Sustainable raw materials will drive profitability for apparel brands and in the face of the climate crisis, a rapidly changing policy landscape and intensifying investor and consumer scrutiny, fashion and apparel brands can no longer afford to underinvest in their raw materials strategies, reveals a new report by Quantis, BCG and Textile Exchange.
Quantis is a leading sustainability consultancy, Boston Consulting Group (BCG), Inc. is an American global management consulting firm while Textile Exchange is a global non-profit.
The report says that without proper investment, the demand for low-climate-impact (‘preferred’) raw materials will likely exceed supply by as much as 133 million tonnes by 2030. Setting and putting raw materials strategies into immediate practice promises to pay off; brands that move quickly to close the raw-materials gap can seize an average net profit increase of 6 per cent over a five-year period.
The raw materials can make up as much as two-thirds of a fashion and apparel brand’s climate impact. Taking bold action now to secure access to sustainable materials is essential for brands to drive down carbon emissions and prepare for upcoming regulations.
For brands looking to create a robust materials strategy, six principles have been underlined.
Invest in and embed full traceability to de-risk supply chains and fully understand materials’ impacts, use a science-backed approach to strengthen decision making and satisfy stakeholders, diversify the materials portfolio to spread risks and future-proof operations, build a business case that leads to a triple win—for brands, for suppliers, and for nature, strengthen supply chain relationships—they will make or break brands going forward and ensure that knowledge, tools, and incentives are engrained throughout the company.







