How on Earth #6🗞️ December: COP28, climate disruptions and the business case behind material innovation

COP28 is happening now; and amidst Black Friday's controversy, supply chains experience the disruption of climate change and social inequality with heavy strikes. What's the business case for material innovation? More on this below.

🕘 5.5 min reading

TOP NEWS

The post-Thanksgiving shopping surge showed an increase in sales, surpassing predictions. However, this increased spending might not reflect robust economic health (Business of Fashion); credit card debt is record high.With heavy reliance on buy-now, pay-later services analysts are concerned about individuals' financial well-being. Potential consequences in the months ahead?The disconnect between consumerism and sustainability within the fashion industry is ever more apparent: how about Vestiaire's collective ban on fast fashion? (JustStyle).

International delegations are descending on Dubai for the 28th annual COP. This two-week event plays host to world leaders, activists, media, businesses and civilians: how could so different actors discuss limiting climate change?One main reason can make it be considered the most important COP since Paris in 2015: it's time for policies.

Italy’s Prato region, known for fabric manufacturing, has been hit with floods, impacting suppliers. It’s the latest sign of climate change’s impact on the supply chain of many fashion brands producing in Italy and has raised alarm bells for manufacturing and raw materials sourcing capabilities.

In response to the Bangladesh protest and to the consequent new minimum wage for garment workers of 12,500 BDT (US$114), fast fashion brands like H&M declared there will be an increase in unit prices to absorb the costs for garment makers associated with the recent minimum wage rise.At the same time, EU ban on products made with forced labor is reinforced (October, EU Parlament).

A report for fashion and apparel brands seeking to establish robust strategies in relation to raw materials in a fast-evolving context has just been released by Textile Exchange, BCG and Quantis. This is while in the innovative textile industry

• the bio-material producer TômTex, suppliers of companies such as Alexander Wang, Ralph Lauren, Peter Do, Dauphinette, Di Petsa, and Maitrepierre, closed a new round to hire key personnel and enhance manufacturing capabilities
• and the Swedish textile recycling company, Renewcell, has begun a strategic review to seek more funding as it continues to experience sluggish sales

UPDATES & REGULATIONS

Environmental labeling is one of those "tricky" regulatory requirements that is impacting fashion companies operating in various countries. We've recapped the current countries requiring adaptation and the upcoming ones in this timeline:

That's all for this month.

At Renoon, we understand the intricacies of changes in regulations, the market and the unique challenges and opportunities they present. We're here to guide and assist your business in its transition to sustainable practices. Get in touch with us to learn more about how we can support your sustainability journey 🌍, 

Renoon's team