25.11.2022: News from KW 47

Studies and Co.

Changing Markets Foundation, Zero Waste Alliance Ukraine & STAND.earth "Dressed to kill - Fashion brands' hidden links to Russian oil in a time of war" (PDF): The investigation shows that attempts by countries to impose financially harmful sanctions on the Russian president Putin They are being undermined by the fashion industry. The report lists 39 global brands representing polyester from two of the world's largest polyester manufacturers, the Indian company. Reliance Industries and the Chinese Hengli Group, refer. Several brands are involved in their supply chains with Reliance and Hengli connected, including the Textile Alliance companies Adidas, Aldi, C&A, Esprit (even direct connections), H&M, Hugo Boss, Primark and Puma. During the Russian invasion of Ukraine Reliance increased its oil purchases from Russia by 12 times: At €829.4 million per month, making Russia its largest oil supplier. Reliance is one of the world's largest integrated producers of polyester fibres and yarns and is owned by the second richest man in India. In the North Indian Gujarat It is the largest oil refining center in the world, where many workers only receive a few dollars a day. The company faces numerous allegations of corruption, environmental and human rights violations. There is evidence that another major polyester supplier, the Chinese Hengli Group, also buys Russian oil for the production of polyester-based products. By May 2022, China’s imports of Russian oil had increased by 55 percent year-on-year, and Hengli has been known to source cheaper crude oil from Russia in recent months (YouTube Video "Are your clothes funding the war in Ukraine?").

Human rights watch "Obsessed with Audit Tools, Missing the Goal’: Why Social Audits Can’t Fix Labor Rights Abuses in Global Supply Chains": The report highlights the problems with social audits and certifications for suppliers. Social audits lasting only a few days, as well as the resulting certifications, pose a greater risk of undetected labour rights violations, in particular discrimination and harassment, forced labour, child labour and restrictions on freedom of association. The high pressure to reduce costs also cuts the time available for auditors to interview and investigate employees outside the company in safe environments, follow up on clues and gather evidence of labour rights violations. When audit companies are paid and commissioned not by the brands themselves, but by suppliers, it happens that auditors are asked to: Delete findings or communicate more serious breaches orally or separately in e-mails, but leave them unmentioned in the audit report itself. Several auditors stated that numerous consulting firms in different countries are helping to ‘manipulate’ the social audit system by helping factories ‘prepare’ for the actual audit. To this end, they train employees and management in answering questions and support them in creating false documents.

Baptist World Aid Australia "Ethical fashion guide": 581 marks were examined and classified in a score system of 0-100. Evaluation criteria include: tracing raw materials, paying livelihood wages, consulting workers, eliminating exploitation, using sustainable fibres and climate commitments. In the top 20% are companies with a rating of 48 to 86 points. The textile alliance companies Puma (58), Adidas (58), H&M (56), Hugo Boss (51), and Aldi (43) were also evaluated.

News

Black Friday: Trade experts disagree as to whether the Black Friday (25 November) can build on the successes of last year. Last year, consumers spent the most important day of sales (and the following: Cyber Monday) according to the German Trade Association (Handelsverband Deutschland) (HDE) almost EUR 5 billion. The HDE expects a sales record of 5.7 billion euros (+22%), however, other experts are skeptical due to persistent inflation. According to the management consultancy PwC Despite tight budgets, more than two-thirds of those surveyed want to Black Friday Going on a bargain hunt - as many as last year. However, their purchasing behavior has changed. Nearly 40% want to buy only what they need. One in five want to buy less because of the circumstances. According to another study, Consumers want Only buy products that were already planned as purchases. The HDE Also expects a "largely stable" Christmas business, also due to an slightly improved disintegrator mood in November. However, studies show that Nearly three-quarters of people worry about a potential recession, adjusting their buying behavior and Decreasing their standard of living. According to a study by YouGov More than half of consumers want to spend less on gifts or do without them altogether.

Updating the ZDHC MRSL: The Manufacturing Restricted Substances cunning (MRSL) has been extended to include other harmful chemical substances, the use of which must be restricted;. This also includes PFAS treatments used for textiles, leather and footwear. Also bluesign had taken PFAS-refined textiles from the guideline in July (see news update of KW 30). Also in the of the EU Published at the end of April "Restrictions Roadmap under the Chemicals Strategy for Sustainability"PFAS was recorded (see news update of KW 19).

Old clothes: In the news update of KW 37 '21 we reported on the impact of donating clothes on people and the environment in Ghana; in the news update of KW 45 '21 on the pollution caused by old clothes in Chile. Kenya is also struggling with the increasing amount of old clothes from the global North. On the one hand, it is Gikomba-Market in Nairobi A hub for second-hand clothing and a source of trade that benefits the local economy and allows people to earn an income. On the other hand, according to some groups, the sheer amount of inferior textiles creates a major waste problem - about 30% is "pure garbage". What the dealers on the Gikomba-Market cannot sell, is incinerated or dumped on garbage dumps. Organisations such as Africa Collect Textiles looking for new uses for used textiles, and recycles textile waste into carpets, bags and other products. The co-founder of the company, Alex Musembi, advocates extended producer responsibility, which obliges Western companies to provide financial support to organisations that solve the waste problem.

Countries of production

Bangladesh: Jeans factory owner Mostafiz Uddin gives one Assessment of the current situation of the Bangladeshi clothing industry. In his opinion, the situation for industry is worse in some respects than during the pandemic in 2020. While the manufacturers saw "light at the end of the tunnel" during the pandemic, they are now less optimistic due to the lack of orders again. A related trend is to ask RMG manufacturers to withhold their goods - fashion retailers are delaying delivery. Some manufacturers have become an extension of the warehouses of fashion brands - a trend that was also observed in the first months of the pandemic. This puts pressure on manufacturers while production lines stand still. In addition, the brands demanded Rabtte, but manufacturers were also affected by rising costs and fluctuations in exchange rates. He is concerned that the world may end up in a protracted recession in which buyers no longer want or can support their suppliers. This would have unpredictable effects on the factories in the producing countries. Also the Vice President of the Association BGMEA sees the industry in a difficult situation: The production of the factories fell by 50%.

India: In a fire in a shoe factory in the industrial area Narela Three workers died and 17 were injured.. The factory owner was accused, among other things, of negligent killing, but is fleeting. In retrospect, it turned out that the factory did not have a valid permit. The fire was probably triggered by a short circuit and a subsequent explosion. There was also a factory No firefighting equipment and insufficient emergency exits.