Article by Marc Gunther at Greenbiz.com: http://www.greenbiz.com/blog/2012/07/26/behind-scenes-sustainable-apparel-coalition?utm_source=E-News+from+GreenBiz&utm_campaign=21c7056b94-GreenBuzz-2012-27-07&utm_medium=email
The story of the Sustainable Apparel Coalition begins with a letter designed to get the attention of even a busy CEO. At the top: the logos of Walmart and Patagonia. John Fleming, who was then Walmart’s chief merchandising officer, and Yvon Chouinard, Patagonia’s founder, signed the letter, which invited chief executives of some of the world’s biggest clothing companies–fierce competitors, ordinarily — to join together to develop an index to measure the environmental impact of their products.
Their pitch, in part, read like this:
Creating a single approach for measuring sustainability in the apparel sector will do much more than accelerate meaningful social and environmental change. Standardization will enable us to maximize sustainability benefits for all buyers without investing in multiple sustainability technologies and certification processes, and ultimately empower consumers to trust claims regarding sustainably sourced apparel.
Finally, as an industry, we will benefit from the unique opportunity to shape policy and create standards for measuring sustainability before government inevitably imposes one.
…The time is right and the need is great for the apparel sector to move forward now, without further delay, in unison, with strong partners like you.
It was a risky proposition. What if it turned out that a competing company had a better sustainability story to tell? Would consumers be given access to the index? NGOs? Regulators? Most big retailers knew that they had very little visibility deep into their supply chains. Did they really want to find out, for example, that a supplier to one of their suppliers, in a factory they had never visited in China or Vietnam, exploited workers or dumped pollution into a nearby river? Any meaningful index would require companies to ask tough questions and, eventually, face demands from others to share what they had learned.
The letter went out on October 1, 2009. Less than three years later, despite those risks, the apparel industry has made major progress towards creating a global sustainability index, the Higg Index, to measure and score products, factories and companies. A first version was released today by the Sustainable Apparel Coalition, the nonprofit group that developed the index.
Its vision? Nothing less than “an apparel and footwear industry that produces no unnecessary environmental harm and has a positive impact on the people and communities associated with its activities.” The Sustainable Apparel Coalition (SAC) hired an executive director, Jason Kibbey, in January, and today it has more than 60 members, representing brands, retailers and suppliers who together account for more than a third of the global apparel and footwear industry.
Philips-Van Heusen has what Kiku Loomis, its Director of Operations & Licensee Compliance, Global Human Rights and Social Responsibility, calls a “medium-sized supply chain.” This despite the fact that, as the world’s third-largest apparel company, parent of brands like Calvin Klein, Van Heusen, Izod, Tommy Hilfiger and many others, PVH has 750 active vendors, 1,750 active factories, and conducts around 3,000 audits per year.
It can, as you might imagine, become quite a burden to manage the daily activities of this supply chain, but whether your supply chain is significantly larger or significantly smaller than PVH’s, the same challenges persist: Gathering all the relevant data from suppliers, auditing suppliers’ performance, and working with stragglers to protect a company from operational and reputational risks. (more…)