproxi-ThisisScenario3inourmodel,anditisbasedonreducingmately2%peryear,accordingtodatafromEuromonitor.theshareofconventionalvirginmaterials(includingvirginsynthetics;contentionalcotton,wool,andleathers;and•Preferred-Raw-MaterialsPrices.TheincreasingnoncertifiedMMCFs)inthematerialsportfoliofrom90%demandforpreferredrawmaterialsisexpectedtoaffectto40%.Theremainingportfolioshareof60%willbetakenthepricesofthosematerials,especiallyifaccessandupbysustainablysourcedrenewableandrecycledmateri-priceshavenotbeenlockedinpreviously.Thebrandinals,whichmayaccountforlowerfeesundercertainregula-Scenario3isabletoguaranteepreferredrawmaterialstions.Thus,brandsmightfindthattappingthe$100mil-atthesamepriceasconventionalvirginmaterialsorlionopportunityalsomeansinitiatingavirtuouscircleinatadiscountgivenitsearly,strategiccommitmentandwhichtheyareabletogenerateevengreatersavingsandagreements.revenues.Exhibit3-SubstantiallyReducingtheUseofConventionalRawMaterialsPresentsaNetProfitOpportunityofApproximately$100MillionMaterialsportfolioafter5yearsSubstantialchangestothematerialsportfolio(Scenario3)40Conventionalvirgincanpotentiallyunlockacumulative$100millionmaterialsopportunitybyyear5--witha4%–8%,oranaverage6%,net70proﬁtincreaseinthatyear.90Assumptions:30Sustainablysourced•Considersonlythecostimplicationsofimprovingarenewablematerialsbrand’smaterialsportfoliobyheavilydecreasingtheshareof51530Sustainablysourcedconventionalvirginmaterials5recycledmaterialsScenario115Scenario3•DoesnotaccountforsigniﬁcantNochangetoSubstantialchange%regulatorypenalties,materialsportfolioScenario2tomaterialsportfolioclimate-changerisktoSmallchangetoland-basedmaterials,andNetproﬁtincreasematerialsportfolioconsumerbehaviorchangeinbyYear5thefaceofmoretransparent+4%+6%averageuplift+8%Cumulativesustainabilityclaims$100millionbetweenYear0&5Source:BCGanalysis.Note:Basedonasamplefashionbrand,whichisamidsize,high-streetbrandwithannualrevenuesofapproximately$1billion.11SUSTAINABLERAWMATERIALSWILLDRIVEPROFITABILITYFORFASHIONANDAPPARELBRANDS•AnnualRegulatoryCosts.RegulationssuchastheEveninalessambitiousscenario,inwhichtheshareofExtendedProducerResponsibility(EPR),forexample,conventionalvirginmaterialsinthematerialsportfolioiswillimposeafeeonfashionbrands;thatfeecanbereducedby20%andreplacedwithpreferredmaterials,anreducedbyinvestingmoreinsustainability.Scenariosopportunityofsome$50millionisavailable,oranetprofit1and2havehigherregulatoryannualcostsrelatedtoupliftof4%byYear5.noncomplianceandlimitedinvestmentinmeasuresthatwouldhelpreducethefeestobepaid.ThebrandinWhenbrandsarefocusedonlyonreducingcostsrelatedtoScenario3wouldfacereducedfeesgivenitscompliancerawmaterials,theyleaveinnovators,farmers,andgrowerswithregulations.unabletoprovidethenecessarysupplyofpreferredmateri-als;consequently,brandsfacethematerialsgapandcan’tThesescenariosdonotaccountfor:adapttothenewregulatorylandscape.And,inevitably,brandsandtheindustryatlargewillsignificantlymisstheir•Thepotentiallysignificantregulatorypenaltiesofinac-climatetargets.tion,suchaslawsuitsThismaterials“catch-22”resultsinlowermarginsand•Theriskthatclimatechangeposestotheproduction,revenue.Successfulbrandswillabandontraditionalavailability,andqualityofland-basedmaterialscost-cuttingapproachesandsourcingstrategiesinfavorofanew,equitablebalance.Payingforpreferredmaterials•Greaterconsumeruptakeinthefaceofmoretranspar-nowmeansgettingaheadofthecurveandsecuringsupplyentsustainabilityclaimsforthelongterm.Thiswillreducetheriskofnothavingaccesswhenitisreallyneeded.Further,itwillbenefittheIndeed,consumerbehaviorchangeislikelytobeaboonlivelihoodsofthemostvulnerablepeopleinthevalueforcompaniesthatmakethemovetopreferredrawmate-chain.rials.“Acrossourmarkets,ourcustomersconsistentlytellustheywanttoshopmoresustainablybutneedguid-ance,”explainedChristianTønnesen,thegroupsustain-abilitydirectoratSelfridgesGroup.“Wearerespondingtoacustomerneedwithourmaterialsstrategy.Thiscoversourkeymaterialssuchasleatherandcotton,identifiedbyvolumeandimpact.Bytheendof2025,anyofthemateri-alsinscopemustcomefromthird-party-certified,moresustainablesources.Lookingto2030,wewillexpandthislisttoincludeadditionalmaterials.”BOSTONCONSULTINGGROUP+TEXTILEEXCHANGE+QUANTIS12NavigatingtheRaw-MaterialsLandscapeSourcingpreferredrawmaterialsrequiresreimaginingFiguringOutYourRaw-MaterialsImpacthigh-volumematerials.“BrandsneedtomakesuretheyaddressthecorerawmaterialsthatspeaktoGHGimpactassessmentsformaterialscanbedifficult,theirDNA;thiswillbemeaningfulfortheirconsumersandgivenvariabilityacrosssourcingregions,thefrequentlackinvestors,”notedLucaSolca,theBernsteinsenioranalyst.ofdataavailability,andthelackoffullyalignedimpactmeasurementmethodologies.MajoreffortstoimproveandThetopfivematerialsthatareused—andthatcontributestandardizethesevariablesareunderway,butinthemean-tothelargestGHGfootprintinfashionandapparel—aretime,brandsshouldnothesitatetomoveawayfromusingcotton,wool,bovineleather,MMCFs(suchasviscose),andconventionalvirginmaterialsandtowardexistingpreferredsynthetics(ledbypolyesterandnylon).10Thesecanbesolutions.categorizedaccordingtotheiroriginandproductionpro-cesses,revealingsimilaritiesintheircarbonimpacts.(SeeBroadly,theoptionsliewithintwocategories:sustainablyExhibit4.)sourcedrenewablematerials(suchasregenerativeororganicmaterials)andrecycledmaterials.10.TextileExchange,“MaterialPathways:AcceleratingactiontowardsClimate+goals,”2023,p.4.13SUSTAINABLERAWMATERIALSWILLDRIVEPROFITABILITYFORFASHIONANDAPPARELBRANDSExhibit4-TheClimateImpactsoftheTopFiveMaterialsUsedintheIndustryDerivefromTheirOriginsandProductionProcessesCottonWoolBovineleatherManmadeSyntheticscellulosicﬁbersCultivatedfromfarms,ﬁelds,andpasturesBiobasedBiobasedplant-derivedRelyheavilyonagriculturalpractices,whichcanvarywidelywood-derivedPetroleumbasedPossiblePre-andpostconsumer(textile)wasteasafeedstockoriginoriginsProductionprocessesandmanufacturingcanheavilydependonchemicalsProductionEnergysourcesinproductionprocessesandmanufacturingcanbeeitherrenewableorbasedonfossilfuelsprocessSources:TextileExchange;Quantis;BCG.Withinmaterialscategories,significantvariabilityinGHGOnetoolthatcansupportbrandsastheymakedecisionsimpactsexists—forexamplebecauseoffarmingmethodsaboutwhichlower-impactmaterialstoselectisthePre-(suchasgrazingpracticesusedinrelationtobovineleath-ferredFiberandMaterialsMatrix(PFMM),aninteractiveeroragriculturalpracticeslikeorganicfarmingforcotton),tooloriginallycreatedbyGapandnowfurtherdevelopedamongotherfactors.Regenerativelygrownmaterials—thatandpublishedbyTextileExchange.ThePFMMaimstois,materialsthataregrowninharmonywithnaturalsys-createastandardizedassessmentoftheimpactsofmate-temsandthatfocusonbeneficialenvironmental,animalrialsacrossmultipledimensionsandserveasawaytowelfare,andsocialoutcomes11—arenotahomogenousinformandguidematerials-sourcingdecisions.familyofmaterialsbutacategorythatencapsulatesmulti-tudesofscenarios.Thetool,anupdatedversionofwhichwaslaunchedpublic-lyinSeptember2023,coversthefollowingimpactareas:Thedurabilityandqualityofthematerialandproductareclimate,water,chemistry,landuse,biodiversity,resourcealsoimportant,andthisconsiderationshouldbetakenuseandwaste,humanrights,andanimalwelfare.(SeeintoaccountbeginningatthedesignanddevelopmentExhibit5foranexamplebasedononeofthetopfiverawstage.Doingsohaspracticalimplicationsforbrandsgivenmaterialtypes,cotton.Notethatanimalwelfareisnotthattheintrinsiccharacteristicsofconventionalvirginincludedforthecottonassessmentbecauseitisnotrele-materialsaresometimeslostinrecycledmaterials,creat-vanttothismaterial.)ingweakersubstitutes.Forinstance,100%recycledcottonisnotnecessarilyadirectsubstituteforvirgincottonandAstheexhibitshows,thePFMMassessescertifiedcottonmayrequireblendingwithvirgincottontoachievetheoptionsagainstvariousparameters.Theclimatecolumnappropriatedurabilityproperties.withinthePFMM,forexample,includescriteriasuchasthemanagementofGHGemissions,climateresilienceTounderstandandnavigatethiscomplexlandscape,actions,andtheprotectionofecosystemstocaptureandbrandsmustcarefullyconsidervariationsandchallengesstorecarbon.onacase-by-casebasistomakeinformedchoicesthatalignwiththeirtargetsandcombattheclimatecrisis.11.TextileExchange,“RegenerativeAgricultureLandscapeAnalysis,”2022,p.16.BOSTONCONSULTINGGROUP+TEXTILEEXCHANGE+QUANTIS14Exhibit5-ImpactDatafromthePreferredFiberandMaterialsMatrix:FocusingonCottonCottonCottonoptionsClimateWaterChemistryLandUseBiodiversityResourceHuman(nonexhaustive;otherUse&WasteRightscottonoptionsremainunderreview)Bettercotton0111112CottonmadeinAfrica1222211(operatesinAfricaonly)Fairtradecotton0012111EUOrganiccotton,1222121Fairtradecotton,GOTSEUOrganiccotton,1222120GOTSEUOrganiccotton,1222110OCSMyBMP(operates1102110inAustraliaonly)Recycledcotton,233----20GRSRecycledcotton,220----10RCSResponsibleBrazilian0112200cotton,ABRCottonwithno0000000standardsystemNumbersrefertothelevelofimpact0Baseline1Foundational2Improved3Progressive4TransformationalSource:TextileExchange.15SUSTAINABLERAWMATERIALSWILLDRIVEPROFITABILITYFORFASHIONANDAPPARELBRANDSMaterialsassessedinthePFMMreceiveascorefrom0ThePFMMcanalsohelpbrandsidentifyactionstheycan(whichisconsideredthebaseline,wherenotenoughcrite-taketoachieveimmediate(within12months)andshort-riaaremetorevidenceislackingtoreceivealevel1score)term(within24months)impacts;theseactionsaregener-to4(whichistransformational,characterizedbyregenera-allytiedtomorefrequentlyusedmaterialtypesandtiveorcircularpractices,orboth,withlong-termgoalsinblends.(SeeExhibits6,7,and8.)Longer-termsolutionsplacethataretrackedovertimeandwherebeneficialtiedtolesscommontypesandblendscanalsobeidenti-outcomesandimpactsaredemonstrated).Fulldetailsoffied;however,wedonotshowthesesolutions.WeadvisescoringcanbefoundontheTextileExchangewebsite.brandstoactontheimmediateandshort-termopportuni-ties;thesewillprovidethequickestandbiggestpayoffsandNotethatbecausethePFMMcurrentlyfocusesonthewillinformlonger-termmoves.assessmentofstandardsystemsatthefieldlevel,andbecausesuchstandardsdonotyetexistforleather(theWhileeachbrandwillhaveadifferentraw-materialsLeatherWorkingGroupprogramaddressesimpactsrelatedfocusdependingonitsmaterialsportfolio,theindustrytohideprocessingonly),thetooldoesn’tcurrentlycovershouldshareanambition:tofullyeliminatefossil-fu-leather.el-basedvirginfibersandtouseonlysustainablysourcedrenewableorrecycledmaterials.TheMaterialsManifesto,FiguringOutHowtoChangeYourRaw-MaterialsdevelopedbyBCG,TextileExchange,andImpactQuantis,detailsthekeyenablersforbrandstosetthem-selvesupforsuccess.Whatdoesallthismeaninpractice?BrandscanusethePFMMtomakeinformedsourcingdecisionsandtoidenti-fyopportunitiestoimprovetheperformanceoftheirrawmaterialstowardclimategoals.ToillustratehowbrandscanusethePFMM,wecreatedthreebrandarchetypeswithdifferentmaterialsportfolios:•Onethatiscottonrich(mostlikelyapurefashionbrand)•Onethatisleatherrich(mostlikelyaluxurybrand)•Onethatispolyesterrich(mostlikelyasportswearbrand)BOSTONCONSULTINGGROUP+TEXTILEEXCHANGE+QUANTIS16Exhibit6-ALower-Carbon-ImpactMaterialsStrategyforaLuxuryBrandLeather+CottonActnowforimmediateimpactActnowtoseeinitialimpactin(within12months)theshortterm(within24months)MaterialsMixSignuptotheTextileExchangeInvestinregenerativegrazingpracticesDeforestationFreeCalltoActionwithscience-backedpotentialforscaleOtherandlowercarbonimpact10%Movetocertiﬁedleather(LeatherWorkingGroup-Gold)1Exampleactions:CottonLeather•Buildrelationshipswithcattleproducersand30%60%MovetowardtraceableleatherleatherprocessorstoinvestinregenerativeExampleactions:grazingpracticesandoutcomemeasurement•Sourcefromcertiﬁedtanneries•Supportresearchanddevelopmentof•Advocatefortanneriestoadoptalternativeleatheroptions(e.g.,mushroomandfruitleather)lower-impactproductionmethods•Supportresearchonvegetable-based,•Exploreoptionsforrecyclingleatherchrome-freetanning,etc.scrapsandrepurposingdiscardedTransitiontocertiﬁedorganic(e.g.,OrganicproductsintonewitemsContentStandardorGlobalOrganicTextileStandard)orregenerativelygrowncottonExampleactions:•IncentivizetheadoptionofregenerativefarmingpracticesbysharingﬁnancialrisksandopportunitieswithfarmersandgrowersSource:TextileExchange,Quantis,andBCGanalysis.1AccordingtotheLeatherImpactAccelerator,theLeatherWorkingGroupleatherdoesnotimpactTier4rawmaterialproductionbecausethepro-grambenefitstakeplaceatTier3duringtanningandprocessing.Exhibit7-ALower-Carbon-ImpactMaterialsStrategyforaPureFashionBrandCotton+MMCFMaterialsMixActnowforimmediateimpactActnowtoseeinitialimpactin(within12months)theshortterm(within24months)OtherCotton20%60%TransitiontocertiﬁedorganiccottonIncreasetheshareoforganicand(e.g.,OrganicContentStandardorGlobalregenerativecottoninthematerialsMMCFOrganicTextileStandard),startingwithsupply20%investinginin-conversioncottonExampleactions:Exampleactions:•Builddirectrelationshipswithcotton•Incentivizetheadoptionofalternativeproducerstoinvestdirectlyinthefarmingpracticesbysharingﬁnancialimplementationofregenerativefarmingrisksandopportunitieswithfarmerspracticesandmeasurementofoutcomesandgrowers•Investininnovativetechnologiesthatusecottonwasteasfeedstocks•OptimizethequalityofrecycledcottonSource:TextileExchange,Quantis,andBCGanalysis.IncreaseshareofcertiﬁedMMCFsNote:MMCFs=Manmadecellulosicfibers.(e.g.,ForestStewardshipCouncilcertiﬁcationorProgrammefortheEndorsementofForestcertiﬁcation)Exampleactions:•Ensurethatdeforestationisnotpresentinthesupplychainbyinvestinginfullend-to-endtraceability•SourcefromgreenshirtsuppliersasdeemedbyCanopyStyleHotButtonReport17SUSTAINABLERAWMATERIALSWILLDRIVEPROFITABILITYFORFASHIONANDAPPARELBRANDSExhibit8-ALower-Carbon-ImpactMaterialsStrategyforaSportswearBrandMaterialsMixPolyester+CottonOtherActnowforimmediateimpactActnowtoseeinitialimpactin10%(within12months)theshortterm(within24months)CottonPolyesterIncreasetheshareofcrediblecertiﬁedInvestinﬁber-to-ﬁberrecyclingsolutions30%60%recycledpolyesterinthematerialsandpartnershipsormembershipsthatsupply(GlobalRecycledStandard)helptoscalepromisingnewtechnologies(e.g.,FashionforGood)Exampleactions:•ScaleexistingsolutionsthatincreasetheExampleactions:•Identifyandinvestinsigniﬁcantdurabilityofpolyester•Trainandupskilldesignerstoensureinfrastructureinvestmentstoenabletextile-to-textilerecyclingcompatibilitywithrecyclingprocesses•Partnerwithinnovatorsproducing•Exploreoptionstotransitionfrompolyesteralternativesnon-fashionPETfeedstocksTransitiontocertiﬁedorganic(e.g.,Organic(e.g.,plasticbottles)totextilefeedstocksContentStandardorGlobalOrganicTextileStandard)orregenerativelygrowncottonExampleactions:•IncentivizetheadoptionofregenerativefarmingpracticesbysharingﬁnancialrisksandopportunitieswithfarmersandgrowersSource:TextileExchange,Quantis,andBCGanalysis.BOSTONCONSULTINGGROUP+TEXTILEEXCHANGE+QUANTIS18TheMaterialsManifestoAbrand’ssustainabilitytransformationcanachieveInvestinandEmbedFullTraceabilitytoimpactfulchangeinmanyways—throughimprovedDe-RiskSupplyChainsandFullyUnderstandforecastingtocombattheissueofoverstock,forMaterials’Impactsexample,orthroughcircularbusinessmodelssuchasresaleandrentalservices.ButtheBCG/TextileExchange/Theimperativefortraceabilityisclear.AsChrisGaffney,QuantisMaterialsManifestohasasoleanddedicatedtheCEOofJohnstonsofElgin,putit,“Noorganizationfocusonrawmaterials.Itssixprinciplesshowbrandshowshouldexpecttosucceedandcreatetransformationaltoclosethematerialsgap,demonstratingthatinaspacechangewithouttraceability.Itjustneedstohappenasafraughtwithquestions,someanswersareinplacetoguidegroundzero.”no-regretsmoves.(SeeExhibit9.)Traceabilityisafundamentalrequirementandstartingpointinthetransformationtopreferredrawmaterials.Itiscriticalfordecisionmakerswithinbrandstounderstandwhattypeofmaterialsareused,theirorigins,andhowtheyareprocessedtogainaclearunderstandingoftheirim-pacts.19SUSTAINABLERAWMATERIALSWILLDRIVEPROFITABILITYFORFASHIONANDAPPARELBRANDSExhibit9-TheMaterialsManifesto:SixPrinciplesforBrandstoFuture-ProofTheirMaterialsStrategyInvestinandUseaDiversifytheBuildabusinessSupplychainEnsurethatembedfullscience-basedmaterialsportfoliocasethatleadstoarelationshipswillknowledge,tools,traceabilitytoapproachtotospreadrisksandtriplewin—formakeorbreakandincentivesarede-risksupplystrengthendecisionfuture-proofbrands,forsuppliers,brandsgoingengrainedchainsandfullymakingandsatisfyoperationsandfornatureforward.Strengthenthroughouttheunderstandstakeholdersthemdiligently.companymaterials'impactsSources:TextileExchange;Quantis;BCG.SustainabilitystandardsandcertificationsarepivotalinUseaScience-BasedApproachtoStrengthensupportingtheseaims.Otherkeyenablersincludedevel-DecisionMakingandSatisfyStakeholdersopingcross-functionalprogramsandsystemstoenablematerialsandproducttraceabilityandbuildingdirectOverthelasttenyears,theindustryhasbeguntorelationshipsacrossthesupplychain.embracescience-basedmethodologiesthatallowbrandstomakedecisionsunderpinnedbyfacts,data,andimpactTheseinvestmentsmightbeseenasacostburden.Theyassessments.arenot,really,whenyouconsidertheircrucialroleinabrand’sfutureandthepotentialreturns,includingreducedHowever,relyingonperfectsciencecanstymiebrands.AsGHGimpacts.TheyprovidethefoundationtomonitorStefanSeidel,theheadofcorporatesustainabilityatPuma,progressandformulateactionplanstoachievetargets,warned,“Perfectdataoftendoesn’texist.Brandscannotbemeetregulatoryrequirements,identifyrisks,andbetterinactivejustbecauseofthat.Startwiththeavailabledataengagewithstakeholders.andkeepstrivingtoimprove,butdon’tletimperfectionblockprogress.”Brandsshouldconsiderestablishingaheadoftraceabilitytoleadcollaborationacrossthesustainability,legal,IT,andToavoidinertia,brandsshouldbecomecomfortablewithmarketingteamstoensureanalignedapproachanden-actingonimperfectdata,understandingthatdataandablebetterdataqualitytomeetregulatorydemandsandimpactfactorswillmatureovertime.Theyshouldselectaevolvingcustomerexpectations.methodologyanduseittoguide—butnotdictate—deci-sionmaking.Onesustainabilityprofessionalfromtheluxuryindustrytoldus,“Ourrecentlyhiredheadoftraceabilityhasprofes-Byscientificallyassessingthebenefitsandtradeoffsofsionalizedourapproachtode-riskingthesupplychainandeachmaterialsoptionandusingaholisticviewofimpactshashelpedprovidegreaterassurancetoourmanyandacrosstheproductlifecycle,brandscanmakeinformed,variedstakeholdersthatanysustainabilityclaimswemakeimpact-orienteddecisionsandprioritizetheirinvestments.arecredible.”Andascience-basedapproachtounderstandingimpactscanworkintandemwithtraceability,enablingbrandstomeasureandcollectdataspecifictotheirsupplychains.Thisinturnwillallowthemtomakemorequantifiableclaimsinlinewithforthcomingregulations.BOSTONCONSULTINGGROUP+TEXTILEEXCHANGE+QUANTIS20Nonetheless,brandsshouldremainawareofthelimita-BuildaBusinessCaseThatLeadstoaTripletionsofthemethodologiesusedandbecomfortabledis-Win—forBrands,forSuppliers,andforNatureclosingtheselimitationspublicly.Ascience-backedap-proachshouldbecomplementedwithtransparency,Heightenedgovernancemeansthataresilientandrobustaccountability,andcrediblecommunicationwithstake-businesscaseismorecriticalthanever.Aspartofthat,holders,providingregularprogressupdates.brandsneedtoapproachtheirraw-materialsstrategywithrigorandthinkonestepaheadbyconsideringsecond-andDiversifytheMaterialsPortfoliotoSpreadRisksthird-orderconsequences.andFuture-ProofOperationsIndeed,takingthelongviewisamust.Thedeputymanag-Becausethereisnoone-size-fits-allsolutiontotransform-erofFarEasternNewCentury’sfilamentdivision,Gloriaingforsustainability,aportfolioapproachtosourcingrawLien,emphasizedthepoint:“Movingawayfromshort-termmaterialsisthebestwayforbrandstoprepareforthethinkingaroundpricingiscrucial.Branddecisionmakingfuture.Itrecognizesthattheremightnotbeasinglemate-mustconsiderlong-termsustainabilitygoals,whichcanrialorcertificationthatmeetstheneedsofthebrandandprovidestabilitytothesupplychain.”thatsupplyoptionswillevolveovertime.12AsGiovanniMarchi,thedirectorofMarchiandFildi,stated,“Itisimper-Thebusinesscaseshouldcompriserealistic,forward-look-ativeforbrandstofindtherightbalancewiththeirmateri-ingfinancialandeconomicassumptionsandconsider:alsportfolio.Theyshouldavoidconcentratingalltheirsustainabilityeffortsonasinglefiber,asinglesourceofa•Thecostofinaction,includingnoorsmallchangesinfiber,orasingletechnology.”thematerialsportfoliomixwithoutreducingthefossil-fu-el-basedandland-basedconventionalvirginmaterialsIndeed,theshiftawayfromconventional,virgin,fossil-fu-el-basedmaterialsisapositivefirststep.Acrossmaterials•Thefuturecostofexternalitiescurrentlytakenforgrant-categories,brandsshouldconsiderallalternativemateri-ed,includingtheneedtoprotectresourcesandbetterals,including:managelandinordertoavoidraw-materialsshortagesbroughtonbynaturaldisasters,whichareprojected•Regenerative,organic,andothercertified,sustainablytoincreaseandintensifyasaconsequenceofclimatesourcedrenewablematerialschange•Sustainablysourcedpostconsumerrecycledmaterials,•Riskfactorsrelatedtomaterials—itisimperativethatprioritizingfibersrecycledfromtextilesbrandsacknowledgethedecreasingavailabilityofrawmaterialsandthepriceincreasesthatwillresultand•Materialscreatedusingcarboncapturetechnologies,orthoroughlyassessriskbyanalyzingpotentialscenarios,otherinnovativerenewableorrecycledmaterialswithincludingtheimpactofclimatechangeandsocialpres-demonstratedlowerimpactssuresonmaterialssourcingandtheentiresupplychainAgain,takingascience-basedapproachandknowingmate-•Trendsingovernmentpolicydevelopment—itisexpect-rials’originswillhelpbrandsensurethattheimpactsofedthatastheEuropeanUnionandothersfindsuccessalternativematerialsarelowerthanthoseofconventionalinrollingoutnewsustainability-linkedlegislation,othermaterialswithoutcompromisingondurability.geographieswillfollowsuitTheportfolioapproachshouldavoid“carbontunnelvi-Thebusinesscaseshouldincludeplanstotransitionsion,”ensuringthatothercriticalaspectsofsustainabili-anddiversifythematerialsportfolio,startingimmediatelyty—suchasbiodiversity,humanrights,andanimalwel-andintensifyingoverthecomingyears.Brandscouldfare—areincluded.consider“forwardcontracting”tosupporttheirbusinesscase.Thisfinanciallybeneficialpractice,commoninthepreciousmetalsindustry,involveslockinginguaranteedraw-materialpricesforthefutureandsupportslonger-termchangeontheground—atruenecessitygiventhatapreferred-raw-materialsstrategyrequiresamultiyearperspective.12.TextileExchange,“Companiescanmanagetheirclimateimpactthroughthematerialstheyuse,”July2023.21SUSTAINABLERAWMATERIALSWILLDRIVEPROFITABILITYFORFASHIONANDAPPARELBRANDSAnditshouldconsiderthecostofcarbonwithinthePrecompetitiveinitiativescansupportbrandsincombatingvariousoperationsofthebusinessandhowitrelatestoissuesofperformance,scalability,andcostsassociatedmaterialscostsandproductmargins;settinganinternalwithpreferredrawmaterials.Bypoolingresources(invest-priceoncarbonorsetting“carbonbudgets”withinproductment,time,andexpertise),suchinitiativesengenderateamsareoptions.Ariskassessmentregardingmaterialsmutuallybeneficialecosystem,expeditingtheindustry’sshouldalsobeconducted,thoroughlyandwithanalysisoftransitiontosustainablegrowth.13Thiscanunlockno-re-multiplescenarios—forexample,theimpactofclimategretssolutions(suchasregenerativematerialsandfi-changeandsocialpressuresonmaterialssourcingandtheber-to-fiberfeedstocks),thushelpingtodrivetheproduc-entiresupplychain.tionoflower-impactmaterials,withscalingandconsistentperformanceimprovementinmind.Furthermore,itcanSupplyChainRelationshipsWillMakeorBreaksupportthejourneytowardstandardizationwithintheBrandsGoingForward.StrengthenThemindustry.Diligently.Standardizationrequireschange.AndasAliMize,theLong-termcommitmentswithfarmersandgrowers,millsseniordirectorforESG,belonging,andcorporatephilan-andspinners,andfinishedgoodssupplierscanhelptothropyatNeimanMarcusGroup,pointedout,“Multibrandde-risktheavailabilityofpreferredmaterials,increasetheretailersplayauniqueroleinstandardizingandscalingthesecurityofmaterials,andsendaclearsignaltothemarketfashionindustry’sprogressonsustainablerawmaterials.abouttheimportanceofsuchmaterials.Wecollaboratewithstrategicpartnerstoclearlydefinepreferredmaterialsandcertificationsforourbrandpart-Suppliersaswellasindustryplayersneedlong-termcom-ners,thenwefeaturebrands’relevantproductsforcustom-mitmentstobeabletoinvestinnewpracticesortechnolo-ersontheNeimanMarcusandBergdorfGoodmanweb-gies—shiftingtoorganicproductionisamatterofhalfasite.”decade,forexample,andcannotbeswitchedonandoffasthemarketdemands.BrandsshouldsharestrategicplansBrandsshouldalsoconsiderengagingtheirkeysupplywithsuchactors,prioritizingpartnersincorecommoditychainpartnersindiscussionsaboutsettingSBTitargetstosupplychains.drivedecarbonizationeffortsacrosstheentirevaluechain.Proactivesuppliers,amongthemTALApparel,havealready“Toscaleandadvancenewandinnovativerawmaterials,”submittedtheirownscience-basedtargets(pendingap-explainedKathleenRademan,directorofinnovationatproval),ashavemanyothercrediblesupplychainpartners.FashionforGood,“fullintegrationintoandacrosstheThislevelofalignmentacrossthesupplychainwillalsosupplychainiscritical.Indoingso,costsassociatedwithassistineliminatingtheuseofcoalpowerinsupplychaintheintegrationshouldbesharedacrossallvestedstake-facilities.holdersincluding,butnotlimitedto,brands,supplychainpartners,investors,andtheinnovator.”EnsureThatKnowledge,Tools,andIncentivesAreEngrainedThroughouttheCompanyDirectinvestmentsareasmartwaytocreatelong-termpartnerships;theyprovidefarmersandgrowerswiththeTodrivetangiblechangesinpreferred-raw-materialsstrate-stabilityofupfrontfunding.TheAsia-basedmanufacturinggies,companiesneedtoapplythesustainabletransforma-groupTALApparelrunsadirect-to-growerprogram,havingtionlensacrosstheorganizationbyensuringclearspon-recognizedthat“farmersandgrowerswerenotgettingthesorshipfromtheC-suiteandembeddingtheirmessageabouttheneedforsustainablefarmingpracticespreferred-raw-materialsstrategyacrossbusinessunits.thatreducecarbonimpacts,”accordingtoDelmanLee,vicechairatTAL.Similarly,inadealvaluedatmorethanForexample,everydepartmentthatmakesupthecreative€100million,Inditexcommittedtobuying30%ofInfinitedteamworkingtodevelopproductsandbringthemtomar-FiberCompany’sproductionvolumeofInifinna,atextileket(design,innovation,procurement,financialplanning,createdfrom100%textilewaste.merchandising,marketing)shouldbeengaged,empow-ered,andtrainedwithenoughexpertisetomakeinformeddecisionsaboutpreferredrawmaterialsandunderstandthechallengesthataccompanyGHGreductionefforts.Theyshouldhaveaccesstopreferred-raw-materialsselec-tiontools,likeTextileExchange’sPFMM,thatsupporttheseprocesses.Deepertechnicalexpertisecanbeachievedthroughadedicatedinternalteam.13.B.Webb,“KeytakeawaysfromtheGlobalFashionSummit:Morediversity,morecollaboration,”VogueBusiness,accessedJuly31,2023.BOSTONCONSULTINGGROUP+TEXTILEEXCHANGE+QUANTIS22“Creativeteamsaresacrosanct,”asasustainabilityprofes-Inthefaceofclimatedisaster,increasingregulationsoversionalfromtheluxuryindustryputit.“Withouttheirbuy-in,thenexttwotofiveyears,andinvestorandconsumerbrandswillnotrealizetheirsustainabilitygoals.Creativescrutiny,fashionandapparelbrandscannotaffordtoun-teamsholdthe‘keystothekingdom’ondecisionsrelatingderinvestintheirraw-materialsstrategiesanylonger.Intowhichmaterialsareusedincollections.”fact,doingsowillbeacompetitivedisadvantage.Accesstodata,includingreal-timeperformancedata,isThere’splentyofroomforbrandstocreateadvantage.criticaltotrackingimpactsandcross-functionaldelivery.Basedonthecurrenttrajectory,only19%ofmaterialsinSustainability,legal,IT,marketing,supplychain,andfi-2030willbepreferred,giventhecurrentlackofeconomiesnanceteamsmustworktogethertorespondtoregulatoryofscaleforpreferredmaterials.Tosucceedinthelongerexpectations.Thesefunctionsneedtobeequallyinvolvedterm,brandsshouldfollowthesixprinciplesoftheMateri-andaccountable.BrandsshouldalsoconsiderestablishingalsManifestotosecurealower-impactsupplyofcoreraworbolsteringtheirdedicatedpolicyandpublicaffairsmaterialsandthusputthosenecessaryeconomiesofscaleteamstocopewiththecomplexity.inmotion.Finally,moneytalks.Brandsmustfindwaystodrivesus-ItwilltakeyearstoseedandgrowthesupplyofpreferredtainabilityperformanceattheboardandC-suitelevelsandrawmaterialsthatfashionandapparelbrandsneed.Whybeyond.Theyshouldconsiderintroducingdedicatedincen-notactboldlynowandquicklywinoverregulators,inves-tives(suchasbonuseslinkedtoreachingcarbonreductiontors,wholesalers,andconsumers—andmakeatrueim-targets)thataretailoredtoeachjobfunctionsothatem-pactonclimateremediation?ployeescandirectlyinfluencetargetsnomatterwhatroletheyplay.Leadersandemployeesneedtobedrivingto-wardagreedupon,measurable,andactionabletargetsthatwillenablethechangesneededwithinthecompanyandacrosstheindustry.23SUSTAINABLERAWMATERIALSWILLDRIVEPROFITABILITYFORFASHIONANDAPPARELBRANDSAppendix:ExplainingtheNetProfitOpportunityAssumptionsMaterialAssumptionScenario1Scenario2Scenario3priceAnnualgrowthrateConventionalvirginmaterialsBaseline,abrandthatcontinuesAbrandthatmakesAbrandthatmakesperunitSustainablysourcedrenewablematerialsbusinessasusual,makingnoasmallchangetoitssubstantialchangestoSustainablysourcedrecycledmaterialsmaterialsportfolioitsmaterialsportfolioShareinConventionalvirginmaterialschangestoitsmaterialsportfoliomaterialSustainablysourcedrenewablematerials22portfolioSustainablysourcedrecycledmaterials12%2%1.5%$2.503$2.50$3.75$2.50$3.75$3.00$2.50$3.0070%$2.1390%15%40%5%15%30%5%30%Sources:TextileExchange;BCGanalysis.1Sloweryear-on-yeargrowthduetoincreasedpressureonsalesandproductavailabilityfromregulatorynoncompliance(e.g.,productsbeingbannedfromenteringmarkets)orlackofmaterialsavailability.2Annualgrowthforindustrysetat2%basedonEuromonitordatawhereWesternbrandsareexpectedtogrowby2%–5%overthenextfiveyears.3Wherecostofmaterialdiffersfromthebaseline,costschangeonlyfromyear2onwardsbecauseofcatalogueplanning.BOSTONCONSULTINGGROUP+TEXTILEEXCHANGE+QUANTIS24ExemplaryProfit&LossforaFashionandApparelBrand,inThreeScenariosYearYear0Scenario1Scenario2Scenario3Totalrevenues(000s)$1,000,000Year5Year5Year5Costofgoodssold(000s)$300,000Grossproﬁt(000s)$700,000$1,080,000$1,100,000$1,100,000Selling,general,andadministrativeexpenses$200,000$310,000Regulatoryfees1$310,000$320,000$790,000Financingcosts$40,000$200,000OperatingTax$10,000$770,000$780,000$20,000expensesNetproﬁt(000s)$90,000$200,000$10,000$360,000$40,000$200,000$120,000$10,000$440,000$110,000$30,000$410,000$10,000$110,000$430,000+4%Averageof+6%+8%Source:BCGanalysis.Note:Basedonasamplefashionbrand,whichisamidsize,high-streetbrandwithannualrevenuesofapproximately$1billion.1Doesnotincludeanynonstandardcostssuchasexposuretoregulatoryrisksorcostsforpotentiallegalaction.CumulativeOpportunityfromYear0toYear5Netproﬁt6,2306,2826,282+some$100millioninnetproﬁt2,2992,3492,406inScenario3vsScenario1Costof1,8541,822goodssold1,8342,0792,054+some$50millioninnetproﬁt2,096Scenario2Scenario3inScenario2vsScenario1OperatingScenario1expenses(baseline)Doesnotaccountfor•Potentiallysigniﬁcantregulatorypenaltiesforinaction•Theriskclimatechangeposestotheproduction,availability,andqualityofland-basedmaterials•GreaterconsumeruptakeinthefaceofmoretransparentsustainabilityclaimsSource:BCGanalysis.25SUSTAINABLERAWMATERIALSWILLDRIVEPROFITABILITYFORFASHIONANDAPPARELBRANDSAbouttheAuthorsBCGCatharinaMartinez-PardoisapartnerintheDüsseldorfJocelynWilkinsonisapartnerandassociatedirectorinofficeofBostonConsultingGroup.Youmaycontactherbythefirm’sLondonoffice.Youmaycontactherbyemailatemailatmartinezpardo.catharina@bcg.com.wilkinson.jocelyn@bcg.com.HaafizahKhodabocusisanassociateinBCG’sLidiaDurbianoisanassociateinthefirm’sLondonoffice.Londonoffice.YoumaycontactherbyemailatYoumaycontactherbyemailatdurbiano.lidia@bcg.com.khodabocus.haafizah@bcg.com.TextileExchangeMeganStoneburneristhedirectoroffibersandmateri-alsatTextileExchange.BethJensenisthedirectorofclimateandimpactatTextileExchange.QuantisStefanFrehlandisaseniorsustainabilityprojectmanageratQuantis.YoumaycontacthimbyemailatMireilleFaistisaprincipalsustainabilityexpertfrehland.stefan@quantis.com.atQuantis.Youmaycontactherbyemailatfaist.mireille@quantis.com.MarcialVargas-GonzalezisthegloballeadforscienceandinnovationatQuantis.YoumaycontacthimbyemailPhilippMeisteristhegloballeadforfashionandatvargasgonzalez.marcial@quantis.com.sportinggoodsatQuantis.Youmaycontacthimbyemailatmeister.philipp@quantis.com.BOSTONCONSULTINGGROUP+TEXTILEEXCHANGE+QUANTIS26AcknowledgmentsThispublicationisajointinitiativeofBostonConsultingTextileExchangeGroup(BCG),TextileExchange,andQuantis.TheauthorsthankJavierSeara,managingdirectorandseniorpartner•Pe-JaeBrooks,InterimHeadofCommunicationsatBCG;SebastianBoger,managingdirectorandpartneratBCG;ClaireBergkamp,CEOofTextileExchange;Libby•SarahNeedham,SeniorDirector,StakeholderEngagementMcCarthy,globalcontentleadatQuantis;HeathMcKay,CMOatQuantis;andAllonZeitoun,managingdirectorand•SophiaOpperskalski,SeniorManager,DataIntelligencegloballeaderatQuantisfortheirvaluablecontributionstothisreport.•EvonneTan,SeniorDirector,Data&TechnologyTheauthorsalsoextendtheirsincereappreciationtothe•EleniThrasyvoulou,SeniorManager,ImpactDatafollowingcolleaguesfortheirsignificantcontributionstothereport:•SamanthaPettifer,SeniorManager,Climate+ImpactToolsBCGQuantis•GrahamAckerman,SeniorDirectorofCommunications,London•EmanuelaBoem,Fashion&SportingGoodsMarketingLead•KellyBo,SeniorAssociate,London•JosephinePratiwi,SustainabilityConsultant•JosephineChamberlain,StaffingAssistant,London•AntonioSodano,SustainabilityConsultant•ChristyGibson,ExecutiveAssistant,London•MariaLuisaToppi,SustainabilityConsultant•Prashansa,Consultant,LondonInterviewees•TatianaPansadoro,ProjectLeader,LondonTheauthorsalsothankthefollowingindustryexperts,•KushalPatel,Consultant,Londonwhoareamongthosewhocontributedtheirtimeandexpertiseandarequotedinthisreport;theyhavenot•ImogenPrice,GlobalSectorDirector,Fashion&Luxury,reviewedorapprovedtheentiretyofthisreport:SydneyBaptisteCarriere-Pradal(2BPolicy),ChrisGaffney(JohnstonsofElgin),DelmanLee(TALApparel),Federica•WinstonTan,Consultant,LondonLicini(Farfetch),GloriaLien(FarEasternNewCentury),GiovanniMarchi(Marchi&Fildi),AliMize(Neiman•AlexiaYehWilson,GlobalMarketingDirector,LondonMarcusGroup),JohannaPuetz(BCG),KathleenRademan(FashionforGood),StefanSeidel(Puma),LucaSolca•EmilyHinton,Consultant,London(Bernstein),andChristianTønnesen(SelfridgesGroup).27SUSTAINABLERAWMATERIALSWILLDRIVEPROFITABILITYFORFASHIONANDAPPARELBRANDSBostonConsultingGrouppartnerswithleadersinTextileExchangeisaglobalnon-profitdrivingbusinessandsocietytotackletheirmostimportantbeneficialimpactsonclimateandnatureacrosschallengesandcapturetheirgreatestopportunities.thefashion,apparel,andtextileindustry.ItguidesaBCGwasthepioneerinbusinessstrategywhenitgrowingcommunityofbrands,manufacturers,andwasfoundedin1963.Today,weworkcloselywithfarmerstowardsmorepurposefulproductionfromtheclientstoembraceatransformationalapproachverystartofthesupplychain.aimedatbenefitingallstakeholders—empoweringorganizationstogrow,buildsustainablecompetitiveItsgoalistohelptheindustrytoachievea45%advantage,anddrivepositivesocietalimpact.reductionintheemissionsthatcomefromproducingfibersandrawmaterialsby2030.Togetthere,itOurdiverse,globalteamsbringdeepindustryandiskeepingitsfocusholisticandinterconnected,functionalexpertiseandarangeofperspectivesacceleratingtheadoptionofpracticesthatimprovethethatquestionthestatusquoandsparkchange.BCGstateofourwater,soilhealth,andbiodiversitytoo.deliverssolutionsthroughleading-edgemanagementconsulting,technologyanddesign,andcorporateandForrealchangetohappen,everyoneneedsacleardigitalventures.Weworkinauniquelycollaborativepathtobeneficialimpact.That’swhyTextileExchangemodelacrossthefirmandthroughoutalllevelsofthebelievesthatapproachable,step-by-stepinstructionclientorganization,fueledbythegoalofhelpingourpairedwithcollectiveactioncanchangethesystemclientsthriveandenablingthemtomaketheworldatomakepreferredmaterialsandfibersanaccessiblebetterplace.default,mobilizingleadersthroughattainablestrategies,provensolutionsandadrivencommunity.AtTextileExchange,materialsmatter.Tolearnmore,visittextileexchange.org.Quantis,aBCGcompany,isaleadingsustainabilityconsultancypioneeringapproachestosolvecriticalenvironmentalchallenges.Wepartnerwithleadingconsumergoodsandfinancialservicesorganizationswhoareseriousaboutreducingtheirenvironmentalimpactstofuture-prooftheirbusinessesandprosperinanewplanetaryeconomy.Ouruniqueapproachcombinesdeepenvironmentalexpertise,strategicbusinessknowledge,andenterprisetransformationForinformationorpermissiontoreprint,pleasecontactBCGatpsekrimllsistsoiohnes@lpbocrgg.caonmiz.ationsshapepolicies,practicesTofindthelatestBCGcontentandregistertoreceivee-alertsontahnisdtobpuiscinoreossthmeros,dpelelsastheavtisaitlibgcng.wcoitmh.theplanet’scapacitywhilebuildingresilience,unlockingFollowBostonConsultingGrouponFacebookandX(formerlyknoinwnnoavsatTiwonit,tearn).doptimizingperformance.Ourdynamic©BostonConsultingGroup2023.Allrightsreserved.andvisionaryteamofenvironmental,business10/23andcommunicationsexpertswillguideyouonthejourneyfrombusinessasusualtobusinessatitsbest.DiscoverQuantis

1、当您付费下载文档后，您只拥有了使用权限，并不意味着购买了版权，文档只能用于自身使用，不得用于其他商业用途（如 [转卖]进行直接盈利或[编辑后售卖]进行间接盈利）。
2、本站所有内容均由合作方或网友上传，本站不对文档的完整性、权威性及其观点立场正确性做任何保证或承诺！文档内容仅供研究参考，付费前请自行鉴别。
3、如文档内容存在违规，或者侵犯商业秘密、侵犯著作权等，请点击“违规举报”。

碎片内容

碳中和的最新文档