SUSTAINABILITY

It’s time to protect the planet as well as your profit

It’s no secret that the fashion and retail industries have serious environmental impact. Some have even estimated that the industry is responsible for 10% of all the world’s carbon emissions.

Why is sustainability so important?

Sustainability at a glance

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More than just a trend...

Unlike many buzzwords in fashion and retail, sustainability is more than just another trend. Sustainability is here to stay, and for good reason. The industry’s long-standing environmental struggles have been well documented, with some estimates suggesting that up to 85% of textiles are dumped into landfills each year – which equates to enough waste to fill the Sydney Harbour annually.

Legislation is clamping down on businesses

These issues have resulted in mounting pressure from local governments and consumers. Across the globe, countries and governing bodies are reassessing sustainable practices that companies should follow, including how they manage waste, publicise their ethical practices, and how workers in the industry are treated. For example, the German Supply Chain Due Diligence Act (LkSG) provides regulations that companies should adhere to in order to comply with due diligence surrounding human rights and material standards for environmental protection in supply chains.

The end of fast fashion?

Through a combined effort of several pieces of legislation introduced in Europe and new rules proposed by the European Commission, the EU has set out a bold plan to end fast fashion and reduce waste by 2030. This includes mandatory minimum use of recycled fibres and improved global labour conditions in the garment industry. The European Commission hopes its move will bring about a cultural change that makes sustainable fashion the new norm from the high street through to luxury brands.

Consumer pressure is mounting too

And if that wasn’t enough pressure on businesses, consumers now demand sustainable practices. In fact, K3’s research found that 30% had boycotted a retailer for lacking environmental awareness, and this number rose to a staggering 54% for consumers aged between 18 and 24. This is quite the problem as the Bank of America has previously revealed that by 2030, Gen Z will have an income totalling $33 trillion as they enter the workforce – which will account for more than a quarter of global income. Given that this generation already boycotts retailers who aren’t sustainable, it’s clear that businesses must adapt before the cohort fully enters the workforce.

Businesses still don’t fully understand the circular economy

K3’s latest research found that two-thirds of fashion and retail decision makers said they were familiar with supply chain traceability, while only half (53%) said they were familiar with the circular economy. This is something of a paradox. Many believe the circular economy can be simply defined by activities like renting, reselling, and recycling that lessens environmental impacts. While this is mostly true, it isn’t the full picture. The circular economy is more about transitioning away from the linear economy that can perhaps best be categorised by our “take, make, waste” rationale. To that end, traceability is a key part of circular efforts since it allows businesses to identify opportunities to reduce waste and reuse materials in their supply chains. So, it is somewhat inconsistent to see more familiarity with supply chain traceability, but less with the circular economy, when the former feeds the latter.

Despite the burgeoning need for sustainable solutions, many fashion and retail businesses are still ill-equipped to deal with this challenge head on. For example:

29%

Only 29% of fashion and retail decision makers have all the supply chain technology they need to manage their supply chains more ethically and sustainably.

31%

Only 31% of fashion and retail decision makers place environmental sustainability in their top two IT budget priorities.

<50%

Less than 50% of fashion and retail decision makers use IT resources to manage their brand’s Corporate Social Responsibility (CSR) or company-wide sustainability objectives.

20%

Only 29% of fashion and retail decision makers have all the supply chain technology they need to manage their supply chains more ethically and sustainably.

Here’s why you should consider adopting sustainable strategies today…

Comply with
ESG and CSR standards:

Supply chain traceability tools enable you to track raw materials and ensure you adhere to ESG and CSR standards to avoid unnecessary risk.

Optimise
costs:

Solutions that provide enhanced visibility throughout your supply chain enables you to identify opportunities to reduce waste and save costs.

Reduce
waste:

PLM solutions ensure you can better manage your products and extend their lifecycles while reducing waste and giving your consumers additional value for money.

Attract new
customers:

Adopting sustainable solutions enable you to measure, justify and promote the positive impact you have on the world, which will, in turn, help win over younger generations as new customers.

K3 is committed to doing the right thing, and that’s exactly why we’ve developed solutions that enable fashion and retail brands to stay on track with their CSR and Environmental, Social, and Governance (ESG) agendas.

Benefit 1

Drive your CSR agenda:

Our CSR module provides classifications on all materials, suppliers, and products. Each classification is accompanied by verified certification and other relevant documentation to provide details on an item’s ethical and sustainability history. This ensures you have all the information needed to decide on whether to proceed with a material, supplier, or product.

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Helpful resources

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Drop us a line, and we will walk you through our solutions

Have a no-obligation chat with our specialists to find out how we can help you meet your customers’ demands.

It’s time to protect the planet as well as your profit

Why is sustainability so important?

Sustainability at a glance

More than just a trend...

Legislation is clamping down on businesses

The end of fast fashion?

Consumer pressure is mounting too

Businesses still don’t fully understand the circular economy

Despite the burgeoning need for sustainable solutions, many fashion and retail businesses are still ill-equipped to deal with this challenge head on. For example:

Here’s why you should consider adopting sustainable strategies today…

Comply with
ESG and CSR standards:

Optimise
costs:

Reduce
waste:

Attract new
customers:

K3 is committed to doing the right thing, and that’s exactly why we’ve developed solutions that enable fashion and retail brands to stay on track with their CSR and Environmental, Social, and Governance (ESG) agendas.

Drive your CSR agenda:

Helpful resources

Everything you need to know about the German Supply Chain Due Diligence Act

Deep Dive: Why is supply chain transparency so hard to achieve?

The role of the store will be key in driving sustainability and circular economy agendas

Drop us a line, and we will walk you through our solutions

It’s time to protect the planet as well as your profit

Why is sustainability so important?

Sustainability at a glance

More than just a trend...

Legislation is clamping down on businesses

The end of fast fashion?

Consumer pressure is mounting too

Businesses still don’t fully understand the circular economy

Despite the burgeoning need for sustainable solutions, many fashion and retail businesses are still ill-equipped to deal with this challenge head on. For example:

Here’s why you should consider adopting sustainable strategies today…

Comply with ESG and CSR standards:

Optimise costs:

Reduce waste:

Attract new customers:

K3 is committed to doing the right thing, and that’s exactly why we’ve developed solutions that enable fashion and retail brands to stay on track with their CSR and Environmental, Social, and Governance (ESG) agendas.

Drive your CSR agenda:

Helpful resources

Drop us a line, and we will walk you through our solutions

Comply with
ESG and CSR standards:

Optimise
costs:

Reduce
waste:

Attract new
customers: