A whole new era of changes in sustainability are driven by forces of change by the governments, corporations and consumers in terms of environmental, social and governance.
The products of the industry are made out of various materials, which include artificial fibers. The sourcing of these materials poses a challenge, where it creates a negative impact on the environment in terms of ESG. The other important factor that adversely affects the industry is the emissions from the value chain of the market and the waste disposal associated with the product once it reaches its end-of-life.
The demand in the denim jeans industry is driven due to the longer product life span of the jeans. However, there is a negative effect on the environment due to the jean products for which leaders in the industry are striving to create sustainable policies that create a positive impact on the plant in terms of ESG.
The sourcing of raw material for producing denim jeans, which includes cotton and elastomer, one a kind polyester is a challenge for the denim jeans industry in terms of environment. The growth of the cotton plant itself involves intense amounts of emissions, from pesticides and industrial machines. Further materials such as polyester for manufacturing the products of the industry is a challenge. The elastomer is sourced from different kinds of sources such as coal, natural gas, which strains the environment, since the extraction process leaves intense amounts of carbon footprint, contributing to the increase of global warming and climate change.
Another major challenge in the industry is the waste toxins produced during the manufacturing process. During the production of denim fabric, significant amounts of toxins are produced and released into the environment, which impacts the soil, water, and air, and also damages human health when exposed to such toxins. Further the wastewater that is used during the manufacturing process contains pesticides and other toxic elements, when released into the water causes water pollution, significantly affecting life under water, which is one of the major United Nations Sustainable Development Goals (UN SDG) – SDG 14.
The waste management of the product after its expiry remains a challenge, historically the products of the industry were sent to landfills or incineration. Both the conventional methods of waste management have caused negative impact on the environment, with landfilling impacting the land and soil, while incineration caused air pollution and led to climate change, since greenhouse gasses were produced during the process.
In response to the environmental impacts caused by the products of the market, major companies of the denim jeans industry have adopted the circular economy method, where waste from the grave of a product is taken and manufactured into a new product. This also reduces the procurement of new raw materials, negating the carbon footprint from the manufacturing, thereby promoting the UNSDG goal of responsible consumption and production(SDG12) and contributing positively to climate change (SDG13).
The denim jeans market was economically valued at global scale at USD 64.62 billion as of 2018 and is forecasted to expand with a CAGR (compound annual growth rate) of 6.81 from 2019 to 2025. In terms of ESG the key players of the market have made policies and strategies to reduce the damage caused to the environment by including practices such as circular economy and adapting to renewable sources of energy. However, the challenge for the denim jeans market remains in terms of value chain, which involves logistics and packaging, which produces carbon footprint.
• Levi Strauss & Co.
• VF Corp.
• The Gap, Inc.
• H&M Hennes & Mauritz AB
• Kering S.A.
• Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape
• Key insights on infrastructure developments and ESG issues affecting the theme
• Identify key initiatives and challenges within the industry
• Identify ESG leaders within the industry
• Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process
• Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment
• Offers a global perspective of the denim jeans industry and the policies and measures taken by the players, for overcoming the challenges faced in terms of Environment, Social and Governance.
• Key insights into the sustainability practices of major players in the market.
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