WEBVTT

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Estimates suggest that the fashion and luxury industry

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contributes 10% of the world's total emissions.

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(dramatic music)

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Sustainability is becoming a table stake.

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Recent research we have suggests that 38% of consumers

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have switched from a preferred brand

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to a brand that is more sustainable,

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or responsible at least.

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We also see employees just demanding of their employer

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more responsible practices, in general.

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Media has really been putting sustainability

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front and center.

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And social media has meant that that message

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gets proliferated much more quickly.

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We see NGOs and governments, in some regions,

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helping to put sustainability onto the table,

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and trying to push for different

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regulatory frameworks that will help.

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The cost efficiency of sustainability

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is only starting to happen.

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For many brands, or companies, their supply chain

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is really challenging,

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so getting transparency across the supply chain is tough,

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and actually has some cost just to set up

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the transparency and the metrics around it.

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And then making changes, changes to the way you manufacture,

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changes to the way the supply chain works,

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and even making big bets,

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and investing in things like alternate materials,

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actually has some cost.

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In the long run, those who haven't moved quickly enough

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are going to be at a disadvantage from a cost perspective.

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We think about technology and sustainability,

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it's being used in a few different ways

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in fashion and luxury.

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From a measurement or traceability standpoint,

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there is a need to use data and analytics

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to even understand what's going on in the supply chain

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and actually have a lot more transparency.

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We see a number of startups growing very quickly,

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with their sole purpose to be sustainable.

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For existing brands, those that have moved quickly

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on the sustainability path, are for sure

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being able to talk about it, and attract more consumers,

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but there's more to it than just attracting consumers.

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We believe that sustainability

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is going to require business model change

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and innovation for the whole industry.

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Sustainability is becoming a competitive differentiator.

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If you think about rising commodity prices,

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limitless supply of resources, and consumer demand,

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and more government regulation,

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if you don't move towards having a more sustainable,

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or at a minimum responsible, company,

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it's going to cost you.