Winter 2020 - Inside Outdoor Magazine

Inside Outdoor | WINTER 2020 24 “Only a few of the companies sur- veyed have the minimal goal of less than a 10 percent share of products sourced with sustainable materials,” said the research firm. Perhaps not surprisingly, recycled materials are likely to continue to cap- ture most of the attention during the next five years. Sourcing executives are “highly optimistic,” said McKinsey analysts, about the industry transform- ing to at least 30 percent recycled fiber content in every new garment. More than three-quarters think that’s likely or highly likely (34 percent) by 2025. Three-quarters of apparel compa- nies are planning to include recycled polyester from plastic waste, while two- thirds are aiming to include recycled polyester from post-consumer garment waste, albeit an “ambitious target,” said the research firm. Closed-loop recycling is in the discussion but almost certainly outside any year-2025 plans. At the same time, nearly half of companies surveyed are looking to integrate more innovative bio-based materials, on par with recycled nylon or responsible or recycled wool. “Considerable innovation is tak- ing place in this area,” said McKinsey analyst, later noting PrimaLoft’s efforts in biodegradable insulation. Well more than half of sourcing executives believe it’s likely or highly likely that new sus- tainable materials, including biobased, will account for at least 20 percent of textiles within the next five years. And much of the innovation will be part- nership-driven, said the research firm, which could suggest sustainable materi- als will be a “buy” rather than “build-it” business for the largest apparel brands. For cotton, survey respondents ex- pressed a preference for responsible cotton over virgin organic cotton or recycled cotton. “In the more recent sustainability pledges, preferred cotton fibers, rather than organic cotton, are the go-to solution for the broader com- mitments,” said McKinsey. Optimism, incidentally, is extremely high over the possibilities within virtual sampling. “A staggering 83 percent of respondents believed that physical samples would be used less often than virtual samples by 2025,” said the study. In terms of barriers, the major bottle- necks, say sourcing executives, remain cost and quality of materials. Availability of materials is the number one hurdle companies face, named by 46 percent of respondents. And the larger a company, the more likely material availability is the number one problem. There is also concern among sourc- ing executives about the need for a more unified front among the various stan- dards and certifications. To get the word out and express transparency efforts at the scale they serve, large apparel brands desire the proverbial “seal of ap- proval” or a common language to com- municate efficiently with consumers. Re- spondents, however, are optimistic about efforts to harmonize global standards for social auditing. In particular, McKinsey noted the launch of the Converged As- sessment Framework of the Social & Labor Convergence Project and its inte- gration in the Higg.org platform as open- ing the way for reduced audit fatigue. The skeptic might argue that in sur- veys such as this, respondents some- times offer up the “right” response rather than their “real” response. And in today’s corporate cultural climate, sustainable is the right answer. If nothing else, however, at least it’s being discussed in the c-suites across several countries and is firmly near- center of apparel brands’ radar. McKin- sey found, for instance, that 56 percent of CPOs agree that responsible and sustainable sourcing is considered a key strategic part of doing business. Large multi-national public corpora- tions, it’s been said, are like battleships. They take a long time to turnaround, but once they do, get out of the way. m 68 95 79 89 42 47 44 21 11 30 16 31 What do you see as the main hurdies for moving to sourcing sustainable material at scale? Source: McKinsey, survey of apparel company chief purchasing officer Availability of material Percentage of respondents Mentioned as top 3 <USD 1 bn sourcing value >USD 1 bn sourcing value Cost of material Quality of material Current supplier base Internal knowledge in sourcing organization Internal knowledge in design How do you typically incentivize your suppliers to increase their levels of social and environmental sustainability? % Stron Retail Technolo The st We w Technol Source: McKinsey, survey of apparel company chief purchasing officer Positive supplier performance will lead to volume increase (non-binding commitment) Negative supplier performanc will lead to reduction of sourcing volume Positive supplier performance will lead to multiseasonal volume commitments Equal partnership program (co-investments) with well-performing suppliers Suppliers with positive performance receive financing support Always used Commonly used Often used Rarely used Never used n/a 3 9 20 33 30 5 3 9 13 11 13 30 63 64 23 23 31 6 27 17 6 11 17 25 2 22 2 2 Percentage of respondents Ingredients