Economy Needs Ecology
April 18, 2012 Anyone seeking financial success today must think ecologically, produce sustainably, and be efficient and sparing with energy and resources. That is especially true for the textile industry’s production and marketing of natural cotton fibers.
Population, industrialization and prosperity are on the rise in emerging markets, particularly China and India. Their huge energy requirements drive up global energy consumption, which are expected to rise from more than 500 quadrillion btu to 700 quadrillion btu (1 btu = 1 055.05585 joules) by 2030. At the same time, climate change and related global protection agreements are putting the brakes on the utilization of fossil fuels. Nuclear power has a limited future after the catastrophe in Fukushima, while alternative renewable energy sources such as solar power and wind energy must become more economical.
These factors make energy more expensive and cause local supply bottlenecks. Global textile machinery manufacturers have been quick to recognize this trend. For example, Oerlikon Textile introduced its “e-save” energy efficiency program in 2004 (www.e-save.oerlikontextile.com) and machines bearing this label now save significant energy compared with similar machines. Energy is responsible for about a quarter of all the resources used in the production of a finished textile fabric.
Profitability Is Part of Sustainability
Cost reduction and sustainability are necessary in the textile industry for other reasons, too. In light of cotton’s historical price explosion for cotton in the last year, the global textile industry is adjusting to a higher average price level in future. In addition, forecasts indicate that global acreage under cotton cultivation can only be enlarged to a limited extent due to the need to guarantee the supply of food and water. Both of these factors weaken cotton in its competition with polyester and viscose, which continue to gain market share.
On the other hand, cotton can – and should – exploit its attractiveness as a natural fiber. Surveys have shown that consumers regard natural fibers as environmentally friendly, but not synthetics. The sector has already reacted to this. In just four years, the production capacity for organic cotton has increased globally from 20,000 tonnes to 141,000 tonnes. Major textile dealers are aware of the trend: Studies show more than 60 organizations now offer more than 75 eco-programs and labels. For example, according to The Fiber Year 2011 report published in May, about 2,800 participants in 54 countries are certified as being compliant with the globally recognized minimum standard for natural textiles, GOTS (Global Organic Textile Standard).
It is increasingly important to consider how we can improve the entire value-creation chain. Producing a pair of jeans requires 11,000 liters of water, often in countries where water is scarce, and rain only provides 41% of that amount. Several kilograms of carbon dioxide are also produced in the manufacture of a cotton T-shirt, due to the high consumption of chemicals in cotton cultivation.
Attention is focused more strongly on such socially significant ecological challenges following environmental disasters such as in 2011 in Japan or in 2010 in the Gulf of Mexico. Studies in Germany show that sustainability is an increasingly important factor for success on many levels. For example, around 38% of German companies that adopt a particularly sustainable business approach have increased their operating result (EBIT) for 2009 and have a better EBIT than their competitors.
Recent surveys have shown that for 47% of managerial staff, the adoption by a company of an ecologically, socially and economically responsible approach to business is a crucial or very important factor in their choice of employment. And in 2013, it will be important or very important to 76% of customers and employees that companies take an ecologically correct approach. Those figures make it clear companies that subscribe to the principles of economic, ecological and social sustainability are on track for lasting business success.
André Wissenberg is Vice President, Marketing & Corporate Communications, for Oerlikon Textile.
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