From the Sector

On 30 March 2022, the European Commission presented its vision for the future of the textile industry. The strategy mainly focuses on reducing the environmental footprint and promote sustainability and transparency in the value chain.

EURATEX has welcomed the publication of the strategy, as it recognises the strategic importance of the European textile industry, and its core competitive values of quality and creativity. At the same time, the association has warned that translating that vision into reality is a delicate process, as the industry needs to reconcile sustainability with competitiveness. Making the green (and digital) transition should make companies stronger; the benefits should outweigh the costs.

This premise had a serious blow by the Russian war in Ukraine, which erupted at almost the same time when the strategy was launched, and has dramatically changed the economic context. Energy prices increased by a factor of 10 (!), putting the European industry at a significant disadvantage with its global competitors, leading to company shutdowns or relocations. Extended lock downs in China and defensive trade policies in the US and elsewhere have further generated uncertainty on the market and disrupted supply chains.

Today, one year after its publication, EURATEX remains carefully optimistic about the implementation of the strategy, but needs to warn against some important pitfalls on the road ahead.

1. Despite these turbulent times, the Commission is moving ahead “swiftly” in translating their EU Textile Strategy into (draft) legislation. At present, at least 16 pieces of legislation are on the table, which will turn the textile industry into a strictly regulated sector. The quality of this new regulatory framework is critical to the success of the strategy: upcoming rules need to be coherent, technically feasible and enforceable, and have a minimal cost for SMEs. EURATEX calls for a realistic timetable and “competitiveness test” for each piece of legislation before it is adopted.
2. Textile companies need to be informed and supported to comply with this new framework. This requires substantial funding which should be earmarked exclusively to the sector, covering areas of innovation and digitalisation, skills development, support to start ups and internationalisation, as well as access to affordable energy. In this regard, EURATEX calls on the Commission to translate the current “good intentions” into concrete decisions.
3. The EU strategy will not work if there is no demand for sustainable textiles, both from individual consumers and public authorities (procurement). Concrete measures need to be taken to offer a competitive advantage to sustainable and high quality textile products, e.g. through a different VAT rate, strict procurement rules, closer cooperation between the brands/retailers, producers and consumers.
4. The EU strategy could also fail, if the global dimension of the textile industry is ignored. Up to 80% of clothing products are produced outside the EU; these products need to comply with the new framework, but it remains unclear how to ensure that level playing field. Market surveillance needs to be stepped up massively – also targeting on line sales – but this would require significant efforts from member states, which are not available as of today.

Despite these important challenges, EURATEX remains committed to the successful implementation of the EU Textile Strategy. Director General Dirk Vantyghem commented: “We want to be a global leader in sustainable textiles, building on the entrepreneurship, quality and creativity of nearly 150,000 European textile companies. Creating this new framework is an incredible challenge, requiring a close dialogue between the industry and the regulator. But if well designed and carefully implemented, it can set a new era for the European textile industry”.

National Council of Textile Organizations (NCTO) Chairman David Poston delivered the trade association’s State of the U.S. textile industry overview at NCTO’s 19th Annual Meeting on March 30.

Mr. Poston’s speech highlighted the impacts of macroeconomic factors on the U.S. textile industry and the resilience of the U.S. textile industry; trade and investment data showing growth in the sector across the board; and NCTO’s policy priorities for domestic textile manufacturers.

“The U.S. textile and apparel industry faced challenging macroeconomic conditions throughout the year,” Poston states in the speech. “Despite these challenges, there were also many positive trends that helped offset some of those pressures, including softening inflation towards the latter half of the year, coupled with a surge in onshoring and nearshoring that led to historic investments, commitments and expansion in the U.S. and the Western Hemisphere.”

Click here for his full remarks.

At the Annual General Meeting of Autoneum Holding Ltd on 24th March 2023, a clear majority of the shareholders approved the introduction of a capital band in the amount of approximately CHF 100 million net proceeds to finance the acquisition of Borgers Automotive. The proposal to waive the payment of a dividend for the 2022 financial year in view of the lower net result was also approved. In addition, Board member Rainer Schmückle as well as CEO Matthias Holzammer were given a farewell.

221 shareholders attended today’s Annual General Meeting of Autoneum Holding Ltd in Winterthur. 66.48 percent of the share capital was represented.

The shareholders approved the Annual Report, the Annual Financial Statements and the Consolidated Financial Statements for 2022. The proposal of the Board of Directors to waive the payment of a dividend for the financial year 2022 due to the lower net result was also approved by the Annual General Meeting.

In addition, the shareholders of Autoneum Holding Ltd granted discharge to all members of the Group Executive Board and the Board of Directors by a large majority of votes.

Chairman Hans-Peter Schwald and the other members of the Board of Directors Liane Hirner, Norbert Indlekofer, Michael Pieper, Oliver Streuli and Ferdinand Stutz were confirmed in office for another year. Hans-Peter Schwald, Norbert Indlekofer, Ferdinand Stutz and Oliver Streuli were re-elected to the Compensation Committee.

The consultative vote on the 2022 remuneration report was approved by 85.55%. The proposals for the remuneration of the Board of Directors and the Group Executive Board for the 2023 financial year as well as the other proposals were also approved by a large majority.

With 99.03%, a clear majority of the shareholders approved a capital band authorizing a capital increase of approximately CHF 100 million net proceeds. The purpose of the capital increase is to partially finance the acquisition of the automotive business of the Borgers Group announced by Autoneum on January 9, 2023. The Annual General Meeting also approved the other proposals of the Board of Directors for partial amendments to the Articles of Association.

Rainer Schmückle did not stand for re-election. He had been Vice Chairman of the Board of Directors, Chairman of the Audit Committee and member of the Strategy and Sustainability Committee since Autoneum became independent in 2011. CEO Matthias Holzammer, who will leave Autoneum for family reasons, was also bid farewell.

At the same time, Hans-Peter Schwald welcomed the new CEO Eelco Spoelder, who will take over the management of the Group from Matthias Holzammer on March 27, 2023: "With Eelco Spoelder, Autoneum gains an accomplished leader with many years of experience in the automotive supply industry. At Faurecia and previously at Continental, Mr. Spoelder has successfully proven that he can ensure strategic continuity and operational excellence even in a difficult market environment. I and the other members of the Board of Directors warmly welcome Eelco Spoelder and look forward to our future cooperation."

RadiciGroup presented Biofeel® Eleven, a yarn of natural origin, at the Performance Days trade fair (from March 15-16 in Munich). Biofeel® Eleven is sourced from castor oil and is suitable for obtaining bio-polymer. It can be used for fabrics and fine garments in many sectors, from fashion to sports, from automotive to home textiles.

Today, 80% of the world's castor-oil plantations are in India, particularly in the Gujarat region, due to its favourable climatic conditions. In this area, local people can earn an additional income by cultivating semi-arid land that does not compete with food production, and by applying the skills they have acquired over time to this work. Over the years, thanks to research, development and innovation in the value chain, the seeds from which the oil is produced have been selected and certified to ensure the finest quality, also in terms of end uses.

Castor beans contain around 45% oil, rich in ricinolein, from which the bio-polymer polyamide 11 is derived. This is the polymer RadiciGroup uses for its Biofeel® Eleven yarn. What remains after the first pressing is a highly effective bio-fertiliser that is returned to the soil.

Biofeel® Eleven can also be solution dyed, i.e. dyed at the yarn production stage, saving a great deal of water and energy and also providing greater colour stability.

The Global Organic Textile Standard is pleased to announce the release of GOTS Version 7.0, which features an expanded scope of environmental and social criteria while maintaining a standard that is practicable for industrial production and appropriate for a wide range of products. During the regular year-long revision process, international stakeholders with expertise in organic production, textile processing, textile chemistry, human rights and social criteria, as well as representatives from industry, NGOs and civil society organisations, contributed to the new Version 7.0 through multiple consultation rounds. Final decisions were made by the multistakeholder GOTS Standard Revision Committee.

GOTS Version 7.0 provides a comprehensive solution for companies who want to produce organic textiles ensuring compliance with environmental and human rights due diligence along the entire supply chain, from field to finished product. With full traceability from origin to destination, GOTS certification provides an efficient means of verifying genuine sustainability efforts. GOTS 7.0 introduces new requirements to conduct risk-based due diligence of Certified Entities’ own operations and their supply chains based on the UN Guiding Principles for Business and Human Rights and the OECD guidelines. The Social Criteria section was substantially revised to include a broader human rights-focused approach. GOTS 7.0 now allows recycled organic fibres as additional materials. Key requirements, such as certified organic fibre content, a general ban on toxic and harmful chemicals such as PFAS, conventional cotton and virgin polyester restrictions, and social compliance management, are maintained in GOTS Version 7.0.

Some of the changes in Version 7.0 include:

• GOTS and the Manual for the Implementation of GOTS were restructured, and sections were grouped to reflect the standard’s scope.
• New due diligence criteria ensures that Certified Entities address their actual and potential negative impacts on human rights and the environment.
• GOTS Environmental Criteria, Product Stewardship, and Environmental Health and Safety (EHS) requirements will also apply to the subcontractors of chemical formulators.
• Criteria for the incoming organic material have been made stricter.
• Quinoline is included among the prohibited substances and some existing restrictions have been made tighter such as of “aniline, free”, residue limit is decreased to 20 mg/kg from 100 mk/kg.
• GOTS 7.0 reduces the permissible quantity of recycled synthetic (polymer) fibres in its certified products, taking into account the disadvantages associated with recycled synthetics, such as microplastics and poor quality.
• In the pursuit of circularity, GOTS will allow use of recycled GOTS Goods waste as an additional fibre in its certified products.
• GOTS Human Rights and Social Criteria will now require Certified Entities to respect internationally recognised human rights protocols, including the International Bill of Human Rights and other international human rights treaties.
• Criteria concerning Discrimination, Violence and Harassment were revised to make them more comprehensive and include the International Labour Organisation (ILO) Violence and Harassment Convention (C190).
• Certified Entities are now required to develop a plan to cover the living wage gap.
• GOTS Occupational Health and Safety criteria were revised to consider best international practices and recommendations from the ILO.

For more information, see the following documents:

• GOTS Version 7.0
• Change Log GOTS 7.0
• Change Log Manual for the Implementation of GOTS 7.0
• Guideline for the new structure of GOTS 7.0

The Supervisory Board of adidas AG has extended the appointment of Harm Ohlmeyer as Chief Financial Officer of the company by another three years until the beginning of 2028. Harm Ohlmeyer has been member of the Executive Board of adidas AG since March 2017 and the company’s CFO since May 2017.

At the same time, the Supervisory Board appointed Arthur Hoeld as Executive Board member, responsible for Global Sales, as of April 1, 2023. Hoeld has been with adidas for 25 years, most recently as Managing Director of the company’s EMEA region since 2018. He will succeed Roland Auschel, who has decided to step down from his role, pass on the baton and leave the company after 33 years with adidas, including ten years as an Executive Board member.    

Furthermore, Brian Grevy, Executive Board member of adidas AG, responsible for Global Brands, has informed adidas AG’s Supervisory Board that he will step down from the Executive Board and leave the company. In mutual agreement with Brian Grevy, the Supervisory Board approved the termination of his appointment as an Executive Board member as of March 31, 2023. adidas CEO Bjørn Gulden will assume responsibility for Global Brands. In this role, Gulden will lead adidas product and marketing activities, which will enable the required fast decision-making across all business units and departments.

Thomas Rabe thanked Brian Grevy for his many important contributions during his years of service with the company. Grevy initially joined adidas in 1998 and held leadership positions of increasing responsibility for adidas on a local, regional and global level before leaving the company in 2016. At the beginning of 2020, Brian Grevy returned to adidas as the company’s Executive Board member for Global Brands.

As of April 1, 2023, the company’s new Executive Board will consist of Bjørn Gulden (Chief Executive Officer and Global Brands), Arthur Hoeld (Global Sales), Harm Ohlmeyer (Chief Financial Officer), Amanda Rajkumar (Global Human Resources, People and Culture) and Martin Shankland (Global Operations).

Textile waste is a problem in Europe. Out of 7-7.5 million tonnes of textiles discarded every year, 30-35 % are collected separately – and of that quantity, 15-20 % are sorted by medium and larger sorting facilities within the EU. After sorting, 60 % still qualify as wearable clothes, however after a second or third collection-loop, all of the textiles become non-wearable sooner or later. Therefore, fibre-to-fibre recycling is becoming increasingly important to preserve the valuable resources.
 
The textile recycling value chain is not yet mature, but we are on the verge of a turning point, as different fibre-recycling technologies are deployed on a large scale. If successful, the textile recycling industry could reach a recycling rate of 18 to 26 percent of gross textile waste in 2030. This would create economic, social and environmental value that could total 3.5 to 4.5 billion euros in 2030.

Today, there is a sorting gap to achieve a circular economy for textiles in Europe. To feed this new circular value chain, a significant sorting-capacity increase is needed with 150 to 250 sorting and recycling facilities nearby, as the McKinsey-study “turning waste into value” assessed.

There is also a technology and capacity gap in sorting for reuse and recycling to ensure that high quality raw materials from non-wearable textile waste can be made available on a large scale. This is why the “Transform Textile Waste into Feedstock” project was initiated by TEXAID, within the ReHubs initiative together with well-known stakeholders of the textile value chain.

The major outcome of this project will be a sorting-factory blueprint fulfilling the requirements to the future needs of fibre-to-fibre recycling, enabling the future of more sustainable textiles by using recycled fibres. TEXAID, who is leading the project, is committed to build and operate scalable sorting facilities across Europe, the first with a capacity of 50,000 tonnes by the end of 2024.

Companies like Concordia, CuRe Technology, Decathlon, Inditex, Indorama Ventures, L’Atelier des Matières, Lenzing, Marchi & Fildi, PurFi, Södra, Worn Again and others are taking part in the project to jointly evaluate technologies and the business case for scaled sorting for reuse and recycling. ITA Academy GmbH (in cooperation with RWTH Aachen) together with CETIA has been commissioned for the assessment of technologies. The outcome will be an innovative sorting system 4.0, building on cross-functional technologies with digitalization and automation are at the heart.

The details of the proposed restriction of around 10 000 per- and polyfluoroalkyl substances (PFASs) are now available on ECHA’s website. ECHA’s scientific committees will now start evaluating the proposal in terms of the risks to people and the environment, and the impacts on society.

The proposal was prepared by authorities in Denmark, Germany, the Netherlands, Norway and Sweden and submitted to ECHA on 13 January 2023. It aims to reduce PFAS emissions into the environment and make products and processes safer for people.

All PFASs in the scope of the proposal are very persistent in the environment. If their releases are not minimised, people, plants and animals will be increasingly exposed, and without a restriction, such levels will be reached that have negative effects on people’s health and the environment. The authorities estimate that around 4.4 million tonnes of PFASs would end up in the environment over the next 30 years unless action is taken.

Peter van der Zandt, ECHA’s Director for Risk Assessment said: “This landmark proposal by the five authorities supports the ambitions of the EU’s Chemicals Strategy and the Zero Pollution action plan. Now, our scientific committees will start their evaluation and opinion forming. While the evaluation of such a broad proposal with thousands of substances, and many uses, will be challenging, we are ready.”

Next steps
ECHA’s scientific committees for Risk Assessment (RAC) and for Socio-Economic Analysis (SEAC) will check that the proposal meets the legal requirements of REACH in their meetings in March 2023. If it does, the committees will begin their scientific evaluation of the proposal. A six-month consultation is planned to start on 22 March 2023.

RAC will form an opinion on whether the proposed restriction is appropriate in reducing the risks to people’s health and the environment, while SEAC’s opinion will be on the socio-economic impacts, i.e. benefits and costs to society, associated with the proposal. Both committees form their opinions based on the information in the restriction proposal and the comments received during consultations. The committees also consider advice from the Enforcement Forum on the enforceability of the proposed restriction. Once the opinions are adopted, they will be sent to the European Commission who, together with the EU Member States, will then decide on the potential restriction.

An online information session will be organised on 5 April 2023 to explain the restriction process and to help those interested in participating in the consultation.

International experts will discuss topics along the entire cellulose fibre value chain at the upcoming Cellulose Fibres Conference, 8–9 March 2023 in Cologne and online.

How can the cellulose fibre industry contribute to the sustainability and circularity of the textile sector? How can fibre markets achieve a circular economy for their materials? What are the most sustainable technologies on the market? And, are there innovative, interesting raw materials and technologies worth exploring to meet the challenges of the coming years?

These and other questions in the field of cellulose fibres will be discussed within the program of the Cellulose Fibres Conference 2023. The two-day event will provide insights into the latest developments of the cellulose fibre sector and introduce innovative start-ups, technologies as well as novel fibre applications. A special focus will be set on the textile sector and its awaited paradigm shift towards circular economy in the following years.

Seven sessions will provide in depth views from fibre production to recycling, policy and market trends:

• Strategies, Policy Framework of Textiles and Market Trends,
• Circular Economy and Recyclability of Fibres,
• Alternative Feedstocks and Supply Chains,
• Innovation Award “Cellulose Fibre Innovation of the Year 2023″,
• Sustainability and Environmental Impacts,
• Ionic Liquids and New Technologies for Pulps, Fibres and Yarns,
• New Technologies and Applications beyond Textiles.

The full conference program is available here.