Free webinar: Join Planet Tracker and a panel of industry experts for a brief presentation of our recent report Easy (Un)Pickings and a discussion on the role of investors in helping the textiles sector to transition to more sustainable practices.
Wet processors have the largest environmental impact in the Textiles, Apparel & Clothing supply chain, due to their high energy, water and chemicals use. The water risk associated with wet processors was discussed in an earlier Planet Tracker report, “Will Fashion Dye Another Day?” and the lack of environmental disclosure in “Threadbare Data”,
This new report explains the financial gains that can be made by investing in processes that lower the environmental footprint of wet processing.
Many wet processors could make simple, practical improvements to lower operating costs at the same time as lowering their environmental impact. Implementing these savings across the textiles industry in China (for example) could improve the industry operating profits by around USD 2 billion a year or 8%, resulting in a 40bps improvement in operating margin from 4.1% to 4.5%.
However, these are often not implemented due to a lack of understanding of the benefits of sustainability to the wet processing operations and because wet processing facilities can struggle to get investment to fund this transition, as well as the knowledge and support needed.
The report uses data shared with Planet Tracker by the Apparel Impact Institute (Aii) to show that helping the planet brings financial returns that cover the investment required in less than two years on average.
This is a huge opportunity for investors to facilitate a key environmental transition for wet processors through a range of funding mechanisms, as well as other parts of the textiles manufacturing chain such as garment manufacturers.