2021.04.16
INDUSTRY NEWS - 2021.04.16
1、中國製造業2035全智能轉型 拓關鍵核心技術 4年普及數字化
工信部官方網站昨天發布《十四五智能製造發展規劃》徵求意見稿，提出到2025年規模以上製造業企業基本普及數字化、重點行業骨幹企業初步實現智能轉型的目標，當中提到加強關鍵核心技術，支持有條件及基礎的企業加大技術改造投入，持續推動工藝革新、裝備升級和生產過程智能化，到2035年，規模以上製造業企業全面普及數字化，骨幹企業基本實現智能轉型。
引導金融業提供中長期貸款
該意見稿亦提出了具體目標，包括規模以上製造業企業智慧製造能力成熟度達2級及以上的企業超過50%，重點行業、區域達3級及以上的企業分別超過20%和15%。製造業企業生產效率、產品良率及能源資源利用率等大幅提升。智慧製造裝備和工業軟體技術水平和市場競爭力顯著提升，國內市場滿足率分別超過70%和50%。主營業務收入超50億元人民幣的系統解決方案供應商達到10家以上，以及建設一批智慧製造領域創新載體和公共服務平台，並形成服務網路。另外，制修訂200項以上智慧製造國家、行業標準；建成120個以上具有行業和區域影響力的工業互聯網平台。
在加大財稅金融支持方面，意見稿提到要引導金融機構為企業智能化改造提供中長期貸款支持，開發符合智能製造特點的供應鏈金融、融資租賃等金融產品。至於完善訊息基礎設施，則須加快工業互聯網、物聯網、5G及千兆光網等新型網絡基礎設施規模化部署，鼓勵企業開展內外網升級改造，提升現場感知和數據傳輸能力，以及加強工業數據中心、智能計算中心等算力基礎設施建設。
鼓勵裝備軟件等「走出去」
另外，要深化開放合作，依託共建「一帶一路」倡議、金磚國家、《區域全面經濟夥伴關係協定》（RCEP）等國際合作機制，鼓勵智能製造裝備、軟件、標準和解決方案「走出去」。
市場預期工業軟件備受關注，華西證券指出，工業軟件促使人、機、物、業務等要素的互聯互通，是實現智能製造的起點，但並不能完全解決問題，只有在此基礎上實現了較大範圍內的數據自動流動，才是實現智能製造，因此需要工業軟件作為基礎。而軟件和互聯網通過連接的方式顛覆了現代商業環節，提升商業銷售端的效率，會形成龐大消費互聯網。
資料來源：信報財經 (2021年4月15日)
2、海南自由貿易港法 呼之欲出 商務部28優惠措施 促貿易自由化便利化
博鰲論壇本周末開幕前，中央送海南自貿港多項政策大禮包，海南省委書記沈曉明透露，《海南自由貿易港法》呼之欲出，將爭賦予海南更大立法權和改革自主權。國家發展改革委指，海南自由貿易港政策制度框架初建。
此外，商務部將發布28項惠瓊措施，包括放寬原油等進出口資質，取消機電進口許可。受多項利好政策影響，A股海南板塊昨再逆市走強，滬指收市跌1.1%。
博鰲論壇前 迎多項重磅政策
海南省委書記沈曉明周一在國新辦發布會上透露，《海南自由貿易港法》呼之欲出，目前已完成全國人大常委會一審和向社會公眾公開徵求意見，將爭取賦予海南更大立法權和改革自主權。
商務部副部長兼國際貿易談判副代表王受文在會上稱，商務部會同19個部門研究提出了進一步推進海南自由貿易港貿易自由化便利化的若干措施，前不久國務院已經批准，下一步將聯合發布，包括有關政策措施28項。
他表示，將在特定區域放寬海南自貿港原油、成品油、食糖等商品進出口的資質和數量管理，取消自動進口許可和機電進口許可管理的措施；並明確允許外國機構獨立舉辦除冠名「中國」「中華」「全國」「國家」等字樣以外的涉外經濟技術展覽，允許技術進出口經營活動不需辦理對外貿易經營者備案登記等。
跨境服務貿易負面清單 完成起草
商務部還研究起草了海南自貿港跨境服務貿易負面清單，起草工作已經完成，目前正在走相應的程序。沈曉明稱，如果國內循環和國際循環是一個「8」字形，海南就在「8」的交滙點上。在制度層面，海南在2025年封關之後，就是「境內關外」（處中國境內，但可被視為在海關納稅區域之外）。
他表示，在疫情背景下，海南已經適時調整了離島免稅政策，吸引境外消費回流，去年在前年150億元（人民幣，下同）的基礎上翻了一番，做到300億，今年預計能夠超過600億。
國家發改委副主任叢亮則提到，正在研究編制海南自由貿易港重大項目建設行動方案，建立重大項目儲備庫制度，累計安排中央預算內資金100億元，支持海南自貿港軟硬件基礎設施建設，並將海南納入基礎設施領域不動產信託投資基金（Reits）試點。他指，海南自貿港政策框架已經逐漸明確，包括更自由便利的貿易投資政策、更便捷的金融支持政策，更精準的稅收優惠政策等。
此外，據沈曉明介紹，根據海南最新的能源發展規劃，將爭取到2030年清潔能源裝機比重要達到85%左右，而且海南到2030年將不再銷售傳統的燃油汽車，推廣清潔能源汽車。
產業空心人才缺 海南發展瓶頸
海南近期非常熱鬧，中央接連出台政策支持其發展，涉及力挺房地產及金融業改革，未來一個月內，還將舉辦博鰲論壇和首屆消費博覽會，顯現中央力挺海南成為新的自由貿易港和國際消費中心。
海南的發展困局，最直接的原因是缺乏人才。海南歷史上是流放之地，本地教育氛圍嚴重不足，本地人才流失嚴重。更深一層原因，是海南的產業空心，因此每逢政策高光，都難以避免以泡沫收場。
汲教訓 不做「房地產加工廠」
3年前海南被升格為自貿港，再次迎來發展機遇。最新的方案似乎汲取了過去幾十年的教訓，從人才和產業兩方面入手，同時高調宣稱不做「房地產加工廠」。
人才換血從操盤者開始，海南獲得自貿港定位之後，領導班子換上來自有上海和浙江主政經驗的沈曉明和馮飛，常務副省長是來自商務部的沈丹陽，以發達省份的眼界和經驗支撑佔盡天時地利的海南，以規劃和發展服務業的經驗，彌補海南產業缺口。
隨後產業政策陸續出台，從近期公布的政策來看，海南未來的產業目標依然集中在高端消費，包括醫療、金融、文化教育。人民銀行等四部委上周發布了《關於金融支持海南全面深化改革開放的意見》，提出33條具體措施，以支持海南改革其金融業，包括支持金融機構在海南住房租賃領域，開展房地產投資信託基金（Reits）試點，這在全國Reits僅停留在基建領域層面的基礎上，是唯一先行先試地區。
值得注意的是，在依舊對內地居民進行限購的前提下，海南近日放開了針對境外人士的購房限制，這對於曾深陷「地產泡沫魔咒」的海南來說，是頗為敏感的決定，目的是引入更多高淨值人才，而這部分人將能夠帶動包括醫療、教育、財富管理，以及免稅品等高端消費需求，若能奏效，是盤活所有利好政策的關鍵所在。
海南又站在一個時代風口上，這次海南能不能抓住機會擺脫魔咒？不妨拭目以待。
資料來源：香港經濟日報 (2021年4月13日)
3、大灣區營商前景向好 成本高企憂慮加深
(星島日報報道)渣打與貿發局公布今年首季大灣區營商景氣指數，整體錄得53，按季上升2.8，反映首季開局的營商信心穩步向好；且料次季升幅將更加強勁，具前瞻性的預期指數由去年第四季的54.1躍升至62.7，但區內企業對成本上升等的憂慮加劇。
調查顯示，內地建議「就地過年」令工廠提早開工復工，且疫苗及外圍經濟的好轉亦支持中國經濟，令到景氣指數上揚，但供應鏈及營商成本上升有機會成為今年的大主題，企業擔憂晶片等原材料供應短缺及價格上升、運輸成本增加、人民幣升值及人才短缺等。
分城市看，香港的城市經營子指數仍然包尾，今年首季為37.3，按季升2.4；預期指數則為50.7，回到擴張區間。深圳及廣州重新領跑，其中深圳今年首季的指數達58.4，預期指數中廣州以66的分數拔得頭籌。
渣打大中華區高級經濟師劉健恆昨日於線上傳媒會議中表示，本港自2月放寬社交限制措施，且疫苗接種資格擴大至更多年齡組，可利好經濟，但失業率高企帶來的不利因素，在未來數月可能持續存在。
劉健恆續指，下半年內地經濟增長將正常化，主因內地已率先從疫情中復甦，經濟已見反彈，亦已受惠於基數效應，再加上近期經濟穩健，料財政及貨幣政策的寬鬆程度將會有所降低。在此影響下，經濟增長於下半年有所放緩，屬合理情況。
人民幣匯價方面，超過40%的受訪者認為，至明年中及明年底，美元兌人民幣匯率將介乎6.4至6.6之間水平。劉健恆又認為，內地對資金流出的限制趨於寬鬆，早前亦公布不少涉及雙向或南向資金流通的措施，未見政策需要因人民幣及美元波動而進行大轉向，相信人民幣基本面穩健之下，內地可相應開放資本市場。
資料來源：星島日報(2021年4月14日)
4、綫上廣交會開鑼 270萬件展品創新高
【本報訊】第129屆中國進出口商品交易會（廣交會）昨（15日）起，一連10天以綫上形式舉行。
報道指，今屆廣交會展位總數約6萬個，境內外參展企業有近2.6萬家。目前有關參展企業上傳的產品超過270萬件，創歷史新高。
境內外近2.6萬企業參展
今屆廣交會於昨日至下周六（24日）舉行。新華社引述廣交會新聞發言人徐兵介紹，今年繼續按16大類商品，設置50個展區。目前參展企業上傳產品超過270萬件，較上屆總量增加23萬件，創歷史新高。
報道指，本屆廣交會展位總數約6萬個，境內外參展企業有近2.6萬家，生產企業和民營企業佔比分別達49.3%、86.8%，為主要參展主體。會上約有82萬件新產品亮相，比上屆增加9萬件，當中包括眾多全球首發、廣交會首展產品。
採3D視頻VR 展示新品
綫上參展平台方面，本屆廣交會既有雲展廳管理功能優化、智能客服強化等措施，亦將組織85家龍頭企業，舉行137場新品發布，以圖文、視頻、3D、VR等形式，在2,600個虛擬展廳中作展示。
另據中新社引述徐兵稱，本屆是廣交會第三度「登雲」，意義重大。主辦方繼續在網上舉辦廣交會，能維護中外企業友好往來，保持全球產業鏈供應鏈的穩定，並促進國際防疫產品貿易合作及「一帶一路」和區域全面經濟夥伴協定（RCEP）早期成果的實現。
資料來源：香港經濟日報 (2021年4月16日)
5、Myanmar crisis: leave or stay? Taiwan, Hong Kong expats among the foreigners counting the cost of doing business
Foreign investors face pressure to suspend business with the junta while expat workers have left due to post-coup instability, including cash shortages
Animosity towards Beijing in Myanmar has boiled over, leaving many Chinese nationals anxious that they will be targeted further after a spate of arson attacks on manufacturing plants
Taiwanese entrepreneur Andy Chen and his family have packed their belongings to leave Myanmar. The 35-year-old first visited the country in 2013 as a volunteer and now owns an engineering service firm, but life in Yangon has become too difficult since the military deposed Aung San Suu Kyi’s civilian government on February 1.
In the early weeks of the protests, Chen took photographs from his flat and posted videos on Facebook but he stopped after security forces began firing into people’s homes and conducting raids. The unrest has persuaded Chen to leave, a decision he describes as “sorrowful”.
“The firm will be operated at minimal cost, with [day-to-day operations] entrusted to two staff,” he said.
His firm employs 15 staff but most have requested unpaid leave because they dare not commute to the office. He has continued to pay them a basic salary because the money could be “life-saving”, he said.
Chen left his native Taiwan in 2015 after quitting his job and turning down an offer to study abroad on a generous scholarship. He initially doubted his decision, but his firm thrived after taking on a series of projects, including sales of household appliances, construction of factories and building infrastructure in industrial estates.
Chen befriended more locals and his Taiwanese wife joined him in Myanmar. Their two children learned to speak Burmese from their nanny and kindergarten classmates. Even during last year’s Covid-19 pandemic, business remained relatively stable: an initial dip was followed by a boom when many of Chen’s competitors decided to leave the country.
“[In January] people were relatively optimistic,” Chen said. “The daily cases of Covid-19 dropped, and the [movement control] measures were gradually loosened. But the coup came.”
ANTI-JUNTA BACKLASH
Business activity has plummeted since the coup. The World Bank recently forecast Myanmar’s economy to contract 10 per cent this year, a drastic change from the 5.9 per cent expansion predicted in October. Fitch Solutions on Wednesday said the country was in danger of becoming a failed state.
“The escalating violence on civilians and ethnic militias shows that the Tatmadaw [the military] is increasingly losing control of the country,” it said, adding that the vast majority of nationals supported Suu Kyi’s ousted government.
The death toll from the post-coup crackdown last week passed 600 and about 3,000 people have been detained, according to the Assistance Association for Political Prisoners. As a result, multinational corporations face increasing pressure to suspend business with the junta.
The oil and gas sector has been a lifeline for successive administrations since the 1990s. Tom Andrews, the United Nations human rights investigator on Myanmar, last month urged countries to impose sanctions on Myanmar Oil and Gas Enterprise, a state-owned conglomerate with deep links to the military. It is also the regime’s largest source of revenue.
Deposed lawmakers from Suu Kyi’s party, the National League for Democracy (NLD), have set up a government-in-exile known as the Committee Representing Pyidaungsu Hluttaw (CRPH). It has urged France’s Total SE, Malaysia’s Petronas, Thailand’s PTT and South Korea’s Posco to suspend oil and gas business with the junta, emphasising that the sector funnels between US$75 million and US$90 million monthly into government coffers.
Japanese beer giant Kirin, Australia’s Woodside Petroleum, French electricity utility firm EDF and German banknote printer supplier G+D have already said they will suspend business with military-linked corporations.
The United States and Britain have imposed targeted sanctions, while transnational activist groups such as Justice for Myanmar and Japan-based Mekong Watch have been working to identify capital flows to the military and exerting pressure on foreign enterprises involved.
MASS EXODUS
Foreign investors and workers who remain in Myanmar face heightened uncertainty and many have continued to consider their exit strategies. Singapore, Germany, Britain and the US have all advised citizens and embassy staff to leave.
Since the coup, Facebook groups populated by expats based in Yangon have been inundated with posts offering furniture and appliances at a cheap price – or for free – as the owners make plans to leave in a hurry. Daily internet blackouts from 1am-9am starting from mid-February made it difficult for employees who were expected to liaise with their headquarters or clients in different time zones. The escalation of violence by the junta in late February was the final straw for many.
“Most expats in my company left after the last week of February and worked remotely instead,” said one senior financial professional employed by a major e-commerce firm. “Only those who are married to locals have stayed.”
According to a manager at a telecommunications equipment supplier, maintenance staff were interrogated by police for carrying safety helmets on their truck, and their office in Yangon was raided by patrols searching for fleeing protesters.
Many Chinese nationals have grown particularly anxious. Anger towards China has been building since the coup due to Beijing’s perceived support for the junta, even though Chinese officials have issued repeated denials and called for Myanmar to return to normalcy and stability.
Animosity towards Chinese businesses has nonetheless boiled over, manifesting last month through arson, robbery and vandalism at dozens of manufacturing plants in parts of Yangon. Most of the factories were linked to Chinese investment but plants owned by Taiwanese, Japanese and Myanmar locals were also damaged. Last week, a Chinese-owned factory in Shwepyithar was set ablaze, and activists in another neighbourhood burned a Chinese flag.
According to one Asian entrepreneur familiar with the Chinese business community in Yangon, “the riots [in mid-March] broke the hearts of many [Chinese]”.
“After the incident, the Chinese have moved to smaller WeChat groups,” the entrepreneur said. “They warned one another not to publicly speak up or post messages and photos in large WeChat groups.”
Some Chinese who used to work in the industrial zones moved to downtown hotels, including hotels owned by Europeans or Americans, for fear accommodation operated by Chinese could be targeted.
CASH IN SHORT SUPPLY
Businesses have also been constrained by cash shortages caused by temporary closures of bank branches. In early February, foreigners and locals alike rushed to transfer funds abroad but such transactions became more difficult after bank staff joined the civil disobedience movement.
Chen, the Taiwanese entrepreneur, has not used his corporate account since February 1, the day of the coup. He did not withdraw cash in the first week of February and by the time he realised the turmoil might continue for weeks or months, it was too late.
“Each bank branch hands out 20 or a very limited number of tokens every day,” he said. “The bank only serves those with a token. People have to queue in front of the branch as early as 3am. There are long queues in front of every ATM too, and the machines are often empty.”
Importing funds also takes longer. Incoming transactions are subject to review by the Central Bank of Myanmar; before the coup, the process took about a week, but it now takes several weeks.
“[When the transaction is under review,] you don’t know where your money is,” said one employee of a Mandalay industrial estate who assists foreign investors. “The protracted process is horrific for investors.”
The temporary closure of banks and disturbances in seaborne logistics have multiplied financial challenges for manufacturing factories.
“Logistics disruptions have significantly interrupted production plans,” said Luo Muzhen, secretary general of Textile and Apparel Industry Branch, China Enterprise Chamber of Commerce in Myanmar (CECCM).
“Raw materials cannot arrive at factories in time. Order processing is delayed. Remittances of manufacturing fees from abroad cannot arrive and be withdrawn in time. This may lead to tensions or even a fracturing of the capital chain.”
Some manufacturing plants in industrial zones pay workers in cash because many employees, particularly those from remote villages, do not have access to financial services. The banking standstill has therefore created immense challenges.
One manager at an information technology hardware supplier in Yangon said his firm continued to pay staff via their bank accounts, making the bank a target of anti-junta protesters who criticised it for seeking to continue normal operations.
POST-COUP UNCERTAINTY
The military regime has sought to brandish its investment-friendly credentials but the backlash against the coup has created intense instability.
“Investors are more alert to the general political risks than any specific law that is passed at the moment,” said a foreign lawyer, who works at a regional law firm in Yangon. “We are seeing fewer investors and therefore clients as a law firm. We may be pressured to lay people off.”
Luo from the Chinese Chamber said divestments in the country’s garment industry – a significant employer, though the industry is smaller than in some neighbouring countries – had not yet occurred as most manufacturers were waiting to see how the political stand-off develops.
“In the face of political events, what foreign-invested enterprises can do is limited,” he said. “Cloth-making is an export-oriented industry. Without a return of client confidence in the Myanmar market, a lack of orders can be fatal to cutting, making and packing [CMP] plants.”
As some factories that completed their existing orders have closed temporarily, continued investment depends on the willingness of European brands to place further orders in Myanmar’s CMP factories, which in turn depends on the country’s stability and security.
In the 2019-20 financial year, Myanmar’s garment industry surpassed natural gas as the country’s most lucrative export sector. The thriving industry employed about 500,000 workers, benefiting from tariff-free and quota-free access to the European Union, granted in return for Myanmar’s economic reforms that began in 2011.
Sweden-based H&M, one of the pioneering European fashion giants that pressed Asian CMP factory owners to invest in Myanmar nearly 10 years ago, last month announced it had suspended orders to the country, citing “practical difficulties and an unpredictable situation”. Italy’s Benetton Group and Britain’s Primark and Next have also suspended further orders.
In Myanmar’s largest agricultural export sector, the effects of the instability have already taken a toll. Myanmar is the world’s second-largest exporter of pulses, after Canada, and the produce is cultivated by about 3 million farmers. International pulse traders pay suppliers in Myanmar soon after signing a contract, an unusual supplier-friendly practice that dates back to the years when the previous junta was subject to US sanctions. According to an industry source, the arrangement has ensured millions of US dollars remain in Myanmar.
Since the military coup, though, international traders have reduced their pulse stocks and funds in Myanmar, signed fewer new contracts and offered less attractive terms, the source said.
The source also said the pulse trade via seaborne transport that was terminated after the coup had since recovered to about 50 per cent of the pre-coup volume as private logistics firms resumed business, providing trains and trucks in the port area.
“But it is uncertain how long this will last,” the source said. “After the coup, we can no longer predict anything.”
NO END IN SIGHT
For those with family in Myanmar, the choice to stay or leave has not been easy. Nor has it been exclusively about business.
Ran, a 33-year-old Chinese lawyer, works in Yangon and met his wife in Myanmar. Their infant daughter, who was born during the Covid-19 pandemic, does not yet have a passport. The protests paralysed the government office responsible for notarising Ran’s daughter’s birth certificate, which meant the infant could not obtain a travel document from Myanmar or China.
“The political changes and the civil disobedience movement have made life more difficult and less practicable,” Ran said. “You have no idea when [the regime] would shut off the internet completely or stop shops from opening. Most people are stocking up food at home and trying to keep a lot of cash on hand in case the banks go down.”
Even for those who have left Myanmar, watching from abroad has proved difficult.
“[We who live] overseas feel very impotent,” said Ian Liu, a 35-year-old Hongkonger who worked for a tech firm in Yangon.
He left the country last year due to a personal emergency but continued to work remotely. His cat remains lodged at a pet hostel in Yangon and he has in recent weeks been unable to pay for board after his bank’s mobile payment service stopped working.
He was furloughed last month but his wife, who was a civil servant in Myanmar, finally reunited with him in Taipei.
“We had not seen each other for nine months,” Liu said. “We will first take a rest before determining what to do next.”
Chen, the Taiwanese entrepreneur, said he had arranged for his children to attend school in Taiwan. “The [political turmoil] won’t reach an end in the short-term,” he said. “We generally think that it will last for another half year at least.”
Source: www.scmp.com (12 Apr 2021)
6、Bangladesh Garment Factories Exempt from National Lockdown
Although Bangladesh will go under lockdown from Wednesday, with malls, offices, public transport and commercial flights shuddering to a halt, garment factories nationwide will continue to function. The Bangladesh government announced its decision to allow manufacturers to operate, responding to a torrent of requests and strident statements from concerned factory owners still recovering from coronavirus disruptions.
Although the week-long lockdown aims at curbing a troubling rise in Covid-19 cases, it is widely expected that the quarantine could be extended through the end of the month, bumping up against the Eid-ul-Fitr holidays.
Manufacturers have been lobbying for factories to stay open given the harsh conditions faced by migrant workers in April last year as the sudden lockdown left many stranded, as well as the additional loss of business and orders that would go on standby given the combination of lockdown and the upcoming holiday in May.
In the last week, Bangladesh has been following selective lockdown, with malls and offices functioning for a limited time, yet Covid-19 cases continue to rise and on Sunday, Bangladesh witnessed the highest number of Covid-related deaths in one day.
Bangladesh is the second-largest manufacturer of apparel in the world after China, and garment production accounts for more than 80 percent of the country’s exports. Manufacturers urged the government to support the industry, which was already damaged by the effects of the pandemic over the past year. In the first seven months of the fiscal year starting July 2020, the industry saw a decline of 3.44 percent, and manufacturers are wary about losing more orders given the tough global sourcing conditions.
Starting April 14, most international flights will also be cancelled, although cargo flights will continue.
Manufacturers said that they would continue to follow enhanced safety precautions. “We will be more careful than we were before about following hygiene rules,” said Abdus Salam Murshedy, president of the Exporters Association of Bangladesh.
Source: www.sourcingjournal.com (12 Apr 2021)
7、Indonesia in push to make textile sector Industry 4.0 ready
Indonesia is making a push to ensure seven key industries – including textiles and clothing – are more Industry 4.0 relevant in order to boost efficiency and competitiveness……
Source: www.just-style.com (14 Apr 2021)
8、Why Zara’s Parent Got a ‘Very Low’ Rating on ESG
Is Inditex a sustainable retailer? Not everyone can agree.
While the Zara, Bershka and Pull&Bear parent frequently tops environmental, social and governance (ESG) ratings, including the S&P Global’s Dow Jones Sustainability Index, a recent negative score by a leading agency could knock the Spanish retailer, the world’s largest apparel purveyor by sales, down a few notches in the eyes of socially conscious investors.
Earlier this month, Standard Ethics awarded Inditex with a grade of E-, which translates to “very low” and is just one step above an F.
While the conglomerate has “made some positive steps in its corporate governance and governance of sustainability models,” Standard Ethics would like to see Inditex’s “progressive alignment” with sustainability indicators provided by the United Nations, Organisation for Economic Co-operation and Development and the European Union extend from its own operations further into its entire production and supply chain, “where there are more practical issues to be dealt with,” a spokesperson told Sourcing Journal.
“Future implementations in the areas of ESG risk management and control within a supply chain as complex and articulated as that of the Spanish group could lead to rating improvements,” Standard Ethics said.
Inditex did not respond to a request for comment.
Like many fast-fashion chains, Inditex has faced mounting pressure to curb its environmental footprint, which is significant just based on the prodigious volume of clothing it churns out every season. Zara, which accounts for 70 percent of Inditex’s output, releases an average of 500 new designs every week, or more than 20,000 a year. According to Inditex’s 2019 annual report, the company as a whole generated 1.5 billion items of clothing in 2018.
There have been a few well-defined wins: Inditex said it achieved zero discharge of hazardous chemicals in the manufacture of its products last year. As of this year, 30 percent of Zara’s lineup touts at least one lower-impact material or process through its Join Life label-within-a-label.
More improvements are forthcoming, the conglomerate has said. By 2025, all of its brands will use only organic, sustainable or recycled cotton, linen and polyester, and renewable energy will account for at least 80 percent of the energy consumed by its distribution centers, offices and stores. Its facilities, it has promised, will produce zero landfill waste.
The strategy, for the most part, worked. In 2019, Bank of America Merrill Lynch (now known as Bank of America Securities) listed the Spanish firm among the top three preferred companies by sustainable funds in Europe.
But Inditex has also courted its share of controversy. It has faced allegations that it sources from factories that pay their workers poverty wages, discriminate against union members or harbor links to forced labor. In March, Spanish employees accused the company of “disguised layoffs” despite committing to safeguard jobs. (Inditex has denied all such reports.)
Sucharita Kodali, a retail industry analyst at Forrester, says Standard Ethics’ dismal grade is unlikely to have much of an impact on Inditex’s performance.
“It will have no impact for now unless it is widely publicized,” Kodali told Sourcing Journal. “There needs to be an entire ecosystem of journalists, consumers, advocates, activists and politicians who agree on a taxonomy and agree to boycott or penalize companies that score poorly. In a vacuum, it’s hard to know how bad this is—how do they compare to other brands?”
One problem with ESG ratings, she noted, is the lack of standardization, which makes apples-to-apples comparisons between companies challenging. “Even the [U.S. Securities and Exchange Commission] is trying to put standardization around ESG disclosures which will impact what companies report and it should give consumers a way to compare companies with one another,” she said. “But unless this poor scoring negative impacts investors, consumers, suppliers or employees—or it forces them to incur more taxes or penalties—nothing will happen.”
Divya Demato, CEO of San Francisco sustainability consultancy GoodOps, said she isn’t surprised by the low score.
“In order to make significant progress on ESG targets, the company needs to transform from just being an efficient operation into being an ethical operation,” she told Sourcing Journal. ”Without placing environmental impact and labor rights at the core of production, Inditex, like many other fast-fashion brands, will continue to fall behind.”
Key stakeholders, like consumers and investors, she said, will lose patience if the conglomerate’s progress continues to stall.
”Sustainability is more than a verbal commitment; it requires bold and transparent action that can be executed within a global infrastructure,” Demato said. ”Inditex has all the right pieces in order to deliver meaningful impact, they just need to prioritize it.”
Indeed, Inditex’s E- grade could be a signal that the concept of fast fashion, with its dependence on high volumes, and rapid turnarounds, is intrinsically at odds with the “fewer but better” ethos sustainability advocates preach. A report by investment firm UBS Monday said fast-fashion labels could see their revenues tumble between 10 percent to 30 percent over the next five to 10 years.
“The compounding effect of consumers buying fewer items but also shifting the purchases they do continue to make to items that they perceive to be more sustainable could be severe,” the report noted. “Whether the garment is conventionally produced with a significant environmental footprint, the cotton used in a T-shirt is organic, the polyester in a fleece is recycled, or the garment or shoe is vegan (which, incidentally, often means plastic) becomes largely insignificant when set against the sheer quantity of items produced and discarded.”
While businesses have options in responding to these shifts, UBS said, “we see changes in consumer behavior as being more powerful than companies’ ability to respond.”
Investment company Moody’s, too, said last week, that fast fashion, mid-price and small discount firms with limited resources are most at risk of changing consumer habits, which are veering toward products that benefit people and planet.
“Changing behavior among environmentally conscious and socially aware consumers will put more competitive pressure on global fashion brands to adapt to sustainability measures,” analyst Guillaume Leglise wrote in a note. “Longer-term, environmental and social factors will put the apparel industry’s profitability at risk.”
Source: www.sourcingjournal.com (14 Apr 2021)
9、Fast fashion faces steep declines in the next decade or sooner, UBS warns
Sustainable sub-brands or special campaigns may not be enough as more consumers reject the sector's high-volume, high-turnover, low-price approach.
As more consumers become aware of the environmental and human costs of apparel production, fewer will opt for fast fashion, widely seen as the most problematic sector in the industry, according to a report Monday from investment firm UBS.
Fast-fashion retailers could face revenue declines of 10% to 30% over the next five to 10 years, the analysts said in an emailed report.
"The compounding effect of consumers buying fewer items but also shifting the purchases they do continue to make to items that they perceive to be more sustainable could be severe," UBS Analyst Victoria Kalb's team wrote.
Apparel companies, including fast fashion, are increasingly addressing rising consumer concerns. H&M in particular is experimenting with textiles and releasing eco-minded collections. But siloed efforts may not be enough to ward off rejection of the idea of disposable clothing.
"Whether the garment is conventionally produced with a significant environmental footprint, the cotton used in a t-shirt is organic, the polyester in a fleece is recycled, or the garment or shoe is vegan (which, incidentally, often means plastic) becomes largely insignificant when set against the sheer quantity of items produced and discarded," according to the UBS analysts.
Instead, apparel companies need to slow down and reduce their output — an idea antithetical to the production and supply chain methods honed by fast fashion in the past several decades. "System redesign is required (fewer items sold, items lasting longer, fewer items disposed of, achieving circularity), rather than replacing conventional garments with 'more sustainable' alternatives," UBS said.
Measuring consumer sentiment, particularly changes in that sentiment, is extremely difficult, and especially so in a sector as intrinsically volatile as fashion, the analysts noted. But they also said consumers are increasingly exposed to educational and marketing campaigns about climate change and the environment, and that even local governments are taking steps in areas like waste management, chemical pollution and water management.
In a survey of consumers in the U.S., U.K. and Germany, UBS found that more than half are aware of people who have changed their shopping behavior over environmental concerns. And they found a willingness to change, in that while 58% said they were previously unaware of apparel's environmental impact, 20% to 25% of those consumers would buy less clothing now that they are, and 28% to 31% said they'd "seek out sustainably manufactured clothing."
The report comes on the heels of similar analysis from Moody's Investors Service last week that fast fashion and discount brands will likely face the most competition as environmental and social issues carry more weight in purchasing decisions. Moody's also noted that apparel companies seen as bad for the environment face "reputational risk."
UBS analysts likewise see "public pressure campaigns" as effective in stoking "strong feelings (or embarrassment in the context of public opinion)," which in turn results in "a fundamental change of habits." Moreover, such sentiment can hit a tipping point, as when perception of sugary soft drinks deteriorated to the point where sales declined 24% over two years. "While we do think companies have options in responding to these shifts ... we see changes in consumer behaviour as being more powerful than companies' ability to respond," UBS warned.
Source: www.retaildive.com (12 Apr 2021)
10、Sustainability Reporting Report 2021
Even in the midst of a global pandemic, apparel and footwear companies have demonstrated that sustainability remains a top priority. Despite the commercial challenges that arose during Covid-19, brands and retailers from fast to high fashion have continued to invest in bettering the planet and people. They are cutting back on single-use plastic, leveraging greener modes of transport, investing in renewable energy and protecting biodiversity, among other initiatives.
Brands are also becoming more sophisticated in how they are measuring and reporting their impact. Organic textiles standard GOTS saw its number of certified factories rise 34 percent to a new high in 2020, and blockchain is catching on as a trusted means to prove chain of custody for raw materials. As consumers, organizations and investors are looking more closely at companies’ actions to discern what is merely a gimmick or greenwashing, traceability offers verified proof of what’s happening in supply chains.
Sustainability is also increasingly tied to finance, linking values with value. To power their ambitious goals, companies are raising funds through green bonds. Meanwhile, environmental, social and governance data is being used as a deciding factor for investors.
With the focus on companies’ actions escalating among both shareholders and consumers, brands can’t afford to ignore the S in ESG. In action, companies ensured that staff received fair pay—even during shutdowns—and they are prioritizing the creation of more diverse workforces.
Read the report to discover:
How Covid-19 has shaped the sustainability strategies of brands like Outland Denim, Cuyana and Nordstrom
The potential value in monetizing and digitizing circularity
What Nike and VF Corporation are doing to shrink plastic waste
How sustainability is shaping investments
The latest developments from Cradle to Cradle, GOTS and The Fashion Pact
Why McQ and Reformation are tapping blockchain for traceability
To read & download the report: https://issuu.com/sourcingjournalevents/docs/sr_21_copy_12
Source: www.sourcingjournal.com (15 Apr 2021)