As a framework for assessing how far countries and organizations are progressing toward their sustainability goals, ESG (Environment, Social, and Governance) is designed. An organization’s governance mechanism and ability to effectively manage its environmental and social impacts are assessed using a collection of non-financial factors.
Women wear industry is the fastest growing segment in the fashion industry. Global carbon emissions from the fashion industry account for 10% of global emissions, which is more than all international flights and maritime shipping combined, according to the World Bank. Consumers and investors in fashion companies are scrutinizing fashion companies' production pace, labor practices, pollution and biodiversity impacts as well as their impact on global warming.
With the growing government action and increasing pressure from consumers and investors, companies in the textile and apparel industry are increasing ESG initiatives in response to the hazardous impact. As a result, many fashion brands have taken a conscious and effective approach to ESG policies, which are increasingly important to shareholders, investors, and customers.
The women wear industry has adversely effected the ESG parameters. It is no secret that the fashion industry is booming, but the industry is also responsible for a number of negative environmental impacts. It is taking a toll on the environment as consumers buy more clothes worldwide. A 60% increase in garment purchases in 2014 over 2000 has been observed across the globe. Fashion production contributes to 10% of humanity's greenhouse gas emissions, dries up water sources, and pollutes rivers and streams.
As a result of washing clothes, 50 billion plastic bottles of microfiber are released into the ocean annually. Polyester makes up 60% of the fibers in clothes. Polyester produces more carbon emissions than cotton, and it doesn't break down in the ocean. According to a 2017 Ellen MacArthur Foundation report, the fashion sector could account for 26% of the carbon budget by 2050 if it continues its current trajectory. Furthermore, the fashion industry consumes the second highest amount of water worldwide after the food and beverage industries. One cotton shirt requires 700 gallons of water, while a pair of jeans requires 2,000 gallons. For three-and-a-half years, an individual would need to drink eight cups of water a day. The fashion industry is also responsible for water pollution, as dyeing water is often dumped into ditches, streams, and rivers after it is used for dyeing textiles.
Apart from the environmental risk the social factor is also effected by the women clothing or fashion market. There have been numerous studies that have found that chemicals found in apparel cause health issues in humans. The chemicals found in apparel (or used in their production) are associated with neurotoxicity, liver disorders, kidney disorders, lung cancer, etc. Additionally, fast fashion is a disaster for women because it involves child labor and poor labor practices cheap clothes are made by underage workers who work long hard hours for low wages while being sexually harassed. As part of the social dimension of The Women Wear Effect, issues concerning human rights, labour, health and safety, employee benefits, diversity and inclusion, consumers, and the community at large are covered.
As cotton production can pose a serious threat to the environment due to the use of pesticides, high water usage, and conversion of habitat to agriculture, companies are taking steps to support sustainable models of cotton cultivation. Also, the clothing companies are implementing recycling programs by disclosing what percentage is recycled, what goes to landfills, what gets sold or shipped overseas. In order to reduce the environmental impacts of garment production and garment-making, companies should invest in new fibers and technologies. A number of companies have already implemented circular business models so that their products can be easily repaired or reused.
The globalization of fashion has pushed fashion brands to adhere to and maintain global standards for health, safety, labour rights, sustainability, quality of products, etc. The companies are adhering to human rights standards and ILO so as to remove the human resource exploitations. There is no doubt in my mind that people should be treated equally regardless of their gender, age, skin color, religious beliefs, sexual orientation, or any other factor. One of the leading fashion brands has been promoting universal equality for many years and wants to fight discrimination in sports and society as a whole.
In 2018, the global women's wear market was valued at USD 1,386.1 billion, and is anticipated to grow at a rate of 4.7% between 2019 and 2025. The growth can be attributed to a growing female population, an increasing number of working women, the development of fashion trends, and consumers' increased spending power. Manufacturers are continually coming up with new designs and styles due to the growing influence of social media and celebrities. Additionally, brands have been putting forth efforts to expand their consumer base, whether through e-commerce sites, discounts, celebrity endorsements, or customized fashions. Since fashion trends change rapidly, there is an adverse impact on ESG, so consumers are also responsible to purchase ethical and sustainable clothing.
• Giorgio Armani S.p.A.
• MANOLO BAHNIK
• LOUIS VUITTON
• DOLCE & GABBANA S.R.L
• Guccio Gucci S.p.A.
• Gianni Versace S.r.l.
• 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
• Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the Women Wear Sector, globally.
• Key insights into Infrastructure developments and ESG issues affecting the theme.
• Identifying ESG risks and opportunities to business among leading players in the Sector.
• Obtaining a clear and relevant understanding of company actions, progress, and impact and find opportunities for investment.
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