The apparel industry’s environmental impact, mitigation and adaptation to climate change: A case study of three Swedish companies

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IN

DEGREE PROJECT THE BUILT ENVIRONMENT, SECOND CYCLE, 30 CREDITS

,

STOCKHOLM SWEDEN 2020

The apparel industry’s

environmental impact, mitigation

and adaptation to climate change:

A case study of three Swedish

companies

VIRONICA SVENSSON

KTH ROYAL INSTITUTE OF TECHNOLOGY

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TRITA TRITA-ABE-MBT-2025

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The apparel industry’s

environmental impact, mitigation

and adaptation to climate

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Abstract

Each year a large number of garments are produced. The annual global clothing production today accedes 100 billion garments. By 2030, the world population will be more than 8.5 billion people and global clothing production will rise by 63%. The apparel industry’s greenhouse gas emissions are expected to rise by 50% or 60% by 2030 if the industry does not work sustainably. The apparel industry is one of the largest contributors to climate change and global warming which is one of the most threatening issues at the present time. This study contains a literature review about the apparel industry’s environmental impacts and tools, methods and ways used by the apparel companies in general to mitigate and adapt to climate change.

In addition, this study contains a description, analysis and comparison of three Swedish apparel companies in terms of their environmental impacts and management systems to mitigate and adapt to climate change. These companies are H&M group, Lindex, and

KappAhl. The environmental management systems of these companies have been analyzed to identify and understand their strengths, weaknesses, opportunities and issues that constitute threat for them. In order to make deep understanding to the three companies’ environmental management systems, these systems have been compared. The comparison consists of two parts. In the first part, the environmental management systems of the three companies have been compared. In the second part, the environmental management systems of Lindex and KappAhl have been compared. The comparison has been divided into two parts because of the difference in the companies’ size. H&M group is a giant company while Lindex and KappAhl are much smaller. In other words, the first part covers details and estimations about H&M group and only details about Lindex and KappAhl that are

appropriate to be compared with H&M group. The second part of the comparison covers details and numbers related to the environmental management systems of Lindex and KappAhl that are not appropriate to be compared with H&M group.

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Acknowledgement

I would like to express my sincere gratitude and appreciation to my supervisor Larsgöran Strandberg for the valuable guidance and support he provided me with throughout this study. Furthermore, I would like to thank Monika Olsson, the examiner, for the help and support she provided to achieve and finish the study and for her role together with Larsgöran Strandberg in giving me the opportunity to choose this master’s thesis topic. I would also like to thank all persons who participated in supporting me to achieve this study.

Vironica Svensson

Stockholm, February 2020

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Abbreviations

AI – Amplified Intelligence AW18 – Autumn Winter 2018 BCI – Better Cotton Initiative

BCMP – Best Chemical Management Practice C&A – Clemens and August

CE100 – Circular Economy 100 CEO – A chief Executive Officer CMiA - Cotton made in Africa CoLab – Collaborative Laboratory CO2 - Carbon dioxide

CO2e - Carbon dioxide equivalent DAFI - Danish Fashion Institute DC – Distribution centers DCs – Distribution centers

DEMETO - DE-polymerization by MicrowavE TechnolOgy DNA – Deoxyribonucleic Acid

EACs - Environmental Attribute Certifications

EIM – Environmental Impact Measurement or Environmental Impact Measuring EPL - Eastern Plains Landscape

EPT – Effluent Treatment Plant EUR - Euro

FSC - Forest Stewardship Council GHG – Greenhouse gas

GLEC - Global Logistic Emissions Council GOTS - Global Organic Textile Standard GR3N - Green Reduce, Reuse and Recycle GWh – Gigawatt hour

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Higg BRM - Higg Brand & Retail Module

Higg DDM – Higg Design & Development Module Higg FEM – Higg Facility Environmental Module Higg MSI - Higg Materials Sustainability Index

HKRITA - Hong Kong Research Institute of Textiles and Apparel HVAC - Heating, ventilation and air conditioning

I:CO - I:Collect

IDEO – Innovation Design Engineering Organization IFC - International Finance Corporation

IPE – The institute of Public and Environment Affairs IT - Information Technology

Kg – Kilogram KT – Kiloton

kWh - Kilowatt hour LED - Light-emitting diode MFC - Make Fashion Circular MMC – man-made cellulosic

MRSL – Manufacturing Restricted Substances List MWh – Megawatt hour

m3 – Cubic meter

OEM - Origin equipment manufacturer OCA – Organic Cotton Accelerator PaCT – Partnership for Cleaner Textile P Cotton - Preferred Cotton

PET bottles – Polyethylene terephthalate bottles PPAs - Power Purchase Agreements

RE - Renewable energy

RE100 - 100% Renewable energy

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viii REE – Responsible Environment, Enhanced Livelihoods

REEL Cotton - Responsible Environment, Enhanced Livelihoods Cotton

RDS – Responsible Down Standard RISE – Research Institutes of Sweden RSL – Restricted Substances List RWS - Responsible Wool Standard SAC - Sustainable Apparel Coalition SBTs - Science Based Targets

SBTi - Science Based Targets initiative SAC – Sustainable Apparel Coalition

SCALE - Supply Chain and Landscape Approach

SCS Recycled Content Standard – Scientific Certification Systems Recycled Content Standard SDG6 - Sustainable Development Goals 6

SI – Sustainability Index

SIPP - Sustainable Impact Partnership Programme SIPTex – Swedish Innovation Platform for Textile sorting SIWI – Stockholm International Water Institute

STEPE – Sustainable Plastic and Transition Pathways STICA - Swedish Textile Initiative for Climate Action STWI – Sweden Textile Water Initiative

SWAR – Sustainable Water Recource Management

Swerea IVF – Swerea institutet för verkstadsteknisk forskning SWS – Sustainable Workplace Standard

TCFD - Task Force on Climate-related Financial Disclosure tCO2e – Tonnes of carbon dioxide equivalent

UN - United Nations

UNECE – United Nations Economic Commission for Europe

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UNFCCC - United Nations Framework Convention on Climate Change WWF - World Wildlife Fund

ZDHC – Zero Discharge of Hazardous Chemicals

ZDHC Gateway – Zero Discharge of Hazardous Chemicals Gateway ZDHC Foundation – Zero Discharge of Hazardous Chemicals Foundation

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1. Introduction

While the world is facing the climate change issue and other environmental issues a lot of people buy clothes without realizing the environmental cost of a single article of clothing. The amount of fiber materials consumed globally is 11.4 kg per capita annually (Quantis, 2018). The US has the biggest consumption of fiber materials which is 37.6 kg per capita, followed very nearly by Europe in which the consumption of fiber materials is 31.21 kg per capita annually (Quantis, 2018). The annual emissions per capita from the consumption of fiber materials globally is 442 kg of carbon dioxide equivalent yearly. This amount of carbon dioxide equivalent corresponds to a 4,100 km -long way continental flight. The apparel industry’s water consumption per capita annually is 23,900 liters (Quantis, 2018). The consumption of fiber materials per capita in the US corresponds to 1,450 kg of carbon dioxide equivalent annually while in Europe corresponds to 1,210 kg of carbon dioxide per capita yearly (Quantis, 2018). The United Nations (2019) emphasizes that not only the purchasing rate of clothes for an average person has been increased by 60% compared to 15 years ago, but also the time of keeping these garments has been decreased by half. Muthu and Gardettie (2016) mention that increasing garment purchasing and consumption rate leads to increase the rate of textile waste.

A Swedish person consumes around 14 kg garments and textiles yearly (Naturvårdsverket, n.d.). The ETC (2015) explains that the Swedish buys an average of 13 kilograms of new clothes per person and year and only just over two kilos are reused. A total of eight kilos are thrown away. In Sweden over 80 million kilos of clothing are burned every year (Broomé, 2017). Producing a single kilo of fabric leads to release between 10-40 kilograms of carbon dioxide equivalent depending on the type of energy and materials, and it requires 7000-29 000 liters of water depending on fiber and production method (Naturvårdsverket, n.d.).

The apparel industry causes significant environmental impacts, mainly climate impact. The UNECE (2018) describes the state of this sector as an environmental emergency. Managing the apparel industry’s climate and other environmental impacts is one of the important issues at the present time. The United Nations is focusing on and working to reduce the apparel industry’ climate and other environmental impacts. On the 24th_{of March 2019, the} UN started drive to attract the attention to the environmental impacts of staying fashionable (UN, 2019). In addition, on the 9th_{of December 2019, a meeting been held at the UNFCCC} where the signatories of the Fashion Industry Charter for Climate Action asked governments of countries with major apparel production and selling markets to collaborate with them to align the apparel industry with Paris Agreement goal of keeping the average of global temperature in 1.5 degree Celsius (UNFCCC, 2019).

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presence of fashion brands leaders, suppliers, and other stakeholders in the chain. The Charter adopts the vision of net zero emissions by 2050. The participants committed to reduce 30% of their total greenhouse gas emissions by 2030. The outlined actions and principles in the Fashion Industry Charter for Climate Action were followed and developed cooperatively by working groups which would be convened and guided by the UN Climate Change (UNFCCC, 2018). This in addition to the UN Alliance on Sustainable Fashion that was established by 10 different UN organizations in New York on the 10th_{of July 2018. The} alliance focuses on put fashion on the way towards sustainability (UNECE, 2018).

In the drive that been launched by the UN in March 2019 to focus the attention to the environmental impacts of staying fashionable, the United Nations (2019) mentions that in the fashion industry, fast fashion is the dominant business model. This means customers are continuously offered changing clothes at low prices. The fast fashion business model

encourages customers to repeatedly buy and discard garments. Experts at the United Nations as well as many other experts in the world believe that the trend is the reason behind increasing negative environmental, social and economic impacts. As garment production doubled between 2000 and 2014, it is extremely important to ensure that garment production is achieved sustainably and ethically as much as possible (NU, 2019).

This master thesis provides the needed knowledge about the apparel industry’s

environmental impacts and management to mitigate and adapt to climate change and other environmental issues associated with the apparel industry. Moreover, this study seeks to compare how H&M, Lindex and KappAhl work with sustainability management to mitigate and adapt to climate change as well as other environmental impacts to make deep

understanding to their environmental management systems. The intention was to get contact with one of the sustainability team of each of the three companies in order to get more information about their sustainability management. Unfortunately, none of the three companies responded positively.

1.1. Aim and objectives

The aim is to analyze, evaluate and compare three Swedish apparel companies’

environmental impacts, mitigation and adaptation to climate change in order to identify good practices as well as weak points, gaps and opportunities as well as issues that constitute threats to these companies.

The objectives are:

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2) Studying, analyzing, evaluating and comparing the three Swedish apparel companies’ environmental and sustainability reports and publications published on their

websites.

3) Summarizing, evaluating, and comparing strengths, weakness, opportunities and threats of the three Swedish companies’ environmental strategies for mitigation and adaptation to climate change.

1.2. System boundaries

There are geographical boundaries in this study. This study includes a literature review of the apparel industry’s environmental impact and management globally. This work also includes a case study of three Swedish apparel companies. The first company is H&M. It is a global fashion that has physical stores around the world. The second company is Lindex which is an international company, but it is much smaller than H&M. The third company is KappAhl which has physical stores in Sweden, Norway, Finland, the United Kingdom and Poland. The geographical boundaries also include suppliers’ countries, mainly the production countries where the companies’ production supply chains are located. This study covers all actions and strategies that are used by the three companies to mitigate and adapt to climate change which include not only actions to reduce the environmental impacts of their garments but also other related instruments and materials such as clothes hangers, plastic bags and packaging materials.

2. Methodology

Data is collected by an extended Internet search and literature to compare three apparel companies: H&M, Lindex and KappAhl to identify the strengths and weakness in the actions they take to manage their environmental impacts. The companies’ reports, documents, policies and information they have published on their websites as well as information, documents and reports on other websites in addition to literature have been used to make the comparison and analysis. Case study, SWOT analysis (strengths, weaknesses,

opportunities and threats analysis) and literature review are the methods used to analyze data.

3. Literature Study

This section is a literature review on the apparel industry’s environmental impacts as well as strategies, methods and actions used in the apparel companies for mitigation and

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3.1. The environmental impacts

Apparel industry impacts the environment in the process of fiber production, dyeing and finishing, yarn, transportation and distribution, and waste. One of the impacts is pollution. The United Nations (2019) explains that the UN Conference on Trade and Development (UNCTAD) considers this industry to be the second biggest pollutant industry in the world. Sustain Your Style (2020) explains that the apparel sector is the second biggest polluter globally after the oil industry. Water pollution is one of the impacts caused by apparel industry. Most of the time clothing are produced in countries where untreated toxic

wastewater that contains, for instance, arsenic, lead and mercury is charged into the rivers. The other source of water pollution caused by the apparel industry is the fertilizers that are used in producing cotton. Pollutions reach the seas and oceans (Sustain Your Style, 2020).

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Figure 1: Aral Sea in 2000 (NASA Earth Observatory, 2000 (with permission from NASA Earth Observatory)

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Microfibers, the apparel companies manufacture synthetic such as polyester garments which leads to increase plastic level in oceans. There are different estimations regarding the number of microfibers that are released every wash. Sustain your style (2020) mentions that washing a single synthetic garment leads to release about 1,900 microfibers into the water. Resnick (2020) explains that the estimates differ because there are different variables that affect the estimation. A typical wash can release 700,000. According to other estimation the number is 1,900. It was also found that when washing a polyester fleece, it can release 1 million microfibers (Resnick, 2020). Hobson (2019) explains that the estimations of

microfibers that are released from a single load of laundry differ and they are between few thousands to 10 or 12 million.

The United Nations (2019) declares that yearly an average of half a million tons of

microfibers are released into the oceans, which corresponds to 3 million barrels of oil. Ellen MacArthur Foundation (2017) points out that the half a million tons of microfibers that are released into the oceans yearly from washing clothes, corresponds to over 50 billion plastic bottles. These microfibers are tiny and can easily find their way through wastewater

treatment plant to the oceans (Perry, 2018). They enter the human food chain. Small marine organisms eat microfibers. These small organisms are then eaten by small fish that are eaten by bigger fish which results in plastic in human food chain (Sustain your style, 2020). Figure 3 shows how microfibers from washing garments enter the food chain.

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Figure 3: Microfibers from clothes enter the food chain (Ellen MacArthur Foundation, 2017, p. 66) (with permission from Ellen MacArthur Foundation)

Concerning waste, the rate of used textiles products that end up in landfills is 85% as each year 21 billion tons of textiles in the world are thrown a way (Guinebault, 2018). An average, one truckload of textiles is landfilled or burned every second (Ellen MacArthur Foundation, 2017). Synthetic garments such as polyester, nylon, and acrylic are made from petroleum which means these materials take hundreds of years to completely decompose (Chow, 2017). Synthetic fibers are used in 72% of clothing (Sustain Your Style, 2020). The apparel industry constitutes 20% of the total sewage water (Guinebault, 2018). China is one of the countries that garments are made in. Textile industry in China is one of the three largest industries generating wastewater as textile industry discharges more than 2.5 billion tons of wastewater in China annually (B2C, 2015).

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The apparel industry plays a big role in soil degradation. The health of soil is crucial to carbon sequestration. Soil degradation leads to release carbon into the atmosphere accelerating climate change (Hobson, 2019a). The apparel industry impacts the soil

negatively and causes soil degradation in different ways. The first way is through overgrazing pastures to raise cashmere goats and sheep to get their wool. The second way is the heavy use of fertilizers and chemicals for cotton cultivation and growing. The third way is

deforestation due to the use of wood to make fibers such as rayon (Sustain Your style, 2020). It was found that land degradation with deforestation constitute significant contributors to climate change as they contribute to almost 10% of greenhouse gas emissions caused by the human (SEI, 2018).

Forests are cut down, used to make wood- based fibers (cellulose fibers) and replaced with trees for further production of wood-based fibers. Cellulose fibers account for less than 7% of global textile market. It was found that the production of cellulose fibers consumes almost 120 million trees annually. It was also found that ancient forests in Indonesia, North America and Brazil have been destructed by logging for cellulose fabric industry (FSC, n.d.) Each year thousands of hectors of rainforest are destructed and replaced with trees used to make fabric like rayon, viscose and modal (Sustain Your Style, 2020). Forests are natural protectors against climate change (Simmons, 2018) which means deforestation accelerates climate change.

The apparel industry releases large amounts of greenhouse gas emissions. It constitutes 10% of carbon emissions globally (Sustain Your Style, 2020; UNFCCC, 2018b). Textile production leads to significant amount of greenhouse gas emissions. In 2015 textile production resulted in 1.2 billion tons of greenhouse gas emissions which is more than international flights together with maritime shipping (Ellen MacArthur Foundation, 2017). Energy use during the production and manufacturing processes as well as the transportation of garments lead to significant amounts of greenhouse gas emissions. Synthetic fibers (e.g. polyester, nylon and acrylic) are made from fossil fuels releasing big amounts of greenhouse gases in the manufacture process (Sustain your Style, 2020). Annually, 70 million barrels of petroleum are used to manufacture the world’s polyester fiber (Ross, 2017). The global production of synthetic fibers consumes 342 million barrels of petroleum (Ellen MacArthur Foundation, 2017) which means releasing big amounts of greenhouse gases. In addition, cheap synthetic fibers release greenhouse gases such as N2O which is 300 times stronger than CO2 (Sustain Your Style, 2020).

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apparel industry’s greenhouse gas emissions are expected to increase by over 60% by 2030. Anthropogenic greenhouse gas emissions are the most contributor to climate change and global warming (EPA, n.d.). Figure 4 illustrates the environmental impacts of the apparel value chain. Greenhouse gas emissions associate with all stages from fiber production until the disposal stage contributing to climate change.

Figure 4: The apparel industry’s environmental impact (Ellen MacArthur Foundation, 2017, p. 19) (with permission from Ellen MacArthur Foundation)

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Figure 5: Global temperature in the period 1985-1989 (NASA Earth Observatory, n.d.) (with permission from NASA Earth Observatory)

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Figure 7: Global temperature in the period 1995-1999 (NASA Earth Observatory, n.d.) (with

permission from NASA Earth Observatory)

Figure8: Global temperature in the period 2000-2004 (NASA Earth Observatory, n.d.) (with

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3.2. Mitigation and adaptation to climate change

This section covers the most important ways, methods and tools that are used and developed by the apparel industry to mitigate and adapt to climate change.

3.2.1. Circularity

One of the most important ways to mitigate the apparel industry’s climate impact and to adapt to climate change is achieving circularity in the fashion industry. The fundamentals of circular economy are designing both waste and pollution out, continue to use the product and materials, and achieving regeneration of natural system (Ellen MacArthur Foundation, 2017c). The most important aspect of circular economy in the apparel industry is circular fashion. The fashion production is primarily based on a linear system, i.e. take, manufacture and dispose (Global Fashion Agenda - CEO Agenda, 2019: 2020). It is estimated that the rate of recycled garments into new clothes is only 1% (Cooper, 2018) or less than 1% (Ellen Mac Arthur Foundation, 2017).

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Agenda, 2017). If all fibers were collected and recycled the worth could be up to EUR 80 billion (Ellen MacArthur Foundation, 2017). The clothing sector results in significant climate impact in all stages from fiber production to the disposal stage.

The term circular fashion is one of the quickly spreading terms connected to circular economy (Brismar, 2017), which is based on designing waste and pollution out, keep using products and materials and regenerating natural ecosystems (Ellen MacArthur Foundation, 2017). It was used for the first time in spring 2014 almost simultaneously by two actors that were independent from each other. One of these actors is Dr. Brismar the head of the Green Strategy which is a Swedish consultancy firm. The other actor is the sustainability team at the headquarter of H&M in Stockholm (Brismar, 2017). Brismar (2017) defines circular fashion as fashion (i.e. clothes, shoes and accessories) that is designed, sourced, made and provided in the market with an intention to be exploited and circulated responsibly and efficiently as long time as possible with keeping its most valuable form, and after that when no longer can be used it return safely to the biosphere.

Brismar’s definition means that apparel and other fashion products must be designed to be very durable, toxic-free, biodegradable, recyclable and ethical. Likewise concerning

resources used in the production. Resources should be toxic-free, renewable, recyclable, biodegradable and efficient (Green Strategy, 2020). In addition, the garments have to be used as long time as possible by caring, repairing, refurbishing as well as sharing among many users throughout the time by for example second hand selling, rent, etc. After that fashion products must be redesigned to give fashion materials new life. Then the materials and components of the fashion products must be recycled and reused for making new products. If these materials and components are not appropriate for recycling, the biological materials must be biodegraded and composted to be used for plants and other organisms in the ecosystem as nutrients. Overall, the product life cycle should not cause any

environmental or socio-economic negative impact but rather support environmental and socio-economic improvement and positive development (Green Strategy, 2020).

Ellen MacArthur Foundation (2017) explains that circular fashion is based on four principles as figure 12 illustrates. The first one is phasing out the release of harming substance and microfiber. The second principle is changing the way of designing, selling and using clothes to get rid of their disposable nature. The third principle is making a radical recycling

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Figure 12: Circular fashion (Ellen MacArthur Foundation, 2017, p. 23) (with permission from Ellen MacArthur Foundation)

Global Fashion Agenda is a leadership forum for industry cooperation on sustainability in fashion (Global Fashion Agenda, n.d.). In 2017, at Copenhagen Fashion summit, the Global Fashion Agenda motivated the fashion industry to take action and work towards circularity by signing the 2020 Commitment (Circular Fashion System Commitment) as a determined way to turn from words to actions to speed up the industry’s transformation to a circular fashion system. To make a direction for this transformation, the Global Fashion Agenda put four immediate action points which are (Global Fashion Agenda, n.d.a):

1) Carrying out design strategies for circularity. 2) Collecting more used garments and footwear. 3) Reselling more used garments and footwear.

4) Increasing the rate of garments and footwear that are made from recycling post-consumer textiles.

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Figure 13: 2020 Commitment, signatories and targets (Global Fashion Agenda, n.d.a) (with permission from Global Fashion Agenda)

Although the fashion industry did this progress, the industry is still far from being sustainable or circular. This because the progress of sustainability performance has decelerated and solutions that promote sustainability are not carried out fast enough to offset the negative impact of the quickly growing fashion industry (Global Fashion Agenda, n.d.a).

Recycling garments plays a significant role in reducing greenhouse gas emissions. It was found that recycling a single kilogram of used garments leads to reduce up to 3.6 kg carbon dioxide emissions (Edgar, 2016).

3.2.2. Material recycling and mix

The apparel industry focuses on recycling used garments in order to achieve circular fashion. By recycling, unwanted and old garments can be used to produce new garments. Clothes recycling reduces greenhouse gases associated with virgin material extraction and

production. Textile fibers are recycled in two ways, mechanically and chemically. Mechanical recycling is the more common way because the chemical way is still in need to be developed and it is more expensive (DAFI, 2020).

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give unwanted garments a new life and put them back in the cycle (DAFI, 2020). The process of mechanical recycling often starts with sorting, and separating garments based on their color and fiber type. The fabric is broken down and shredded and unwanted materials such as zippers and buttons are removed (Leblance, 2019). Nevertheless, the disadvantage is that the deconstruction and shredding process damages natural fibers and makes them shorter. As the quality of these fibers are reduced, they must be mixed with other fibers to make the resulting garment durable (DAFI, 2020).

For natural fibers, the recycled fibers are very weaker than those made from virgin materials. DAFI (2020) gives an example of making a cotton garment from virgin and

recycled cotton saying that 20% of recycled cotton must be mixed with 80% of virgin cotton to get the wanted quality and strength. Although deconstruction fabrics processes decrease the quality of fabrics, mechanical recycling remains to be an efficient and important way keep fabrics in the loop cycle for long time (DAFI, 2020).

Concerning chemical recycling, clothing materials are treated in chemical processes which are completely different than the mechanical processes. The result of chemical recycling is fibers that have the same high quality as the virgin or sometimes higher. This technique is not used at a large scale yet except for polyester chemical recycling which is used in a complete scale in Asia (DAFI, 2020). Increasing the use of recycled polyester textile can reduce 122,823 kg of CO2 emission and save 1,849,464 MJ of primary energy (Textile Exchange, n.d.) which contributes to climate mitigation and adaptation.

For the apparel brands, the product is the essence as products differentiates the company and associates the internal organization. Since apparel brands can control their products, changing the product design, input materials or composition can be made directly (Lehmann, et al., 2018). Every year the Textile Exchange organization publishes information about preferred fibers which are fibers and materials that have less impacts environmentally and socially which helps companies to choose the more sustainable fibers and materials in their products (Textile Exchange, 2020).

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3.2.3. Transition away from using conventional cotton

Because of the climate and other environmental impacts associated with conventionally produced cotton, many apparel companies chose to transition away from the traditional cotton (Lehmann, et al., 2018). Textile Exchange (2017) explains that producing organic cotton instead of conventional cotton can reduce 46% of global warming, 62% of primary energy demand, 26% of eutrophication, 91% of the consumption of blue water and 70% of land and water acidification. Reducing primary energy consumption and eutrophication lead to reduced greenhouse gas emissions which in turn reduces climate impact. Reduction in water consumption reduces the risk of desertification and in turn reduces climate impacts.

The Preferred Cotton (pCotton) is cotton that is organically and/or socially advanced because it includes more sustainable processes compared to other conventional choices (Textile Exchange, 2020a). Textile Exchange (2020a) defines the cotton as preferred if it is certified to Organic Fair Trade, Fair Trade, Organic, Cotton made in Africa (CmiA), Better Cotton Initiative (BCI), and the REEL Cotton Program (REEL) as well as recycled cotton. Preferred cotton has been used increasingly by apparel companies as they go further along the roadmap

(Lehmann, et al., 2018).

Textile Exchange, (2020b) explains that the 2025 Sustainable Cotton Challenge plays a big role in making changes in the apparel and textile industry through encouraging companies to make 100% of their cotton products from most sustainable sources by 2025. In 2017, The 2025 Sustainable Cotton Challenge was formed when The Prince of Wales convened a number of CEOs by the work of his International Sustainability Unit that been established to address the big challenges that the world is facing. Currently the number of the apparel companies that have signed the 2025 Sustainable Cotton Challenge is 39, among others H&M group, Lindex and KappAhl (Textile Exchange, 2020b).

3.2.4. Using tools

The apparel companies use tools to mitigate and adapt to climate change. These tools include certification to standards, participating in programs and initiatives as well as using tools and standards offered by these programs and initiatives. There are many standards that companies can be certified to. For instance, the Global Organic Textile Standard (GOTS) which is an international leading standard for textile processing for organic fibers, covering ecological and social criteria, and supported by an independent certification of the whole textile supply chain (Global Standard gGmbH, 2016).

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and making systematic changes in fashion industry which result in sustainable

developments. The aim of the of Mistra Future Fashion program is to provide insights and solutions that the Swedish fashion sector can use to make a significant improvement to the environmental performance as well as promote the global competitiveness. This program is participated by more than 50 industry partners and its total budget is SEK 110 million. The founder of Mistra Future Fashion is Mistra which is the Foundation for Strategic

Environmental Research and the coordinator is RISE Research Institutes of Sweden (Mistra Future Fashion, n.d.)

Another example is the Swedish Textile Initiative for Climate Action (STICA). This initiative is created by Sustainable Fashion Academy. It helps companies to understand their climate impacts and measure the amount of greenhouse gases emitted by their operations, develop goals and plans that are based on science to reduce the companies’ greenhouse gas

emissions, develop a structure for reporting the companies’ progress of reducing their greenhouse gas emissions and identify actions that make business benefits and collaborative projects that lead to reduce greenhouse gas emissions in the value chain processes that are not under the companies’ direct control. The members’ target is to reduce at least 30% of their climate impact by 2030 to be aligned with the Fashion Industry Charter on Climate Action which has been launched by the UN. The initiative’s ultimate goal is to ensure making the Swedish apparel and textile industry the first in the world to be climate positive before 2050 (Sustainable Fashion Academy, n.d.).

The Forest Stewardship Council (FSC) certified sources for cellulosic fibers are also used by many apparel companies to reduce the environmental impacts associated with wood-based fibers (cellulosic fibers). The FSC is an organization offers projects and initiatives for

responsible forest management (FSC, n.d.a). One of the certifications offered by this organization is forest management certification. The FSC forest management certification verifies that the way used to manage the forest maintains the natural ecosystem and profits the people and workers’ lives in the local area as well as promotes economic sustainability. In order to be certified according to the FSC forest management certification, the forest owner and managements must meet a set of criteria that been signed on by FSC members (FSC, n.d.b).

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The Higg Index tool is developed by Sustainable Apparel Coalition (SAC) Initiative. The SAC is fashion and textile industry’s leading association for sustainable production (Sustainable Apparel Coalition, n.d.). The Higg index measures and scores accurately the sustainability performance of a company or product. The Higg Index provides the whole overview that allow businesses to make improvements that promote the environment, factories’ workers and local communities (Sustainable Apparel Coalition, n.d.a). The Higg Index tools includes three main categories. One of these categories is the Higg Facility Tools, which measure the environmental and social impacts in factories around the world (Sustainable Apparel

Coalition, n.d.a). For instance, the Higg FEM (Higg Facility Environmental Module) is a sustainability assessment tool developed by Sustainable Apparel Coalition, helps to standardize environmental sustainability measurement taken at a facility scale (Sustainability Apparel Coalition, n.d.b).

The second category is the Higg Product Tools which promote understanding the impacts of apparel, textile and footwear. There are three types of Higg product Tools (Sustainable apparel Coalition, n.d.c). The first one is the Higg Materials Sustainability Index (Higg MSI) enables companies to compare and select materials that are environmentally friendly by estimating the environmental impacts of production. The second one is the Higg DDM (Design & Development Module) enables designers and developers to design and create more sustainable clothes by evaluating the environmental impacts of the products early when they are still in the design process. The third one is the Higg Product Module (Higg PM) which makes measurements to the environmental impacts that products make over their life cycle (Sustainable apparel Coalition, n.d.c). The Higg Material Sustainability Index (Higg MSI) and the Higg Design & Development Module (Higg DDM) are used by many companies as they estimate the impacts of material production on climate change, global warming as well as other environmental issues (Lehmann, et al., 2018).

The third category in the Higg Index tools is the Brand & retailer Tool. The Higg Brand & Retail Module (Higg BRM) provides companies and businesses of all sizes with

measurements regarding the environmental and social impacts from their own operations to make the needed improvements. In addition, the Higg BRM the Higg Index users to share information about sustainability with the key stakeholders, among others, supply chain partners (Sustainable Apparel Coalition, n.d.d).

3.2.5. Setting strategies and communication

Setting strategies for short and long-term targets is important to achieve sustainable management. Over 60% of fashion companies have set up goals and strategies. Having sustainable targets helps companies to set direction and communicate their concrete commitments at internal and external level (Lehmann, et al., 2018).

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Internal and external communications are important as well to implement sustainable management. Internal communication unites the company on sustainability. Brands and companies need to share the commitment of the top management, explain and discuss targets and strategies and put clear expectations for the supply chain. Communication throughout the entire company enables sustainability to be an integral part of the core business, values and DNA of the company (Lehmann, et al., 2018).

Concerning external communication, external stakeholders are more and more interested in the strategies, goals, and performance of apparel industry. Diligent communication is

extremely important for some of stakeholders (Lehmann, et al., 2018). Communication with consumers increases consumer awareness which in turn can reduce the environmental impacts of their clothes. For example, consumers’ interest of recycled clothes has increased, and they want more and more information about circular garments and how their behavior can make changes in the environmental aspects of apparel and textile industry (Vehmas, et al., 2018).

3.2.6. Traceability

Traceability is another way used in apparel industry for mitigation and adaptation to climate change. Tracing supply chain with all its layers and fragments usually involves large

geographical and traditional distance between the brand and the production. The apparel companies have one of the most complicated production networks (Čiarnienė and

Vienažindienė, 2014). Many apparel companies have lack of information regarding how their garments are produced (Lehmann, et al., 2018). Tracing supply chain makes it possible for companies to find and determine risks, opportunity and challenges to increase efficiency in the operation processes and at the same time building solid relationships with suppliers (Global fashion agenda. CEO Agenda, 2019; 2020).

Supply chain is multilayered. Tier-one supplier is the most important supplier in the chain supplying articles or parts directly the OEM (the origin equipment manufacturer) (Linton, 2020). In other words, this supplier is the last step before the OEM get the product

(LaMarco, 2020). These suppliers have the biggest technical capability (Linton, 2020). Tier-two suppliers are vital suppliers as well, but they are usually expert in their specific field (AMATECH Inc, 2017), namely, limited to specific products. Tier-two suppliers are often smaller and have less technical capability than tier-one suppliers (LaMarco, 2020). Tier-three suppliers are companies that supply raw materials close to raw materials (AMATECH Inc, 2017). Suppliers at the level of tier-four and five support businesses of main supply chain (Cumbria Growth Hub, 2020).

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Mapping supply chain starting with suppliers who have the biggest volume to identify the largest carbon sources is the cornerstone that guides to the steps that follow (McKevitt, 2017). Identifying carbon sources is an essential step to reduce apparel companies’ climate impact. In addition, companies need to evaluate the suppliers’ climate impact in everyday businesses. In order to collect this information and related insights, many apparel companies depend on the Sustainable Apparel Coalition’s Higg Index (Lehmann, et al., 2018).

The assessment tools of the Higg Index support brands, retailers, and factories to make visibility throughout the value chain (Sustainable Apparel Coalition, n.d.a). The tools of the Higg Index provide comparisons among peers and manufactures and identify improvement areas in each value chain (Lehmann, et al., 2018). Lately, more and more apparel brands publish their traceability efforts, increasing transparency (Fashion Revolution, 2019). Transparency increase consumers’ awareness about where and who made their clothes, which in turn makes it possible for the consumer to pursue how the suppliers of their clothes manage their environmental impacts.

3.2.7. Transparency

Transparency is increasingly used by apparel companies to reduce their environmental impacts. Fashion Revolution (2019) defines transparency as a plausible, extensive and comparable public revelation of information and data about apparel companies’ supply chains, business practices as well as the social and environmental impacts of these practices. It is public revelation of sourcing partners, and companies’ social and environmental policies, actions, aims, performance and progress. Transparency is not just disclosing good stories or compliant suppliers, it is about providing the full picture, both positive and negative aspects in an effort allowing for more scrutiny by those who care and affected positively and

negatively as well as allowing for quick improvements. Such transparency requires that apparel companies know precisely who make the clothes they sell in the whole process, who sewed the clothes, who dyed the textile, and who planted the cotton. In other words, the apparel companies must trace the whole production process right down the level of raw material extraction (Fashion Revolution, 2019). Fashion Revolution is an organization that believes that the world needs fashion revolution in order to achieve social and

environmental sustainability, and transparency is the first step to make changes (Fashion Revolution, n.d.; n.d.a).

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Most of the apparel brands and retailers today do not own the manufacturing plants that make their clothes which makes it difficult to measure and control the environmental impacts of the supply chain. This situation can be used by some of the brands as an excuse to avoid taking responsibility for how their cloths are produced. The apparel companies my work with a large number, hundreds or even thousands of manufacturing facilities at any time, and these are just suppliers in the end of the chain who cut, sew and assemble the clothes. There are many other suppliers down in the chain those who weave, dye and finalize materials and further down in the chain those who farm and grow the fiber used in the garments (Fashion Revolution, 2019). A company might enter into contract with one supplier who divides the work and subcontracts it with other manufacturing facilities. This happens routinely in the apparel industry and makes it excessively hard to assess the

environmental impacts. The clandestine subcontracting without permission makes it difficult to control the environmental degradation (Fashion Revolution, 2019).

Transparency has become increasingly important as more and more consumers are

concerned about environmental and social issues. Consumers want to buy from companies that care about the environmental and social issues (Amed, et al., 2019). They do not want to buy garments produced in polluted environments. When people are provided with more information about the environmental and social impacts of the clothes they purchase, they can make more informed purchasing choices. In other words, transparency makes people trust the companies they buy their clothes from (Fashion Revolution, 2019). Amed, et al., (2019) emphasize that the apparel industry suffers from increasing trust deficit. People are demanding to get more information about issues such as where and how their cloths are made. Surveys in 2017 show that more than 40% of consumers did not know which brands they can trust (Amed, et al., 2019).

Surveys of 5000 consumers across Europe conducted by Fashion Revolution and Ipsos Mori in 2018 show that 80% of consumers said that fashion companies must disclose their

manufacturers (Fashion Revolution, 2019). Ipsos Mori is an organization delivers information and analysis that can make it easier and faster for people to navigate the complex world and make smart decisions. Expert at Ipsos provide precis information and true understanding of brands, markets societies and people (Ipsos, 2016-2020).

Fashion Revolution (2019) explains that people are increasingly requiring greater transparency from the apparel industry. More than 3.25 million people over the world participated in Fashion Revolution in 2018. The participation was by events, using social media for posting, viewing and spreading Fashion Revolution’s videos as well as

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Concerning the role of transparency in solving the fashion industry’s environmental and social issues, Fashion Revolution (2019) explains that transparency alone cannot solve the industry’s issues, but it is a substantial first step towards extensive systematic change. People need to act upon the disclosed information in order to hold companies, retailers, suppliers, and governments into account. In other words, transparency leads to

accountability and accountability leads to make changes. Increased transparency can help apparel companies to be engaged with society groups and trading unions to identify and solve problems quickly (Fashion Revolution, 2019).

In response, some of the apparel and fashion companies are revealing their suppliers. In 2019, The Fashion Transparency Index which is one of the tools founded and used by Fashion Revolution to get, score and publish information about the garments people wear, scored 200 of largest global apparel and fashion companies. This is the first year that several brands get over 60% of 250 potential points. The number of companies that are publishing their tier one manufacturers is 70 out of 200 major apparel brands. Companies that are disclosing the processing facilities in which spinning cotton, wet processing, embroidery processing, printing, dyeing, and cleaning take place, are 38 (Fashion Revolution, 2019).

In 2019, 10 brands which constitute 5% of the total brands that are scored by the Fashion Transparency Index, are publishing their raw material suppliers (fiber suppliers such as cotton, wool and viscose). This is a significant rise from 2018 as only one company disclosed its raw material supplier and no company revealed this information in 2017 (Fashion

Revolution, 2019). In 2019 the rate of companies that publish carbon emissions in the company’s own sites is 55% of the total apparel companies scored by the Fashion

Transparency Index. Only 39 company which constitute 19.5% of the 200 brands scored by the Fashion Transparency Index reveal carbon emission in the supply chain which account

for over 50% of the industry’s emissions (Fashion Revolution, 2019).

4. Results

This section covers the environmental impacts of H&M, Lindex and KappAhl as well as the strategies and actions taken by these three companies to mitigate and adapt to climate change and other environmental impacts. In addition, this section includes analyses of the three companies to identify their strengths, weaknesses, opportunities and issues that constitute threats for them.

4.1. H&M group – The environmental impacts and management

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H&M adopts the vision of leading the change to make circular and renewable fashion industry (H&M group, 2018).

4.1.1. Mitigation and adaptation to climate change

H&M group (2018) explains that being circular and climate positive are intimately linked. Climate change is one of the crucial issues at the present time. In order to tackle this challenge, collaboration across sectors is needed. For instance, achieving energy efficiency when making products, using materials in sustainable and innovative manners, and

improving supply chains. H&M group wants to take the lead in facing and tackling the climate change issue. This means going beyond merely cutting emissions and committing instead to contribute significantly in helping the planet to stay lower than 2ºC which is the limit of global warming decided by Paris Climate Agreement (H&M group, 2018).

H&M group is a member of the STICA (the Swedish Textile Initiative for Climate Action) that has the vision of making the Swedish apparel and textile industry the first in the world to be climate positive before 2050 (Sustainable Fashion Academy, n.d.). H&M group has set a goal to be climate positive by 2040. This comprises everything from raw materials to product use by H&M group’s customers. Becoming climate positive means cutting more atmospheric emissions than what H&M group’s value chain releases (H&M group. 2018). Until now, H&M group does not have all tools and solutions needed to meet this goal. But the urgency of the climate issue means that decisive actions must be taken. H&M group collaborates with scientific organizations and participates in WWF Climate Savers to get the needed help to tackle the climate issue (H&M group, 2018). The Climate Savers is a climate leading program that aims to change businesses to become leaders of the low- carbon economy (WWF Climate Savers, n.d.).

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Figure 14: Becoming climate positive by 2040 (H&M group, 2018, p. 53) (with permission from H&M group)

H&M group (2018) points out that in addition to the efforts that been made throughout the value chain to meet the climate positive goals, H&M group collaborates with other actors within the fashion industry as well as beyond to drive policy change through the adoption of science-based targets and commitments to global climate reduction goals. H&M group’s key- climate commitments are (H&M group, 2018):

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Figure 15: H&M group’s total carbon dioxide equivalent in tons (scope 1 and 2) (H&M, 2018, p. 54) (with permission from H&M group)

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Figure 16: Rates of H&M group’s scope 3 carbon dioxide equivalent in tons (H&M, 2018, p. 54) (with permission from H&M group)

The targets of reducing 40% of scope 1 and 2 emissions, and 59% of scope 3 emissions are set against measurements in 2017 (H&M group, 2018). Based on Greenhouse Gas Protocol, there are three categories of emissions known as scopes. Scope 1 refers to direct emissions. Which means H&M group’s own and direct emissions or emissions that H&M group has a direct control on. Scope 2 emissions refer to indirect emissions from purchased electricity consumption. Purchased electricity is the electricity that purchased or otherwise brought to be consumed within the company’s organizational boundaries. Scope 3 emissions refer to

emissions that are released outside the company’s own operation and therefore the company has indirect control on. Scope three emissions include H&M group’s suppliers that manufacture garments and raw material suppliers in addition to emissions released from the use of garments (e.g. emissions from using washing machines to wash the clothes) (H&M group, 2018).

2) TCFD (Task Force on Climate-Related Financial Disclosure). H&M group has publicly approved the TCFD and focuses on complying with its recommendations (H&M, group, 2018). The TCFD helps to disclose climate-related financial risks so that companies can use these disclosures to provide information to investors, insurers, lenders, and other stakeholders (TCFD,2020). H&M group is in the analyzing process of climate risk based on the TCFD guidelines and focuses on following the

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3) UNFCCC (United Nations Framework Convention on Climate Change). The UNFCCC founded the Fashion Industry Charter for Climate Action which H&M group is one of its signatories. The Fashion Industry Charter for Climate Action is an industry

extensive collaboration focuses on setting a decarbonization route for the fashion industry, increasing climate action and promoting other initiatives in the fashion sector (H&M group, 2018).

4) Policy Push. H&M group together with WWF, IKEA group, and RE100 by a number of meetings and seminars informed the European Parliament and council regarding the importance of The Clean Energy for All Europeans Package focusing more on

renewable energy and achieving energy efficiency (H&M group, 2018). The EU agreed to make a full update to its energy policy framework in order to enable and

accelerate the transformation from fossil fuels towards cleaner energy and to fulfil the Paris Agreement goals for minimizing greenhouse gas emissions (European Commission, 2017).

4.1.2 Priority 1 (Leadership in energy efficiency) for climate impact reduction

H&M group (2018) explains that their company needs different approaches in order to achieve energy efficiency in different stages of the company’s value chain. H&M group’s control over energy efficiency varies in different phases in its value chain. Despite these differences in the level of control over energy efficiency, H&M group committed to rise energy efficiency in the whole value chain by maximizing as much as possible energy output from the minimum energy input. Concerning H&M group’s stores, the goal is to make 25% reduction in electricity consumption by 2030 using data in 2016 as a baseline. The

measurements are achieved by considering the amount of electricity consumed per square meter of stores area as well as opening hours. The improved lightning system and HVAC (heating, ventilation, and air conditioning) constitutes 90% of electricity consumed in stores (H&M group, 2018).

H&M group (2018) explains that by having particular demands on HVAS systems and using LED lightning systems instead of HID, every store the company constructs will consume 40% less energy by 2030 compared to stores that were constructed in 2016. The company

progressively replaces HID lightning system that consumes high electricity with LED lightning system. In 2018, H&M group could reduce 8.2 % of electricity consumption per square meter in stores while the rate was 2.7% in 2017 using 2016 measurements as a baseline. The

reduction was mostly achieved by “low hanging fruit” initiatives which are about for example behavior and routine improvement to avoid wasteful light consumption (H&M group, 2018).

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compared to the year before which was 2016 as H&M could reduce 21% of emissions from its own operation in 2017 compared to 2016 (H&M group, 2017). In the company’s stores in the US and Poland, sustainable energy saving has been achieved. In the US the reduction of energy consumption was 5% in both 2017 and 2018. In Poland H&M group could reduce energy consumption by 20% during the last 5 years. These reductions in energy consumption have mainly been achieved by changing older HVAC units and newer ones as well as the focus on building management steering (H&M group, 2018). Table 1 shows energy

consumption within H&M group’s own operation in four years from 2014 to 2018. The total energy consumption within H&M group’s own operation in 2018 was 6,186,278 gigajoules while it was 5,893,266 gigajoules in 2017 (H&M group, 2018).

Table 1: Energy consumption within H&M group’s own operation (H&M group, 2018, p. 55) (with permission from H&M group)

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member of the Clean Shipping Network, Green Freight Asia, Clean Cargo Working group, and Network for Transport Measure Pathway Coalition (H&M group, 2018).

H&M group is also collaborating with the Global Logistics Emissions Council (GLEC) to promote finding an accurate global standard for measuring emissions from logistics (H&M group, 2018). Figure 17 illustrates H&M group’s emissions from upstream transportation and business travel from year 2014 to 2018. In 2018 the emissions from upstream transportation and business travel was 587 kilotons while it was 414 kilotons in 2017. H&M group (2018) explains that extending to new geographical areas resulted in increasing in air freight in some of H&M group’s markets in Southeast Asia and this in turn led to increase H&M group’s emissions from upstream air transport. The company will search for other ways to distribute its clothes in Southeast Asia (H&M group, 2018).

Figure 17: Kilotons of H&M group’s CO2e from upstream transport and business travel (H&M group, 2018, p. 56) (with permission from H&M group)

H&M group collaborates with Scania, Siemens and Eon. The coalition is called Pathways Coalition and focuses on establishing fossil-free heavy commercial transportation by 2050 or before aligning with Paris Agreement. The collaboration aims to speed-up decarbonization of heavy transport as well as rise electrification. Collaboration across sectors, helps to

accelerate the pace of change and make higher voice for promotion and leadership. In addition, H&M group hosted the company’s second Global Logistics Sustainability Week. The event focuses on engaging H&M group’s logistics and distribution center teams in the

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Logistics Sustainability Week event, 12.7 tons of clothes were collected and 80% of distribution centers joined (H&M group, 2018).

Concerning H&M group’s suppliers, the goal is to achieve climate neutral for tier 1 and 2 suppliers by 2030 which means increasing energy efficiency and transformation to renewable energy. To achieve this commitment H&M group decided that by 2025, all factories join an energy efficiency program. H&M group decided also to reduce 30% of greenhouse gas emissions per product by 2025 using 2017 as a baseline. In addition, H&M group decided that by the end of 2019, 30% of factories will join energy efficiency program. The goal for 2018 was to engage 20% of factories with energy efficiency program (H&M group, 2018). The calculation of the progress based on the number of factories that supplied H&M group at the time of setting the goal of engaging 20% of factories with energy

efficiency program, shows that H&M group achieved this goal. Nevertheless, as the number of factories has appreciably increased since goal-setting time, the factories’ participation in energy efficiency program became 18% (H&M group, 2018).

By the efficiency programs in Bangladesh, China, Turkey, and India, the company works to reduce emissions at a factory level. The energy saved from 2018 energy efficiency programs in Europa, Vietnam, China, Indonesia and Pakistan was 633,587,214 kWh which corresponds to 183,296 tons of greenhouse gas emissions. H&M group has founded a supplier

categorization exercise strategy to help in achieving energy efficiency and reducing

greenhouse gas emissions. The strategy enables H&M group to work with its suppliers who differ in size, energy management knowledge and energy profile. Using this strategy helped H&M group to set targeted strategies and actions that are appropriate to each category’s unique level of knowledge, capacity and needs (H&M group, 2018).

4.1.3. Priority 2 (100% renewable energy) for climate impact reduction

H&M group has a commitment to maximize renewable energy use in its value chain. By increasing the use of renewable energy and helping suppliers to do the same, H&M group promotes the transformation to fossil-free energy. H&M group wants to use 100% energy from renewable sources in its own operations. In 2018, the rate of electricity used from renewable sources was 96%. Additional new capacity of renewable energy (RE) generation is needed to promote decarbonization of energy systems. This is why H&M group’s purchasing strategy will progress from currently focusing on Environmental Attribute Certifications (EACs) to impartial portfolio of Power Purchase Agreements (PPAs) promoting renewable projects in large scales, rooftop solar power PV and EACs. In addition, H&M group is a

member of RE100 (H&M group, 2018). The RE100 is a global collective leadership initiative in which businesses are committed to 100% renewable electricity (CDP, n.d.). Figure 18

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Figure 18: Rates of renewable electricity used in H&M group’s own operation (H&M group, 2018, p. 57)

(with permission from H&M group)

Solar panel were installed at H&M’s Head Office in Stockholm covering 800 square meter and producing 105 000 kWh clean energy yearly. In 2018, H&M group concluded “Double Sale-Half Impact”, an initiative that continued 5 years for H&M group IT operations. The initiative aimed to cut the connection between business growth and the environmental impact. Although the number of H&M group stores increased by 75%, H&M group minimized energy consumed by its IT operations by 48%. This reduction was achieved because of the new power and capacity of solar panels as well as recovering heat from data centers. The initiative covered IT systems in stores, IT systems in offices, data centers and servers. Reducing energy consumption of IT operations led to save more than 27 million kWh corresponding to 10.9 million kg of CO2 and EUR 4 million from electricity cost (H&M group, 2018).

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achieved by electric trucks. For instance, in China, the rate of last-mile deliveries for

distributing to stores that were done by using electric trucks at the end of 2018 was 50%. In Italy, H&M group works with innovative transport service provider that promote the use of electric vehicles in the markets in Italy. This accounts for 19% of H&M group’s total

transportation in Italy and 79% of the company’s total transportation in Milano, Brescia, Florence, Turin, and Rome. All transportations for & Other Stories and COS in Italy are made using electric vehicles (H&M group, 2018).

In addition, H&M group is working to surmount several barriers that are currently

decelerating the use of more electric vehicles. This comprises changing policy and taxation landscape that makes long-run investments riskier for transportation companies. The deficiency in the infrastructure for charging electric vehicles is an obstacle as well the batteries of the electric vehicles have relatively short lifecycle in addition to the less time that electric vehicles can spend on the road as they need longer time for charging.

Moreover, H&M group makes effort to minimize carbon emissions of its operations by using other measures. These measures include improving transport routes and the amount of deliveries per trip, the grade of filling trucks, and training drivers to minimize fuel consumption by using efficient driving techniques (H&M group, 2018).

In order to achieve climate positive goals, H&M group wants to support all its suppliers to use renewable energy. Nevertheless, despite that some suppliers already use energy from renewable sources, many have lack of access to renewable energy, especially in new markets. H&M group is working with government bodies and other stakeholders to change this. H&M group signed a Declaration of Support in Vietnam to help the government to facilitate and extend the access to renewable energy sources (H&M group, 2018).

H&M group works with International Finance Corporation (IFC) to complete low-carbon roadmaps for H&M group’s sourcing markets. Together with IFC, H&M group involved some of the suppliers in several rooftop solar projects and explained the business case based on results of feasibility studies that been achieved in 2017. Solar panels installation on factory rooftops is currently one of the viable clean energy solutions. In China, H&M group has worked with stakeholders to provide suppliers with the needed knowledge, promote feasibility studies, and support project design and implementation (H&M group, 2018).

The apparel industry’s environmental impact, mitigation and adaptation to climate change: A case study of three Swedish companies

The apparel industry’s

environmental impact, mitigation

and adaptation to climate change:

A case study of three Swedish

companies

VIRONICA SVENSSON

The apparel industry’s

environmental impact, mitigation

and adaptation to climate

Abstract

Acknowledgement

TABLE OF CONTENTS

Abbreviations

1. Introduction

1.1. Aim and objectives

1.2. System boundaries

2. Methodology

3. Literature Study

3.1. The environmental impacts

3.2. Mitigation and adaptation to climate change

3.2.1. Circularity

3.2.2. Material recycling and mix

3.2.3. Transition away from using conventional cotton

3.2.4. Using tools

3.2.5. Setting strategies and communication

3.2.6. Traceability

3.2.7. Transparency

4. Results

4.1. H&M group – The environmental impacts and management

4.1.1. Mitigation and adaptation to climate change

4.1.2 Priority 1 (Leadership in energy efficiency) for climate impact reduction

4.1.3. Priority 2 (100% renewable energy) for climate impact reduction