From the Sector

• Scientific researchers from 10 countries, including North America, UK, Japan and Germany
• Bertrand Piccard, Solar Impulse Foundation, as Keynote Speaker
• Speakers from strategic partnerships: L’Oréal, Salomon, and McKinsey

Carbios hosted the first PET Biorecycling Summit from 7 to 8 December 2022 in Paris. The event attracted over 100 international participants from the scientific, academic, and industrial worlds to exchange on the advances in the field of biological recycling, and how to bring these innovations for a circular economy to market.

The two-day conference gathered scientists from various academic institutions to share their latest research on PET enzymatic depolymerization.  Bertrand Piccard, Initiator and Chairman of the Solar Impulse Foundation^[1], joined as the Keynote Speaker for the last session focused on PET circularity, and praised Carbios’ contribution to reducing plastic pollution. The Summit concluded with a visit of Carbios’ demonstration plant in Clermont-Ferrand. The demonstration plant was inaugurated in September 2021 and brings Carbios’ technology one step closer to industrialization. Following the demonstration plant’s success, Carbios is on track to build and operate the world’s first industrial-scale enzymatic PET recycling plant (with a processing capacity of 50.000 tons of PET waste per year) in France (Longlaville) by 2025^[2], and to start licensing its technology throughout the world.

^[1] To address sustainability challenges while enabling economic growth, Bertrand Piccard and the Solar Impulse Foundation have identified 1000+ clean and profitable solutions. More details available on the official website.

^[2] Cf. Press release dated 23 February 2022.

Carbios published its first Sustainability Report using 2021 as the baseline year. The report outlines Carbios’ commitment to developing environmental, social and governance (ESG) initiatives that go beyond the industrial development of its innovative plastics biorecycling technologies. Although not subject to the regulatory requirement of the Non-Financial Reporting Directive (NFRD), Carbios has nonetheless structured its report in accordance with the requirements of the European directive on Extra-Financial Performance Statements.

Carbios’ sustainability strategy is based on three pillars (governance and ethics, the environment, social and societal issues) divided into 22 priority material challenges. Carbios’ Sustainability Report reflects the company’s dedication to transparency in action and highlights its efforts in areas such as environmental sustainability; employee relations, diversity and inclusion; and corporate governance.

Within its 2021 Sustainability Report, Carbios has formalized several targets including:

ENVIRONMENTAL OBJECTIVES

• Use the Life Cycle Assessment (LCA) method to maximize circularity and aim for the lowest carbon impact
• Commit to depolymerizing 60 tons of PET in 2023 at the Demonstration Plant in Clermont-Ferrand: the equivalent of about 3.2 million plastic bottles or 4 million food trays

SOCIAL OBJECTIVES

• Contribute to local economic development in France: the world’s first industrial-scale enzymatic PET recycling plant in Longlaville will create 150 direct and indirect jobs
• In a context of strong growth, promote employee well-being and safety by developing training, and ensuring the management and prevention of psycho-social risks
• Strengthen commitment to supporting international research through academic partnerships and scientific publications

GOVERNANCE OBJECTIVES

• Achieve 40% female members of the Board of Directors by end 2023, and 40% on Executive Committee by end 2024
• Achieve 60% independent members of the Board of Directors by end 2024
• Structure CSR governance with the creation of a CSR committee and integrate sustainability objectives into Executive’s compensation starting fiscal year 2023

• Potential loss of competitiveness, caused by the EU’s inaction of the energy crisis, and Chinese and US subsidies to domestic industry

Following yesterday’s European Council summit and its conclusions on the measures to tackle the energy crisis, the European textiles industry is extremely concerned about the fast loss of competitiveness of Europe and demands urgent action to save the industry.

The chain of factors determining this sharp decline in competitiveness is twofold. First, the energy cost in Europe is more than 6 times higher than in the US, China, and neighbouring countries. This factor alone has almost erased the business case for producing in the EU. At present, many textiles and clothing companies are producing at net loss or have shut down production. The industrial conditions have worsened in such a way that there is no business case to invest in Europe or buy products produced or processed in the EU. It is only the sense of responsibility of the entrepreneurs towards the European society that is keeping the plants and production running.

Secondly, while the EU is passive and extremely slow in articulating a credible and effective response to the energy crisis, the main international competitors and trade partners (China, India and the US respectively) have developed comprehensive state-aid frameworks for their domestic industry despite not being affected by this crisis at all. The latest example is the 369-billion-dollar scheme of the Inflation Reduction Act rolled out by the Biden administration.

Recent trade data  already indicate a loss of global competitiveness: imports to the EU have grown tremendously in 2022 (+35% year-to-date). It is also evident that the surge in imports goes in parallel with the surge of natural gas price. It is expected that energy prices will remain high and volatile, opening the door for imports to gain substantial market shares in the EU.

The chart indicates the development of the Title Transfer Facility (TTF) until September 2022 since Eurostat data for Q4 2022 has not been published yet. Euratex is aware that the market situation has eased somewhat since in the past months, but the crisis remains because gas prices are still extremely high in comparison to last year. This suggests that the current loss of competitiveness of the EU manufacturing will not be recovered even with lower energy prices, unless measures are taken to correct the unlevel playing field on which the EU industry has to operate in the international markets. Only with an ambitious and comprehensive relaunch plan at EU level, Europe will be able to restore its credibility as a global manufacturing powerhouse and investments.

If the status quo is maintained, not only the EU will not be able to recover its competitive position on the global business stage, but it will also fail its plans to reach zero-net emissions and achieve circularity. It is evident that these ambitions - that the industry is passionately supporting - need massive capital investments. However, in the current scenario an investments diversion can only be expected to markets where governments are actively supporting those investments and energy costs are much lower – regardless of their fossil- or non-fossil origin.

The European textiles industry – the whole value chain, from fibres, nonwoven, to fabrics, clothing manufacturers - are facing unprecedented pressure deriving from the current geopolitical situation, the new macroeconomic conditions and unfair competition from third states. The situation is going to worsen if no emergency action is taken, especially because a recession is expected in the coming months.

The main structural component of the EU manufacturing are SMEs: these are economic actors that are particularly exposed to the current crisis as they do not have the financial leverage to absorb the impact of energy prices for much longer. Urgent EU action is needed to ensure their survival.

EURATEX calls on the EU political leaders in the Commission, in the European Council and in the national capitals to:

1. Raise the ambition and adopt a comprehensive approach at EU level: energy, state-aid and trade policy must be brought together in a single strategy with concrete emergency solutions and with a clear SME dimension;
    
2. Let all hesitations aside and adopt a meaningful price cap on natural gas wholesales, that should be ideally no higher than 80 euro/MWh. In parallel, it should also be ensured that electricity prices are brought to a sustainable price level;
    
3. Change the European posture on state-aid, even temporarily. An ambitious plan of investments and state-aid in green technologies to support the industrial transition should be rolled out.

Such a plan, however, should not be conceived as a retaliation against our most necessary and like-minded trade partners. Access to finance and markets must be safeguarded for all those actors who are capable and willing to invest in Europe, on the basis of reciprocity. In   these challenging times for geopolitical stability, ensuring strong trade ties with our traditional allies and partners is of utmost importance. The roll-out of an investment and state aid plan should not interfere, but rather support, the dialogue with the US (and other partners) and the deepening of our trade and investment partnership. Such a dialogue should be accelerated in the context of the TTC as well as at WTO level.

The Lenzing Group, a leading supplier of sustainably produced specialty fibers, and Renewcell, the Swedish textile-to-textile recycling pioneer, have signed a multi-year supply agreement to accelerate the transition of the textile industry from a linear to a circular business model. The agreement contains the sale of 80,000 to 100,000 tonnes of Renewcell’s 100 per cent recycled textile Circulose® dissolving pulp to Lenzing over a five-year period, for use in the production of cellulosic fibers for fashion and other textile applications.

“The textile industry must change. By signing the agreement with Swedish textile-to-textile recycling company Renewcell, Lenzing is able to further integrate recycling and accelerate the transition of the textile industry from linear to circular. As champions of sustainability, we know that moving towards a circular economy is vital to address the enormous textile waste challenges of the industry”, says Christian Skilich, Chief Pulp Officer of the Lenzing Group.

“Lenzing is a major player in our industry, with an inspiring track record of path-breaking technical excellence and sustainability leadership. Our new partnership fits perfectly into Renewcell’s strategy to accelerate the scale-up of circular materials by collaborating with fashion’s most important players. We are more than pleased to join forces with Lenzing with the shared goal of making fashion circular.” said Patrik Lundström, CEO of Renewcell, in a comment on the agreement.

Canopy, a not-for-profit environmental organization dedicated to protecting forests, species, and climate, welcomes the agreement between Lenzing and Renewcell.
“Accelerating the transition to low-impact, circular production is the challenge of the decade for the fashion industry. That is why this partnership between Renewcell and Lenzing is so refreshing – it will bring low-carbon Next Gen solutions to market at scale,” exclaimed Nicole Rycroft, Executive Director of Canopy. “With the climate and biodiversity clocks ticking, the race to circularity is one we need all companies to win.”
 
It is an essential part of Lenzing’s corporate strategy and ambitious sustainability targets to become a true champion of circularity and to offer TENCEL™ and LENZING™ ECOVERO™ branded specialty textile fibers with up to 50 percent post-consumer recycled content on a commercial scale by 2025. To reach this goal Lenzing partners with recycling pioneers like Renewcell.
Circulose® originates 100 per cent from textile waste, like old jeans and production scraps, and turns into dissolving pulp. It transforms textile waste and production scrap into new high-quality textile products.

• Lenzing again recognized for sustainable sourcing, innovation and transparency
• Lenzing achieves the highest category for the third time already

The Lenzing Group achieved first place in the “Hot Button Ranking” of the Canadian non-profit organization Canopy, thus confirming its leading role in the areas of sustainability and responsible wood and pulp sourcing. Lenzing can also once again celebrate a dark green shirt, synonymous with the highest category.

In this ranking, which receives a lot of attention in the textile and apparel industry, Canopy evaluates the world’s 34 largest producers of cellulosic fibers in terms of their sustainable wood and pulp sourcing, their efforts with regard to the use of alternative raw materials and their achievements in the protection of ancient and endangered forests. Resource preservation is a key element of Lenzing’s corporate strategy and at the core of its innovation agenda. The sustainable production of TENCEL™, VEOCEL™ and LENZING™ ECOVERO™branded specialty fibers is based on these principles.

Promoting the circular economy
With its REFIBRA™ and Eco Cycle technologies, Lenzing offers solutions for transforming the textile and nonwovens industries towards a circular economy. In line with its vision for the circular economy, “We give waste a new life. Every day.” Lenzing is driving the industry toward a full circular economy by striving to give waste a new life in all aspects of its core business and developing circular solutions together with potential partners inside and outside the current value chain. A milestone on this path is the cooperation with the Swedish pulp producer Södra. The two global market leaders, who have been proactively promoting the circular economy in the fashion industry for many years, are joining forces to give the topic a further boost and make a decisive contribution to solving the global textile waste problem by making fibers from post-consumer textiles.

Today, Lenzing offers lyocell fibers made from 30 percent recycled cotton waste. The company aims to launch lyocell, modal and viscose staple fibers with up to 50 percent recycled post-consumer content on a commercial scale by 2025 and to develop a new circular business model by closing the loops for post-consumer waste. By 2025, the company plans to enter into further partnerships with 25 key supply chain companies.

Confirming its commitment as a global sustainability player.

The Sharm el-Sheikh Climate Change Conference (COP 27) has turned out to be one of the most closely watched events in recent years, an opportunity to bring together leaders from around the world in the face of a pressing and undeniable need

ISKO had the honor to be the only manufacturer representative of the fashion industry at the United Nations event by taking part on 12 November at the focus talk “Circular Systems for a Net Positive Fashion Industry” organized by the Global Fashion Agenda (GFA) and the UNEP (United Nations Environment Programme).

Elena Faleschini, Senior Manager Brand Partnerships ISKO, and the other speakers (Federica Marchionni, Lily Cole, Miranda Schnitger, Samata Pattinson, Holly Syrett and Tarek Alkhoury) have agreed that:

• Harmonization and transparency in goals are critical.
• Vertical and horizontal partnerships are key.
• Investment in innovation is vital to a circular business model in fashion.
• Fashion must be part of the discussions around climate change and net positive.

Hologenix®, creators of CELLIANT®, began 20 years ago with the idea of improving the quality of people's lives and health with an emphasis on non-invasive, natural, holistic healing. Co-founder and CEO Seth Casden became fascinated with the effect infrared has on the body and worked with a dedicated team to develop and market CELLIANT® infrared technology and thus materials science innovator Hologenix came to be.

CELLIANT, a proprietary blend of IR-generating bioceramics that are ethically sourced, is a unique combination of nature and performance. CELLIANT captures and converts body heat into infrared energy for increased local circulation and cellular oxygenation, resulting in stronger performance, faster recovery and better sleep. It is a key ingredient in textiles, spanning both performance and fashion apparel, sleep and lounge wear, bedding, upholstery, uniforms and medical supplies.

The first partnership Hologenix secured was with the Ireland-based fiber company Wellman International Limited, a fully owned subsidiary of Indorama Ventures and a pioneer in recycling technologies. Hologenix still works with them today, a tribute to the company’s ability to form long-term partnerships with like-minded organizations, and their joint project of pure white CELLIANT rPET fiber was shortlisted for a prestigious Drapers Sustainable Fashion Award earlier in the year.

On the brand side, many of the first brands to incorporate CELLIANT were in the sportwear industry, including Adidas, Reebok, Saucony, Eastern Mountain Sports, Sierra Designs sleeping bags and Superfeet insoles.

In 20 years, Hologenix has achieved many scientific milestones, and CELLIANT has been and continues to be rigorously tested by a Science Advisory Board composed of experts in photobiology, nanotechnology, sleep medicine, and diabetes and wound care. The Science Advisory Board has overseen nine peer-reviewed published studies that demonstrate CELLIANT’s effectiveness and the benefits of infrared energy.

Looking ahead, Hologenix is continuing to research applications for CELLIANT in the agriculture industry and wound healing and diabetes. Expansion into the FemTech market with both product applications and scientific research about the benefits of infrared for women’s health issues is also on the horizon.

• Currency-neutral sales up 4%, reflecting continued double-digit growth outside Greater China
• Gross margin down 1.0pp to 49.1% as price increases were more than offset by increased supply chain costs, higher discounting, and an unfavorable market mix
• Operating profit of € 564 million reflecting an operating margin of 8.8%
• Net income from continuing operations of € 66 million negatively impacted by several one-off costs totaling almost € 300 million as well as extraordinary tax effects in Q3

“The market environment shifted at the beginning of September as consumer demand in Western markets slowed and traffic trends in Greater China further deteriorated. As a result, we saw a significant inventory buildup across the industry, leading to higher promotional activity during the remainder of the year which will increasingly weigh on our earnings,” said adidas CFO Harm Ohlmeyer. “We are encouraged by the enthusiasm for the upcoming FIFA World Cup which is already noticeable in our Football revenue growth. And in North America we are gearing up for an exciting upcoming basketball launch.”

In the third quarter, adidas’ currency-neutral revenues increased 4%. While the company experienced high-single-digit top-line growth during the first two months of the period, deteriorating traffic trends in Greater China as well as slowing consumer demand in major Western markets weighed on the revenue development in September. In addition, the company’s decision to suspend its own operations in Russia at the end of Q1 significantly reduced revenues by more than € 100 million during the third quarter, particularly impacting the company’s direct-to-consumer (DTC) business. In euro terms, the company’s revenues grew 11% to € 6.408 billion in the third quarter (2021: € 5.752 billion).

From a category perspective, revenue growth was the highest in adidas’ strategic growth categories Football and Running, both growing at strong double-digit rates. In Football, the jersey launches ahead of the FIFA World Cup 2022 fueled consumer excitement prior to the tournament. Revenues in Running were driven by the latest iterations of adidas’ successful running franchises, including Adizero and Supernova, which both grew more than 50% during the quarter. On the Lifestyle side, the further scaling of the successful Forum and Ozweego franchises led to strong double-digit growth for both product families. At the same time, additional highly limited drops as part of the Gucci and Balenciaga partnerships continued to spark excitement around the adidas brand.   

From a regional perspective, revenue growth was driven by the company’s Western markets and APAC, which combined continued to grow at a double-digit rate (+12%). In EMEA, revenues grew 7% despite the loss of revenue in Russia/CIS of more than € 100 million. Revenues in North America increased 8% during the quarter driven by a double-digit increase in the company’s DTC channel. In APAC and Latin America, revenue growth accelerated compared to Q2, reaching 15% and 51% respectively, year-on-year. In contrast, the company’s top-line development in Greater China continues to be severely impacted by the challenging market environment, mainly related to the ongoing covid-19-related restrictions. While the company’s own retail revenues in Greater China increased 7% in the third quarter reflecting a robust sell-out, the significant product takebacks reduced the company’s sell-in and resulted in a revenue decline of 27% for the market as a whole during the three-month period.  

Strong bottom-line improvement in 2023  
In 2023, the company expects the non-recurrence of the one-off costs of around € 500 million occurred in 2022 to have a positive impact on the net income development in the same magnitude. In addition, in light of the challenging market environment, adidas established a business improvement program to safeguard the company’s profitability in 2023. As part of this program the company has launched several initiatives to mitigate the significant cost increases resulting from the inflationary pressure across the company’s value chain as well as unfavorable currency movements. In total, the program, which will result in one-off costs of around € 50 million in the fourth quarter of 2022, is expected to compensate cost headwinds of up to € 500 million in 2023. In addition, it is expected to deliver a positive profit contribution of around € 200 million next year. 

Piattaforma Sistema Formativo Moda Ente del Terzo Settore renews its commitment in the field of responsible, eco-friendly fashion with a new ad hoc initiative for Fashion Graduate Italia: FASHION SCHOOLS FOR DESIGN - DRIVEN SUSTAINABLE INNOVATION. The project has been set up in a partnership and with the support of C.L.A.S.S. (Creativity, Lifestyle And Sustainable Synergy).

The project “Fashion Schools for Design - Driven Sustainable Innovation” is presented at the eighth edition of the event organised by Piattaforma Sistema Formativo Moda, staged from 3 to 5 November at BASE Milano.

Embracing the theme of this edition of Fashion Graduate Italia, “Sustainable Innovation”, Piattaforma Moda has invited students from fashion schools, academies and associated institutes to participate in a training course regarding the planning and creation of an outfit in compliance with a responsible fashion approach: starting with the design, including the choice of sustainable materials supplied by some of the hub’s partner companies, and also involving a look at the communication strategy for the project.
To create their looks, the selected students followed two training courses organised by C.L.A.S.S.: “Introduction to next-generation Fashion” and “Introduction to smart ingredients”. These courses covered the values of next-generation fashion (integrating sustainability with design and innovation) and the characteristics of innovative and sustainable materials to produce the outfits.
 
The development process of the 11 final looks was followed in person by creative director Olivia Spinelli - Coordination and Creative Direction at IED Moda Milano and member of the Artistic Committee of FGI 2022 - and by tutor Camilla Carrara - founder and zero-waste designer of ZEROBARRACENTO -, the project coordinator of C.L.A.S.S.

The partners of C.L.A.S.S. that contributed by supplying their materials are: Berto, Brunello, Iluna Group, Re.VerSo™ by A. Stelloni Collection by Mapel and Tessitura Grisotto;  IED - European Institute of Design and ZEROBARRACENTO also gave support in the implementation of the initiative.

BOGNER has been dressing the German national ski team since 1952. The enthusiasm for alpine skiing and the technical innovations in winter sports fashion unite BOGNER, the global pioneer for athluxury sports fashion, and the top athletes of the DSV. The long-standing partnership contributes to outstanding international success and many iconic sports moments that can be celebrated together.

In 2022, both partners celebrate milestone anniversaries: 90 years of BOGNER and 70 years of DSV.
The anniversaries will be marked with new innovations in the BOGNER-DSV collection: tthe innovative Schoeller® - Energear™ material consists of a titanium-mineral matrix that can return far-infrared rays to the body when used in textiles. The recovered energy is said to have a positive effect on the body and can accelerate muscle regeneration.

The styles of the BOGNER-DSV anniversary collection are in a color palette of Lemon, Rock, Off-White and Black, and consist of a double down jacket with rain jacket, thermal jacket, softshell jacket, light down vest, overalls, athlete pants, additionally reinforced technician pants as well as racing shorts, the iconic racing suit, and a rain cape. In addition, the collection is complemented by headwear and a team sweater
This year, BOGNER is dressing a total of 200 athletes, coaches and support staff from the alpine skiing sector. As in every collection, the racing suits of the DSV athletes will be tailor-made to guarantee the perfect fit and performance in the respective disciplines such as downhill, super G, giant slalom and slalom.

90 years of BOGNER and 70 years of DSV represent many iconic moments, common goals, teamwork and Olympic Games. The success story continues with the next joint highlight: the SKI World Championships in Meribel/Courchevel.

For winter sports fans and passionate skiers, a selection of outfits based on the DSV collection is available in BOGNER stores, on bogner.com and from selected wholesale partners.