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UBP: Investing in a Slower and Kinder Fashion

Rupert Welchman, Portfolio Manager Impact Equities at Union Bancaire Privée (UBP)

There is much talk these days of the clothing has dropped by 36% to only ten uses per item, potentially lead to savings of approximately

industry’s substantial carbon footprint. Depletion with each human being on average buying fifteen CHF 174 billion per annum, while at the same
of natural resources, pollution, heavy energy garments and two pairs of footwear every year, time improving the industry’s energy and water
use, greenhouse gas emissions: the traditional according to Euromonitor International. By being use, as well as its labour practices.
clothes-making supply chain ticks all the boxes. prepared to spend more on each item, paying for
Not to mention reports of underpaid and even quality rather than quantity, and by keeping and Given the importance of technological innovation
child labour, insecure employment, and unhealthy enjoying our clothes for longer, as consumers we for this overhaul to succeed, this is where the
or unsafe working conditions. In its constant can make a huge impact. There is also a trend major role of the financial sector comes in.
quest to keep up consumption and push down towards more acceptance of second-hand goods Investment is the link that can convert sporadic
prices, fast fashion has been a resource-hungry and rentals, especially among young people. initiatives into structural change. By channelling
business and it is high time the clothing sector There is little doubt that mindful consumption capital towards the innovative impact companies

rethought not just its processes but its entire carries cultural, financial and ecological benefits. seeking solutions and engaging directly with
philosophy and raison d’être. them to foster collaboration across the entire
As regards the end of the life of a garment and its supply chain, investors can bring all these efforts
A key concern is of course the impact of the disposal, the industry needs more coordination together and make the reform of the fashion
materials used for manufacturing textiles. and large-scale sorting and recycling facilities. industry happen.
Cotton, while natural, biodegradable and Only about 1% of clothing materials are recycled

recyclable, requires a huge amount of water and 20.5 billion garments go to landfill each year. Impact investors and conscious consumers
and land to be produced. Polyester, the most Both mechanical and chemical recycling methods – as much as cooperation between clothing

common synthetic fibre used for making clothes, are developing but need more investment in order companies, countries, legislators, arbiters
consumes less water and generates less waste to become mainstream. of international labour standards, non-profi t
than natural fibres, but is not biodegradable and, organisations, etc. – have the power to make the

when washed, releases microplastics which All in all, it has been estimated that improvements clothing sector fulfil its potential of becoming
end up in rivers and oceans, harm marine life, in the production, consumption and end-of- the nature-friendly and society-serving industry
and ultimately affect the entire ecosystem, of life stages of the garment value chain could the world deserves.
which we are a part.

In the CHF 37.3 billion eco-fibre market, more
and more entrepreneurs are working on providing

alternative fibres such as hemp and wood pulp,
and even coffee grounds and seaweed. Efforts
are being made to recycle synthetics too, like
PET, for making items like bags and shoes.
There is also an emerging industry for producing
natural dyes from microorganisms to replace
the toxic chemicals conventionally used to treat

and colour fibres.

For the fashion industry to become circular, the
choice of such alternatives must be built into
the very design of every garment, at the point
of conception, with the entire life-cycle of the
item in mind, including its eventual disposal. The
waste of textile at the start of the manufacturing
line, which can reach 15%, can also be hugely
reduced simply by optimising design and cutting
processes.

Yet, as important as it is, reform in production
methods needs to be complemented by a
mindset change among consumers as well: in

the last fifteen years the usage rate of clothes UBP Monaco, 17 avenue d’Ostende
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