INTERNATIONAL
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District Collector Deepak Jacob held a consultative meeting here on Wednesday on a mini textile park proposed in Krishnagiri. The Collector sought participation of entrepreneurs to develop the infrastructure in the district. This project envisages subsidy of ₹2.50 crore and minimum requirement of two acres to house at least three textile units. Entrepreneurs/developers seeking to participate in the setting up of such a park will have to fulfill the criteria of land; infrastructure (that shall include approach road, water distribution, electricity including captive power plant, effluent treatment, communication facilities); built up area (to include an inspection hall, conference hall, training hall, trading center, warehouse, inputs hall, crèche, canteen, workers hostels); manufacturing floor; machinery and implements. The government subsidy of ₹2.50 crore is only applicable to the second, third and fourth criteria, according to the district administration. Entrepreneurs and developers are invited to participate in the development of a mini textile park in the district proposed under the Ministry of Handlooms and Textiles. Further details may be ascertained from the Regional Deputy Director, Department of Handlooms, 1 A -2/1, Sangagiri Main Road, Salem – 636 006, (Phone -0427 2913006),or via email on ddtextilessalemregional@gmail.com. Deputy Director, Salem region S.Hamsaveni; General Manager of District Industries Center Prasanna Balamurugan among others took part in the meeting.
Source: The Hindu
It is no secret that we are currently in the middle of a climate crisis, one that scientists say will become irreversible if we do not slash greenhouse gas emissions in half by 2030, according to The New York Times. Global temperatures have been rising and will continue to do so if we do not act fast. While some causes of global warming are extremely obvious, such as fossil fuel emissions from transportation, deforestation and power generation, some of the more ignored contributors to climate change include manufacturing and consumption of goods, specifically textiles, according to the United Nations. Per BBC, the fashion industry accounts for about eight to 10 percent of global carbon emissions and 20 percent of wastewater production, a byproduct of dyeing processes in garment manufacturing. The fashion industry is known to consume more energy than aviation and shipping do, according to the United Nations. Clearly, some change needs to be made in the fashion industry if we are to reach our global goals regarding halting global warming. This begs the question of how we, as consumers, can contribute to this effort. One significant problem in any effort to tackle climate change is the distinction between personal and large-scale actions. Many people look at the grand scale of global warming and find it hard to believe that their personal actions could have any significant impact on reducing climate change. It is well known that the vast majority of global warming is caused by large corporations, with just 100 corporations responsible for 71 percent of carbon emissions, according to The Guardian. With numbers like this, the effectiveness of personal actions seems dubious Another problem is the seeming necessity of many of the biggest contributors to climate change. In a country as spread out and public transport-averse as the United States, it is nearly impossible to travel around without a car, which contributes to carbon emissions. Although one car may not create a noticeable effect on carbon emissions, this is a country of 330 million people. We also need power and electricity, and many of us have very little ability to contend with deforestation. But one of the areas in which individual choices may have a noticeable effect on carbon emissions is in consumption, specifically of clothing. I am not contesting the fact that we need clothes. Clothes are undoubtedly an integral part of human life, and fashion can be a beautiful, expressive art form. The clothes that people wear are often an expression of their own personalities and artistic flair. But do we really need so many clothes? According to a 2016 survey by ClosetMaid, the average American woman has 103 pieces of clothing in her wardrobe. On the other hand, researchers have found that around 74 pieces of clothing are sufficient, per Vogue. A definition of a “sufficient” amount of clothing seems a little bit hard to pin down, as clothing and fashion styles can be very different, but it is still undeniable that we are consuming clothing at a rate much higher than ever before. According to The Wall Street Journal, we are consuming five times more clothing than we did in 1980. Correspondingly, the amount of waste generated in the production of increased amounts of clothing is also increasing. One important event has contributed to the rise in garment waste since the 1990s: the rise of fast fashion. Fast fashion, according to Ecowatch, is massproduced clothing which is made quickly, made cheaply and attempts to follow the latest fashion trends, which change faster and faster, thanks to social media. Fast fashion has made clothing more accessible and affordable, but at the cost of quality and workers’ rights. It is no secret that many fast fashion brands use exploitative methods of labor, such as sweatshops in some Asian countries where workers are paid inhumane wages, often working in unsafe conditions, according to Forbes. This tradeoff between affordability and quality also means that clothes last for a lot less time than they did when the majority of clothes were made in the United States. This means that consumers are forced to throw out clothing a lot faster than before the rise of fast fashion, and must subsequently buy more pieces, which generates even more waste. According to The Washington Post, the average piece of clothing will only be worn seven times before being thrown out. In fact, according to the Environmental Protection Agency, textile waste has increased 811 percent since 1960, and much of it is not recyclable, meaning that it ends up in landfills. The effects that fast fashion is having on the climate are horrifying. The more pieces of clothing that are produced, the more textile waste, and the more workers that are exploited. The faster clothing is made, the faster we buy it. One particularly heinous example is Shein. According to Time Magazine, Shein is well known for its accessibility, affordability and adherence to internet trends. The company quickly produces cheap, trendy clothing. But the true cost of this model is the well-being of our planet. In 2021, Shein produced 6.3 million tons of carbon dioxide, the same as 180 coal-fired power plants. The clothes are well-documented to be of poor quality, hardly lasting a long time, and the conditions under which many of Shein’s factory workers have been documented to work are unconscionable, according to Medium. All of this is contributing to climate change, and the realization that the Earth may soon become unlivable is only confirmed by the prevalence and popularity of retailers like Shein. This kind of overconsumption, and the consequent pollution and carbon emissions, must be put to a stop if there is any hope to reverse the negative effects of climate change. This begs the question of what to do without fast fashion. For all of its ills, fast fashion has made art through personal style much more accessible for people to whom it was not previously available. Designer brands and styles are wholly unaffordable for the average person, and fast fashion may make artistic expression through clothing much more possible. To this I say that the key is not to completely eliminate consumption of textiles and clothing— that is impossible in the world we live in today. The key is instead to be more mindful about our clothing choices. We must ask ourselves why we need 20 new pieces of clothing every year. Is it possible to dig through your wardrobe and find something appropriate for the occasion that you may have forgotten about? Can you find an alternative to a brand new item of clothing at a thrift store? We can’t completely reduce consumption, but we can lessen it. This requires us to be more mindful about where we are buying from, what we are buying and how often we are buying. It is all too easy to punch in the numbers of your credit card online and have a new item of clothing at your doorstep in two days. It takes more work to think about how to sustainably shop for clothing. But the price we may one day pay for our current way of viewing and consuming fashion and clothing is the safety and well-being of our planet, and that is a price we should all be unwilling to pay.
Source: Miscellany News
Ministers and high-level representatives from India and the European Free Trade Association (EFTA) States (Iceland, Liechtenstein, Norway, and Switzerland) gathered in New Delhi today to discuss the prospects of resuming their negotiations towards a Trade and Economic Partnership Agreement (TEPA). The high-level delegations were composed of Shri Piyush Goyal, Minister of Commerce & Industry, Consumer Affairs & Food & Public Distribution and Textiles of India; Jan Christian Vestre, Minister of Trade and Industry of Norway; Helene Budliger Artieda, Swiss State Secretary at the State Secretariat for Economic Affairs SECO; Martin Eyjólfsson, Permanent Secretary of State of Iceland at the Ministry for Foreign Affairs; Kurt Jäger, Ambassador and Permanent Representative of Liechtenstein to EFTA, WTO and the UN in Geneva; and Henri Gétaz, Secretary-General of the European Free Trade Association. The meeting provided an opportunity for both sides to exchange views on the state of play of their negotiations and explore ways to advance the talks. The participants acknowledged the challenges posed by the current global economic and trade environment, as well as the need to address the bilateral trade and economic partnership issues in a constructive and pragmatic manner. Both sides agreed to continue their efforts to resolve all outstanding issues and work towards deepening and strengthening the economic partnership, while contributing to a more inclusive global trading system.
Source: PIB
The bilateraltrade between India and Korea grew by 17.3 per cent to USD 27.8 billion in 2022, according to Korea Trade-Investment Promotion Agency (KOTRA). In 2021, the value of bilateral trade between the two countries stood at USD 23.7 billion. Korea's exports to India increased by 21 per cent to USD 18.9 billion, while imports increased by 10.5 per cent to USD 8.9 billion. Addressing India-Korea Future Industry Partnership Event 2023, Ambassador of the Republic of Korea to India Chang Jae-bok on Wednesday said, "India and Korea must focus on the critical issue of green energy and learn from each other's strengths. Green energy, hydrogen energy, and EVs are the future, and Korea's leadership in producing EVs since 2005 is an excellent example for India". The two-day event is organised as part of a 50-year celebration of the IndiaKorea diplomatic relationship. Through collaboration and cooperation, both countries can further emphasise the importance of adopting green energy and work towards achieving the sustainable development goals that both countries are committed to, Jae-bok said. Executive Vice President for Economic Cooperation & Trade Affairs, KOTRA, Taeho Kim said both countries must prioritise cleaner energy and focus on G20 Sherpa Amitabh Kant, who joined the event virtually, said as India takes on the G20 presidency, we aim to bring together countries to promote sustainable development goals that will benefit not only India but the world. "Our belief in 'One World, One Family' drives us to contribute towards SDGs and promote sustainable practices that will enable future generations to live a greener and cleaner life. Through our efforts, we can create a more sustainable world that is harmonious and equitable for all." Items which Korea imported from India include petroleum products, vegetable substances, ferroalloy and steel products, while it exported mainly semiconductors communication devices and displays, among others.
Source: Economic times
No country in the world has managed to reduce poverty consistently or sustain GDP growth without a strong manufacturing base. Between 1979–2014, manufacturing remained at 16–18% of India’s Gross Value Added (GVA). Since 2015, it has declined and reached 13% by 2019, the lowest ever since 1960. By contrast, in Bangladesh, it rose from 15% till 2006 to 21% in 2021. In Vietnam, it increased to 25% of GVA in 2021 from 17% till 2010. These countries have also attracted a significant share of FDI, except China, which vacates billions of dollars worth of manufactured exports. In India, manufacturing employment has not grown—the exact opposite of what is needed in a labour-surplus economy with 30 million unemployed pre-Covid (and nearing 40 mn now). Five to six million are added to the labour force annually (and twice that number to the working-age population). Meanwhile, employment in manufacturing as a share of total work rose from 10.5% in 2004–05 to 12.8% in 2011–12 and fell to 11.6% or less between 2019–22. This is despite ‘Make in India’ and the Performance Linked Incentive Scheme (PLI). India had never had an explicit industrial policy or manufacturing strategy since 1991, although the Industrial Policy Statement (1991), when economic reforms began, did articulate what today can only be called an implicit industrial policy. It relied on (a) liberalisation of the domestic economy and deregulation of sectors, including a reduction in sectors reserved for the public sector; (b) opening up to a reduced tariff regime and a new focus on export orientation; (c) de-licensing of industrial capacity in existing or new industries. However, there was little by way of explicit measures to ensure that India’s manufacturing capacity was strengthened. It was only in 2011 that the government came up with a National Manufacturing Policy, followed by an Electronics System Design and Manufacturing Policy in 2012, along with a newfound emphasis on industrial policy in the 12th Five Year Plan chapter on industry (to which I had the good fortune of contributing as the director general of the Planning Commission’s research institute). Unfortunately, that government went into policy paralysis in its last two years. ‘Make in India’ was not really an industrial policy at all, as it only emphasised on doing business and attracting FDI. The actual results in the last eight years have been the falling share of manufacturing in GDP as well as of manufacturing employment in total employment. The only other initiative in manufacturing has been PLI, which has many issues. First, it is based on a conceptually flawed approach to industrial policy of picking winning firms (rather than sectors). This is the opposite of the successful approach adopted in East Asia, which did not select winning firms but adopted a combination of a horizontal, cross-sectoral industrial policy and a focus on some key sectors. The second problem with PLI is the choice of sectors. Eleven of 14 sectors selected to receive financial subsidies are capital-intensive. India is in desperate need of more industrial jobs of good quality; hardly any jobs will result from PLI, except for a few thousand highly skilled ones. The country is desperate for more low and semiskilled jobs where people can be employed in more labour-intensive sectors. Third, giving the bureaucracy a role in picking winners harks back to Licence Raj; we know how well that went. It encouraged rent-seeking on a grand scale. Fourth, there is a significant fiscal cost of PLI: ₹1.5 trillion over five years (between 2021–22 and 2024–25); this is when the fiscal deficit is at a historic high, and the debt to GDP ratio has increased in the Covid years from 60% to 85%. Besides, funds are needed for human capital (technical and vocational education, higher education, R&D), apart from an investment in hard infrastructure. Fifth, there is a risk: on the completion of five years of subsidy, the beneficiary industries will demand an extension of benefits beyond five years, a demand that the Indian industry was used to making during the Licence Raj. A sunset clause is needed. Finally, in PLI, there is no expectation that winning firms are expected to export when expanding capacity, an essential prerequisite in East Asia. By contrast, in India, the labour-intensive manufacturing sectors like food processing, tobacco, textiles, apparel, leather, wood and furniture have declined since 2012. The tobacco and textiles sub-sectors within manufacturing have seen a fall in their share of total manufacturing employment in India (though total jobs grew slightly). Nearly every successful economic growth take-off in post-war history in East Asia was associated with rapid expansion in apparel exports in the early stages. The ratio of jobs to investment is as follows: in apparel, 31.1, in autos only 2.6, and steel, 1.0 (based on the Annual Survey of Industries, 2013–14). India could take a part of the market share that China is losing in international markets due to rising Chinese wages. But India is losing to Bangladesh, Vietnam, Myanmar, and Ethiopia. However, the government is focused exclusively on selecting winning firms in certain sectors through the Performance Linked Incentive Scheme. This has added to some exports of mobiles. But that does not amount to a broad industrial policy, just as Make in India has, far from increasing manufacturing contribution to GDP or employment, only managed to reduce it.
Source: New Indian express
A 50-day skill development training on traditional Adi dress-making concluded here in Upper Siang district on Wednesday. The main objective of the training was to provide livelihood and sustainable income generation opportunity to the trainees, NABARD DDM Nitya Mili said during the valedictory programme. He stressed on the need of marketing and selling the unique handloom textiles of Arunachal at national and global market. Mili informed that the Adi textile has been taken up for GI registration by NABARD and the application has already been filed which, the NABARD DDM said, “will give a unique identity to the handloom products of the area being produced by the SHG members.” He also highlighted on various NABARD-sponsored schemes, like rural mart, rural haat, sponsoring artisans and SHG members for exhibitions and melas etc. The Dite Mopang Welfare Society (DMWS) chairman also elaborated the aims and objective of the training programme. He asked the trainees to continue with their effort and keep alive their traditional identity which, in turn, will generate additional income for them. The skill training was sanctioned by NABARD to DMWS, an NGO comprising 30 rural women.
Source: Arunachal Times
UK's Minister for Investment Lord Jo Johnson on Wednesday embarked on a visit to India to strengthen the bilateral investment partnership across technology and life sciences sectors and build momentum behind ongoing trade talks. After arriving in Bengaluru, Johnson is set to visit Pune to meet investors and leading Indian businesses, including Infosys and Zensar, to drum up investor interest in the UK, the Department for Business and Trade (DBT) said. The visit coincides with Round 9 of negotiations this week between officials working on the UK-India free trade agreement (FTA). "It is fantastic to be in India again visiting the vibrant cities of Pune and Bengaluru to find out how our strong cultural and economic ties mean investors and business leaders continue to choose the UK," said Johnson. He visited Mumbai and New Delhi in October last year when he met with investors and businesses including Apollo Hospitals, Prodapt and Wockhardt. "From life sciences to AI [artificial intelligence], now is the time to invest in the UK as we are determined to be the undisputed number one investment destination in Europe," he said. On the eve of the ministerial visit, the DBT described India as a "priority market" for the UK with Johnson's visit seen as helping to build momentum behind the ongoing FTA negotiations between the two countries. Johnson, a House of Lords peer and the younger brother of former British prime minister Boris Johnson, will also use his visit to promote the Global Investment Summit 2023, which will bring together over 200 CEOs of multinational companies and investment corporations in the UK later this year. According to the British government, the inaugural Summit in 2021 secured nearly 10 billion pounds of new foreign investment on the day, with this year's event set to showcase emerging UK success stories in life sciences, deep tech, nuclear fusion and small modular reactors (SMRs), and manufacturing. The DBT said the UK-India investment partnership is thriving, with over 28 billion pounds invested in each other's economies supporting over half a million jobs. According to official UK government statistics, total trade in goods and services (exports plus imports) between the UK and India was 34 billion pounds in the four quarters to the end of Q3 2022, an increase of 51.7 per cent or 11.6 billion pounds from the four quarters to the end of Q3 2021. India was the UK's 12th largest trading partner in the four quarters to the end of Q3 2022, accounting for 2.1 per cent of total UK trade.
Source: Economic times
Rajasthan has witnessed a significant 10.04 per cent year-on-year growth in its exports till February 2023, according to REPC. The state's textiles, agro-food products, gems and jewellery and engineering goods have been the major contributors to this growth, Chairman of Rajasthan Export Promotion Council (REPC) and RAJSICO Rajiv Arora said. Arora said that more than 31 lakh people in the state are employed in export units and allied services. He also highlighted the efforts made by the state government under the initiative 'Mission Niryatak Bano' to provide necessary process and documentation training to over 9,000 entrepreneurs, artisans and handicraftsmen from different districts to make them exporters. As a result, the exports from Rajasthan have increased from Rs 46,476 crore in 2017-18 to over Rs 70,000 crore as of February 2023.
Source: Money control
INTERNATIONAL
The deadline for applications for the ITMF Awards 2023 – “Sustainability & Innovation” and “International Cooperation” – as well as the ITMF Start-up Awards 2023 is extended to May 31st, 2023. The Awards 2023 will be presented and handed over during the ITMF Annual Conference 2023 in Keqiao, China from November 4-6, 2023. All relevant information about the ITMF Awards 2023 can be found on the following website: https://www.itmf.org/awards/itmf-awards-2023 ITMF is an international forum for the world’s textile and related industries founded in 1904. ITMF members are associations and companies covering the entire textile value chain – producers of fibres, textile machinery, chemicals, textiles, apparel, and home textiles. The membership is from more than 40 countries and is representing around 90% of global production.
Source: Textile world
Exporting is one of Vietnam’s most important pillars for growth. However, some key export items such as textiles and garments, seafood and woodwork are facing difficulties. Because of the sharp fall in orders, workers have been laid off or have taken temporary leave, affecting social welfare.
Production slows, workers take alternate leave “The situation is very tough. We are maintaining production at a moderate level,” said Thang Van Thong, deputy general director of Hao Hung Co Ltd, a large wooden furniture manufacturer. Recalling this time last year, Thong said there were so many jobs that his enterprise, with several thousand workers, had to refuse many orders. But things are different this year. “The number of orders we have had so far this year is just 30 percent of last year's,” he said. Previously, Hao Hung employed 3,600 workers in different factories. But now, as it lacks orders, the staff has been cut to 2,200 and they now work in rotation. According to Thong, difficulties began late last year, and no sign of improvement has been seen since then. After the pandemic was contained, Hao Hung sent a group of senior executives to Europe, the US and Asia to seek orders and new export markets. “There’s nowhere we don’t go. In order to find orders, we will depart immediately when we can see signs of opportunities,” he said. However, it has been difficult to enter familiar markets such as the US and Europe. “The number of orders has plummeted to just 10 percent of the same period last year, so we don’t expect too much. The new markets in Asia, such as Turkey and India, have shown good signs, but we still are waiting and no deal has been made,” he said. The need for orders has put a burden on wooden furniture manufacturers. The situation is getting worse as VAT refunds, worth trillions of dong, are still stuck because of complicated procedures. “I’ve never seen such big difficulties in the woodwork industry before, and it is now among the top 5 in the world,” Thong said. Seafood companies also need orders. Tran Van Linh, CEO of Thuan Phuoc, said by this time last year, the company had enough orders for the fourth quarter. But now he has only small orders. The company has maintained production at a moderate level. A chair of a large seafood export company confirmed that the number of orders by the end of the first quarter of 2023 had decreased by 27 percent compared with the same period last year. In 2022, his enterprise had revenue of $135 million, up 35 percent over 2021. But he is not optimistic about the business performance this year because signs of difficulties turned up in the fourth quarter of 2022. He said that exports have slowed and international B2B partners have refused to receive more goods because purchasing power in their countries has decreased. “After the 2008 global economic crisis, 2023 is expected to be the toughest year for seafood companies as many factors affecting production and business are occurring at the same time,” said Truong Dinh Hoe, secretary general of the Vietnam Association of Seafood Exporters and Exporters (VASEP). “Meanwhile, internal problems, including the lack of land for aquaculture, higher input costs and high interest rates have had an adverse impact on seafood exports,” he said. Hoe confirmed that seafood orders have dropped by 20-50 percent in the first quarter of 2023, while inventories have increased. Regarding the textile and garment industry, the HCMC-based Song Ngoc Co Ltd said the US partner now cannot sell products. In previous years, the partner had always urged Song Ngoc to fulfill their contracts soon, but this year, it has refused to accept deliveries sooner than scheduled.
Exports down Nguyen Ngoc Luan, CEO of Meet More Coffee, said Australia has raised the interest rate four times so far this year and Australians now have to tighten their purse strings amid high inflation. The purchasing power in the country has decreased by 20 percent and sales of imports from Vietnam have also been affected. Vietnam’s agricultural export turnover reached $11.19 billion for the first quarter of 2023, down 14.4 percent year on year. Many key export items saw sharp decreases in export turnover, including woodwork, rubber, cassava and seafood products.
Source: Vietnam net
The 'Circularity Innovation Challenge 2023' has been introduced by German Gesellschaft fur Internationale Zusammenarbeit (GIZ) and Aditya Birla Fashion and Retail Limited (ABFRL). By working together with the Centre for Environment Education (CEE) and GIZ Leverist, this programme aims to give innovators in the textile and apparel sector a place to develop fresh ideas. There will be eight categories in the competition, and innovators who are shortlisted or selected will have the chance to pilot their ideas. "We are thrilled to kickstart the 'Circularity Innovation Challenge 2023' in partnership with GIZ," said Dr Naresh Tyagi, Chief Sustainability Officer, ABFRL."At ABFRL we aim to collaborate, contribute, and co-create a new movement in the Indian textile sector. Our goal is to create a platform for innovators, to introduce sustainable and impactful solutions and raise awareness about textile circularity. This initiative will bring forth innovative solutions that can help minimise textile waste and promote the use of sustainable materials in the industry. We are happy to announce that the finalist will get a platform to co-design pilot projects with ABFRL, which will be integrated into our supply chain. Moreover the pilot project will give them a boost to test and scale their innovation in the larger textile and apparel market." The German Federal Ministry for Economic Cooperation and Development (BMZ) sees immense value in public-private partnerships as a measure to attain the sustainable development agenda. Their DeveloPPP program supports this joint project between GIZ India and ABFRL on circularity in India's textile and apparel sector. Meghana Kshirsagar, Senior Advisor Climate Change and Circular Economy at GIZ India, emphasises that this innovation challenge is one of their many upcoming initiatives to bring stakeholders from the textile ecosystem on one platform - innovators, designers, students, brands and industry, MSMEs, incubators, think-tanks and decisionmakers - so we can together showcase successful examples of circular approaches for the sector through effective collaboration. Kartikeya Sarabhai, Director, Centre For Environment Education (CEE) says,"The textile industry is one of the largest sectors of our economy. The challenge is to achieve growth along with sustainability, through a circular economy model. The Innovation Challenge is meant to encourage and capture the creativity and innovations especially of our youth. Eight different categories have been identified in which participants can apply and it aims to introduce circular economy models at an industry level through the ground breaking work of innovators. It's a great platform to collaborate, contribute and co-create." Participants in this challenge will have the opportunity to incorporate their ideas into the supply chains of textile companies and co-design pilot projects with ABFRL that focus on circularity and sustainability in textile and apparel. A large network of industry stakeholders will be introduced to the most creative concepts in order to explore potential links and collaborations. To encourage circular business practises in the Indian market, ABFRL has partnered with GIZ. Incorporating circular solutions into the textile and apparel industry's linear value chain not only helps existing players realise unrealised commercial opportunities, but it also significantly lowers the sector's high carbon footprint. ABFRL and other market participants can apply circular business principles and put in place technologically advanced and user-friendly procedures with the assistance of GIZ. Startups and innovators can submit nominations for awards in the many categories indicated on the website. Participants will have the chance to work together with others who share their interests to improve the environment. The Challenge is open for virtual applications until April 25, 2023, on the Leverist platform.
Source: Morung Express
New research by financial think tank Planet Tracker reveals that many of the world's largest textile companies are failing to link executive pay to environmental, social, and governance (ESG) performance, a key driver of credible action. Planet Tracker's Textiles Compensation report analysed 30 top textile brands and finds that over half of these companies, including Anta Sports, Gap, Levi Strauss, Nordstrom, Under Armour, and Victoria's Secret, lack any link between pay and ESG metrics. Only 7 percent have a link that includes clear annual objectives and reporting, a necessary requirement for effective pay programs, according to Planet Tracker.
No link between pay and ESG metrics The research shows that 57 percent of textile companies do not have a link between sustainability practices and executive compensation, yet the textiles industry accounts for 10 percent of global emissions. Furthermore, the top 20 equity investors in these companies hold a combined USD 278 billion. Planet Tracker calls on investors to extend pay performance policies beyond purely financial metrics and include sustainability-linked elements. The research also finds that the approaches of the majority of companies that do align compensation with ESG performance are insufficient. To ensure remuneration programs create meaningful change, companies should set clear, quantitative annual targets linked to sustainability improvement. Only two companies - Adidas and Puma - have clear annual sustainability-linked objectives and reporting for executive pay programs. Richard Wielechowski, Head of the Textiles Programme at Planet Tracker, comments, "Every textile player we analyzed is publicly committed to embedding sustainability into their operations and growth, yet these pledges are mere window dressing if the leaders of these companies are not held accountable for delivering sustainability goals." The report calls on investors to uphold effective sustainability-linked performance pay, by ensuring that performance-linked pay is material, targets and results are independently verified, targets are quantitative, targets are annual as well as long-term, sustainability targets are independent from financial targets, and achievements are clearly disclosed.
Source: Fashion united
Indorama Ventures Public Company Limited (IVL), one of the world’s leading sustainable chemical companies, has joined “Together for Sustainability” (TfS), a global initiative for sustainable supply chains. Indorama Ventures joins a network of 47 TfS member companies representing the global chemical industry, reinforcing its commitment to driving sustainable solutions in its supply chain management. Yash Lohia, Chairman of the ESG Council at Indorama Ventures, said, “Together, we must pursue the path of sustainability within our value chain. At Indorama Ventures, our sustainability strategy is built on partnerships and collaboration. With our purpose of reimagining chemistry together to create a better world, we are pleased to join ‘Together for Sustainability’ and stand with our peers in the chemical sector to enhance our joint decarbonization journey.” By joining TfS, Indorama Ventures is encouraging suppliers to meet high sustainability standards, reduce the risk of supply chain disruptions, and improve overall climate maturity. The collaboration will help foster an expansion of the company’s sustainable supply chain program. The company will contribute to the TfS Scope 3 Greenhouse Gas (GHG) workstream that developed and finetunes the Guideline for calculating Product Carbon Footprints (PCFs) in the chemical industry and beyond and, will develop an IT solution that will enable companies to share PCFs efficiently. This membership allows Indorama Ventures to further align with the UN Global Compact Principles. Through this initiative, Indorama Ventures will also be partnering with EcoVadis to assess our suppliers to identify risks and opportunities along the value chain, improve sustainability practices, and encourage collaboration among members. Yash Lohia added, “Higher supply chain standards allow us to further our vision of being a sustainable chemical company, to meet our customers’ expectations for greater transparency, and to ensure we are taking significant steps to reduce our environmental impact.” Bertrand Conquéret, President, Together for Sustainability, said, “A very warm welcome to the Indorama Ventures team! The arrival of Indorama Ventures strengthens TfS’ global position. Together and with our strategic partners we will continue to expand our reach and increase our impact on the sustainability performance in chemical supply chains around the world. Given the regulatory landscape, the climate challenge, and market conditions, the need for sustainable businesses is only increasing. TfS is the crucial factor in making supply chains and businesses in general more sustainable and resilient and contributing to the development of a better world.”
Source: Textile world
