By Marc Gunther
An ambitious effort by a global apparel industry group to measure the social and environmental impact of making clothes and shoes has yet to deliver on its promise.
From the cotton farm to the clothing factory to the fashion show, the global apparel industry has more than its share of social and environmental problems.
Behind the images of beauty and style is an often dirty business that relies onwater-intensive methods and toxic chemicals in its factories, most of them in poor countries and hidden from view. While garment work has provided a pathway out of poverty – now in China, but earlier in the US and UK – no worker should be exposed to the unsafe conditions that led to calamities like in Bangladesh, where in 2013 the collapse of the structurally unsafe Rana Plaza building killed more than 1,100 workers.
No company can solve such problems on its own. Yet an ambitious effort to bring the industry together to deliver sweeping changes has yet to deliver. The Sustainable Apparel Coalition (SAC), a global alliance of retailers, brands, suppliers, advocacy groups, labor unions and academics, aims to create “an apparel, footwear and home textiles industry that produces no unnecessary environmental harm and has a positive impact on people and communities”.
Four years ago, I took a close look at the coalition’s promising beginning. Last month at the Copenhagen Fashion Summit, an industry gathering focused on sustainability, I caught up with apparel industry executives and their critics to see how much progress the industry group has made – and opinions are mixed.
To its credit, the coalition, launched in 2009 by Walmart and Patagonia, has brought together 175 members whose companies account for more than 40% of the global apparel industry. They have been building what they expect to be the principal driver of change in the industry: a set of three online tools, known as theHigg Index, that measure the social and environmental impact of brands, manufacturing facilities and products. Companies are supposed to use the index to collect information from their own operations and their suppliers’, and all of it goes into a database that coalition members can use to evaluate suppliers. About 6,000 factories have provided information about their social and environmental impact.
But most coalition members have been slow to use the index, and there’s no evidence they are reducing – not merely reporting – their impact. A Higg tool designed to measure a product’s footprint – information such as the raw materials and energy used that might interest consumers – won’t be completed until next year. What’s more, none of the social and environmental data being collected is publicly available, at least for now. Companies aren’t even permitted to release their own Higg Index data.
Until the data becomes public, its value will be limited. Environmental and human rights groups that want to hold the industry accountable don’t have access to the information. Nor do investors, who worry about supply chain and reputation risks, have a reliable way to measure one company against another. Consumers who want to know how and where T-shirts or shoes are made will have to wait before they can use the data to learn whether those items are manufactured ethically. Right now, they get little information. Knowing, for example, that a shirt is composed of organic cotton or recycled polyester doesn’t say anything about the factory conditions where it was produced.
Linda Greer, a senior scientist at the Natural Resources Defense Council, says the coalition is moving too slowly to collect Higg data and isn’t doing enough to prod companies to remedy problems that turn up. “I am quite surprised at the lack of uptake,” she says. “There are too many companies, even with high profiles, that are not circulating the forms to their suppliers.”
Several big companies, led by H&M and Target, have embraced the Higg tools, as has Patagonia. Others have been slow to use them, but the coalition declined to identify the laggards. Several major industry players, including fast fashion retailer Forever 21, have declined to join the SAC at all.
Nike says it hasn’t used Higg widely, not because it doesn’t support SAC’s effort but because of what Hannah Jones, its chief sustainability officer, describes as “technical, boring IT reasons”. Nike monitors its supply chain using its own software, Jones says.
“The vast majority are using some of the tools,” says Jason Kibbey, the coalition’s chief executive. “The scale and depth with which they’re using them varies widely.”
Several reasons explain why the index hasn’t been widely used. For one thing, it’s still under development. Building the Higg Index is a complex undertaking, Kibbey says. The coalition has to balance competing demands – making tools accessible and relatively easy to use, yet powerful enough to capture an array of environmental and social impacts from farms, factories and stores.
Brands also are resistant to spending the time and energy to gathering data, especially from their suppliers. Making a piece of clothing involves multiple suppliers, including: farmers who grow the raw materials; dye-and-finishing mills where environmental impacts are greatest; and cut-and-sew factories where garments are produced. But brands don’t typically deal directly with all those suppliers, and many don’t bother to dig deep into their supply chains.
Several coalition members tell me they plan to make the index data public eventually. Kibbey says his members have not agreed when that information will become public.
In the meantime, individual brands have launched their own campaigns to address environmental and social challenges. Nike, for example, has invested in designing and making sneakers that use less material. H&M has improved the dirty process of dyeing textiles and nudged its customers to recycle their clothes. Patagonia discovered slave labor practices among its suppliers and took steps to root them out.
But those efforts, while worthwhile, aren’t enough to reduce the enormous resource requirements of the fashion business and the waste it generates. In the US alone, 10.5m tons of textiles go to landfills each year. There’s lots of talk in the industry about the circular economy, but real progress has been scant.
Will the coalition ever achieve its lofty goal? That seems to be a big uncertainty, even from its members. Rick Ridgeway, a longtime Patagonia executive who has guided the coalition from the start, says it best: “The hypothesis is that putting better data into the hands of decision makers in the apparel value chains is going to result in better decisions. But that’s a hypothesis.”
He goes on: “Now the rubber is going to meet the road. Are companies, year over year, going to improve? Are they going to lower their impact? Are they going to benefit the people in the supply chain? We don’t know. I’m optimistic, but until that happens, the Sustainable Apparel Coalition is an unproven experiment.”
*This story first appeared on The Guardian.