http://idea-space.eu:19001/up/a29450dbbdf97bb9c2edc8ace6a2b06e.pdf Sustainabilit

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http://idea-space.eu:19001/up/a29450dbbdf97bb9c2edc8ace6a2b06e.pdf

Sustainability is significantly important for fashion business due to consumers’ increasing awareness of environment. When a fashion company aims to promote sustainability, the main linkage is to develop a Sustainable Supply Chain.

Explain with elaboration the meaning of a Sustainable Supply chain (SSC)

- Please explain it in detail (in your own words) not just stating its definition using the academic facts stated in the case.

Extrapolate from the case study how H&M managed to implement successfully its SSC in areas of:

Eco-Material Preparation

Sustainable Manufacturing

Explanation / Answer

I would define Sustainable supply chain as - Supply chain incorporating features and requirements generating climate positive value, leading towards circular and renewable fashion, and resulting in wellbeing at all three levels and aspects: social, environmental and economic.

For Fashion, sustainability is even more relevant considering changing global consumer trends (increasing consumption, reducing product lifecycles) combined with manufacturing practices involving heavy use of chemicals, low standards at manufacturing facilities. Thus sustainable supply chain should focus on reducing the energy needs and improving a. Raw materials, b. Manufacturing and production processes c. Distribution and in-store activities and d. Recycling

As part of Eco-material preparation, H&M focused starting from better production practices to changing consumer practices. In production and raw material input, H&M has shifted to Organic cotton which doesn’t use pesticides. Traditional cotton growth involves heavy use of pesticides and by moving to organic cotton, the negative impact of usage of chemicals is taken out of supply chain. H&M has collaborated with BCI (Better cotton initiative) to educate the farmers, saving water practices and maintaining the quality of output. Along with organic cotton, H&M adopted using recycled polyester, recycled polyamide, recycle wool etc in their production reducing water needs. Along with H&M focused on standards to ensure there is no product quality degradation because of these measures.

Focusing on sustainable manufacturing, H&M brought in awareness and educated for better standards at manufacturing facilities. Most of apparel manufacturing facilities are in low labor costing places like Bangladesh, Vietnam, Cambodia, India and Pakistan. Along with low labor costs, these locations lack in environment and human rights awareness. This coupled with weak regulatory bodies leads to hazardous and non-safety conditions for employees and society. To promote importance of fair working conditions and environmental performance, H&M took multiple initiatives with its suppliers including training them to improve the working conditions. Along with this H&M ensured these practices are continued by regularly monitoring compliance. Along with this, H&M increased local sourcing wherever possible. Local sourcing leads to reduction in unnecessary production and distribution carbon emission, and improve the lead times and responsiveness.

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