Written by Loren Phillips

Given that entire industries are in the process of re-evaluating their business models to figure out whether they can carry on doing business in the same way as they did post-2008, this is a question the fashion industry warrants asking. What the recession certainly showed us was that if your business is not sustainable, it will have to shut its doors. Even the famous Lehman Brothers were not immune to the fatal Wall Street crash. So what practices within the fashion industry are not likely to survive the next fifty years?

According to Wikipedia1 , “Sustainable fashion, also called eco fashion, is a part of the growing design philosophy and trend of sustainability the goal of which is to create a system which can be supported indefinitely in terms of environmentalism and social responsibility. Sustainable fashion is part of the larger trend of sustainable design where a product is created and produced with consideration to the environmental and social impact it may have throughout its total life span.”

The new mantra of the business world is “triple bottom line”. Companies need to start taking a triple bottom line approach when it comes to re-evaluating their business models. Profit, of course, is inseparable from business, but what this new model includes are both people and planet. Important questions that need to be asked at this stage are:

• “What is the impact of my business on the lives of others?”
• “What is the impact of my business on the planet?”

Asking these two questions above and beyond the “How am I going to make money?” you should get a good idea of whether your business will live to see the 21st Century.

Fashion is an industry that is guilty, through its messaging and its non-stop turnover, of portraying itself as cheap, readily available and “must-have”. “The collective result is a homogeneous look that is far less interesting and much more disposable”2.

The fashion industry is responsible for the use of sweatshops and child labour. As the world becomes more connected, these types of business practices are simply unsustainable (not to mention unethical). The price tag usually lays testament to this fact, the cheaper the garment, the more likely it is to have come from unsound sources. An important question has become: “What is the true cost of this garment?”

The true cost underlines the environmental and social damage that it has caused making its way through the value chain and to you, the end user. Shoppers also need to take responsibility for their part, realising by making that purchase, they are creating the demand that feeds the supply.

Then there are fashion shows. Gorgeous, glamorous affairs no doubt, but at what cost? Fashion editors fly from all around the world to attend these soirees and no cost is spared moving textiles, trims and any other accoutrement from point A to point B. The carbon cost of these events is staggering, and more importantly, unsustainable in a world that is increasingly counting carbon dollars. It’s also worth a mention at this point that models starving to death is hardly a sustainable state of affairs.

And all of this for what? So that the world can watch the show on FTV as it happens, and the photographs can be spread digitally just minutes later. Fashion editors are just not the be-all and end-all of the fashion industry like they once were. The digital age is here, and rising to prominence are street style sites and fashion blogs. So what is all the fuss about? Savvy designers like Victor and Rolf have noticed the shift and are gearing up for the new world, presenting digital fashion shows online for all to see. The democratisation of fashion is already in full swing.

Sustainable fashion, a contradiction in terms?

The recent PSFK Salon held in Soho, panelists discussed various key issues related to sustainability in fashion. An important point that emerged was that: “Given that aesthetics and style concerns drive the industry both from a brand and consumer perspective, it became clear from the get-go that in any conversation around fashion, the fashion itself has to come first, meaning that sustainability has to naturally co-exist alongside these expectations.”3 It was also noted that brands play a central role in the education of consumers around issues of sustainability. Although there is a trend, mostly within mature consumer markets, towards slower, more considered consumption, people on the whole need to learn how to purchase with a different set of values in mind, for example:

• Will it last?
• Does it really suit me?
• Can I wear this in five years time?

The onus is also shifting onto big brands in terms of education. Brands leading in the sustainability discourse are integrating sustainable thinking into their core value system, allowing these messages to role out through the various media channels they have available to them. Of course, one of the positive benefits of this is an upswing in positive brand sentiment, especially amongst the younger generation who see “doing good” as one an essential tenet of being a big brand with a massive reach and influence. Big brands need to consider themselves more responsible in the race towards a sustainable future, as the have global reach and are in the financial position put do the research and development necessary in the creation of greener alternatives.

Moving through this transitionary period, we are seeing a large instance of “greenwashing”. Greenwashing refers to “the deceptive use of green Public Relations (PR) or green marketing in order to promote a misleading perception that a company’s policies or products (such as good or services) are environmentally friendly. The term ‘green sheen’ has similarly been used to describe organisations that attempt to show that they are adopting practices beneficial to the environment.”4

Greenwashing is dangerous to the entire sustainability effort as it erodes consumer trust, something which is very difficult to rebuild (note how much damage Nike has suffered with their sweatshop scandal). The difficulty lies in the fact that the terrain is largely unchartered, without the proper legislation to guide best practices. Time will see this rectified as sustainability auditing comes into place5, but in the meantime, savvy consumers have already woken up to false claims and are taking companies to task. Companies need to recognise the importance of authenticity in their messaging, and need to be honest about what has been accomplished and what challenges lie ahead.

Sadly, sustainability thinking is featured more in the posts of green blogs like Treehugger, than on the pages of fashion magazines, where the “green” trend made an appearance but then passed like another waning fashion fad. Digital activists are at the forefront of this debate with websites like Care2 and locally, I Am Changing the World , providing useful information to consumers about the environmental and health benefits of “conscious consumerism”. Some of the trends in sustainability viewed through the lens of fashion include seasonless fashion, the return to craft, localisation, vintage shopping and the move towards organic fibres.

What are designers doing locally?

Local designers largely have their hands tied as far as sourcing is concerned. We do not have a fully functional textile sector of which to speak, thus rely on imports of finished fabrics and have very little say over the process involved in manufacture.

If you are a designer, try source as much as you can locally. Design you own fabric. Start your own factory run on principles of fair trade, which maintain fair practices throughout the fashion value chain

What are retailers doing locally?

Perception of vintage shopping is changing in South Africa. In the last year or so we are seeing the mushrooming of vintage sales, from downtown to Jeppestown, with designers with an eye for a great vintage find selling their goods on to a market that is ready to start shopping in this way. Vintage styling marks the epitomy of individuality, as you can be almost sure that what you find, certainly only comes in one of a kind. Furthermore, it marks a huge backlash against mass produced, cheap, disposable goods.

What can you do as a consumer?

Realise that every single purchase you make, you are casting a vote. By creating a demand for whatever that item may be, you are requesting that more of it be supplied. Take a moment. Consider your next purchase. Mend your clothing. Buy vintage. Accessorise more. When you have the option, buy organic, even if it is only 5% at this stage. What you are telling the retailer is that that is what you want,and that is what you will pay for. Companies understand the language of money, and this is the way we should speak to them.

Fast Facts

• Cotton receives as much as 7 kg per hectare of herbicide and 5 kgs per hectare of insecticide (Source: US Geological Survey)
• Cotton uses more than twenty-five percent of all the insecticides in the world and 12% of all the pesticides (Source: Organic consumers)
• Global retail sales of organic cotton apparel and home textile goods have been soaring 40% per annum since 2001, according to the Organic Exchange
• The world’s top 10 organic cotton using brands last year, according to the OE, include Nike, Walmart, H&M, Levi Strauss & Co and Adidas
• Organic cotton production grew 20% in 2008/09 over 2007/08, across India, Turkey, Pakistan and 19 other countries, with growth forecast to set to continue at 20-40% through 2011
• Dozens of brands and retailers – who together consume 15 percent of the world’s cotton – have signed up to a global scheme called the Better Cotton Initiative, which aims to cut water and soil pollution while battling child and bonded labour. It involves 100,000 cotton farmers in China, Central Asia, Brazil and West and Central Africa. Retail giants Ikea and Levi Strauss sit on the council of the scheme (Source: Business Daily Africa)

References

1. wikipedia.org/wiki/Sustainable_fashion
2. www.psfk.com/2010/09/innovation-and-sustainability-in-fashion.html
3. www.psfk.com/2010/09/video-psfk-salon-ny-how-sustainability-is-driving-the-fashion-business.html
4. wikipedia.org/wiki/Greenwashing
5. retail.bizcommunity.com/Article/196/457/52551.html

VEGAN

Products that have been made without the use of leather or animal tissue products. Examples are shoes and bags made from “vegetal leather” using Amazonian rubber instead of animal skins or other recycled or man-made materials

ETHICALLY PRODUCED

Ethical fashion is fashion that has been produced with respect for people and the environment. Although there are existing certifications for Organic and Fair Trade, we want to encourage companies who are taking significant action but don’t qualify for certification. This might include companies producing locally or on small scales in developed countries, who might not qualify for Fair Trade certification or companies working with farmers to transition to sustainable crops but who might not yet qualify as Organic (which takes a few years)

CRAFT / ARTISAN

Products that have been crafted using artisan skills such as embroidery, which preserve the perpetuation of ancestral traditions

CUSTOM

Also called demi-couture or made-to-order. This is a way of encouraging quality and “slow fashion” over mass-produced disposable fashion

FAIR TRADE CERTIFIED

An organized movement that promotes standards for international labor (such as reasonable work hours, no child labor, the right to unionize, a fair living wage), environmentalism, and social policy in areas related to production of goods. Fair Trade focuses on exports from developing countries to developed countries. Some Fair Trade certification organizations include: FLO www.fairtrade.net, IFAT www.ifat.org

ORGANIC

Natural fibers that have been grown without any pesticides and other toxic materials, preserving the health of humans and the environment. The process of organic growth can be certified by various organizations

RECYCLED

Anything that has been made from already existing materials, fabrics, metals or fibers. These are often reclaimed from previously made clothing and accessories and reworked into new ones. Fibers can also be re-purposed from pre-existing fabric, re-spun and reused for new garments.

VINTAGE / 2ND HAND

Vintage is a generic term for new or second hand garments created in the period from the 1920’s to 1975. However, the term is often used more generally for second-hand clothes or up-cycled clothes (second-hand clothes that have been given a new life through some sort of customization)

Article written by: www.ecofashionworld.com

Whilst some governments and industries might be slow on the imperative shift towards renewable energy, the change is happening. Bottom line is the more demand there is, the more supply will happen. If you are an entrepreneur or investor, this sector of the market is ripe for getting involved financially

::: Download the Ethical Investing Green Guide :::

What is Renewable Energy?

Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are naturally replenished. In 2006, about 18% of global final energy consumption came from renewables, with 13% coming from traditional biomass, which is mainly used for heating, and 3% from hydroelectricity. New renewables (small hydro, modern biomass, wind, solar, geothermal, and biofuels) accounted for another 2.4% and are growing very rapidly.[1] The share of renewables in electricity generation is around 18%, with 15% of global electricity coming from hydroelectricity and 3.4% from new renewables   / wikipedia

Where to Start?

You may not want to invest for financial gain just yet – but you can contribute towards tipping the scales of renewable versus fossil fuel energy:

Solar-Aid
Two of the biggest threats facing humanity today are climate change and global poverty. SolarAid helps to combat both, simply by bringing clean, renewable power to the poorest people in the world
See what they do

Practical Action
Practical Action’s energy projects aim to increase poor people’s access to energy technology options, through improving the efficiency and productivity of biomass use, and through small scale, low cost, off-grid electricity supply
See what they do

If you are ready to invest:

ONE: Look to China for the formation of new companies involved in renewable energy sources. Four Chinese companies, engaged in alternative energy include: Suntech Power Holdings, China Biodiesel International, Renesola and China Sun Biochem. Alternative energy companies doing significant business in China include: Canadian Solar Inc., Nordex, Camco International and Suzlon.

TWO: Identify and invest in established companies that are moving into the renewable energy market. This type of investment is less risky than investing in small start-ups. Favorable established companies include: GE, Sharp Solar, Johnson Controls and Waste Management.

THREE: Consider investing in companies that are part of the Climate Action Partnership. Together, these companies are lobbying for a nationwide reduction in carbon dioxide emissions. Participating companies include: GE, DuPont, Alcoa, Caterpillar, Duke Energy, PG&E, BP, FPL Group, PNM Resources and Lehman Brothers.

FOUR: Watch for the formation of renewable energy focused mutual funds. While there are not many to choose from currently, such funds will appear in the future. Current funds include the New Alternatives Fund and the Guinness Atkinson Alternative Energy Fund.

FIVE: Check out exchange traded funds (ETF’s) which can be bought and sold like stocks. Funds to look for include the following: PowerShares WilderHill Clean Energy, PowerShares WilderHill Progressive Energy, Market Vectors Global Alternative Energy and First Trust NASDAQ Clean Edge US Liquid.

Maybe you have finished school or maybe you are unhappy in your current career. We’ve found some great guides on  how the green industry is going to change our economy, benefit the environment and open up new job opportunities.

What’s in the Guide:

• What does meaningful employment mean to twenty-somethings?

• What barriers do people in their twenties face when finding a meaningful career?

• What do people need in order to find balance?

• Non-linear Career Path

• Career trade-off Illusion

• Providing a space to talk

• Rise of social Entrepreneurship

• Green Collar Jobs

Enjoy the Read

Download How to make Money and change the World

Download Occupation- Change the World

The Need to Build Credit:

If you do not have a credit history, lenders do not know whether or not they should give you money. Without any credit history, they can’t tell if you are a responsible debt-payer or a bad risk. You need to build credit in order to prove your creditworthiness.

Who Needs to Build Credit?

Anybody without a history of using credit needs to build credit. You never know when the need for a loan will arise, and it is a lot easier to get a loan with a solid credit history. Young adults who are just starting to learn about financial responsibilities need to build credit

Ways to Build Credit:

It is actually pretty easy to build credit. Try one of the following ideas:

• Ask your bank or credit union about a secured credit card. You can make a deposit to your account and have a credit limit in the amount of your deposit. The bank takes little risk and you build credit slowly.

• Use a co-signer on your first few credit accounts. Lenders will consider the co-signer’s existing credit. The co-signer essentially ‘vouches’ for you while you build credit. Note that this is a big responsibility – you can cause major headaches for the co-signer if you don’t pay as agreed

• Use retailer programs for modestly large purchases like furniture. These programs can be easier to qualify for and they certainly help you build credit. Be sure that the retailer will report your loan to the major credit reporting companies.

• Get a credit card with any reputable institution that will give you one. Again, you have to make sure they’ll report your timely payments to the credit reporting companies. Of course, you have to always pay at least the minimum before the due date.

Advantages

Immediate Access: Need a new set of tires? Credit can help with an expensive, unexpected emergency and give you the flexibility to pay it over time.

Security: Lose cash, and it’s gone. Lose a credit card, and it can be cancelled. Also, if you report a lost or stolen card promptly, you’re protected against its unauthorized use.

Record Keeping: Your credit card statement is an itemized list of your monthly expenditures, which can be helpful when it comes to budgeting.

Convenience: Credit cards are accepted at more places than checks, and they’re generally faster to use.

Bill Consolidation: Bills can be paid automatically via credit card, consolidating several payments into a single lump sum.

Rewards: Using a credit card with a rewards program may earn you benefits like free travel.

Disadvantages

The main disadvantage to credit card usage is its cost to you in interest and fees. Wise use of credit means understanding those costs and acting accordingly. Keep track of your spending to ensure that you can repay your credit card bill in full when it comes due each month.

With thanks from About.com

• Gather every financial statement you can
  This includes bank statements, investment accounts, recent utility bills and any information regarding a source of income or expense. The key for this process is to create a monthly average so the more information you can dig up the better.
• Record all of your sources of income
  If you are self-employed or have any outside sources of income be sure to record these as well. If your income is in the form of a regular paycheck where taxes are automatically deducted then using the net income, or take home pay, amount is fine. Record this total income as a monthly amount.
• Create a list of monthly expenses
  Write down a list of all the expected expenses you plan on incurring over the course of a month. This includes a mortgage payment, car payments, auto insurance, groceries, utilities, entertainment, dry cleaning, auto insurance, retirement or college savings and essentially everything you spend money on.
• Break expenses into two categories: fixed and variable
  Fixed expenses are those that stay relatively the same each month and are required parts of your way of living. They included expenses such as your mortgage or rent, car payments, cable and/or internet service, trash pickup, credit card payments and so on. These expenses for the most part are essential yet not likely to change in the budget.Variable expenses are the type that will change from month to month and include items such as groceries, gasoline, entertainment, eating out and gifts to name a few. This category will be important when making adjustments.
• Total your monthly income and monthly expenses
  If your end result shows more income than expenses you are off to a good start. This means you can prioritize this excess to areas of your budget such as retirement savings or paying more on credit cards to eliminate that debt faster. If you are showing a higher expense column than income it means some changes will have to be made.
• Make adjustments to expenses
  If you have accurately identified and listed all of your expenses the ultimate goal would be to have your income and expense columns to be equal. This means all of your income is accounted for and budgeted for a specific expense.If you are in a situation where expenses are higher than income you should look at your variable expenses to find areas to cut. Since these expenses are typically essential it should be easy to shave a few dollars in a few areas to bring you closer to your income.
• Review your budget monthly
  It is important to review your budget on a regular basis to make sure you are staying on track. After the first month take a minute to sit down and compare the actual expenses versus what you had created in the budget. This will show you where you did well and where you may need to improve.

With thanks to About.com