Planet Tracker in its latest report asked retailers to work with their supply chain partners to improve traceability and environmental impacts.
The think tank released its report titled ‘Following the thread’ after contacting 3,900 companies. The report finds a significant discrepancy between the distribution of negative environmental impacts and capital within the supply chain. The Planet Tracker claims that while sales, profits, and capital are evident within fashion brands and retailers, the majority of the negative environmental impact occurs in the supply chain.
The report reveals that the most significant negative environmental impacts within the textile supply chain are seen at the fabric manufacturing stage. This finding confirms the analyses presented in Planet Tracker’s previous report, ‘Dye Another Day’. In that report, the large use of water and toxic chemicals at this stage in the manufacturing process was highlighted.
According to data provided by environmental sustainability consultancy, Quantis, there is very little impact associated with retail or post-sale. The report recommends that to move to a ‘sustainable’ industry fashion retailers and brands must pivot to invest in their supply chain partners.
Planet Tracker in yet another report, titled ‘Easy Unpickings’ detailed that investments can generate significant environmental benefits and pay back very quickly. The report estimates that an average one-off investment of US$455,000 produced annual savings of US$369,500, giving an average payback period of 13.8 months.
Significant change is needed now, in the near term the industry is to meet its net zero commitment according to the Planet Tracker, adding that this can only come from direct involvement by brands and retailers to improve the supply chain.
The report cautions that regulators are increasingly scrutinizing the sustainability claims of retailers. If brands want to chase sustainably-minded consumers, they must be able to show that their claims can be substantiated. This will require them to have better visibility of their suppliers to ensure they improve their environmental footprints.”
A spokesperson of Planet Tracker conceded that retailers themselves produce relatively few emissions. But green claims among brands are meaningless when the clothing they sell contributes to accelerating global warming and polluting water supplies with toxic chemicals.
Planet Tracker is imploring investors to pressure retailers to work with their supply chains to reduce their negative environmental impacts. Brands can for example help via direct funding or order guarantees and together with their suppliers drive meaningful action across the whole value chain.
Green claims of retailers are useless unless they control supply chain slippages
