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The truth about partnering with your manufacturers for a sustainable supply chain.
Brands and their manufacturing partners alike are increasingly focused on environmental sustainability efforts, and for good reason. The newest United Nations Emissions Gap Report, released in October 2024, includes the concerning findings that countries around the world have failed to achieve much (if any) progress in reducing their greenhouse gas emissions over the past year.
While some companies are still trying to make the business case for ambitious environmental sustainability goals, many leading brands and their suppliers are already making significant efforts, and seeing results. Still, there are common disconnects between brands and the facilities they work with throughout the value chain. We’ve identified four specific myths and misconceptions, along with the truth about each one, to help brands build better partnerships with their facilities and work toward shared goals.
“Is there a business case to prioritize sustainability for survival? That is the discussion when we look at some of the climate projections.”
Myth 1: Eliminating coal is always the first (and best) step in decarbonizing your supply chain
Coal is unquestionably a top culprit for carbon emissions across the world. It makes sense then that brands want to eliminate it from their supply chains entirely and be able to boast that their products are 100 percent free of coal power. However, this single-minded focus on coal may come at the expense of even greater environmental impact through other measures, like water pollution or the production of excess waste.
Fact: Focusing on reducing emissions overall, rather than simply on eliminating coal, can not only result in lower environmental impact, but can be easier and less expensive for manufacturers to achieve.
“Some brands are saying 'We have to eliminate coal entirely.' But in short term we can reduce emissions to a large degree through a variety of other means while still using 20-30% coal. So, if a brand insists on completely eliminating coal at all costs, we have to change plans, which comes with greater expense and potential unintended consequences that don't necessarily reduce environmental impact.”
Instead of focusing solely on eliminating coal, brands and suppliers should collaborate to create baselines and targets based on current emissions and industry benchmarks and examine how they can cut emissions — this could be through actions like choosing different materials, designing lower impact products, or using different manufacturing processes. By taking a more holistic and data-driven approach, companies can identify the most impactful opportunities for reducing their carbon footprint. This can produce real world results that come faster and easier than a hard-line “no coal” mandate.
Myth 2: Regulations are only going to add more red tape and raise costs for everyone
Regulation has many brands and suppliers in the apparel industry panicking. Many see legislation as a blunt tool, where a precise scalpel would work better. But we’re approaching the point at which regulations that dictate environmental sustainability practices will emerge to get the industry to move forward in a meaningful way. Today’s current global regulatory landscape is a patchwork of different rules, which can actually harm manufacturers that prioritize sustainability.
Fact: Harmonized sustainability regulations will level the playing field and prevent brands from seeking out cheaper, and more harmful ways, to get the products they need.
“Right now, there’s a fear that we might decarbonize ourselves out of business because our customers can find a supplier who charges less because they aren’t having to add in the costs of their sustainability. If regulations help level the playing field and create a baseline standard, that’s going to benefit all of us who’ve invested in sustainability already.”
In the same vein, facilities that already work towards sustainability will be ahead of others when regulations do come. They might already meet or exceed the mandatory requirements, without needing to change their pricing structure or reporting process. While others, that might be the cheaper option today, play catch up and have to raise prices sharply to get up to speed with legislation.
Myth 3: The best way for brands to meet their sustainability goals is to mandate how suppliers behave
Brands may be tempted to mandate specific sustainability practices or technologies for their suppliers, and they often think this is the best approach. In reality, requiring a specific practice can have unintended consequences that result in less sustainable operations, not more.
“If a brand requires us to install electric boilers in a location where the electric grid hasn’t been decarbonized, this could actually result in worse emissions outcomes than leaving the current boilers in place. In some locations, the electric grid may not even be able to handle the addition of an electric boiler, which means production gets shut down. This is why it’s so important to have conversations with your people on the ground who understand the local context at each facility.”
Fact: Many Tier 1 manufacturers (and beyond) have environmental targets of their own and have been working for decades to achieve them. As the experts in their operations and their landscape, manufacturers have goals based not only on science and their own facilities’ data, but also taking into account the realities of the locations in which they operate. Instead of mandates, brands should start by asking their suppliers how they’d approach sustainability and what the brand-partner can do to help deepen those efforts. A two-way dialogue between brands and suppliers is the best way to maximize environmental impact when dealing with a complex global supply chain.
Myth 4: Brands should set uniform targets and require all suppliers to meet them
While setting sustainability targets is crucial, brands should be cautious about imposing uniform standards across their supply chain without considering suppliers’ baseline measures and progress to date. For example, when working with a manufacturer that’s been focused on sustainability for years already, and that already exceeds industry benchmarks, it’s unrealistic – and likely unachievable – to require an additional 50 percent reduction in carbon emissions.
“We’ve already achieved our 2025 goals of 40% GHG reductions, and we’re running a lot more sustainably than the rest of the industry. This becomes a challenge when a brand says we have to reduce by a certain percentage, without looking at our baseline or how our current emissions compare to industry benchmarks.”
Fact: For brands that prioritize working with the most sustainable manufacturers, it’s vital to have a conversation with the supplier about their approach and consider the supplier’s own history, including their baseline and the progress they’ve already achieved, before imposing a goal. The closer a facility gets to zero emissions, the smaller its incremental improvements will be. Brands could be inadvertently ruling out working with the most sustainable factories by only choosing those who can meet double-digit year-over-year reductions.
For busting sustainability myths, primary data is key
Without real data from their supply chain, brands can understandably fall into believing these common sustainability myths. With that data, however, a whole new level of collaboration between brands and their manufacturing partners opens up. Worldly is the platform that empowers brands and facilities to track and share the data they need to make informed decisions and set meaningful targets for reducing greenhouse gas emissions, water usage, waste, and more. See how, and get started today.
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