From the Sector

Indorama Ventures Public Company Limited, a global sustainable chemical producer, was upgraded to "A" from "BBB" in MSCI’s ESG rating, reaffirming the company’s effective management of sustainability related risks and opportunities.

MSCI (Morgan Stanley Capital International), an independent provider of research-based indices and analytics, ranked Indorama Ventures among the top 14% of 65 companies worldwide in the commodity chemicals industry. The rating has placed it in the top quartile for opportunities in clean tech, water stress, corporate governance, and corporate behavior.

Indorama Ventures is committed to reducing water intensity by 10% by 2025 and 20% by 2030. It developed a Water Risk Assessment Report on its contributions to achieving sustainable management of water targets and the United Nations Sustainable Development Goals (UN SDGs). For improved corporate governance, the company provides whistleblowers with protection from retaliation, and has policies on business ethics and anti-corruption. Relating to opportunities in clean tech, Indorama Ventures’ is investing in recycling technology and biomass feedstock under its Vision 2030, and is also investing in operational efficiencies, carbon capture technology, renewable energy, and phasing out coal to reduce Scope 1 and Scope 2 greenhouse gas emissions.

MSCI ESG Ratings aim to measure a company’s resilience to long-term ESG risks. Companies are scored on an industry-relative AAA-CCC scale across the most relevant key issues based on a company’s business model. Investors, including pension funds, sovereign wealth funds, endowments, and asset managers, commonly consider the ratings to assess financial risks in the investment process.

The European Chemicals Agency invites interested parties to send in scientific and technical information on the manufacture, placing on the market and use of per- and polyfluoroalkyl substances (PFAS) by 25 September 2023.

The six-month consultation on the restriction proposal, prepared by the Danish, German, Dutch, Norwegian and Swedish authorities, opens on 22 March 2023 and closes on 25 September 2023 (23:59 Helsinki time).

The consultation is to give anyone with information on PFAS the opportunity to have their say. Of particular interest is information relevant to the risks, socio-economic aspects and alternative substances.

ECHA’s scientific committees for Risk Assessment (RAC) and for Socio-Economic Analysis (SEAC) will use the consultation input to evaluate the proposed restriction and form an opinion on it.

An online information session will be held on 5 April. During the session, experts from ECHA and the five national authorities will explain the restriction process, the content of the proposal and how to participate in the consultation. They will also respond to questions from the participants.

The five national authorities submitted the universal proposal to restrict PFAS to ECHA on 13 January. The European Commission, together with the EU Member States, will eventually decide on the potential restriction based on the proposal and the committees’ opinion.

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

By using a high share of recycled content in its Evolon® materials, Freudenberg Performance Materials (Freudenberg) offers technical packaging textiles with a carbon footprint decreased by 35%. An independent LCA study showed additional benefits such as energy resource savings and lower water use. Furthermore, Evolon® fabrics provide sustainability benefits over the packaging entire life cycle thanks to high end performance and durability.

By replacing virgin PET with recycled PET, the cradle-to-gate carbon footprint of Evolon® packaging textile materials decreased by 35%. This is the result of a study by an independent LCA and eco-design consultancy firm, which made a Cradle-to-Gate assessment of several Evolon® products using virgin PET or recycled PET. The study was finalized in 2022 and conducted according to the principles of ISO 14040/ ISO 14044 standards, following the recommendations of the Product Environmental Footprint and the Circular Footprint Formula.

Evolon® microfilament textiles have a small carbon footprint because their manufacturing process uses low CO2 energy sources. The fabrics are lightweight and can be reused throughout entire production programs, e.g. of a car model when it is about the automotive industry. Furthermore, the new Evolon® RE fabrics contain up to 85% of recycled PET which is produced in-house out of post-consumer PET bottles.

Evolon® textiles are suitable for reusable technical packaging, which eliminate the use of thousands of disposable packaging materials. Evolon® fabrics offer scratch-free, lint-free, high-end surface protection for molded plastic parts, painted parts and other sensitive industrial and automotive parts during transport. This contributes to lower the scrap rate of parts and provide both financial and ecological benefits. By using Evolon® reusable packaging to transport highly-sensitive parts, customers can increase their efficiency and save resources.

Archroma announced the renewal of its EcoVadis “Platinum” status and further improvement of its overall rating.

Following an assessment by EcoVadis, covering 21 criteria grouped into 4 themes - Environment, Labor & Human Rights, Ethics, and Sustainable Procurement - Archroma further improved its score by 4 points (from 78/100 to 82/100), thanks in particular to its ongoing efforts in sustainable procurement, focusing on supply chain transparency and best practice sharing with suppliers and industry peers.

More details on Archroma’s sustainable sourcing activities can be found in the company’s Sustainability Report for its fiscal year 2022, released on 8 December 2022. The report includes an assurance report by KPMG, who conducted a limited assurance on several core ESG metrics, including CO₂ emissions, water intake, occupational safety and gender diversity. Archroma passed the audit successfully, providing another validation of the company’s commitment to its ESG objectives and roadmap.

To further advance the system, the Global Organic Textile Standard (GOTS) is significantly raising the requirements for GOTS-certified gins, to ensure transparent and traceable processing for organic textiles from field to finished product:

1. GOTS is introducing a compulsory farm-gin registry for all farms and farm groups whose certified raw material enters the GOTS system, including information on farm yields. The registry will be implemented progressively, starting in India.
2. Raw cotton is not allowed to travel more than 500 km from the farm to the certified gin. The shorter trade chain protects vulnerable points and optimises the process for buyers.  
3. Increase of unannounced audits of gins where there is a high perception of risk.

These new requirements are added to the numerous checks and balances which are already performed throughout every processing stage. Seed cotton entering the GOTS supply chain is tested for the presence of genetically modified organisms according to the applicable ISO protocol. GOTS-approved Certification Bodies (CBs) include further testing (such as pesticide residue) and are fully authorised to reject material that does not meet GOTS requirements. Additionally, before certification bodies issue a Transaction Certificate (TC), GOTS requires that a thorough assessment takes place, including a plausibility check in the form of volume reconciliation.

To strengthen integrity and traceability, GOTS also stipulates that the Farm TC number appears on the first GOTS TC at the ginning plant, which is the first step for cotton in the GOTS supply chain. The TC must state the origin for raw material, including region, state, and province. This effectively traces material back to the field and adds another layer of accountability to GOTS-certified fibre. It also supports all buyers in their purchasing decisions.

GOTS is not only improving its own system but also coordinating efforts with other key players to support the integrity of organic textiles. As GOTS provides certification of first processing stages to Textile Exchange's Organic Content Standard (OCS), GOTS and TE discussed new requirements for OCS while they were being developed. GOTS supports these requirements as they provide a dual protection shield for materials entering the GOTS or OCS supply chains, at the same time maintaining necessary data privacy. The new requirements will help increase traceability and transparency throughout the organic textile sector which are among the main objectives of GOTS. There are no changes necessary to the requirements of GOTS regarding any of the new OCS rules.

• Lenzing has been awarded the highest CSR rating from EcoVadis for the second consecutive time
• Global rating standard evaluates 90,000 companies: Lenzing among top 1 percent of its industry
• enzing joins the UN Global Compact sustainability initiative

Lenzing Group has been awarded platinum status in the CSR rating from EcoVadis. This comprehensive assessment covers the four key practices of corporate social responsibility: the environment, fair working conditions and human rights, ethics and sustainable procurement.

This is the second time that EcoVadis, a leading international provider of sustainability ratings for businesses, has awarded platinum status to Lenzing for its sustainability performance. As a result, Lenzing ranks among the world’s top 1 percent of companies in its sector that are rated by EcoVadis.

In line with its “Naturally positive” sustainability strategy, the Lenzing Group has set ambitious targets in each of its core strategic areas, aimed at bolstering its capacity to move from a linear to a circular model. Lenzing reports the corresponding implementation measures and the progress it has made in its annual sustainability report. This high level of accountability and transparency was particularly praised in the assessment by EcoVadis. The rating provider also highlighted Lenzing’s comprehensive measures to reduce air pollution, wastewater and greenhouse gases, in addition to its provision of skills development training and health care programs for staff members.

Partnerships for systemic change
Lenzing forges strategic partnerships with various stakeholders to meet its ambitious climate and sustainability targets and drive forward systemic change in the textile and nonwoven industries. This is why Lenzing, as one of 15,000 companies worldwide, joined the United Nations Global Compact. As a member, Lenzing is committed to upholding human rights, respecting the rights of employees and their representatives, protecting the environment, enabling fair competition and combating corruption.

More than 350 million tons of plastic are produced worldwide every year, and vast amounts of plastic waste simply end up in the environment. The circular economy offers enormous potential for keeping plastics in the loop and thus conserving resources and the environment. Since 2018, six Fraunhofer institutes in the Fraunhofer CCPE cluster have been researching how to make the plastics value chain circular, and Prof. Manfred Renner has been the new head of the cluster since August 2022. Research results, implementation projects and strategies to accelerate the transformation to a circular plastics economy will be presented by Fraunhofer CCPE at the first international Fraunhofer CCPE Summit on February 8 and 9, 2023 in Munich.

In a circular plastics economy, resources can be saved, products can be intelligently designed for long service life, and end-of-life losses can be reduced. Systemic, technical and social innovations are needed to make the transition from a linear to a circular economy a success. This is what the Fraunhofer Cluster of Excellence Circular Plastics Economy CCPE is researching in the three divisions “Materials”, “Systems” and “Business”. The cooperation of the six Fraunhofer institutes IAP, ICT, IML, IVV, LBF and UMSICHT enables a multi-stakeholder approach in which the appropriate R&D competencies are bundled.

Fraunhofer CCPE would like to present and discuss successful projects and research approaches on an international scale at the Fraunhofer CCPE Summit on February 8 and 9, 2023 in Munich. The summit is to become an international forum for exchanging ideas for solutions and innovations for a circular plastics economy.

Cross-industry collaboration - local, regional and international
Since August 2022, Prof. Manfred Renner, Institute Director of Fraunhofer UMSICHT, is the new head of Fraunhofer CCPE. He succeeds Prof. Eckhard Weidner, who has retired. “Cross-industry cooperation - very local, but also regional and international - is the elementary prerequisite for a functioning circular plastics economy. At the summit, players from all points of the compass will meet and network in order to rethink the plastics value chain together," explains Prof. Manfred Renner, adding, “We want to provide answers to the following questions:  How can we make all Circular Economy principles, i.e. the ten R-strategies, known? How can industry, science and society best cooperate in a transformation to a circular plastics economy for the greatest possible impact?”

Results of the Fraunhofer CCPE cluster so far are innovative approaches for circular business models, intelligent collection, sorting, and recycling technologies, but also new formulations for circular polymers and compounds to enable multiple recycling cycles. With the newly developed assessment tool CRL® , companies can, for example, self-assess the maturity of products or product systems with regard to the circular economy. The tool checks the extent to which a product already takes into account circular economy principles in the areas of product design, product service system, end-of-life management and circular economy, and where there is still potential for improvement.

The world’s largest fashion brands and retailers must increase transparency to tackle the climate crisis and social inequality, according to the latest Fashion Transparency Index.

The seventh edition of the Fashion Transparency Index ranks 250 of the world’s largest fashion brands and retailers based on their public disclosure of human rights and environmental policies, practices, and impacts, across their operations and supply chains.

• Brands achieved an average score of just 24%, with nearly a third of brands scoring less than 10%
• The majority of brands (85%) do not disclose their annual production volumes despite mounting evidence of clothing waste around the world
• Most major brands and retailers (96%) do not publish the number of workers in their supply chain paid a living wage

The Index reveals insights into the most pressing issues facing the fashion industry, like:

• As new and proposed legislation focuses on greenwashing claims, almost half of major brands (45%) publish targets on sustainable materials yet only 37% provide information on what constitutes a sustainable material.
• Only 24% of major brands disclose how they minimise the impacts of microfibres despite textiles being the largest source of microplastics in the ocean.
• The vast majority of major brands and retailers (94%) do not disclose the number of workers in their supply chains who are paying recruitment fees. This paints an unclear picture of the risks of forced labour as workers may be getting into crippling debt to accept jobs paying poverty wages.
• While many brands use their channels to talk about social justice, they need to go beyond lip service. Just 8% of brands publish their actions on racial and ethnic equality in their supply chains.

Despite these results, Fashion Revolution is encouraged by increasing supply chain transparency among many major brands, primarily with first-tier manufacturers where the final stage of production occurs, e.g. cutting, sewing, finishing and packing. Nine brands have disclosed their first-tier manufacturers for the first time this year. It is encouraging to see significant progress across market segments including luxury, sportswear, footwear and accessories and across different geographies.

Fashion Revolution’s co-founder and Global Operations Director Carry Somers says: “In 2016, only 5 out of 40 major brands (12.5%) disclosed their suppliers. Seven years later, 121 out of 250 major brands (48%) disclose their suppliers. This clearly demonstrates how the Index incentivises transparency but it also shows that brands really are listening to the millions of people around the world who keep asking them #WhoMadeMyClothes? Our power is in our persistence.”

More key findings from the Fashion Transparency Index 2022:

Progress on transparency in the global fashion industry is still too slow among 250 of the world’s largest fashion brands and retailers, with brands achieving an overall average score of just 24%, up 1% from last year
For another year, the initiative has seen major brands and retailers publicly disclose the most information about their policies, commitments and processes on human rights and environmental topics and significantly less about the results, outcomes and impacts of their efforts.

Most (85%) major brands still do not disclose their annual production volumes despite mounting evidence of overproduction and clothing waste
Thousands of tonnes of clothing waste are found globally. However, brands have disclosed more information about the circular solutions they are developing (28%) than on the actual volumes of pre- (10%) and post-production waste they produce (8%). Brands have sat by as waste importing countries foot the bill, resulting in serious human rights and environmental implications.

Just 11% of brands publish a responsible purchasing code of conduct indicating that most are still reluctant to disclose how their purchasing practices could be affecting suppliers and workers
Greater transparency on how brands interact with their suppliers ought to be a first step towards eliminating harmful practices and promoting fair purchasing practices. The poor performance on transparency in this vital area is a missed opportunity for brands to demonstrate they are serious about addressing the root causes of harmful working conditions, including the instances where they themselves are the key driver.

Despite the urgency of the climate crisis, less than a third of major brands disclose a decarbonisation target covering their entire supply chain which is verified by the Science-Based Targets Initiative
Many brands and retailers rely heavily on garment producing countries that are vulnerable to the impacts of the climate crisis, yet our research shows that only 29% of major brands and retailers publish a decarbonisation target covering their operations and supply chain which is verified by the Science Based Targets Initiative.

Only 11% of brands publish their supplier wastewater test results, despite the textile industry being a leading contributor to water pollution
The fashion industry is a major contributor to water pollution and one of the most water intensive industries on the planet. Only 11% of major brands publish their wastewater test result, and only 25% of brands disclose the process of conducting water-related risk assessments in their supply chain. Transparency on wastewater test results is key to ensuring that brands are held accountable for their potentially devastating impacts on local biodiversity, garment workers and their communities.

Most major brands and retailers (96%) do not publish the number of workers in their supply chain paid a living wage nor do they disclose if they isolate labour costs
Insufficient progress is being made by most brands towards ensuring that the workers in their supply chain are paid enough to cover their basic needs and put aside some discretionary income. Just 27% of brands disclose their approach to achieving living wages for supply chain workers and 96% do not publish the number of workers in their supply chain paid a living wage. In response, we have joined forces with allies across civil society to launch Good Clothes, Fair Pay. The campaign demands groundbreaking living wage legislation across the garment, textile and footwear sector.