Co-Founder, Ganni A/S
Why Supply Chain Efficiency is important | Nicolaj Reffstrup, Ganni | Copenhagen Fashion Summit
Copenhagen Fashion Summit 2018: innovations for supply chain efficiency – presented by ISKO | Supply chain efficiency – why is it important and what can be done? Watch the conversation between Ebru Ozkucuk Guler, senior CSR executive at ISKO, Géraldine Vallejo, sustainability programme director at Kering, Nicolaj Reffstrup, CEO at Ganni, Pamela Batty, vice president, corporate responsibility at Burberry, Susanna Wilson, global head of sustainable networks and entrepreneurship at HSBC and Linda E. Greer, senior scientist at Natural Resources Defense Council.
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Transcript (17 segments)
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Linda Greer0:16
We have a panel to discuss supply chain efficiency. Environmental impacts are primarily in the supply chain, so starting there is crucial. Our panel includes fashion companies, a manufacturer, and a bank. I'm Linda Greer from the Natural Resources Defense Council, and our Clean by Design program shows the potential to improve resource use. Transparency is key; you must know your supply chain. I give an analogy of a superintendent without a list of schools. Now, introducing Pam Batty from Burberry.
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Pam Batty4:54
Pam discusses Burberry's environmental strategy. They conducted a baseline assessment in 2012, finding 49% of impacts in the supply chain. They deployed Clean by Design in 28 facilities, achieving up to 14% energy savings and 11% water savings in Italy. They launched a new strategy with goals for 2022, including a £3 million grant to the Royal College of Art for sustainable materials research.
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Linda Greer9:16
Linda thanks Pam and introduces Geraldine Alejo from Kering, who has worked with NRDC and supports luxury brands like Gucci and Saint Laurent in sustainability.
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Geraldine Alejo10:33
Geraldine explains Kering's commitment to sustainability. They use Environmental Profit and Loss accounting, finding 90% of impacts in the supply chain. They implemented Clean by Design in Italy, achieving 12% greenhouse gas reductions. They moved the program upstream and work on innovation with partners like Fashion for Good.
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Linda Greer15:47
Linda introduces Nicolaj Reffstrup, CEO of Ganni, a small company making significant strides in sustainable fashion.
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Nicolaj Reffstrup17:04
Thank you, Linda. I'm the CEO and co-owner of Ganni, an SME with under $50 million in sales. We launched projects like Continued Fashion for circular fashion and mapped our carbon footprint since 2016, offsetting it with credits. This makes sustainability tangible for SMEs. We spend about 0.5% of sales on sustainability, but lack leverage for profound supply chain changes. We need turnkey solutions or collaboration with other SMEs to drive innovation.
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Linda Greer22:42
Linda thanks Nicolaj for his insights on SME challenges and introduces Susannah Wilson from HSBC, highlighting the bank's role in sustainability.
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Susannah Wilson24:00
Susannah says sustainability is a new strategic priority for HSBC. They have a long history in trade finance, enabling 90% of global trade flows. They are embedding sustainability into financial products, like preferential terms for capital expenditure on improvements. They see a shift where smaller companies prioritize sustainability, and aim to bring finance brains into the conversation.
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Linda Greer29:34
Linda thanks Susannah and introduces Abreu Guler from ISKO, a leading denim manufacturer with life cycle assessments.
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Abreu Guler30:59
Abreu discusses ISKO's responsibility in denim production. They use sustainable raw materials but also process conventional ones responsibly. They emphasize equal partnership in the supply chain and share knowledge through EPDs. By November 2018, they will publish product category rules for denim, allowing carbon and water footprint calculations.
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Linda Greer35:36
Linda asks the panelists for the single most important thing in their supply chain work.
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Pam Batty36:16
Pam says partnership was key: with NRDC, supply chain, and internal teams.
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Nicolaj Reffstrup36:42
Nicolaj says there's no single light bulb moment; it's the daily grind of small projects that build a sustainable supply chain and change company culture.
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Abreu Guler37:38
Abreu emphasizes equal partnership in the supply chain, with all players demanding the same standards.
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Susannah Wilson38:30
Susannah mentions senior management support and partnerships with NGOs like WWF and WaterAid for learning.
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Geraldine Alejo39:11
Geraldine says setting targets and collaborative approaches with suppliers, like Clean by Design, are important, with quick returns on investment.
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Linda Greer40:11
Linda concludes that NRDC focuses on private sector for environmental impact, as brands have global supply chains that can drive change. She hopes this inspires the audience.