Latest news with #ESGOutlook
Yahoo
22-05-2025
- Business
- Yahoo
ESG Outlook: GOTS' Claudia Kersten on Catalyzing Systemic Change
ESG Outlook is Sourcing Journal's discussion series with industry executives to get their take on their company's latest environmental, social and governance initiatives and their own personal efforts toward sustainability. The Global Organic Textile Standard (GOTS) is the leading worldwide standard for the processing of organic fibers, including ecological and social criteria, backed up by independent certification of the entire textile value chain. As a Voluntary Sustainability Standard (VSS) setter, GOTS defines what sustainability should look like in practice and provides a framework others can follow. The company sets stringent, but achievable, environmental and social criteria that drive meaningful change. Here, Claudia Kersten, manager director of GOTS, discusses the organization's role to make sure that claims of sustainability are credible, consistent and grounded in third-party verification. More from Sourcing Journal ESG Outlook: Reistor's Mehma Singh on Democratizing Conscious Fashion Catherine Chiu of Crystal Int'l Group on Unlocking Potential for Female Employees ESG Outlook: Rachel Molina of Another Tomorrow on Farm-Level Data and Digital IDs Name: Claudia KerstenTitle: Managing DirectorCompany: Global Organic Textile Standard (GOTS) What do you consider your company's best ESG-related achievement over the last 5 years? Strengthening the integrity and influence of sustainable textile production globally. As an organization that sets VSS, we help others achieve their ESG goals through a robust standard that covers environmental protection, human rights and responsible business practices along the entire value chain. We achieve this by continuously strengthening our resources and regularly revising our standard to stay aligned with evolving science and policy. This gives companies the assurance that they are always equipped to meet and exceed regulatory compliance, irrespective of how legal standards evolve. We're also proud of our partnership with the European Space Agency which, when it was launched, was the first project of its kind to use AI and satellite imagery to detect organic versus non-organic cotton fields. This enables us to enhance the integrity of organic cotton and prevent fraud across the value chain. What is your company's latest ESG-related initiative? We recently launched a new vision and mission, shaped by the evolving needs of the industry and the growing urgency for climate and social action. This transformation is about going beyond product-level certification to help catalyze systemic change. It's reflected in the development of our latest standard update, which includes enhanced criteria on environmental protection, labor rights and accountability. We're addressing issues like carbon intensity and worker agency more directly, ensuring our standard remains a strong driver of progress in a complex global landscape. What is the biggest misconception consumers have about sustainability in fashion? A common misconception is that sustainability is just about the product—what it's made of, whether it's organic or recycled. But sustainability isn't just about materials; it's about systems. That includes how fast we produce, how we treat workers, and whether we internalize the full environmental and social costs. We play a key role in helping shift the focus from surface-level fixes to systemic transformation. If products carried their true cost, including environmental degradation and labor exploitation, many of today's problems could be addressed more effectively. As consumers become more aware of worker conditions and how clothing is produced, how can the industry best spread the word on progress? The best way to communicate progress is through credible, third-party certification like ours. They provide evidence—not just marketing claims—that a product meets verified sustainability criteria. Brands should use them not only to prove their efforts but also to talk about them transparently. As standard setters, we also need to do our part by making sustainability achievements more visible and accessible to both brands and consumers. What do you consider to be the apparel industry's biggest missed opportunity related to securing meaningful change? The Covid-19 crisis presented a unique opportunity to rethink how fashion operates. In 2020 and 2021, we saw a surge in ESG pledges, but many of them weren't backed by concrete action. When value chains shut down, millions of garment workers were left without protection, severance, or income. Brands had the chance to rebuild around fairness, resilience and shared responsibility—but instead, many reverted to business-as-usual, prioritizing cost-cutting over long-term change. That moment could have been a turning point. Unfortunately, it wasn't. What was your company's biggest takeaway from the Covid crisis that is still relevant today? We were already a fully virtual organization before the pandemic, so operationally, we were well-prepared. The real test came in the audit process, where independent, on-site inspections are critical for credibility. During the pandemic, we had to innovate. Virtual audits became necessary, and while they were never a full substitute for physical visits, they demonstrated how adaptable and creative systems can be without sacrificing integrity. It taught us that flexibility and trust can go hand in hand, especially when supported by strong frameworks and oversight. On a personal level, what is your philosophy on shopping and caring for your clothes? I buy less but better. When I do shop, I look for GOTS-certified or other credible certifications, or I choose second-hand. I also repair my clothes and encourage swapping or sharing instead of constantly buying new. For me, it's about consuming more consciously, extending product life, minimizing waste and encouraging others to do the same. How much do you look into a brand's social or environmental practices before shopping? I always research a brand's practices before buying. As someone leading a sustainability standard, it's not just a job, it's a deeply held value. I've seen the best and worst of textile production, so I seek out brands with credible commitments and avoid those that fall short. In fact, I filter my product searches to prioritize sustainable options and don't even consider conventional ones. Anything new you are doing to boost sustainability beyond the fashion industry? In my personal life, it's nothing extravagant—just consistent. I try to reduce my CO₂ footprint, eat organic and regional food, and choose sustainable alternatives in everyday purchases, whether that's cleaning products or home goods. I also try to engage in discussions and education with people of all ages to raise awareness. Any final thoughts? ESG isn't a checklist. It's a mindset. It requires a shift in how we think, make decisions and define success—not only in business, but also in daily life. If we adopt this mindset collectively, we can drive the systemic changes that sustainability demands. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
Global Standard Touts Sustainability Progress in Annual Report
Global Standard, the nonprofit behind the Global Organic Textile Standard (GOTS), increased its certified textile facilities globally by more than 5 percent last year, according to its 2024 annual report. The report outlines the organization's progress on sustainability issues across the global textile industry. The increase in GOTS-certified facilities—which must meet strict environmental and social criteria—brings the organization's total of approved operations to 15,441 across 87 countries. More from Sourcing Journal ESG Outlook: GOTS' Claudia Kersten on Catalyzing Systemic Change Imogene & Willie's 'Made in USA' Mission Begins With Cotton Nudie Jeans Adds Regenerative Organic Cotton; Finds Creative Solutions for Flawed Jeans That criteria—dubbed GOTS version 7.0—was introduced in 2023 and fully implemented in March 2024. The rollout included online training to assist GOTS-certified entities with due diligence requirements, including a comprehensive handbook for auditors released in November 2024. Global Standard has since set up a 25-member standard revision committee for GOTS version 8.0, which is currently in its first public consultation phase. This edition of the standard will include provisions on the circular economy, mitigation of climate change-related issues that affect the well-being of workers and additional improvements to due diligence criteria. And for the first time in its existence, Global Standard expanded its mission beyond a single standard to become a voluntary sustainability standard setter. This move aims to allow the textile industry to apply the GOTS framework to other sustainable fibers. Following ISEAL Alliance credibility principles, the new standards will be released for public comment in 2025. 'By building on the success and value of GOTS, we aim to strengthen Global Standard's impact, support diverse sustainability challenges and empower stakeholders across global value chains,' said Rahul Bhajekar, managing director of Global Standard. The report also outlined the results of Global Standard's Satellite Cotton Monitoring Project, conducted in India in partnership with the European Space Agency and AI firm Marple. The project produced a 97 percent accuracy rate in detecting cotton fields and more than 80 percent accuracy in determining their organic status. The program aims to increase organic cotton availability by facilitating the organic certification process for farms. Global Standard also reported that its #BehindTheSeams campaign—which launched last year in conjunction with the Organic Cotton Accelerator to help boost organic fiber production—reached more than 70 million people worldwide, with 265 GOTS brands participating. The consumer outreach and educational program held during September 2024 engaged people with games, giveaways and more designed to increase public awareness of the importance of organics. Global Standard managing director Claudia Kersten said that the organization's gains in 2024 build on their ongoing mission to improve the sustainability of the global textile industry. 'The necessity of our work was compounded in 2024 due to evolving regulations concerning value chains around the world, especially in Europe,' said Claudia Kersten, managing director of Global Standard. 'Already central to driving impact and progress, voluntary sustainability standards are now emerging as strategic tools for compliance—underscoring their evolving role in leading sustainable transformation. Whether it is human rights due diligence or using the latest technology to strengthen integrity, Global Standard and its experts remain at the forefront.'
Yahoo
21-04-2025
- Business
- Yahoo
Catherine Chiu of Crystal Int'l Group on Unlocking Potential for Female Employees
ESG Outlook is Sourcing Journal's discussion series with industry executives to get their take on their company's latest environmental, social and governance initiatives and their own personal efforts toward sustainability. Founded in Hong Kong in 1970, apparel manufacturer Crystal International Group operates a multi-country manufacturing platform with more than 20 production facilities spanning Vietnam, China, Cambodia, Bangladesh and Sri Lanka. Its product portfolio includes lifestyle wear, sportswear and outdoor apparel, denim, intimate, sweater and knitted fabrics. Here, Catherine Chiu, vice president of corporate quality and sustainability, discusses how by unlocking the potential of the female workforce, Crystal fosters the creation of more equitable societies in the regions where it operates. More from Sourcing Journal PrimaLoft's Pure Process Wants to Cool the Climate, Heat Up Efficiency ESG Outlook: Rachel Molina of Another Tomorrow on Farm-Level Data and Digital IDs Egypt's Outlook Has Changed Dramatically Name: Catherine ChiuTitle: Vice President of Corporate Quality and Sustainability DepartmentCompany: Crystal International Group Limited What do you consider your company's best ESG-related achievement over the last 5 years? Launching the 'ePACE' program was one of our biggest ESG successes over the last five years. Women make up more than 70 percent of our global workforce across our 26 facilities, yet many face societal barriers that limit their opportunities for growth. As a responsible employer, we saw this gap as an opportunity to help them grow with us; not just for business success, but as a fundamental commitment to our workers. In 2013, one of our customers launched the Personal Advancement and Career Program (PACE) program to unlock the potential of female employees. We piloted PACE with small successes, but the COVID-19 pandemic pushed us to innovate and scale the program. In response, we created 'ePACE', a digital version that expanded the program's reach to regions with limited training resources, including subcontractors. Building on the foundation of PACE and integrating other in-house and customer-required programs, we developed our own comprehensive Crystal CARE program (Crystal Advocates Respect Engagement), further extending our commitment to women's empowerment. What is your company's latest ESG-related initiative? We are taking our commitment to sustainability to the next level with Crystal Sustainability Vision 2030 (CSV2030), a roadmap that focuses on eight impact areas across environmental, social, and community dimensions: reducing our carbon footprint, creating a more circular supply chain, conserving water, protecting biodiversity, and minimizing our environmental impact. On the social side, we're strengthening our focus on employee wellness and promoting equity to ensure inclusion and opportunities for all. By tackling these priorities, we're actively shaping a more sustainable and responsible future. What is the biggest misconception consumers have about sustainability in fashion? That ethical and sustainable supply chains are few and far between. While we began this work in 2007, every day I take part in more conversations beyond Crystal International, regarding how the industry needs to shift to more transparency across supply chains. With this focus, now is the time for moretransparency in benchmarking ESG goals and leveraging primary data to map out your impact. Once you know where you stand, you can map out how to move forward. What was your company's biggest takeaway from the COVID crisis that is still relevant today? The COVID crisis showed us, as a society, the true impact of supply chain disruptions. It was a moment that shifted the relationship between suppliers and their brand partners, accelerating the push for transparent supply chains that we've seen in recent years with various policy adoptions across the world. As an organization, we valued transparency long before COVID so thankfully, we were prepared for these changes. In 2013, we began prioritizing data-driven impact measurement through the Higg Facility Environmental Module (FEM). This has led to a depth of knowledge about our impact—and an improved relationship with our brand partners—that has enabled us to establish intelligent, data-driven targets. While our CSV2030 vision benchmarks may seem ambitious, we're confident in their success, given the insights we've gained by collecting and analyzing our performance data. This foundation has enabled us to identify hotspots and course correct as needed. As consumers become more aware of worker conditions and how clothing is produced, how can the industry best spread the word on progress? Progress must be communicated across manufacturers, suppliers, brands and the public. It seems that we only hear about supply chain workers when something bad happens, but there is good happening that can be scaled across suppliers. More stories should highlight how supply chain initiatives can impact workers for the better. For example, a standout success story of the PACE program comes from one of our factories in Sri Lanka, where an employee who completed the program was promoted to Senior Quality Assurance manager, taking this responsibility across six factories in the country. When only about five percent of female factory workers advance to higher-level positions, this is an important story to learn from. What do you consider to be the apparel industry's biggest missed opportunity related to securing meaningful change? The apparel industry often overlooks employee empowerment as a key strategy to future-proof their supply chains and reduce risk. For example, the impact of PACE was profound. As participants developed new skills, they fostered a more positive corporate culture and created a stronger team environment. Beyond culture, the program also contributed to improved operational efficiency, better employee relationships, and greater workplace harmony—all essential to long-term business success. To create lasting change, more manufacturers must deepen their commitments to prioritizing social impacts in their local communities to drive long-term benefits. What is your personal philosophy on shopping and caring for your clothes? I am mindful of where I shop, prioritizing quality and knowing where my clothes come from. As I am keenly aware of the fiber composition, I have strong preference in looking for natural fiber, especially purchasing products with recycled materials, e.g. recycled cotton and regenerated fiber. I care about the durability of clothes as well. How much do you look into a brand's social or environmental practices before shopping? It's important to me. I'll quickly research the social and environmental practices of a brand that I'm not familiar with and opt for those that prioritize sustainability and ethical production. There have been moments where I pass on products that don't align with my values. Anything new you are doing to boost sustainability beyond the fashion industry? It's important to remember that the fashion industry is made up of individuals. These individuals are more than just supply chain workers—they are mothers, daughters and friends. We've prioritized upskilling our workers because we understand that the skills gained through our programs will go beyond the walls of Crystal International and into the communities our workers are a part of. Boosting sustainability for us is about more than business, it's about sustaining livelihoods.
Yahoo
28-03-2025
- Business
- Yahoo
Worldly: ‘You Have the Data, Do You Know What to Do With It?'
With hundreds of brands and tens of thousands of individual manufacturing sites around the globe, it's clear there's a need for a shared standard so brands and retailers can measure sustainability along the supply chain. The challenge, however, isn't gathering the hundreds of data points from every upstream supplier; it's knowing what to do with the information. Sustainability data insights platform Worldly, which is the exclusive host of the Higg index, set out to simultaneously scale and simplify the process. Over five years, the technology provider raised $50 million in investment capital to enhance the platform and help members of Cascale (formerly the Sustainable Apparel Coalition) strategically use data to take action on industry problems. More from Sourcing Journal The Business Case For Sustainability The 80%: Investing in Women Workers to Unlock Ethical and Sustainable Supply Chains ESG Outlook: Sphera's Scott Lehmann on Integrating Sustainability Into Business Strategies 'Those manufacturers might actually be collecting data from their upstream suppliers to understand what's going on in [their] supply chain, [but] what do they do with it?' said Michael Krakower, senior director, accounts, Worldly, in conversation with SJ's senior news and features editor Kate Nishimura at SJ's Sustainability Summit: Ambition versus Action. The data can be applied to three areas, said Krakower: compliance (setting a minimum code of conduct standard for all suppliers); quantitative issues (analyzing supplier water waste or GHG emissions and either dropping suppliers or working with them to improve scores); and facilities (giving individual manufacturers a tool to assess, and improve, their own performance to make them more attractive to brands). 'Once you have that complete transparency [of your supply chain], it opens up opportunities to take action against it,' said Kakower, citing examples from both large and small apparel companies. The first, an unnamed 'large, Nordic apparel retailer,' was able to reduce '22 percent of their scope 3 emissions on an absolute basis from a 2019 baseline because about 98 or 99 percent of their Tier 1 facilities all audited, and they've seen consistent scores improve.' The second example came from apparel brand United Legwear, who is using Worldly's Product Impact Calculator that 'essentially allows you to model the composition of all the products you sell on an annual basis, and then override some assumptions and emissions factors with primary data that's flowing in from your suppliers,' said Krakower. He explained how a company could model a pair of pants, for example, with a life cycle emission of 15 kilograms of carbon, then switch the materials, or even the suppliers, to see the emissions impact on that same pair of pants. 'What United Legwear is doing is piping in that primary data from the site location at a facility level to override some global average assumptions for their product footprints, which is helping them identify hot spots of specific products and product categories where they can decarbonize through a few different layers—changing materials, improving material processes, but also optimizing the individual facilities across their supply chain that they're working with,' he said. It all comes down to visibility and transparency, but also partnership and community, because at the end of the day, supply chain sustainability is no longer just about compliance—it's a business imperative for all stakeholders. Sign in to access your portfolio
Yahoo
17-03-2025
- Business
- Yahoo
ESG Outlook: Sphera's Scott Lehmann on Integrating Sustainability Into Business Strategies
ESG Outlook is Sourcing Journal's discussion series with industry executives to get their take on their company's latest environmental, social and governance initiatives and their own personal efforts toward sustainability. Here, Scott Lehmann, VP, product management at integrated sustainability and operational risk management software, data and consulting services Sphera, discusses why proactive risk management is no longer optional. Name: Scott LehmannTitle: VP, product managementCompany: Sphera More from Sourcing Journal Chain Reaction: Virginie Blot of Akeneo on Reducing Returns and Enhancing Customer Experience Up Close: In Conversation with SPS Commerce's Brandon Pierre Proposed Class Action Alleges Amazon Allows Third Parties to 'Covertly Siphon' Consumer Location Data What do you consider your company's best ESG-related achievement over the last 5 years? Whether it's supply chain risk management, reducing environmental impact, ensuring worker and broader operational safety or navigating complex regulations, our goal is to help businesses meet requirements and operate more efficiently and responsibly while also managing risk. One of our biggest wins has been developing our integrated sustainability solutions. Managing sustainability data can be overwhelming, especially with different teams working across various areas like operations, supply chain, and product development. Our solution brings all that data together in one place, making it easier for companies to align their efforts and get a clear picture of their sustainability performance. This has been a game-changer for Scope 3 reporting, helping businesses build stronger data foundations and provide more accurate, comprehensive sustainability risk and emissions disclosures. We're making sustainability management more streamlined and actionable for our clients. What is your company's most recent ESG product or initiative? The SpheraCloud Integrated Sustainability solution is designed to help businesses navigate the growing complexities of sustainability reporting and compliance. As stakeholder expectations rise, companies need accurate, transparent and actionable data to drive their sustainability strategies. This solution streamlines data collection, emissions tracking, regulatory reporting, and sustainability performance management, all in one AI-powered platform and available with our expert consultants. By automating key processes and integrating real-time insights, SpheraCloud helps organizations reduce manual efforts, improve data accuracy, and make more informed sustainability decisions. It's all about making sustainability management seamless to help businesses meet compliance requirements, but also drive measurable impact long term. What is the biggest misconception businesses have about ESG compliance and corporate sustainability? Many companies see sustainability as simply a compliance box to check. In reality, sustainability is a strategic opportunity that can drive business value and drive innovation, efficiency and resilience. When applied in a balanced way, sustainability creates long-term business success. The organizations that embed sustainability in their operations, products and supply chains eventually emerge as clear leaders. But even before they establish themselves as leaders, they find that sustainability helps them differentiate themselves in the marketplace, innovate, attract investment, achieve cost savings, enhance customer loyalty and strengthen their ability to manage climate-related risks. Sphera helps shift this perspective with integrated solutions that go beyond compliance. Our tools ensure regulatory alignment and enhance operational performance, risk management and brand reputation. We empower organizations to see sustainability as a pathway to sustainable growth and a competitive advantage. The COVID-19 crisis forced many companies to rethink sustainability and risk management. What are the biggest takeaways from that period that remain relevant today for businesses? The pandemic was a wake-up call for businesses. It exposed how fragile supply chains can be, how quickly regulations can shift, and the importance of real-time data for making informed decisions. Companies that had integrated risk management systems in place were able to adapt quickly, while the others scrambled to catch up. The biggest lesson learned during this period was that proactive risk management is no longer optional. Businesses need full visibility across their operations and supply chains to anticipate disruptions and respond effectively. With AI-driven technology, companies can analyze risks in real time, helping them make smarter, faster decisions and stay resilient in an ever-changing landscape. As consumer pressure around sustainability reporting increases, what challenges do companies face in navigating and meeting these expectations? Consumers expect transparency when it comes to sustainability. They want to know where products come from, how they're made, and what impact they have on the environment and society. This growing demand puts companies under pressure to provide clear, credible and consistent sustainability reporting. Investing in ESM [enterprise service management] solutions allows companies to improve data accuracy, align reporting with evolving standards, and communicate their progress in a way that resonates with consumers. What do you see as the biggest missed opportunity in corporate sustainability, where companies could be making a greater impact but aren't? Too many companies focus on meeting the bare minimum requirements rather than fully integrating sustainability into business strategies. When sustainability efforts are siloed, organizations miss out on opportunities to drive innovation, improve efficiency, and build stronger relationships with stakeholders. Sustainability should be woven into decision-making to drive growth and resilience. Companies taking this approach gain a competitive edge by making business decisions that benefit their bottom line and the world around them. How does Sphera support companies in integrating sustainability into their supply chains, ensuring compliance while also driving business value? Sustainability efforts are only as strong as the supply chains behind them. Our Supply Chain Sustainability solution helps businesses gain full visibility into their suppliers by collecting direct data on Scope 3 emissions, sustainability metrics, and risk factors through expert-built assessments. With this tool, companies can proactively manage costs, reduce risks, and ensure compliance, rather than reacting to issues after they come up. It also allows them to adopt more sustainable procurement practices to create a measurable impact and drive long-term business value. Are there emerging trends or technologies in ESG that you believe will reshape corporate sustainability strategies in the next five years? AI's energy-intensive nature means it is not at present a sustainability friendly technology, with 21 percent of all energy consumption expected to be needed to power AI by 2030. However, the evolution of AI will likely see developments that reduce its current exponential energy usage trajectory by becoming more efficient. And while clean wind and solar power are not natural fits for data centers, given the limited amounts and lack of sustained, reliable energy they produce, nuclear energy is better matched to the demand of data centers, with nuclear plants able to generate power reliably, without interruption. (MIT). As sustainability expectations grow more complex, automation and AI-driven analytics are transforming how companies manage sustainability initiatives. These technologies are helping businesses cut through data overload, enhance reporting accuracy, and drive real impact by automating key processes. AI has also transformed risk management with real-time monitoring, predictive insights, and proactive decision-making. Companies can now run 'what if' analyses more efficiently, using AI to compare various scenarios and address sustainability gaps, as well as identifying areas for improvement such as detecting vulnerabilities in supply chains and assessing environmental impacts. This will prove instrumental in enhancing efficiency and spur leaner businesses. Is there anything else you'd like to add about the future of business sustainability and Sphera's role in shaping it? Sustainability is becoming an integral part of companies' operating model, rather than a series of regulatory compliance initiatives driven by groups outside the normal corporate structures. At Sphera, we have seen examples in our customer base of procurement departments adopting new requirements as part of supplier qualification and onboarding, as well as risk management and engagement. Companies that will thrive in the future will be those that can build and manage resilient and sustainable supply chains. As regulations shift with the recent administration changes, the demand for what sustainability has been before 2025 will naturally morph into what it has become today: a long-term business imperative that plays a large role in driving operational efficiency and building resilience in any economic or regulatory environment, setting up companies for sustainable success. Instead of scaling back sustainability initiatives, businesses should have a long-term focus by strengthening their data, technology and strategy to stay resilient and prepared for regulatory and business environment shifts. Sign in to access your portfolio
