Estimates suggest that the fashion and luxury industry
contributes 10% of the world's total emissions.
(dramatic music)
Sustainability is becoming a table stake.
Recent research we have suggests that 38% of consumers
have switched from a preferred brand
to a brand that is more sustainable,
or responsible at least.
We also see employees just demanding of their employer
more responsible practices, in general.
Media has really been putting sustainability
front and center.
And social media has meant that that message
gets proliferated much more quickly.
We see NGOs and governments, in some regions,
helping to put sustainability onto the table,
and trying to push for different
regulatory frameworks that will help.
The cost efficiency of sustainability
is only starting to happen.
For many brands, or companies, their supply chain
is really challenging,
so getting transparency across the supply chain is tough,
and actually has some cost just to set up
the transparency and the metrics around it.
And then making changes, changes to the way you manufacture,
changes to the way the supply chain works,
and even making big bets,
and investing in things like alternate materials,
actually has some cost.
In the long run, those who haven't moved quickly enough
are going to be at a disadvantage from a cost perspective.
We think about technology and sustainability,
it's being used in a few different ways
in fashion and luxury.
From a measurement or traceability standpoint,
there is a need to use data and analytics
to even understand what's going on in the supply chain
and actually have a lot more transparency.
We see a number of startups growing very quickly,
with their sole purpose to be sustainable.
For existing brands, those that have moved quickly
on the sustainability path, are for sure
being able to talk about it, and attract more consumers,
but there's more to it than just attracting consumers.
We believe that sustainability
is going to require business model change
and innovation for the whole industry.
Sustainability is becoming a competitive differentiator.
If you think about rising commodity prices,
limitless supply of resources, and consumer demand,
and more government regulation,
if you don't move towards having a more sustainable,
or at a minimum responsible, company,
it's going to cost you.