Towards a

Sustainable
Clothing Industry

It is no surprise that more Americans are going green these days. You can hardly

watch television, read the news, or go shopping without a reminder that recycling is
the movement du jour. In response, companies are finding ways to green their

business models. Increasingly, consumers expect and demand it of their favorite

brands. Any business can take steps to reduce its footprint to appease consumers

(green washing), but successful firms will turn sustainability into competitive

advantage. For these firms in the apparel industry, there are numerous

opportunities to save the planet while saving cash and other resources.

Impact of the Industry

The apparel industry in the United States is a $345B a year market. In 2007,

Americans purchased 20.1 billion articles of clothing, 95% of which was made

elsewhere and imported(AAFA, 2007). The benefit of keeping clothing and other

textiles out of the waste stream is twofold: reduction in landfill space required as

well as a reduced need for resource-hungry materials such as cotton or polyester.

Each year, every American discards an average of 68 pounds of textiles per year.

Despite growth in the resale sector of 5% per year, research shows that 85% of

discarded clothing ends up in the landfill(Claudio, 2007). To determine the true

impact clothing makes on the environment, one must take into account the entire

life cycle of the garment. To keep prices low, the cycle begins in the US with

subsidized cotton and is then shipped overseas to be assembled by workers who

make an average of 15 cents per hour in countries ranging from China to

Bangladesh. Once complete, the garment is then shipped back to the states for

sale, having traveled approximately 14,625 miles before it hits the store

shelves(NatGeo, 2008). The fashion industry is second only to agriculture in water

usage, not to mention the 25% of the world’s pesticides that it uses. All of this

before the item reaches the consumer and the majority of the impact made by

clothing will occur after purchase(Earth Pledge, 2009).

 Industry Best Practices

Obviously, the clothing life cycle provides many areas for improvements in

sustainability. According to Porter, companies have been quick to greenwash their

processes but slow to identify and capitalize on areas of sustainability.

Sustainability can be thought of as “meeting the needs of the present without

compromising the ability of future generations to meet their own needs”(Porter &

Kramer, 2006). The fashion industry uses many harmful chemicals to produce its

product. From the cotton field to the dying process, there are numerous advances

being made towards sustainability in the clothing industry. Opportunities for

improvement come from inputs, production, and delivery. To start, innovative

companies are working to find more sustainable raw materials such as organic

cotton, hemp and bamboo which are less reliant on pesticides and water than

traditional materials. The demand for organic cotton grew 22% from 2004 to 2005,

yet organic accounts for less than one percent of worldwide cotton

production(Claudio, 2007). Another approach to sustainability is associated with

improvements in the value chain. Streamlining the path that the product takes

from cradle-to-gate may be gentler on the environment, yet the current way is more

cost effective. Companies must decide if the added expense would further its

strategy or add value to the product in the eyes of the consumer. Porter’s view of

corporate social responsibility (CSR) prescribes changes to the current practice,

putting aside short-term goals to reach sustainability(Porter & Kramer, 2006).

Further, sustainable technologies are being rapidly developed all along the value

chain by first-movers and start-ups. Mature companies that are not investing in

these progressive practices risk losing market share or even obsoletion.

The companies that have made steps toward sustainable competitive advantage

are seeing an impact on the triple bottom line. For instance, Patagonia began its

Common Threads recycling program in 2005. From Reno, Nevada, the items are

shipped to Japan for reprocessing. The recycling process, along with all the travel,

uses 76% less energy and produces 71% fewer CO2 emissions than manufacturing

from raw materials. The company gets to rest easy knowing that it is doing the

right thing for future generations while strengthening its image as a conscientious
outdoor lifestyle company. The ecological savings are clear while monetary gains

are small but likely to grow as the practice becomes more commonplace and more

recycling companies are formed, reducing the product’s traveled for the process.

The Case for Sustainability

No longer can companies be content to monitor only the obvious social impacts of today.

Without a careful process for identifying evolving social effects of tomorrow,

firms may risk their very survival.

The benefits of going green such can include reduced cost, improved image and

loyal customers, not to mention that it is the right thing to do. If this isn’t enough to

convince companies, perhaps another major trend with global influence will cause

them to reconsider. Experts believe that the Great Recession of 2008 will result in

a permanent decrease in consumer spending. Not unlike survivors of the Great

Depression, Americans coming out of this downturn will be thriftier and less

wasteful. This is good news for the resale and reuse industries, as well as

companies that align their business models around sustainability and frugality. In

fact, a research study conducted by AlixPartners predicts consumer spending will

decline to around 86% of pre-recession spending(Press, 2009). With a portion of

total market share gone and not predicted to return, companies must fine-tune

every process and policy, aligning business goals with consumer values. It’s a

brave new (business) world.

Works Cited
AAFA. (2007). American Apparel and Footwear Association. Retrieved November
2009, from
http://www.apparelandfootwear.org/UserFiles/File/Statistics/trends2007Annual.pdf
Claudio, L. (2007, September). Waste Couture: Environmental Impact of the
Clothing Industry. Environmental Health Perspectives , 115, pp. A448-A454.

Earth Pledge. (2009). Retrieved November 2009, from http://earthpledge.org/ff

NatGeo. (2008, April 8). Human Footprint - Our Clothing Footprint. Retrieved
November 2009, from National Geographic:
http://ngccommunity.nationalgeographic.com

Porter, M., & Kramer, M. (2006, December). Strategy and Society. Harvard Business
Review .

Press, T. A. (2009). MSNBC. Retrieved 2009, from

http://www.msnbc.msn.com/id/32732677