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Daily Newsletter

11 August 2023

Daily Newsletter

11 August 2023

GOTS starts OECD Assessment to aid sustainable textile industry practices

The Global Organic Textile Standard (GOTS) has started the Organisation for Economic Co-operation and Development (OECD) Alignment Assessment process for GOTS version 7.0 and says this means it can continue to set the standard for responsible and sustainable practices in the textile industry.

Isatou Ndure August 10 2023

GOTS' says its involvement with the OECD Alignment Assessment process signals its ongoing dedication to sustainable practices and efforts to align with the comprehensive international framework for responsible garment and footwear due diligence.

The OECD Alignment Assessment is a multi-step journey that includes a Standards Assessment, Implementation Assessment, and Credibility Assessment.

GOTS says its involvement with the assessment showcases its dedication to sustainable practices in line with the OECD Due Diligence Guidance.

The process, which started in July 2023 is supported by German Federal Ministry for Economic Cooperation and Development and is expected to finish in January 2024.

GOTS explains that it is a voluntary sustainability standard that has helped to empower sustainable supply chains for over two decades and has always helped companies to demonstrate legal compliance, such as chemical regulations or social norms.

Its most recent version 7.0, will give textile companies access to a six-step due diligence process and enable them to detect, assess, and mitigate adverse effects throughout their supply chains.

This means GOTS is a tool that showcases compliance with due diligence obligations outlined in the draft EU directive on corporate sustainability due diligence (CSDDD).

Ruslan Alyamkin, responsible for standard development and implementation (social responsibility) at GOTS, underlines the transformative power of the criteria and says: "The Due Diligence Criteria are not just guidelines, they are a powerful tool for real change. They empower companies to make informed and ethical decisions, helping to shape a textile industry that respects human rights and cares for our planet".

Amid the global emphasis on upholding human rights within business operations, GOTS says it prides itself on helping companies to navigate the evolving landscape, such as the European Commission's proposal for a directive on corporate sustainability due diligence (CSDDD), which signals the imminent consideration of mandatory human rights and environmental due diligence.

In July, GOTS revealed a growth of 10% year-on-year with a total of 13,549 GOTS-certified facilities in 2022.

Value apparel has gained appeal amid high inflation

Per latest GlobalData estimates, the global value apparel market was valued at $228.8bn in 2022, exceeding pre-pandemic levels and outperforming the other apparel price positions. This was partly due to consumers trading down to more affordable brands as they faced inflationary pressures, but also due to the rapid rise of fast fashion player Shein, which has leapt into the market leading position. Between 2022 and 2027, the global value apparel market is forecast to achieve a CAGR of 3.2%. Gen Z is a key target audience for value apparel players, due to their usually limited disposable incomes and high purchasing frequencies as a result of wanting to follow rapidly changing trends meaning they often prefer cheaper brands. As fashion is of high importance to this demographic, they are also less likely to cut back on spending on clothing and footwear amid inflationary pressures. However, value players are under pressure to reduce their environmental footprints amid changing consumer perceptions and evolving regulations regarding sustainable business practices. Supply chain disruptions and higher production costs continued to impact value brands in 2022 due in part to the outbreak of the war in Ukraine and lasting COVID-19 restrictions in China, which is highly detrimental to value players due to their already thin profit margins and their low price business models.

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