This table shows a list of topics identified as relevant by different stakeholder groups. They can be considered as stakeholders’ suggestions or requests for topics to be monitored or disclosed by organizations. Additional information about the project can be found at https://www.globalreporting.org/reporting/sector-guidance/Topics- Research/Pages/default.aspx 19 – Textiles, Apparel, Footwear and Luxury Goods 59 Topics Manufacturers of apparel, accessories & luxury goods. Includes companies primarily producing designer handbags, wallets, luggage, jewelry and watches. Manufacturers of footwear. Includes sport and leather shoes. Manufacturers of textile and related products. Topic Sustainability Topic Specification Explanation Reference(s)1 Constituency Category (if available) Environmental Materials Cotton sourcing - criteria for cotton sourcing / certification of used 48, 410 Financial sourcing cotton, where appropriate Markets & '- support of initiatives which aim to make conventional Information cultivation more sustainable, such as Cotton Made in Users Africa and the Better Cotton Initiative (BCI) '- transparency on the use of synthetic fibres such as polyester '- Scope of the use of recycled materials Cotton is the most commonly used natural fibre. The high levels of water required for cotton cultivation, combined with soil erosion and the use of pesticides and defoliants, mean that it results in significant environmental impacts. In addition, over 60 per cent of Sustainability Topics for Sectors: What do stakeholders want to know? May 2013 TEXTILES, APPAREL, FOOTWEAR AND LUXURY GOODS Page 1 of 46 Topic Sustainability Topic Specification Explanation Reference(s)1 Constituency Category (if available) global cotton production now comes from genetically modified plants. Synthetic fibres such as polyester are also problematical from the environmental point of view. Polyester is extracted from crude oil, and its production uses large quantities of energy and releases air pollutants. Recycled materials often have a significantly lower environmental footprint. Wood-based The following sections of the GRI reporting guidelines 185, 569 Civil Society products from may be used by a reporter to mention FSC related Organization responsibly activities, those are: managed forests - Profile - Commitments to External Initiatives: 4.12 externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses. - Environmental Impact: EN 26: Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. - Product: PR3: Type of product and service information required by procedures and percentage of significant products and services subject to such information requirements. The above indicators are mostly not quantitative and a reporter may find difficult to integrate FSC related information. Ideally there would be a quantitative indicator related to certification scheme or initiative regarding the supply and the final product within the GRI guideline. In order to ease the reporting of FSC related activities, we propose to include two indicators related to supply Sustainability Topics for Sectors: What do stakeholders want to know? May 2013 TEXTILES, APPAREL, FOOTWEAR AND LUXURY GOODS Page 2 of 46 Topic Sustainability Topic Specification Explanation Reference(s)1 Constituency Category (if available) and final product content. The wording could follow the Food Processing Supplement and worded as follows: “Percentage of purchased material by volume and weight which is verified as being in accordance with credible, internationally recognized responsible production standards, broken down by standard”. This topic reflects significant impacts, risks and opportunities for an organization itself and its stakeholders as well as requires active management or engagement by the organization. By buying FSC certified products, companies provide incentives for responsible forestry and can enjoy their purchases knowing it has not contributed to the destruction of the world’s forest or even come from companies involved in human rights abuses. Almost everything made from wood and other forest products are available with the FSC label. Finding FSC products becomes easier everyday. Literally every day, more FSC products become available. This topic is relevant for all 52 business/industry activity groups. These simple steps can be followed by companies to find and buy FSC products: 1. Check the FSC marketplace at marketplace.fsc.org (in January 2013, the marketplace is still a beta version) Please note this database will currently only search for manufacturers and distributors, not retailers. There are Sustainability Topics for Sectors: What do stakeholders want to know? May 2013 TEXTILES, APPAREL, FOOTWEAR AND LUXURY GOODS Page 3 of 46 Topic Sustainability Topic Specification Explanation Reference(s)1 Constituency Category (if available) only a few exceptions where retailers are also certified. To find products carried by your local retailer, please contact them directly. We are working on including other search options to this database in the future. 2. Ask your retailer Chances are, they will carry FSC certified products. If not, let them know you would be interested in certified products. Not all certification systems are equal and only FSC guarantees that the product has been made from environmentally and responsibly managed forests. By asking for FSC certified products, you show that there is a demand. This is an important and simple way how you can help FSC to make a difference. Materials Recycled - criteria for cotton sourcing / certification of used 48, 410 Financial sourcing and materials and cotton, where appropriate Markets & use synthetic fibers '- support of initiatives which aim to make conventional Information cultivation more sustainable, such as Cotton Made in Users Africa and the Better Cotton Initiative (BCI) '- transparency on the use of synthetic fibres such as polyester '- Scope of the use of recycled materials Cotton is the most commonly used natural fibre. The high levels of water required for cotton cultivation, combined with soil erosion and the use of pesticides and defoliants, mean that it results in significant environmental impacts. In addition, over 60 per cent of global cotton production now comes from genetically modified plants. Synthetic fibres such as polyester are also problematical from the environmental point of view. Polyester is extracted from crude oil, and its production Sustainability Topics for Sectors: What do stakeholders want to know? May 2013 TEXTILES, APPAREL, FOOTWEAR AND LUXURY GOODS Page 4 of 46 Topic Sustainability Topic Specification Explanation Reference(s)1 Constituency Category (if available) uses large quantities of energy and releases air pollutants. Recycled materials often have a significantly lower environmental footprint. Materials use Pumice, sand RG & AFSS (EN22): 202* Civil Society and stones, and Report on pumice, stones and sand. Organization disposal method Energy Garment life Research the CO2 impact of textiles based on different 393 Business consumption cycle raw materials (cotton, synthetic fiber, wool, linen, hemp, corn), leveraging existing studies or partnering with academia. Research the CO2 impact of different material cultivation practices, such as organic versus non- organic cotton, isolating best practices. Join an industry collaboration on reducing sourcing of cattle from endangered Amazon regions. Research the CO2 impact of different garment care options to be in a position to better communicate with consumers. Adopt “cold water wash” and/or “line dry” instructions on garment hang tag and care label, noting the environmental benefits of these practices. (Note: the recommendation also has water benefits). Implement an industry-wide consumer awareness campaign around low-energy garment care. While the energy efficiency of processing, production, transportation, and retail also affect a garment’s footprint, a garment’s carbon impacts are most significant during consumer use. The daily acts of washing, drying, and ironing garments over their lifespan are responsible for a notable portion of household emissions and can contribute more than a third of the total CO2 emissions associated with a garment. Sustainability Topics for Sectors: What do stakeholders want to know? May 2013 TEXTILES, APPAREL, FOOTWEAR AND LUXURY GOODS Page 5 of 46 Topic Sustainability Topic Specification Explanation Reference(s)1 Constituency Category (if available) We recognize that efforts to influence consumer practices, energy efficiency of operations in the value chain, and material selection are critical to curbing climate change. We strive to move away from a reliance on carbon- intensive textile products or carbon-intensive sourcing regions. We will work together with industry partners to be energy efficient and minimize the embedded carbon in garments. We will try to change consumer behavior to adopt low-carbon practices in garment care. RG & AFSS (AF21): Amount of energy consumed and 202* Civil Society percentage of the energy that is from renewable sources. Organization Report on performance (by indicators) 345 Business - Report on strategic Plan - Directly impacts to sustainable development of company and its prioritized stakeholders. '- Helps company improve its operations, business and management. '- Relates to local legislations and international standards requirements 1) Impacts from environmental trends; required by customers 2) Risks of losing competitive advantages; 3) Opportunities in improving internal management, increasing competitive advantages, being responsible to community. Sustainability Topics for Sectors: What do stakeholders want to know? May 2013 TEXTILES, APPAREL, FOOTWEAR AND LUXURY GOODS Page 6 of 46 Topic Sustainability Topic Specification Explanation Reference(s)1 Constituency Category (if available) Water Textile and Water management systems and monitoring. 410 Financial management apparel industry Management of waste water (e.g. treatment systems). Markets & systems Measures to reduce water consumption and reduction Information targets Users Given the huge levels of water consumption and the scale of the pollution, efforts to manage water in the most environmentally-friendly possible way are a material topic for the textile and apparel industry. Water use Textiles life – Influence agricultural practices and sustainable 393 Business efficiency cycle cultivation of raw materials by partnering with an on-the- ground organization, such as WWF or Conservation International. – Engage with local government agencies around a few strategic mills to influence wastewater treatment requirements. – Expand pilot efforts to train mills on new dye processes and best practices in water efficiency. – Implement an industry-wide marketing campaign to invite consumer pledges to reduce water use in wash, and measure impact of consumer education efforts. – Report on long-term progress on improvements to water quality management in material processing, and consumer pledges to reduce water use. The sheer volume of water consumed in the cultivation of some crop-based materials has reduced the availability of water in the face of increasing demand in numerous regions around the world. Use of pesticides during crop-cultivation and poor water quality Sustainability Topics for Sectors: What do stakeholders want to know? May 2013 TEXTILES, APPAREL, FOOTWEAR AND LUXURY GOODS Page 7 of 46 Topic Sustainability Topic Specification Explanation Reference(s)1 Constituency Category (if available) management during material processing has left communities vulnerable to serious health risks and business vulnerable to reputational risk. Water use consumption is highest during consumer use due to garment care and washing. We strive to ensure communities have priority access to safe, clean drinking water. Materials are cultivated in new, more sustainable ways that don’t deplete local water suppliers. Any water used for processing is treated to safe levels and returned to local water bodies. Water use Mills and dye – Influence agricultural practices and sustainable 393 Business efficiency and processes cultivation of raw materials by partnering with an on-the- quality ground organization, such as WWF or Conservation International. – Engage with local government agencies around a few strategic mills to influence wastewater treatment requirements. – Expand pilot efforts to train mills on new dye processes and best practices in water efficiency. – Implement an industry-wide marketing campaign to invite consumer pledges to reduce water use in wash, and measure impact of consumer education efforts. – Report on long-term progress on improvements to water quality management in material processing, and consumer pledges to reduce water use. The sheer volume of water consumed in the cultivation of some crop-based materials has reduced the availability of water in the face of increasing demand in Sustainability Topics for Sectors: What do stakeholders want to know? May 2013 TEXTILES, APPAREL, FOOTWEAR AND LUXURY GOODS Page 8 of 46 Topic Sustainability Topic Specification Explanation Reference(s)1 Constituency Category (if available) numerous regions around the world. Use of pesticides during crop-cultivation and poor water quality management during material processing has left communities vulnerable to serious health risks and business vulnerable to reputational risk. Water use consumption is highest during consumer use due to garment care and washing. We strive to ensure communities have priority access to safe, clean drinking water. Materials are cultivated in new, more sustainable ways that don’t deplete local water suppliers. Any water used for processing is treated to safe levels and returned to local water bodies. Water Consumption 153 Financial Water (in m3) used per amount (e.g. in tonnes) of Markets & product manufactured Information Groundwater consumption in m3 Users Wastewater Textile Small-scale low-cost textile processing waste water 135 Business treatment processing treatment units, Fault-free manufacturing systems for reduced production waste, Innovative processing concepts and production technology with greatly enhanced resource efficiency, combined with novel waste treatment, recycling or disposal concepts, can greatly boost European industry’s competitiveness. Emissions to air Report on performance (by indicators) 345 Business - Report on strategic Plan - Directly impacts to sustainable development of Sustainability Topics for Sectors: What do stakeholders want to know? May 2013 TEXTILES, APPAREL, FOOTWEAR AND LUXURY GOODS Page 9 of 46 Topic Sustainability Topic Specification Explanation Reference(s)1 Constituency Category (if available) company and its prioritized stakeholders. '- Helps company improve its operations, business and management. '- Relates to local legislations and international standards requirements 1) Impacts from environmental trends; required by customers 2) Risks of losing competitive advantages; 3) Opportunities in improving internal management, increasing competitive advantages, being responsible to community. Emissions to air Garment life Research the CO2 impact of textiles based on different 393 Business - GHG emissions cycle raw materials (cotton, synthetic fiber, wool, linen, hemp, corn), leveraging existing studies or partnering with academia. Research the CO2 impact of different material cultivation practices, such as organic versus non- organic cotton, isolating best practices. Join an industry collaboration on reducing sourcing of cattle from endangered Amazon regions. Research the CO2 impact of different garment care options to be in a position to better communicate with consumers. Adopt “cold water wash” and/or “line dry” instructions on garment hang tag and care label, noting the environmental benefits of these practices. (Note: the recommendation also has water benefits). Implement an industry-wide consumer awareness campaign around low-energy garment care. While the energy efficiency of processing, production, transportation, and retail also affect a garment’s Sustainability Topics for Sectors: What do stakeholders want to know? May 2013 TEXTILES, APPAREL, FOOTWEAR AND LUXURY GOODS Page 10 of 46
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