From the Sector

The Sorting for Circularity USA consortium project welcomes new partners and expands its North American geographical scope. Fashion for Good is pleased to announce the addition of lululemon as an external brand partner, joining the existing seven brand partners. They also welcome their new implementation partners Helpsy, United Southern Waste Material, Goodwill Industries International Inc., and its members Goodwill of Colorado, Goodwill Industries-Suncoast, Inc., Goodwill of the Finger Lakes, and Goodwill of San Francisco Bay. Additionally, Fashion for Good is pleased to recognise adidas as the project's lead sponsor, facilitating the complete realisation of the project scope.

Fashion for Good, together with Resource Recycling Systems, launched the Sorting for Circularity USA consortium project in January 2023. The project will conduct an extensive consumer survey to map the journey of a garment from closet to end of use, and present a comprehensive snapshot of textile waste composition generated in the United States. The insights gained from this 18-month project will help to scale collection, sorting, and recycling innovations and inform decisions on necessary investments and actions.

Within the first 6 months, the project has expanded to cover 6 key states: California, Texas, Florida, New York, New Jersey and Colorado. Additional implementation partners have also signed on to support the fibre composition data analysis: Secondary Materials and Recycled Textiles (SMART) Association, Helpsy, United Southern Waste Material, and Goodwill Industries International Inc., with its members Goodwill of Colorado, Goodwill Industries-Suncoast, Inc., Goodwill of the Finger Lakes, and Goodwill of San Francisco Bay. Resource Recycling Systems will drive the dissemination and analysis of the consumer survey together with New York State Center for Sustainable Materials Management and Syracuse University Center for Sustainable Community Solutions, and execute the textile composition analysis using Matoha’s near infrared devices with advisory support from Circle Economy.

Demonstrating the importance of pre-competitive collaboration in tackling the industry’s biggest challenges, lululemon joins Eastman, H&M and Nordstrom as key project partners, together with Fashion for Good corporate partners adidas, Inditex, Levi Strauss & Co., and Target. Adidas' lead sponsorship ensures a deeper analysis of USA textile waste infrastructure and the identification of valuable opportunities for advancement.

In the USA, textile waste is the fastest-growing segment of the country's waste stream, with 85% of discarded textiles ending up in landfills*. Understanding the composition of material, volume and location of used textiles is crucial for capturing them and sorting them for the best and highest quality end use. Moreover, the range of national and regional geographies within the Sorting for Circularity project series enables for nuanced cross-country comparisons - revealing differences in the textile waste generated and infrastructure required.

Sorting for Circularity, a framework co-developed by Fashion for Good and Circle Economy, aims to (re)capture textile waste by unlocking the feedstock potential for recycling, expedite the implementation of game changing automated sorting technologies such as near-infrared spectroscopy and advanced textile-to-textile recycling, and drive circularity within the fashion value chain. The project builds on the success of Sorting for Circularity Europe and India, which revealed insights on material composition, volume, and location of used textiles and provided a solid foundation to accelerate textile recycling in those respective geographical locations.

*United States Environmental Protection Agency (2019). National Overview: Facts and Figures on Materials, Wastes and Recycling.

• The A+A Expert Talks head into their third round

On 20 June 2023 between 10.00 am and 11.30 am experts from the fields of sustainability, circular economy, environmental protection as well as corporate fashion and product management will be presenting lectures and discussing the topics of sustainability in supply chains, standardisation and quality seals as well as the associated challenges and solutions in cooperation with German Fashion. They will thereby provide a platform for the exchange of knowledge, experience and innovative approaches.

The focus on sustainability and the circular economy reflects the growing relevance of these topics in the world of work. More and more companies recognise the need to make their business practices more sustainable and optimise the use of resources.

This Expert Talk will be presented by Irina Olm, In-House Lawyer & Counsel of GermanFashion Modeverband Deutschland e.V. and Expert for Circular Economy and CSR, who will contribute her know-how on the European level.  

Benjamin Helfritz, Head of Quality in Digital and Green Transformation, DIN – German Institute for Standardisation, will introduce participants to the new standards for the Green Transition.  
The Digital Product Passport (DPP) is needed for both the green and digital transition. However, it will only achieve its full added value if interoperability is ensured between existing and emerging systems. The use of the DPP promotes more sustainability and digital progress.

Henk Vanhoutte, Secretary General, European Safety Federation (ESF) and Lucia Mendori, Regulatory Affairs Associate / Chair ESF Working Group Sustainability will present practical examples and concrete application factors for sustainable PPE as well as solutions for sustainable jobwear. They will provide an overview of survey results from their members regarding various sustainability aspects – pointing to how the industry is treating this important topic but also flagging up the limits to the sustainability of PPE.

Lena Bay Høyland, Product Director of the Swedish workwear manufacturer Fristads Kansas will share the sustainability strategy of her company which has committed to minimise its environmental impact by targets and effective measures. The progress made by Fristads Kansas was measured using concrete figures and audits. This is a use case highlighting the innovations and challenges associated with sustainable jobwear.

By organising the Expert Talks the leading international trade fair A+A jointly with its strategic partners from the German Federal Association for Occupational Safety and Health (Basi), Fraunhofer IPA, German Fashion (Modeverband Deutschland e.V.), DGUV (Germany Statutory Accident Insurance), BAuA (Federal Agency for Occupational Safety and Health), BMAS (Ministry of Labour and Social Affairs), IVPS Interessenverbund Persönliche Schutzausrüstung e.V. (PPE Stakeholder Association) as well as IFA (Institute for Occupational Safety) will provide its community with a networking and information platform.

On the side-lines of the three-day fair, Techtextil India’s 2023 edition scheduled from 12th –14th September, will be hosting SITRA’s Expo on Medical Textiles called MEDITEX^TM2023 - an exclusive pavilion that focuses on medical textiles with live demonstrations and high-growth application areas offering a global platform for business opportunities.

Medical textiles are fabrics that are used in the healthcare industry for a variety of purposes ranging from maintenance of hygiene, prevention/control of infection to saving the life of critically ill patients. In recent years, the demand for medical textiles has been growing in India due to rise in geriatric population, accidents and life style diseases. Besides, various initiatives of Governments, increased awareness about hygiene, medical tourism and advancements in textile technology are driving the growth of medical textile industry in India. According to a report published by Ministry of Textiles on the Indian Technical Textiles market, the market potential of medical textiles market at 5% is valued approximately at USD 1.125 billion in the year 2021-22.
 
SITRA is a Textile Research Association, sponsored by the industry and supported by the Ministry of Textiles (MoT), with the contribution to the textile industry for more than 65 years. Its Centre of Excellence for Medical Textiles, established by MoT in 2008, has been organising MEDITEX - an International Medical Textile Expo cum Conference in 2014 and 2018 respectively. This exclusive fair for medical textiles has been offering a global platform for business opportunities in the varied application of medical textiles which has witnessed a good participation from the industry. For 2023, the expo will be held as a part of Messe Frankfurt India’s Techtextil India 2023.

Target topics based seminars, supported by Ministry of Textiles, Government of India would also be held concurrently along with the exhibition wherein the speakers would be discussing about current and evolving technologies in medical textiles. Stakeholders and visitors to the conference as well as the exhibition would get to witness and benefit from world class, state-of-the-art medical textiles products/machineries and technologies.

How does a future-proof, circular and sustainable plastics economy look like? The answer is a balance ranging from plastics reduction to a sustainable use of recyclable plastics. After all, the increasing demand for plastics in high-value applications such as food packaging, car parts or synthetic textiles requires a holistic change. With four strategic approaches, researchers from the German institute Fraunhofer UMSICHT and the Dutch institute TNO now provide insights into how this future scenario could look like in their recently published white paper "From #plasticfree to future-proof plastics". Both organizations also start a hands-on platform for plastics in a circular economy: European Circular Plastics Platform – CPP aimed at removing existing barriers and sharing of promising solutions.

Versatile and inexpensive materials with low weight and very good barrier properties: That's what plastics are. In addition to their practical benefits, however, the materials are also associated with a significant share of mankind's greenhouse gas emissions. The production and use of plastics cause environmental pollution and microplastics, deplete fossil resources and lead to import dependencies. At the same time, alternatives - such as glass packaging - could cause even more environmental burden or have poorer product properties.

Researchers from TNO and Fraunhofer UMSICHT have elaborated a white paper that provides a basis for the transformation of plastics production and use. They consider the integration of the perspectives of all stakeholders and their values and the potential of current and future technologies. In addition, the functional properties of the target product, the comparison with alternative products without plastics, and their impact in a variety of environmental, social and economic categories over the entire life cycle are crucial. In this way, a systematic assessment and ultimately a systematic decision as to where we can use, reject or replace plastics can be realized.

Strategies for the Circular Economy
As a result, the researchers describe four strategic approaches for transforming today's largely linear plastics economy into a fully circular future: Narrowing the Loop, Operating the Loop, Slowing the Loop, and Closing the Loop. By Narrowing the Loop, the researchers recommend, as a first step, to reduce the amount of materials mobilized in a circular economy. Operating the Loop refers to using renewable energy, minimizing material losses, and sourcing raw materials sustainably. For Slowing the Loop, measures are needed to extend the useful lifetime of materials and products. Finally, for Closing the Loop, plastics must be collected, sorted and recycled to high standards.

Individual strategies fall under each of the four approaches. While the ones under Operating the Loop (O strategies) should be applied in parallel and as completely as possible. According to the researchers, the decision for the strategies in the other fields (R strategies) requires a complex process: “Usually, more than one R-strategy can be considered for a given product or service. These must be carefully compared in terms of their feasibility and impact in the context of the status quo and expected changes”, explains Jürgen Bertling from Fraunhofer UMSICHT. The project partners have therefore developed a guiding principle for prioritization based on the idea of the waste hierarchy.

A holistic change, as we envision it, can only succeed if science, industry, politics and citizens work together across sectors. “This implies several, partly quite drastic changes at 4 levels: legislation and policy, circular chain collaboration, design and development, and education and information. For instance, innovations in design and development include redesign of polymers to more oxygen rich ones based on biomass and CO2 utilisation. Current recycling technologies have to be improved for high quantity and quality recycling,” explains Jan Harm Urbanus from TNO.

Hands-on platform for cross-sector collaboration
“Therefore, in a next step, TNO and Fraunhofer UMSICHT are building a hands-on platform for plastics in a circular economy: European Circular Plastics Platform – CPP," explains Esther van den Beuken, Principal Consultant from TNO. It will give companies, associations and non-governmental organizations the opportunity to work together on existing barriers and promising solutions for a Circular Plastics Economy. The platform will also offer its members regular hands-on workshops on plastics topics, roundtable discussions on current issues, and participation in multi-client studies on pressing technical challenges. Regular meetings will be held in the cross-border region of Germany and the Netherlands as well as online. The goal is to bring change to the public and industry.

In the run-up to ITMA, VDMA is presenting an overview of the textile recycling technologies offered by member companies exhibiting at ITMA. VDMA and its members are committed to a responsible use of all resources used in textile production. VDMA members create the technical prerequisites for the efficient reuse and recycling of textile raw materials.

In the spirit of the circular economy, VDMA companies offer solutions for the entire processing and production chain. The production programme and services include equipment and technologies for recycling textile production waste, textiles, textile auxiliaries or waste heat and for processing recycled materials into textiles.

An overview of the available technologies is provided here: Way2ITMA-Recycling
The short descriptions of the solutions offered by the member companies are structured according to the following headings:

• Recycling of textile production waste and textiles
• Recycling of caustic soda and waste heat
• Processing of recycled materials

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.

Stahl announces that its near-term greenhouse gas (GHG) emissions reduction targets have been validated by the Science Based Targets initiative (SBTi). Stahl is one of the few coatings companies to receive this validation. To date, 145 companies in the chemicals sector have submitted an emissions reduction target to the SBTi, of which 61 have had their targets validated.

Stahl’s science-based targets, which reflect the company’s commitment to the 2015 Paris Agreement goals, are:  

• Stahl Holdings B.V. commits to reduce absolute scope 1 & 2 GHG emissions 42.0% by CY2030 from a CY2021 base year.*
• Stahl Holdings B.V. commits to reduce absolute scope 3 GHG emissions 25.0% by CY2030 from a CY2021 base year.

The SBTi classifies emissions reduction targets according to two potential temperature pathways: 1) limiting global temperature rises to 1.5°C above pre-industrial levels, and 2) limiting temperature rises to well below 2°C. The SBTi has determined that Stahl’s Scope 1 and 2 target is in line with a 1.5°C trajectory, while Stahl’s Scope 3 target has been validated in line with the well-below 2°C pathway.

Maarten Heijbroek, CEO of Stahl: “The validation of our Scope 1, 2, and 3 emissions reduction targets by the SBTi is an important milestone on our ESG journey as we strive to limit our contribution to global warming, in line with the Paris Agreement. Our targets are ambitious, and rightly so. Realizing our goal to help create a more responsible coatings value chain starts with being accountable for our own environmental impact, and taking concrete steps to reduce our emissions wherever possible.”

A clear strategy to reduce GHG emissions
Stahl’s approach to realizing its near-term emissions reduction targets is outlined in the company’s Environmental, Social, and Governance (ESG) Roadmap to 2030. This strategy defines the specific metrics against which progress on the company’s ESG commitments will be measured.

Stahl’s Scope 1 and 2 GHG emissions reduction targets, as submitted to the SBTi, cover emissions from all manufacturing sites where Stahl products are produced, as well as the company’s largest non-manufacturing locations. Stahl aims to lower these emissions by reducing its overall energy consumption and increasing the use of renewable energy at its sites. To achieve this, the company plans to increase its self-generated electricity capacity (using solar power, for example) and continue investing in more energy-efficient equipment.

Stahl plans to reduce its Scope 3 upstream emissions primarily by replacing fossil-based raw materials in its products with renewable alternatives, such as bio-based and recycled-based feedstocks. In addition, the company plans to introduce more low-impact raw materials into its product design.

* The target boundary includes biogenic land-related emissions and removals from bioenergy feedstocks.

Highlights Q1 2023 (compared with Q1 2022)

• Revenue up 5% and up 8% in constant currencies1
• Pricing up 7%, more than offsetting increase of raw material and freight costs
• Volumes 3% lower; Europe showing resilience, China rebounding
• Operating income at €182 million (2022: €232 million); adjusted operating income2 at €218 million (2022: €230 million); ROS3 at 8.2% (2022: 9.1%)
• Net cash from operating activities negative €50 million (2022: negative €102 million)
• Intended acquisition of Chinese Decorative Paints business from Sherwin-Williams announced in April 2023; completion expected in the second half of 2023

2023 Outlook
AkzoNobel expects the ongoing macro-economic uncertainties to continue and weigh on organic volume growth. The company will focus on margin management, cost reduction, working capital normalization and de-leveraging.
Cost reduction programs are expected to mitigate the ongoing pressure from inflation in operating expenses for 2023. AkzoNobel expects declining raw material costs to have a favorable impact on profitability.
Based on current market conditions, AkzoNobel targets to deliver €1.2 to €1.5 billion adjusted EBITDA.
The company aims to lower its leverage ratio to less than 3.4 times net debt/EBITDA, including the impact of the Kansai Paint Africa acquisition, by the end of 2023 and return to around 2 times post-2023.

Fibre Extrusion Technology Ltd (FET) of Leeds, UK participated in the “Green Textile and Innovation Technology Forum and Exhibition” in Hong Kong, taking a small booth to support the event and FET’s official agent in the region, Chemtax. This was the first in a series of international exhibitions that FET will be attending in 2023.

The interactive exhibition was organised by the Hong Kong General Chambers of Textiles, with over 20 industrial experts and 300 guests in discussion forums and meetings. The major themes explored were sustainable solutions, new technologies and future trends in green textiles. The region is committed to improved sustainability in textiles, with China in particular setting ambitious targets for high performance fibre self-sufficiency, developments in biodegradable material and increased production capacity in recycled fibre.

This fits perfectly with FET’s ethos, having long been a leading exponent of sustainability in fibre technology. The FET range of laboratory and pilot Melt Spinning extrusion lines is suited for both process and end product development of sustainable materials, enabling customers to undertake process development in-house. All FET systems are designed to be material efficient, can be bespoke designed and offer both flexibility and a high level of processing capability.

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”.