PULSE OF THE FASHION INDUSTRY

2019 UPDATE 2019 UPDATE

Publisher Acknowledgments Global Fashion Agenda, Boston Consulting The authors would like to thank all of those Group, and Sustainable Apparel Coalition who contributed to this update.

Special thanks go to Global Fashion Agenda’s Authors Strategic and Associate Partners, as well as Morten Lehmann, Gizem Arici, Sebastian the industry experts and the broader fashion Boger, Catharina Martinez-Pardo, Felix community who have contributed their time, Krueger, Margret Schneider, Baptiste insight and expertise to this update and/or Carrière-Pradal, and Dana Schou took part in the Pulse survey and interviews.

Copywriter Global Fashion Agenda team Thomas Tochtermann, Jonas Eder-Hansen, Christine Hall Alice Roberta Taylor, Anne-Lieke van Cover Leeuwen and Eva Kruse Good for You Boston Consulting Group team Dr Javier F. Seara, Christine Barton, Pascal Art direction Enohnyaket, Kelli Gould, Imogen Price, Mario Thomas Blankschøn Simon, and Sarah Willersdorf

Graphic design Sustainable Apparel Coalition team Daniel Siim, IDna Group Alexandra Rosas and Veronique Tjon

2019 Copyright © Global Fashion Agenda, Boston Consulting Group, Inc. and Sustainable Apparel Coalition

All rights reserved. Reproduction is strictly prohibited without prior written permission from the publishers. Every effort has been made to trace the copyright holders for this publication. Should any copyright holders have been inadvertently overlooked, Global Fashion Agenda, Boston Consulting Group and Sustainable Apparel Coalition will make the necessary changes. CONTENT

INTRODUCTION TAKING THE PULSE THE PULSE CURVE CONSUMER OF THE FASHION AND THE ROADMAP SENTIMENT INDUSTRY TO SCALE

P. 01 P. 03 P. 07 P. 11

PRIORITIES TO DRIVE ENDNOTES APPENDIX GET IN TOUCH FUNDAMENTAL CHANGE

P. 15 P. 19 P. 20 P. 25 PULSE OF THE FASHION INDUSTRY 2019 UPDATE CONTENT

The 2019 Pulse Score1 shows that the fash- widen. About 40% of the industry have PULSE OF THE ion industry has improved its social and not yet reached beyond Phase One of the environmental performance in the past Pulse Curve.2 As a result, if the industry year, but at a slower rate than the previous does not implement changes at a fast- FASHION INDUSTRY year. Despite this improvement, the fash- er rate, it will not be able to achieve the United Nations Sustainable Development ion industry is still far from sustainable. Goals3 or meet the Paris Agreement.4 Furthermore, the findings demonstrate 2019 UPDATE Global Fashion Agenda, Boston Consult- that fashion companies are not imple- ing Group and Sustainable Apparel Coali- menting sustainable solutions fast enough tion call upon industry leaders to increase to counterbalance negative environmental their pace towards a deeper and more and social impacts of the rapidly growing systemic change. Companies must push fashion industry. If the Pulse Score stays harder, with more focused and coordinat- on its current trajectory, the gap between ed efforts, to overcome technological and industry output and the Pulse Score will economic limitations that hinder progress.

Ø+5% p.a. EXHIBIT 1 Growth rate projected to increase by 10% (+81%)

Industry trajectory over past 3 years and projection $3.3T Gap between industry growth and Pulse Score improvements increasing

Risk that the gap will widen if industry does

+4-5% not increase the speed of finding, developing $1.9T $1.8T and implementing measures to improve their $1.7T environmental and social sustainability practices Growth rate decreased by ⅓ +4pt ? +6pt 42pt 38pt 32pt

Apparel/Footwear Industry Size

Pulse Score

2017 2018 2019 2020* 2021* 2022* 2023* 2024* 2025* 2026* 2027* 2028* 2029* 2030*

*Note: Numbers for years marked with an asterisk mark are projections. Industry size and growth rates for apparel and footwear RSP value in USD based on fixed 2018 exchange rates. Growth rates until 2023 based on Euromonitor data, growth rates between 2023 and 2030 extrapolated based on Euromonitor data at CAGR 5%. Source: BCG analysis: Euromonitor; GFA: CEO Agenda 2018 1/25 PULSE OF THE FASHION INDUSTRY 2019 UPDATE CONTENT

Pulse Score growth slowed by Pulse Curve was achieved by firms adopt- This awareness is beginning to have a one third in 2019 ing sustainability strategy development greater effect on consumer purchas- The 2019 Pulse Score increased four +4pt ing decisions, with more than a third of and governance, setting targets, imple- points from last year, from 38 to 42 (out menting best practices and aligning their survey respondents reporting they have improvement already switched from their preferred of 100), compared to six points in 2018, association affiliations. These important brand to another for reasons related to which means that the speed of measura- since past year preparatory changes will take time—typ- responsible practices. More than half of ble progress has decreased by a third. but measureable ically around two years—to translate into the respondents said they anticipate that trackable success further along the Pulse their next purchase decision will be based Although the continued progress is Curve. Meanwhile, frontrunners displayed on these practices. For the first time, this encouraging, its decreasing speed is progress lower measurable progress, as their work data confirms that most consumers in- concerning. In the last two years alone decreased by ⅓ in scaling up solutions and bringing prov- clude sustainability considerations in their the apparel and footwear industry grew en initiatives deeper into the value chain decision-making framework. These results between 4 to 5%, in line with projections Without growth in environmental and so- does not necessarily immediately trans- indicate a shift in importance of these through 2023 that show annual growth of considerations and represent a strong cial practices through scaling up existing late into Pulse Score gains. In addition, approximately 5%. This is largely driven signal to the industry.10 This clear trend sustainable practices, adopting more effi- tackling issues which require innovation by increasing demand in Asia-Pacific and cient business models and implementing will continue to grow. It is just a matter of 5 or changes in business models require developing countries. By 2030 the global transformative changes, the gap between time before responsible practices become collaborative action. pivotal to decision-making factors when apparel and footwear industry is expected the growth of the industry and the Pulse purchasing a product. to grow to 102 million tonnes in volume Score will widen further. This could have a 6 Consumers more aware of sustainability, and USD3.3 trillion in value. Moreover, the dire effect on the long-term environmen- an increasingly important driver in pur- However, consumer considerations of Sustainable Development Goals estimat- tal, social and financial prosperity of the chasing decisions sustainable practices are not yet pow- ed that global carbon emissions need to industry and planet.8 erful enough to be the most important be reduced by 45% from 2010 levels by As news outlets and social media shine a driver of purchasing behaviour. Quality 2030 if global warming is to be limited to light on social and environmental respon- The majority of improvements came and aesthetics still dominate decision a 1.5°C increase and net zero carbon emis- sibility in the fashion industry, consumer from two segments: small-size players making.11 Nevertheless, for 7% of consum- 7 concern is growing. Mentions of sustain- sions are to be reached around 2050. in the mid-price segment, and medium ers sustainability is the most important ability in social media increased a third Even under optimistic assumptions, the and large-size players in the entry-price decision-making criteria. Yet, the industry industry’s existing solutions and speed segment. Efforts spreading among the faster than overall social media growth cannot wait for the consumer to lead this of progress will not deliver the impact smaller companies in the entry-price between 2015 and 2018. Awareness is movement—it is up to fashion leaders to needed to transform the industry. Fashion segment are encouraging to see. This highest among younger people, especially take bolder moves today to transition to a needs deeper, more systemic change. movement along the initial phases of the Millennials.9 sustainable industry.

2/25 PULSE OF THE FASHION INDUSTRY 2019 UPDATE CONTENT TAKING THE PULSE OF THE FASHION INDUSTRY

EXHIBIT 2 Evolution of industry-wide Pulse Score Speed of measurable progress slowed vs. last year 2019 vs. 2018 +4pt 2018 vs. 2017 +6pt 42pt

This section takes an in-depth 38pt look at the Pulse Score results to examine the main drivers of progress and road- 32pt blocks the industry faced during the past year.

In the past year the Pulse Score of the fashion industry increased from 38 to 42 (out of 100), showing progress toward advanced social and environmental performance with companies historically performing lower than average repre- senting the main driver of progress. This four-point improvement represents a slower rate of measurable progress than previous years and indicates the increas- ingly difficult challenges companies face in advancing their Pulse Scores.

3/25 EXHIBIT 3 PRE-PHASE PHASE ONE PHASE TWO PHASE THREE PHASE FOUR

Pulse Score improvements by Taking Uncoordinated Actions Building the Foundation Implementing the Core Expanding to Scale Unlocking the Next Level performance quartile along the Pulse Curve 1st quartile: Top Performers 3rd quartile with biggest upward 42 development during the last year 2nd quartile 65 (+1) 3rd quartile 47 >70 (+4)

60-69 43 (+11) 50-59 4th quartile: 40-49 Bottom Performers 30-39 16 20-29 (+4)*

<20

*Note: Pulse Score 2019 (vs. 2018)

Pulse Scores by performance quartile at this level already have high scores and, es, capabilities, funding and advanced Players in the third performance quartile To provide an overview of the industry’s historically, have made strong progress. technologies in the aforementioned areas saw the largest year-on-year improve- progress companies are ranked in perfor- Their ongoing work toward advancing and are not yet fully established. ments mance quartiles based on three segments: scaling their proven measures or investing In the third quartile, improvements were premium, mid-price and entry-price, in new technology does not necessarily For both quartiles, finding and deploying mainly driven by small mid-price and me- 12 dium-entry-price players. They achieved according to their Pulse Scores. immediately translate into Pulse Score scalable technology and identifying the this movement along the initial phases of gains. It will take further investments and next set of disruptive solutions to facili- the Pulse Curve by adopting sustainable Players in the first and second perfor- time until new transformative technolo- tate further systemic change has proven strategy development and governance, by mance quartiles slowed in improving gies are at a stage in which they generate elusive. Finding innovations to reach the setting targets in energy, chemicals and their Pulse Scores measurable progress at scale. next phase of the Pulse Curve takes time. water savings, and by aligning association Companies in the first quartile (the high- It requires the industry to innovate and affiliations. In other words, those players est performing segment) slowed in their In the second quartile progress also to invest jointly to target the unsolved are putting in place the measures which trajectory along the Pulse Curve this year slowed. Nevertheless, their efforts are challenges in the value chain with new are part of the first and second phase of due to increased challenges in scaling visible: companies report that they are the Pulse Curve. up proven measures into deeper tiers dedicated to sustainability, and they are solutions. Fashion companies must join forces with suppliers, investors, regulators, of their supply chains, in inventing and investing in supplier relationships, supply Unfortunately, there is still a significant scaling transformative technologies and in chain traceability, an improved material NGOs, academia and consumers to create part of the global fashion industry (10- achieving tangible results from collabora- mix and changes to their business model an ecosystem that supports transforma- 15%) that has not yet embarked on any tive initiatives. This result, however, needs towards circularity. Yet, they face addi- tional innovation and disruptive business advances towards more responsible to be viewed with nuance since players tional challenges, as the required resourc- models. practices.

4/25 PULSE OF THE FASHION INDUSTRY 2019 UPDATE CONTENT

Key results by segment and size EXHIBIT 4 Pulse Scores by segment and size For a more nuanced understanding of Strong improvements made in previously low-performing segments Pulse Score 2019 (vs. 2018) the industry’s progress, the Pulse Score Global is broken down by segment and size to Revenue Size Market Share 0 10 20 30 40 50 60 70 80 90 100 reveal patterns and to incorporate tailored $0-$1B 2% Small players - Luxury 52 (+1) recommendations. Premium segment >$1B 5% Large players - Luxury 54 (+3)

Premium segment SC* $0.1B-$1B 3% Sustainability Champions 80 (±0) The premium segment saw solid scores <$0.1B 20% Small players 45 (+8) of 52 to 54, with Pulse Scores increasing by one to three points over the last year. $0.1B- $1B 10% Medium players 47 (±0) Innovative brands made notable achieve- $1B-$10B 7% Large players - Fashion 44 (±0) ments through collaboration with other Mid-price segment fashion players and also other industries, $1B-$10B 2% ​Large players - Sports 48 (+1) such as the agricultural sector.13 Again, >$10B 2% Giant players - Fashion 58 (±0) some of these advances are not reflected in Pulse Scores, but this does not mean >$10B 6% Giant players - Sports 85 (+1) that projects are unsuccessful, but rather <$0.1B 10% Unregulated 0 (±0) that they are at a stage that does not yet yield measurable impact at scale. <$0.1B 19% Small players 26 (+6)

Entry-price segment $0.1B- $1B 7% ​Medium players 48 (+18) Mid-price segment In the mid-price segment, the Pulse Score $1B-$10B 4% ​Large players - Fashion 55 (+10) shows that many small players caught up. They increased their score from 37 to 45 >$10B 3% Giant players - Fashion 67 (±0) points in 2019. This is especially encour- Ø 42 aging given the large share of the global Entry-price segment *Note: Sustainability Champions - Sustainability is part of their core strategy and decision-making framework. These typically smaller companies regard fashion market (20%) they account for. sustainability as a key differentiator in their strategy and align their actions, products, and communications behind it. Small, medium and large players show the Their improved score was mainly driven largest improvements in the entry-price by putting strategies and proven tools in Two factors explain the significant • Association membership segment. The giant companies in this seg- place. The high variation of scores among progress seen by these segments that Given the knowledge building and ment are finding it increasingly challeng- the different players in this segment is increased their Pulse Score more signifi- collaborative nature of associations ing to improve their Pulse Scores. Finding important to note. Giant sports play- cantly than other groups. like Sustainable Apparel Coalition, solutions for the unresolved problems is ers have a long tradition of focusing on joining them can strongly contrib- materials and in-depth collaboration with becoming tougher, and impact and returns • The power of foundational steps ute to a company’s ability to set various tiers of their supply chain, which are receding. Small players improved their Companies progressed by integrat- targets, define strategies and build is reflected in higher scores. Giant fashion score to 26 (from 20 in 2018), as they built ing sustainability in their strategy, players, which have the financial means, their foundations. Medium-size players in- corporate identity, decision making, governance foundations, which are are already at a stage of scaling up prov- creased their score by 18 points (from 40 governance, reporting and tracking, especially valuable for companies en initiatives in their supply chains, follow to 48), while large players improved their which is reflected in the positive leaps getting started with their sustainabil- with a score of 58. scores by 10 points (from 45 to 55). in their scores. ity efforts.

5/25 PULSE OF THE FASHION INDUSTRY 2019 UPDATE CONTENT

Key results by value chain step this section are not comparable to the sustainability that involve target defini- Examining Pulse Scores along specific previous years. tion, strategy setting and governance. steps of the value chain that require more The latter step essentially encompasses the production of garments and footwear. attention reveals performance differenc- Two steps within the value chain that As for other steps in the value chain, es. Since the enhancement update of the show above-average performance are Product Development showed average indicators in the value chain section in the Management & Target Setting and Sup- performance, whereas Packaging, Trans- Higg Brand & Retail Module beta version, ply Chain. The former covers enabling portation, Distribution, Retail, and Use & the scores along the value chain steps in activities and overarching aspects of End-of-Use showed lower performance.

EXHIBIT 5 Pulse Scores by value chain step: Management & Target Setting and Supply Chain show strongest scores Weak Strong <20 20-29 30-39 40-49 50-59 60-69 >70

Management Product Use Product Development Supply Chain Packaging Transportation Distribution Centres Retail Stores & Target Setting & End-of-Use

Normalised total 56 38 42 32 30 31 28 31

1st quartile 75 53 68 54 46 48 45 47

2nd quartile 68 45 46 23 22 22 28 35

3rd quartile 59 41 42 30 32 33 24 34

4th quartile 21 11 14 19 19 19 17 9

Spread Top/Bottom 54 42 54 35 27 29 28 38

6/25 PULSE OF THE FASHION INDUSTRY 2019 UPDATE CONTENT THE PULSE CURVE AND THE ROADMAP TO SCALE

The Pulse Curve showcases a five-phase trajectory of the Pre-Phase: Taking Uncoordinated Actions Phase One: Building the Foundation Companies in the weakest performance Building the foundation usually starts with industry’s social and environmental performance, provid- segment show little progress. With a a formal commitment to sustainability. ing guidance for fashion companies as they assess their lack of visibility over environmental and Companies in this phase start to build current standing, locate themselves against their peers social performance along the value chain, the enablers by empowering dedicated resources, setting targets and direct- and map out their next steps. finding the right starting point proves to be a challenge. Most companies here ing efforts toward creating visibility in Each phase defines a set of priorities and milestones for have yet to commit fully to sustainability the supply chain. They have mustered the organisational will and resources to companies to focus on, which are summarised by the CEO and lack a clear strategic direction and initiate activities. Fashion companies in 14 15 corresponding internal structure. Many, Agenda. The Roadmap to Scale captures these priori- this phase have a clear view of their own however, engage in initial actions that are performance, responsibilities and overall ties along the Pulse Curve and offers actionable guidance mostly uncoordinated and opportunistic. footprint, while seeking knowledge from for the sustainability journey of fashion companies. The Roadmap to Scale does not cover outside experts and associations. This this pre-phase, when companies are still foundation lifts the individual Pulse Score becoming aware of the possibilities for and will prove crucial for later success, as change and lack a clear strategic direction it facilitates all efforts undertaken. Com- and corresponding internal structure. The panies in this phase focus on key enablers roadmap begins with Phase One, after that lay the groundwork for any initiatives fashion companies have formally commit- implemented along the Roadmap to Scale ted to improving their environmental and and determine the brand’s ability to scale social performance. sustainability efforts later.

7/25 PULSE OF THE FASHION INDUSTRY 2019 UPDATE CONTENT

Phase Two: Implementing the Core Phase Three: Expanding to Scale Phase Four: Unlocking the Next Level Targets, dedicated resources, budget- Companies amplify their efforts and take Pulse Scores rarely rise above 80 because ing and established traceability enable their initiatives to scale while reaching doing so largely depends on technolog- the industry to implement collaborative deep into their value chains. In close ical and business model innovations that initiatives that address core business collaboration with their suppliers, they go far beyond what is currently availa- processes and impact areas within their implement improvement measures and ble and what individual companies can supply chain. Both environmental and advanced solutions that increase profita- accomplish. This further proves that the social issues are preferably tackled using bility as well as environmental and social fashion industry needs to invest in trans- a standardised measurement tool and performance. At some point these initia- formational innovations and disruptive reporting framework. In parallel, im- tives also begin reaching their limits and business models. Scaling these technolo- provements to the material mix are un- attainable impact. Fundamental, trailblaz- dertaken. All exemplary initiatives create ing solutions are not broadly available. The gies will depend on leadership, a fit-for- positive momentum in the organisation, majority of large sportswear and fashion purpose ecosystem and industry cooper- unlocking further resources. As they pro- players operate in this phase. Their efforts ation among regulators and consumers. gress, fashion companies start to realise to scale up activities in their supply chains Only with a strong commitment can the their preliminary positive environmental, have only led to small, incremental returns industry push the Pulse Curve upward to social and financial impact. in Pulse Score improvements. a greater degree.

8/25 PULSE OF THE FASHION INDUSTRY 2019 UPDATE CONTENT

EXHIBIT 6 PRE-PHASE PHASE ONE PHASE TWO PHASE THREE PHASE FOUR Pulse Curve and Roadmap to Scale Taking Uncoordinated Actions Building the Foundation Implementing the Core Expanding to Scale Unlocking the Next Level Guidance for brands to benchmark themselves and understand next steps

20 40 60 80

>70

60-69

50-59

40-49

30-39

20-29

<20

• Companies in the weakest • Building the foundation • The previously laid • The industry accelerates • Frontrunners are performance tier take depends on a formal foundation enables efforts, takes initiatives experiencing the limitation initial uncoordinated and commitment to companies to carry to scale, and integrates of existing solutions. opportunistic actions. sustainability. The aim is to out the core efficiency targeted programmes build a strong groundwork programmes—which, in deep into the value chain • Only with transformational • They have not yet fully based on dedicated turn, bring environmental, with tier-two suppliers and innovations and disruptive committed to sustainability employees, a strategy, and social, and financial beyond. business models can the and due to lack of communication. improvements. industry move forward performance visibility, • Implementing new to the future. But scaling finding the right starting • Efforts to increase • These programmes technologies and process the new technologies will point remains a challenge. traceability result in generate proof-points to upgrades will raise depend on leadership improved visibility create positive momentum profitability as well as and cooperation across over performance, in the organisation and environmental and social the industry, including responsibilities, and overall unlock further resources. performance. regulators and consumers. footprint.

Continues next page Continues next page Continues next page Continues next page Continues next page 9/25 Continued from previous page Continued from previous page Continued from previous page Continued from previous page Continued from previous page

PRE-PHASE PHASE ONE PHASE TWO PHASE THREE PHASE FOUR

FOURTH INDUSTRIAL REVOLUTION

PROMOTION OF Joining global platforms to BETTER WAGE promote better wage systems SYSTEMS

CIRCULAR Training designers, reducing pre- FASHION and post-consumer waste and SYSTEM engaging customers

Baselining and improving material SUSTAINABLE Increasing share of non-conventional materials and implementing mix starting with high volume and MATERIAL MIX sourcing guidelines high impact materials

COMBATING Setting science-based targets, Collaboration along value chain and with industry peers, manufacturers, CLIMATE implementing efficiency programmes and increasing the use of renewable investors and policymakers CHANGE energy

RESPECTFUL AND Implementing collaborative Expanding collaborative initiatives in supplier base and increasing worker SECURE WORK initiatives to enhance working engagement and skills ENVIRONMENTS conditions in main facilities

EFFICIENT USE OF Implementing collaborative Scaling efficiency programmes across supply chain and investing in WATER, ENERGY resource efficiency programmes targeted, high-impact initiatives AND CHEMICALS in main facilities

SUPPLY CHAIN TRACEABILITY Increasing supply chain visibility starting with tier-one/tier-two, gradually extending to tier-three/tier-four TRACEABILITY

RESOURCES Dedicated resources with management mandate growing into a full team embedded in organisation

ENABLER STRATEGY Measurable targets leading to a full sustainability strategy closely tied to the corporate strategy

COMMUNICATION Internal and external communication with stakeholders

10/25 PULSE OF THE FASHION INDUSTRY 2019 UPDATE CONTENT CONSUMER SENTIMENT

Consumers are increasingly aware and maintain a competitive edge with con- EXHIBIT 7 Importance of sustainability for consumers and its triggers concerned about social and environ- sumers. As more digital and social media Importance of sustainability mostly triggered by climate change and natural disasters mental responsibility in the fashion natives come of age, with their expecta- industry. Proprietary research by Boston tion and desire for information, brands Importance of sustainability when purchasing fashionI 42% 16 Consulting Group shows that 75% of must increasingly connect with them 33% consumers in the five countries surveyed where they are most engaged. view sustainability as extremely or very important. This is further substantiated Raising awareness drives consumers to 18% by an increase in sustainability mentions switch to brands they trust on social media, which was a third higher Research shows that 38% of consumers than the overall growth of social media 3% 4% report actively switching from their pre- posts. As the growth of positive mentions Not at all important Somewhat important Neutral Very important Extremely important ferred brand to another because it credi- of sustainability is more than proportion- bly stands for positive environmental and/ al, brands have an opportunity to lever- Triggers of sustainabilityII or social practices.17 Drilling down further, age their work toward better practices, young consumers are more interested contribute to the positive momentum and Climate change awareness efforts 50% in social and environmental practices in fashion, with 48% of the Founders genera- Natural disasters in the world 49% 18 tion stating they have switched brands Reading about sustainability 44% 75% based on these considerations, compared to just 28% of Baby Boomers.19 More than Watched a documentary on sustainability 32% of consumers in 50% of consumers plan to switch brands Flooding in many parts of the world 29% the five countries in the future if another brand acts more environmentally and socially friendly than Tsunami in Asia 16% their preferred one. The question is no surveyed view Factory fire in Bangladesh 13% longer whether it is necessary to improve sustainability as sustainable business practices, but rather Other 4% extremely or very how long it will take before consumers stop buying from brands that do not act I. Question: How important is sustainability to you when purchasing fashion products, on a scale of 1 to 5? II. Question: Which of the following, if any, triggered you to become conscious of sustainability as an issue? important. responsibly. Source: BCG Sustainability survey March 2019, N = 703 (US) ; 703(UK) ; 529(FR) ; 514(CN) ; 523(BR)

11/25 PULSE OF THE FASHION INDUSTRY 2019 UPDATE CONTENT

For 7% of consumers, looking sustainability successful is the key purchasing 17% and criterion, but prioritise high quality, 16% 23% receiving good value for money

Overall consumer expectations can be However, sustainability considerations The strongest triggers for conscious to change lives for the better, reduce the divided into table stakes, or basic require- are not yet powerful enough to be the behaviour concerning sustainability are carbon footprint and be a role model. For ments, and the differentiating attributes most important purchasing criterion. For climate change efforts (50%) and natu- outerwear, the strongest association is to they are willing to pay a premium for. 20 7% of consumers, sustainability is the ral disasters (49%). Consumers mostly establish oneself as a community leader. Taking a stand against child labour, animal key purchasing criterion, but 23% prior- acquire information about sustainability Furthermore, the importance attributed to cruelty and unsafe working conditions, various aspects differs geographically. For itise high quality, 17% looking successful issues through online search (35%), social for example are aspects that consumers example, in the US social aspects have and 16% receiving good value for money. media (31%) and non-digital print media expect as a baseline. Examples of dif- a relatively higher importance, whereas Consumers nevertheless expect brands to (29%). ferentiating attributes that consumers in China, environmental aspects have a potentially find worth paying more for in- be concerned about environmental, social relatively lower importance. clude the use of responsibly sourced and and ethical issues and to act accordingly. Sustainability carries different mean- recyclable materials, and biodegradable Sustainability considerations are seen as ings and associations, depending on the packaging. Consumers expect brands to a prerequisite rather than a driver of pur- fashion category. For clothing (excluding be concerned about those issues and act chasing decisions. outerwear), the strongest associations are accordingly.

12/25 PULSE OF THE FASHION INDUSTRY 2019 UPDATE CONTENT

Three consumer segments and six nested brands difficult questions, for example ically, the open segment has a proportion- sustainability into account in purchasing subgroups21 how a brand ensures that labelling re- ally strong representation in Brazil (20%) decisions. Three broad segments emerged in the quirements are met. For these consumers, and the US (18%). survey data regarding consumer percep- responsible practices are a key purchasing Middle ground (49%): These consumers tion on the importance of switching to a criterion, on par with style and quality. This segment can be further broken down express a mild interest in sustainability brand with more responsible practices. The demographics of members of this into three subgroups: The enthusiasts in fashion and other product categories. group range from high-income Gen Xers (3%), for whom sustainability is a key Their knowledge about it is superficial, Open (16%): These are consumers who with graduate or professional degrees purchasing driver; the subgroup high and they view sustainability as a nice- have a high interest and knowledge about and retired Baby Boomers with medium involvement (10%), where sustainability to-have factor. They also expect brands production conditions. Their knowledge income to Millennials who are employed plays a major role in purchasing deci- to take action and communicate about goes beyond the superficial, and they ask full-time with medium income. Geograph- sions; and the believers (3%), who take it. These consumers follow the recom-

EXHIBIT 8 Six key segments of sustainability consumers The exhibit shows an aggregated percentage of population in subsegments Majority of fashion consumers are in the middle ground The circles are an indicator for sustainability practice level i.e. how important sustainability is for the consumer segment

100% of population Resistant (35%) Middle ground (49%) Open (16%) Enthusiasts (3%) High involvement (10%) Believers (3%) Supporters (7%) Low involvement (42%)

Rejectors (35%)

Over-index: Demographic Sustainability practice level: Sustainability practice level: Sustainability practice level: Sustainability practice level: Sustainability practice level: Sustainability practice level: characteristics that occur over-proportionally in Summary Summary Summary Summary Summary Summary subgroup compared to total sample • Not interested in • Mild interest in • Mild interest in • Interest in sustainability • Interest in sustainability • Sustainability is key sustainability in fashion sustainability in fashion sustainability in fashion in fashion and in other in fashion and in other driver when choosing • Do not practice and in other categories and in other categories categories categories products sustainability in other • Some attitudes show • Purchasing decisions • Several attitudes • Have chosen brands • Over-indexes in categories certain interest in with sustainability in show some interest in based on sustainability in sustainability on all other • Seek to stretch fashion sustainability mind sustainability the past and will do so in categories income Profile over-index: • Support sustainability in • Consider sustainability in the future Profile over-index: Profile over-index: • Lower income other categories purchasing decisions • Sustainability plays • Gen X • Boomers and Silent • Home maker, not Profile over-index: Profile over-index: major role in purchasing • Male Generation employed • Lower income • Founders and Millenials decisions • High income • Lower income • Female • Medium income Profile over-index: • Graduate and • Mostly high school • Self-employed • Full-time employed • Millenials and Boomers professional degrees education • Low/Medium income • Retired, home maker, not • Retired or self-employed employed 13/25 PULSE OF THE FASHION INDUSTRY 2019 UPDATE CONTENT

mendations of brands or people they because they expect them to be more ex- In addition, although the fact that 35% of trust. For this middle ground, a common pensive. Price is their first purchasing cri- consumers in the resistant segment reject standard (which does not yet exist) would terion. Among the other criteria they use sustainability outright appears to be an ensure that the recommendations they to make purchasing decisions, sustainabil- insurmountable hurdle, the industry can- follow are backed by action. In terms of ity is not one of them. The typical mem- not afford to take the same view. Since purchasing practices, they view a compa- ber of this segment is a Baby Boomer, has the responsibility for driving change falls ny’s attitude about responsible practices low to medium income, usually has a high to brands, so too does the job of figur- school education, and is either retired, a as being important, but the key purchas- ing out how to get resistant consumers homemaker or unemployed. They have a ing drivers are aesthetic and price. Typical on board to see sustainable products as proportionally strong representation in members of this segment have medium a new and necessary normal. To do this, the UK (42%). income, are often female and may be brands will have to understand the specif- self-employed, homemakers or otherwise Implications for brands: Take further ic needs of these consumers and create not employed. They have a proportionally action and openly share progress an overlap between them and sustainabil- strong representation in China (54%). Improving social and environmental con- ity drivers. ditions in their value chains is becoming a The middle ground can be broken down table stake for brands. Not only is taking For both messaging as well as actions, into two subgroups: supporters (7%) and action inevitable, communicating about brands need to understand the use cases low involvement (42%). While the former the actions is also essential. Brands need and business models that their customer supports sustainability in fashion and to understand how to target the right groups are most interested in. Addition- other categories but does not consider it consumers with their communication re- ally, brands need to understand exactly upon purchase, the latter pays attention garding their efforts to address social and what consumers expect from their prod- to the topic without concretely support- environmental issues. ucts in terms of social and environmental ing it. responsibility. Building onto their actions, Resistant (35%): These are consumers Brands can use these segments to refine brands must create offerings and messag- who are not interested in the topic of their messaging, with the goal of mak- es that respond in alignment with their sustainability in fashion, or in other cate- ing their communications relevant to the customers’ interests and main drivers for gories, such as food and furniture. They broader middle ground and the believer sustainable purchasing practices, hence might even feel deterred from purchasing subset of open consumers. Together promoting more responsible practices products marketed as more responsible, these groups make up 52% of consumers. that resonate with their customers.

14/25 PULSE OF THE FASHION INDUSTRY 2019 UPDATE CONTENT PRIORITIES TO DRIVE TRANSFORMATIONAL CHANGE

The fashion industry must overcome its aligned with corporate strategy, com- roadblocks to achieve more substantial munications that clearly convey efforts improvements that lead to a systemic internally and externally, and the use of 40% change. Solving the challenges of scaling standardised reporting frameworks. of the industry that and innovating disruptive technologies is a necessity for future progress. Collabora- Once these fashion companies have laid tion is therefore a prerequisite to advance the foundation, they can then focus on did not move beyond the sustainability performance of the the four core priorities in the CEO Agenda industry, which requires not only fashion by: companies but the wider eco-system to the Pre-Phase and be on the same playing field. • Increasing supply chain traceability by tracing tier one and two manufac- A closer look at the playing field reveals turers that about 40% of the industry did not Phase One of the move beyond the Pre-Phase and Phase • Combating climate change by im- One of the Pulse Curve, highlighting the plementing measures that reduce urgent need for these players to laying greenhouse gas emissions Pulse Curve has the foundation and move toward target- ing core business processes and impact • Improving efficient use of water, en- areas for improving their social and envi- ergy and chemicals by implementing to address the key ronmental performance. The critical initial efficiency programmes in processing steps for these companies have been stages identified. Key enablers are the first step enablers and the to lay the groundwork for any sustainabil- • Deepening efforts to establish ity initiative as they determine the brand’s respectful and secure work environ- ability to scale their initiatives down the ments by upholding standards for the four core priorities line. These enablers include dedicat- respect of universal human rights for ed resources, strong support from top all people employed along the value management, measurable targets closely chain of the CEO Agenda

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The other 60% of the industry, which Calling on the broader ecosystem to step already has the aforementioned enablers up to the challenge in place, should focus on scaling up their Even the most advanced brands face impacts on the core priorities for immedi- limits to what they can achieve in isola- ate implementation. tion. To master the significant roadblocks lying ahead, a strong ecosystem of col- As a next step for companies moving for- laboration is required to drive impact by identifying best practices and inspiring ward with the core priorities, the industry innovative solutions. should accelerate collective action to the next level of transformational priorities, Two of the key players in the eco-sys- also described in the CEO Agenda, to 60% tems are governments and policymakers. create fundamental change by: While there is much to be done, there is of the industry should also increased momentum to create a • Establishing a sustainable material supportive regulatory framework, which mix by reducing the negative effects the industry should seize and seek to focus on scaling up of existing fibres and developing new further develop. innovative, more responsible fibres Governments and policymakers are in- core priorities • Building circular fashion systems by creasingly keen to play a more dominant designing, producing, selling and role in advancing the environmental and collecting products that enable the social practices of the fashion industry, reuse and recycling of post-consumer for two reasons. The first is that the call and accelerate efforts for sustainability comes from citizens, or textiles at scale more specifically, the electorate (e.g. the • Promoting better wage systems by Global Climate March). The second is that on transformational the pace of the fashion industry’s work collaborating with industry stake- toward better practices is not happening holders to explore opportunities to fast enough— policy intervention can help develop and implement better wage priorities of the accelerate it by, for example, applying systems incentive structures in favour of sustaina- bility actions. CEO Agenda • Leveraging the fourth industrial revolution, by embracing the oppor- Some governments have already launched tunities in the digitalisation of the national initiatives. To name two exam- value chain and engaging with other ples, the multi-stakeholder initiatives in brands, manufacturers, and govern- Germany22 and the Netherlands23 led by ments to prepare for the transition of governing bodies bring together nu- workforce. merous stakeholders. Governments in

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partnership with companies, business contribute their knowledge to help shape associations, trade unions, civil society incoming legislation. A smart political groups and standards organisations pro- approach will ensure a level playing field vide a platform from which more progress and clearly define sustainability meas- toward sustainability can emerge and ures. It will avoid additional reporting and scale. However, the question is whether auditing initiatives, instead incentivising national approaches are the right answer socially and environmentally responsible to an international issue. Instead of asking business practices, assisting in proving the business case. Helpful policy measure- brands to join a separate initiative in every ments could entail competition regulation country, which often involves differ- as part of future trade agreements to ent approaches, creating unnecessary ensure human rights are respected. Or tax burdens for industry, government action incentives to create reward systems for needs to align with businesses and take the use of sustainable materials to gener- a more international approach. Moving ate demand. forward, coordinated action is crucial to overcoming the challenges of the fashion The industry itself can proactively ap- industry, given its global nature. An overall proach regulators on the supranational policy approach, timelines and incentives level and call on national regulators to en- must thus be aligned at an international gage in international cooperation, helping level. Progress is already underway to these policymakers understand the need align these initiatives with the industry for common frameworks and rigorous using OECD Due Diligence Guidance for standards. Other industries within the Responsible Business Conduct24 as the European Union, such as packaging27 and backbone, as for example, the Sustainable consumer electronics,28 have achieved Apparel Coalition joining forces with the common standard setting. Dutch and German national initiatives.25 NGOs and media must continue pushing To pave the way for effective policy, gov- businesses and consumers to support this transformation strongly by encouraging ernments and businesses need to work consumers to find and exercise their voice together. As a prerequisite for close col- and urge businesses to supply high-qual- laboration, policymakers need to be clear ity sustainable products. NGOs focused on what the role of governments should on consumers have a significant role to be. Business should define its commit- play in educating them via tools such as ment to change. One factor that contrib- the Fashion Transparency Index29 or Good utes to the ongoing lack of clarity in this On You.30 These tools provide consum- area is the traditionally low overall policy ers with ethics ratings and sustainability engagement from the fashion industry information about factories and suppliers itself. Active political scrutiny emerged involved in the manufacturing of gar- after the Rana Plaza disaster;26 the indus- ments from the brands and retailers they try should seize this as an opportunity to purchase from.

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Similarly, investors have important re- place to take a bold stand is urgent. The the challenges of scale and utilise disrup- sponsibilities. They can serve as a catalyst situation demands that industry players tive technologies that will lead to new for change toward better ways of doing both jointly lead and push these efforts ways of doing business. Governments and business if they prioritise sustainability toward common standards and collabora- businesses must also collaborate closely in their investment decisions. Investors tive efforts on transformational priorities. to establish widespread policies, and in- should agree to standard disclosure re- This will unleash the forces that the fash- vestors should engage their investees on quirements, driving impact and helping to ion industry needs to be able to close the the topic of improved socially responsible push for common reporting frameworks. gap between its own growth and its effort practices. Fashion players who have all For example, by joining the consortium of to achieve a neutral, or even positive foot- the foundational priorities in place to take investors led by Mirova, which has called print, moving toward more sustainable a bold stand should both lead and push for such a framework31, and support the business practices. these efforts toward common standards Sustainable Apparel Coalition and Global and work with others to tackle the trans- Reporting Initiative’s efforts toward com- formational priorities. The industry should mon sustainability reporting frameworks32 also harness the increasing prevalence of In addition investors should engage their sustainability in the consumer conscious- investees on the topic of improved social ness by communicating their develop- and environmental practices and ask them FOR A ments, which will encourage consumers to join the push for a common framework, to actively purchase more responsible potentially working together with legisla- WORLD products. tors. Global Fashion Agenda, Boston Con- As for co-investment, the fashion industry BEYOND sulting Group, and Sustainable Apparel can learn from the best practices of other Coalition hope the fashion industry will sectors to inspire them on ways to collab- respond to the call for future collabora- orate. For example, the car manufacturers NEXT tion and innovation. This research was BMW and Daimler teamed up to jointly conducted with the aim to ultimately confront new players and regulation by SEASON advance the sustainability agenda and working on five joint ventures at the same consequently help to safeguard the future time.33 This offered them a level of scale We call on industry leaders to react now of the fashion industry, our people and they could not achieve on their own to to the findings highlighted in the Pulse our planet. address disruptive businesses, such as car of the Fashion Industry 2019 Update and and ride-sharing and electromobility, but use them as a driving force for immediate also the regulation that is likely to ensue. action.

Given the plateau where the industry finds The fashion industry has shown progress itself—with 60% of companies struggling toward better social and environmen- to find a way past the technological and tal performance over the year, but the economic hurdles, and 40% still working slackened pace is alarming. We must to catch up— the call for players in the increase the momentum to establish ecosystem who have all core priorities in lasting impact. Businesses need to solve

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6 Global Fashion Agenda and Boston Con- ion Industry. Retrieved 13 April 2019, from nership-for-sustainable-textiles-cooper- ENDNOTES sulting Group (2017). Pulse of the Fashion https://www.globalfashionagenda.com/ ate-to-align-on-674445443.html Industry. Retrieved 10 April 2019, from publications/#pulseofthefashionindustryre- 26 E.g. European Parliament (2017). Report on https://www.globalfashionagenda.com/ port the EU flagship initiative on the garment wp-content/uploads/2017/05/Pulse-of-the- Research conducted in March 2019 with 16 sector. Retrieved 12 April 2019, from http:// Fashion-Industry_2017.pdf almost 3,000 participants spread out be- www.europarl.europa.eu/doceo/docu- 7 IPCC (2018). Global Warming of 1.5°C. tween Brazil (523 participants), China (514 ment/A-8-2017-0080_EN.pdf Retrieved 11 April 2019, from https://report. participants), France (529 participants), 27 European Commission (2018) Packaging ipcc.ch/sr15/pdf/sr15_spm_final.pdf the UK (703 participants) and the US (703 and Packaging Waste. Retrieved 19 April 8 Global Fashion Agenda and Boston Con- participants). To complement the results, a sulting Group (2017). Pulse of the Fashion social media listening has been conducted. 2019, from http://ec.europa.eu/environ- Industry. Retrieved 10 April 2019, from 17 Ibid. ment/waste/packaging/index_en.htm https://www.globalfashionagenda.com/ 18 Founders are defined as being born be- 28 European Commission (2018) Waste Elec- wp-content/uploads/2017/05/Pulse-of-the- tween 1997 and the mid-2000s. The survey trical & Electronic Equipment (WEEE). Re- Fashion-Industry_2017.pdf sample only includes individuals aged 18 or trieved 19 April 2019, from http://ec.europa. 1 See Taking the Pulse of the Fashion Industry 9 Consumer sentiment survey conducted by older and the Founders in the survey were eu/environment/waste/weee/index_en.htm Boston Consulting Group in March 2019 for born between 1997 and 2001. in Appendix. 29 Fashion Revolution (n.d.). Why transparen- the Pulse of the Fashion Industry Update Baby boomers were born between 1947 2 See Global Fashion Agenda and Boston 19 cy matters. Retrieved 18 April 2019, from Consulting Group (2018). Pulse of the Fash- with 2,900 participants from Brazil (523 and 1966. https://www.fashionrevolution.org/about/ ion Industry. Retrieved 16 April 2019, from participants), China (514 participants), 20 See exhibit 10 in Appendix. transparency https://www.globalfashionagenda.com/ France (529 participants), the UK (703 21 See exhibit 11 in Appendix. 30 Good On You (2019). Who made my publications/#pulseofthefashionindustryre- participants) and the US (703 participants). 22 Partnership for Sustainable Textiles (n.d.). clothes? And other important questions. port Survey complemented by a social media Socially and Environmentally – we’re on the Retrieved 18 April 2019, from https://good- 3 United Nations (n.d.). About the Sustain- listening analysis based on posts on Insta- right track. Retrieved 16 April 2019, from able Development Goals. Retrieved 16 April gram, Twitter, reviews, blogs etc. https://www.textilbuendnis.com/en. onyou.eco 2019, from https://www.un.org/sustain- 10 Ibid. 23 The Social and Economic Council of the 31 Mirova (2018). Sustainability requirements abledevelopment/sustainable-develop- 11 See exhibit 9 in Appendix. Netherlands (2016). Agreement on Sustain- in the apparel industry Retrieved 10 April ment-goals/ 12 The top quartile comprises 25% of the mar- able Garment and Textile. Retrieved 16 April 2019, from https://www.mn.nl/en/publica- 4 United Nations Climate Change (2015). ket with the highest Pulse Scores, the other 2019, from https://www.ser.nl/-/media/ser/ tions/sustainability-requirements-in-appar- Paris Agreement. Retrieved 16 April 2019, three quartiles following in succession. downloads/engels/2016/agreement-sus- el-industry/ from https://unfccc.int/sites/default/files/ 13 Stella McCartney (2019). Circularity – re- tainable-garment-textile.pdf 32 GRI (n.d.). GRI Standards. Retrieved 18 April english_paris_agreement.pdf generative farming. Retrieved 13 April 2019, 24 OECD (n.d). Retrieved 16 April 2019, from 2019, from https://www.globalreporting. 5 Boston Consulting Group calculation based from https://www.stellamccartney.com/ http://www.oecd.org org/standards on Euromonitor data (worldwide apparel experience/en/sustainability/circularity-2 25 Sustainable Apparel Coalition (2018). 33 BMW Blog (2019). BMW and Daimler Con- and footwear industry production value, 14 Global Fashion Agenda (2019). CEO Sustainable Apparel Coalition and German firm Five Joint Ventures for Mobility Ser- historic 2018 fixed exchange rate, USD). Agenda 2019. Retrieved 12 April 2019, from Partnership for Sustainable Textiles Cooper- Projection until 2023 based on the same https://www.globalfashionagenda.com/ ate to Align on Supply Chain Due Diligence. vices. Retrieved 10 April 2019, from https:// Euromonitor data; projection until 2030, ceo-agenda-2019/# Retrieved 18 April 2019, from https://www. www.bmwblog.com/2019/02/22/bmw-and- Boston Consulting Group analysis by ex- 15 See Global Fashion Agenda and Boston prnewswire.co.uk/news-releases/sustain- daimler-confirm-five-joint-ventures-for-mo- trapolation of Euromonitor projections. Consulting Group (2018). Pulse of the Fash- able-apparel-coalition-and-german-part- bility-services

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APPENDIX

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Taking the Pulse of the Fashion Industry The Pulse Score

WHY A PULSE SCORE? 1. Expert interviews going through Higg Index has a brand, a facility, and a product The Pulse is a baseline score, pow- The Pulse Score is a global and holistic BRM questions to test patterns and module. ered by the Higg Index, for measur- baseline of the sustainability manage- validate and pressure testing answers ing and tracking the sustainability ment, target setting and implementation live with sustainability managers Last year, the Brand & Retail Module has management and target setting of of sustainability initiatives of the fashion been renewed, incorporating the users’ the global fashion industry on key sector. It is based on the Sustainable Ap- 2. Pulse survey answers to reconfirm feedback and experiences. The new ver- environmental and social impact parel Coalition’s (SAC) proprietary Higg sustainability patterns and perfor- sion is holistic, provides an understanding areas. It is measured on a scale from Index and extends its scope to extrap- mance to increase sample size and of key impacts, is actionable and supports 0 to 1002. olate its findings to the entire industry. fair market representation further business integration in clarifying internal The Higg Index is the most extensive interdependencies. +4pt and representative existing transparency 3. Expert sounding board to validate measurement tool of the industry. and discuss results This version sets a new benchmark, with +6pt 42pt results by value chain step not being The Pulse Score creates transparency and To get a representative view of the entire directly comparable to the previous years. 38pt a common understanding of the indus- market, results were analyzed by compa- The overall scores remain comparable. 32pt try’s most critical issues. This serves as a ny size and price positioning, and re- foundation for the landscape to change, weighted according to the overall market channeling investments and innovation structure based on revenue contribution. into those areas that smart businesses will capture and benefit from. ABOUT THE HIGG INDEX The Higg Index, developed by the Sus- METHODOLOGY tainable Apparel Coalition, is a suite of 2017 2018 2019 The Pulse Score was developed based on: sustainability assessment tools that em- power brands, retailers, and facilities of all SAC Higg Index Brand & Retail Module sizes, at every stage of their sustainability (BRM) as the underlying data source, journey, to measure their impact on envi- Strong >70 clustered into segments to detect pat- ronmental and social dimensions and to 60-69 terns1 and is complemented by: identify areas for improvement. The Higg 50-59 40-49 30-39 20-29 The Higg Brand & Retail Module beta module is unverified, meaning in this context that it is based on a self-assessment that has not been audited or reviewed externally. Weak <20 By design it is impossible to achieve a score of 100 on sustainability, as this is intended to be aspirational.

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EXHIBIT 9 Top fashion purchase criteria For 7% of consumers, Sustainability is their top criterion when making a fashion purchase

2% 23% 7% 17%

Stand out with style High quality Popular with influencers* Makes me feel successful*

16% 7% 15% 7%

Good value for money Manufactured sustainably Brand for me Timeless*

7%

Totals do not add up to 100 due to rounding. Based on need sizing through factor analysis of functional decision criteria for fashion purchase* Original wording: Brand makes me feel successful / Timeless, doesn’t go out of style / Recommended Fashion forward by celebrities, experts or bloggers Source: BCG Sustainability survey March 2019, N = 703 (US) ; 703(UK) ; 529(FR) ; 514(CN) ; 523(BR)

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EXHIBIT 10 Emotional factors of sustainability Question: Thinking about sustainabili- Quantitative analysis deconstructs sustainability into 11 emotional factors ty, which emotional fulfillment do you seek when purchasing products in fashion categories? Source: BCG Sustainability survey Reducing my carbon footprint March 2019, N = 703 (US) ; 703(UK) ; 529(FR) ; 514(CN) ; 523(BR)

Feeling less guilty Be a role model for wearing luxury for those around me

Shaping mission of Changing lives brands and companies for the better

Establish myself as a community leader Emotional Fighting for social justice hooks for sustainability

Providing advantages Paying it forward I had to others

Doing something Fulfilling my other than work faith/believe

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EXHIBIT 11 Emotional factors of sustainability Source: BCG Sustainability survey March 2019, N = Quantitative analysis deconstructs sustainability into 11 emotional factors 703 (US) ; 703(UK) ; 529(FR) ; 514(CN) ; 523(BR)

Average descriptors Resistant (35%) Middle ground (49%) Open (16%)

Age 47 years 41 years 42 years

Income H 18% M 49% L 33% H 22% M 46% L 32% H 23% M 48% L 29%

Gender F 51% M 49% F 49% M 51% F 48% M 51%

Segment sizes per country US 36% UK 42% FR 35% US 46% UK 45% FR 50% US 18% UK 13% FR 15%

CN 31% BR 30% CN 54% BR 50% CN 15% BR 20%

No child labor, 46% No child labor, 50% No child labor, 62% Top table stake attribute Cruelty free, 43% No animal testing, 48% Safe working conditions, 58% No animal testing, 39% Cruelty free, 47% No animal testing, 58%

Sustainably sourced materials, 36% Made in country known for sustainability, 39% Brand donates rev. share to charity, 42% Top differentiator attribute Manufacturing w/o excessive waste, 35% Manufacturing w/o excessive water usage, 39% Only natural/organic ingredients, 40% Biodegradable packaging, 34% Brand donates rev. share to charity, 38% Recycled materials, 40%

24/25 GLOBAL FASHION AGENDA GET IN TOUCH Frederiksholms Kanal 30-C 1220 Copenhagen K Denmark GLOBALFASHIONAGENDA.COM

MORTEN LEHMANN [email protected]

THE BOSTON CONSULTING GROUP, INC. 200 Pier 4 Boulevard Boston, MA 02210 USA BCG.COM

JAVIER SEARA [email protected]

SEBASTIAN BOGER [email protected]

SUSTAINABLE APPAREL COALITION PO BOX 237 San Francisco, California 94104 USA APPARELCOALITION.ORG

BAPTISTE CARRIÈRE-PRADAL [email protected]

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2019 UPDATE