Action plan for sustainability in the Turkish textile industry

General overview

The textile and apparel industry forms a diverse industrial ecosystem that encompasses various value chains and product types. In this ecosystem, Turkiye, the world’s sixth largest producer of ready-made garments, exported ready-made garments and apparel products worth a total of USD 17.1 billion in 2020, according to data released by the Turkish Exporters’ Assembly. 1
https://tim.org.tr/en/export-export-figures In line with Turkey’s exports in general, the EU is the largest market for ready-made garment and apparel exports. Therefore, from a sustainability point of view, any change in the EU’s policy on this industry will directly impact exports of the Turkish ready-to-wear and clothing industry and thus affect production.

The background is the EU Circular Economy Action Plan("Plan"), 2
https://ec.europa.eu/environment/topics/circular-economy/first-circular-economy-action-plan_en announced on 11 March 2020, which sets out a framework for sustainable product policy. Under this Plan, sub-plans such as sustainable product design, the empowerment of consumers and public purchasers, and circular economy policies in the production process have been proposed. In line with the principles of sustainability, objectives such as promoting the use of more durable and environmentally friendly products were discussed. Since textile production ranks fourth in terms of pressure on the use of primary raw materials and fifth in terms of greenhouse gas emissions, it is one of the Plan’s priority sectors. The specific objective of the Plan for this industry is to create a sustainable and circular sector by developing a comprehensive EU Textile Strategy 3 To follow the latest developments regarding the EU Sustainable Textile Strategy:
https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12822-EU-strategy-for-sustainable-textiles_en for the clothing industry in 2021.

The new framework for sustainable products in the clothing and textile sector aims to ensure that eco-design measures ensure ready-made clothing and textile products are fully sustainable, eliminate harmful chemicals during their production, and encourage consumers to choose more sustainable clothing products, reuse their clothes, and engage in modification services.

According to the policy changes mentioned above, the ready-to-wear and textile sectors should have a sustainable structure from the production process to the end of the product life cycle. Given that the EU sources most of its ready-to-wear and textile products from abroad, this change will not only affect the EU ready-to-wear and textile sectors, but, in order to remain competitive, producers in third countries (i.e. the supplier countries) will also be expected to keep pace with this transformation.

Therefore, national sectoral strategies and structures need to be planned at this point. Looking at the Turkish ready-made garment and apparel industry in general, we find that the majority of companies are "small and medium-sized enterprises" (SMEs). The costs that may arise from new policies such as the Carbon Border Adjustment Mechanism (CBAM) will directly impact the competitiveness of these companies, which currently operate with low profit margins. Therefore, in order to maintain competitive advantage in the international arena, sectoral change should be proactively initiated rather than responding to developments.

In order to put Turkish exporters in an advantageous position in international trade, the following measures, among others, should be implemented in the Turkish textile industry:

• increased transparency efforts in the value chain of Turkish textile and clothing products exported to the EU;
• promotion of renewable energy resources;
• development of yarn separation technologies;
•  increasing the share of alternative cotton fibres and biodegradable recycled raw materials; and
• use of soluble and biodegradable packaging.

Framework for sustainability

The concept of "fast fashion" has had a great impact on the design of the textile ecosystem. However, it is an undeniable fact that "fast fashion" (i.e. changing fashion trends) has a negative impact by promoting consumption and shortening the lifespan of textile products.

Nevertheless, in line with the goals of a carbon-neutral and zero-waste sector, it is of great importance that all stakeholders of the Turkish fast fashion industry are ready for the future when it comes to the transition to sustainable economic policies such as the EU Green Deal, and that the environmental, economic and social subdivisions of the sustainability action plan are well prepared.

Environmental indicators

The textile and clothing industry is known as a resource-intensive industry that has a significant impact on the climate and the environment. As air emissions and consumption of chemicals and water are high, strategies should be developed to reduce these negative environmental impacts.

The textile industry in particular uses large amounts of water, especially in the production of raw materials in the field and in the dyeing and finishing of fabrics. The textile industry ranks second among all production sectors in terms of water consumption and fifth among the most water-intensive crops due to the cultivation of cotton.

In this context, projects such as industrial wastewater recovery systems (Zero Liquid Discharge: the application that ensures the treatment and reuse of wastewater, thus ensuring the continuous use of water in a closed system instead of an open system) and the implementation of Zero Discharge processes for hazardous waste should be on the agenda of textile producers and policy makers.

From another point of view, more than half of the world's fibre consumption consists of man-made and synthetic fibres. Therefore, raw material management (supply of raw materials such as cotton, cellulose fibres, etc. from sustainable sources and use of recycled raw materials) is of utmost importance. To achieve this, it is necessary to use fibres that biodegrade easily and to produce environmentally friendly fibres. In order to achieve zero waste targets, the backbone of waste management projects should be to avoid or minimise the generation of waste by adhering to the principles of circular design and reducing the recyclable production waste (paper, waste, packaging, etc.) to be landfilled.

In this way, using waste from the upstream production process as raw material for downstream production will reduce CO2 emissions and water consumption, and eliminate other environmental effects that occur during raw material production. Therefore, the widespread use of circular production methods instead of linear production models will increase the impact on soil.

Finally, environmental priorities are of great importance for compliance with rapidly changing legal regulations, customer and investor requirements, and ultimately for global competitiveness. Establishing environmental management systems and ensuring compliance with national legislation and international standards is an important step in avoiding future market access barriers.

Economic indicators

Sustainable textiles produce high quality, marketable products with a lower environmental impact. Consumers prefer these products not only because they are "greener", but also because they are more durable, of higher quality and cheaper to use. In this framework, R&D and innovation investment for sustainability and sustainable products create a significant competitive advantage and eliminate many risks for industry players.

There is a trend in the textile and apparel industry to support more sustainable lifestyles through incentives and an impetus to comply with current green legislative initiatives (e.g. EU Green Deal) and maintain industrial competitiveness on a global scale. Measures such as eco-labelling and the New Consumer Agenda 4
New Consumer Agenda: (europa.eu) aim to ensure the sustainability and competitiveness of the industry.

With this in mind, textile manufacturers should ensure transparency in their supply chains through scientific measurement and the reporting of carbon footprints to create a roadmap to reduce carbon emissions in order to keep pace with regulatory changes at the global level. For this to be implemented more effectively, it is essential to act in coordination with international actors. The integration of digital technologies into textile production, marketing and sales processes (ERP, productivity-enhancing automation systems, digital showroom, etc.) is crucial. The application of international standards and certificates required throughout the supply chain, as well as the preparation of audits and early studies, will enable the Turkish textile industry to both maintain its global position and increase its market share in global exports.

Another priority for sector actors is access to the ecosystem of sustainable financing in the textile sector. Authorities need to be advised on the development of financing and support mechanisms for energy efficiency and renewable energy conversion projects, which are difficult to implement due to high initial costs, especially for SMEs. The development of financial instruments and products for low-carbon and inclusive growth as well as the strengthening of cooperation geared towards sustainable development should be part of a holistic sectoral strategy for public organisations.

Social indicators

As mentioned above, in addition to the measures developed against the environmental impact of the fast fashion trend, it is possible to make a difference in the industry through the measures that need to be implemented in the socio-economic context to ensure quality and sustainable production. The importance of conducting social sustainability studies to prevent rapid technological development and socio-economic polarisation that lead to unemployment, income inequality and social instability is already on the agenda of global brands in the textile and apparel industry. Global brands are striving to improve transparency and traceability in their supply chains not only in economic, but also in socio-economic terms. Some of the areas that these brands are targeting include:

• Prevention of child labour, forced labour, and discrimination along the entire value chain;
• Becoming an organisation with an accident rate of zero;
• Reducing the incidence of occupational illnesses;
• Increasing the proportion of female employees at management level;
• Increasing the proportion of purchases from responsible sources;
• Human rights training; and
• Improving the physical, mental and spiritual health of employees.

This non-exhaustive list of possible socio-economic goals will undeniably contribute to the creation of competitive advantages and new opportunities for Turkish textile suppliers of brands in the global arena. In order to achieve sustainable growth, catch the rapid wave of transformation and take a proactive approach to shaping the future of companies, it is essential to fully implement all areas of the green transformation process.

In summary, by implementing concrete projects in cooperation with all stakeholders, Turkish textile manufacturers could be well positioned to view sustainability as an opportunity rather than a risk.