Erase Greenwash By Transparency, VeChain Is Entering The Sustainable Fashion Market With Blockchain Carbon Footprint SaaS Service
In the wake of a global pandemic that reinforced growing public demand for strong action to curb the climate crisis and protect public health, fashion brands are at a critical stage.
For meaningful progress towards sustainability, there may be no single category that fashion needs to transform more urgently than its materials.
According to a report by McKinsey & Company, brands said they wanted to create transparency in their supply chains, but McKinsey noted few companies had yet achieved that, simply because the textile industry is one of the most fragmented industries on the planet. No matter how increasingly keen all fashion brands are to tout their green credentials, with clothes production often involving complex global supply chains, companies can’t always provide their consumers with guarantee of whether environmentally friendly materials are being used. That is why VeChain, as the world’s leading enterprise-grade public blockchain solution provider, aims to improve the situation, starting from the Chinese market.
China is an interesting place to observe opportunities of the ever-changing fashion market as it develops. On one hand, data from the Vogue Business Index shows that sustainability has become more important to Chinese consumers of all ages. The Chinese sustainable fashion market accounts for 21 billion yuan as of 2020. Sourcing sustainable materials is therefore becoming a top priority for fashion companies.
On the other hand, the European Commission plans to impose a Carbon Border Adjustment Mechanism (CBAM), or CO2 tariff, on polluting goods from 2026, which urges all companies, especially Chinese companies who used to have price competitiveness to provide a carbon report. It is time for textile players in the fashion supply chain to act. VeChain Carbon Footprint Traceability Platform provides an ideal choice.
Blockchain In Sustainable Fashion: From Nice-to-have To Mission Critical
Blockchain allows a permanent and accessible record of carbon footprints in every stage of the supply chain, which is key to achieve true sustainability and to meet government policies. Other benefits include:
Trustless claims: Blockchain technology is the correct choice for textile providers to improve supply chain traceability while offering more transparency into their manufacturing streams. Data stored on blockchain platforms enables manufacturers to prove how their sustainable fibers are obtained from plants or animals, aiming to reduce harm either through the production process, fiber properties, or overall environmental impact. This collection of information can be easily integrated to the overall carbon claim of the garment, which will become an advantage for textile providers to leverage, attracting industry players involved in sustainable fashion.
Trustless certification: Characterized by data immutability, the blockchain technology provides the most convincing ethics and sustainability certifications for both brands to consider during provider revision and for customers to consider when shopping. With visible certification stored on this disruptive tracer, textile providers can be vetted in the most trustless manner.
VeChain SaaS Service: The Only Choice for a Ready-to-use Blockchain Tool
Earlier in August 2021, VeChain launched the first Digital Carbon Footprint SaaS Service based on the VeChainThor public blockchain. This new offering is also the first of its kind to benefit from the combination of decentralized ledger technology and a SaaS business model, and aims to be the best hands-on tool in the fast growing Chinese market.
The service also provides the most flexible data visualization models for textile providers to convince downstream brands and consumers of the benefits of purchasing their sustainable apparel. When reading garment labels becomes the key, a blockchain-endorsed label makes a truly environmentally conscious company. The utilization of blockchain would separate the truly sustainable companies from others, which will translate into better sales and a cleaner world.
Traceability and sustainability are two sides of the same coin. As the China Fibers Fashion Trends Report for 2021 to 2022 cites “green fiber” as the industry’s top trend, sustainable textile will be the watch-word in the Chinese fashion industry. VeChain intends to enhance the competitiveness of green fiber producers and contribute to the global green fashion initiative as a whole.
