Athletic brands outscored outdoor brands in a groundbreaking report two non-profits prepared to evaluate – and help consumers evaluate – what apparel brands are doing to improve environmental practices in their Chinese supply chains.
The report is based on the Corporate Information Transparency Index (CITI) developed jointly by the Institute of Public and Environmental Affairs (IPE) of Beijing and the U.S.-based Natural Resources Defense Council (NRDC). The two non-profits developed the index in 2013 to assess how well companies in the IT and textile industries manage the environmental impacts of their supply chains in China. CITI scores are based on a review of data on companies energy use, water use, and pollution emissions IPE has been collecting since 2009. The data come from records kept by Chinese regulators as well as self-reported company information, such as how often a company communicates with suppliers about compliance issues, the criteria it uses to screen suppliers, how often it disciplines suppliers, whether it disclosed energy and emissions goals and use of recycled products.
As of June 2014, IPE claims Chinese and foreign brands have used CITI to push more than 1,600 suppliers to issue statements on their specific pollution problems or to disclose their emissions data. Several hundred of these companies have taken corrective actions.
While it is hoped brands will use CITI scores and IPE’s database to create a roadmap to green their supply chains in China, the NGOs are also promoting the scores as a way for consumers to gauge whether or not a brand has the will, the capabilities and the necessary systems in place to resolve environmental pollution problems in their supply chains.
IPE and NRDC targeted apparel brands because the textile sector accounted for 11.7 percent of the waste water discharged in China in 2012. Dye plants and other water intensive textile factories have been cited nearly 7,000 times for violating tougher discharge standards the government implemented in 2012. In its unrelated report “Dirty Thirsty Fashion,” the NGO China Water Risk warned that China’s crackdown on water polluters could blindside the $1.7 trillion global fashion industry.
The nine athletic and outdoor apparel and footwear brands scored in the report, in order of their rank and index score were: Puma, 7th, 53.5; Adidas, 11th, 49; Nike, 16th, 45.5 ; Li-Ning, 26th, 37.5; The North Face/Timberland, 39th, 28.5; Mizuno, 47th, 21; Toread, 53rd, 19; and Lafuma, 65th, 12.5.
Of the 147 brands scored, 33 received scores of 0 for failing to report information, including Samsonite, which recently acquired Gregory Mountain Products; the Chinese athletic brand 361°, which announced this month its expansion to the United States; and Kappa.
