Frankly CSR

I participated in a CSR Web event last week hosted by Apparel magazine and sponsored by Lawson. The session focused on CSR issues and trends in the apparel industry, with the main focus on environmental or green programs. The other presenters included John Davies, vice president, Green Research at AMR Research, and Meirav Jones, global development and marketing director at Delta Galil Industries, a leading apparel company and Lawson customer. 

As I talked with Lawson customers while preparing my presentation content and worked with the other presenters, I was reminded how much every industry – and every company for that matter – needs to evaluate and understand what green means for them and where they can have the most significant impact. Certainly, the apparel industry faces challenges common to most industries, such as the consumption of water and energy during manufacturing processes. However, the apparel industry also has its own set of unique issues. During the session, Meirav Jones provided a very interesting statistic:  approximately 25 percent of an individual’s carbon footprint is associated with clothing.  One-third of that is related to washing and dying the clothing, the remainder is associated with producing the raw materials, the manufacturing process and transporting the clothing. With that in mind, it’s no surprise that some of the leading focus areas for the apparel industry include:

• Use of sustainable and recycled fibers, yarns and accessories – examples include organic cotton, bamboo, hemp and linen
• Reducing fabric dye cycles
• Reducing product packaging
• Use of non-toxic chemicals in fabrics production
• Development of fabrics that require shorter wash cycles and can be washed in cold water
• Bringing the supply chain – suppliers to manufacturer to customers – physically closer.

 During the event we asked the audience a question regarding the main driver behind their own organization’s environmental programs. When I have asked this question of other groups, the main driver has almost always been to comply with regulatory requirements or to strengthen their company’s brand or image. However, in this case, the leading reason was to create new business opportunities. It’s clear innovative apparel companies are learning that consumer demands are changing and their green programs can be good not only for the environment, but also for their bottom line. 

Jeff

 TerraChoice Environmental Marketing published a report last month that suggests “greenwashing is pervasive” in the consumer products market.  The report, The “Six Sins of Greenwashing,” is an interesting read and appears to be based on a solid study.  In case you’re not familiar with the term “greenwashing,” TerraChoice defines it as the act of misleading consumers regarding the environmental practices of a company or the environmental benefits of a practice or service.  Maybe I’m jaded, but the results didn’t surprise me.  Especially given the standards TerraChoice used to evaluate the green claims.  

 I think Joel Makower’s  (two steps forward) characterization of us bordering on the “Wild West of Green” is very accurate. In the just the last year alone we have witnessed an absolute explosion of information and attention centered on the environment, global warming, carbon footprints, green products, etc.  The situation with Green is not that different than many other new concepts, technologies, etc. that experienced very rapid expansion.  We need to look no further than the Internet explosion of the late 1990s for a good example.  During the dot-com bubble there was a marketing free-for-all, where wildly exaggerated claims were common.  Practices have changed greatly in the past six years since the dot-com bust. 

We are still living on the frontier when it comes to Green, but I’m confident that through consumer and government pressure, the continued development of standards and certifying organizations and the normal maturation of companies in this area, we will see a steady shift toward more understandable, legitimate and trustworthy claims. 

Jeff