Business

Can fast fashion slow down? It’s not that simple

Published

1 year ago

July 21, 2023

One of fast fashion’s biggest players says it’s taking major steps toward a more sustainable business model. But in an industry predicated on low cost, low quality and high production volume, experts say it won’t be simple.

“It’s hard to see how they actually deliver on their emissions reductions targets,” said Ken Pucker, a lecturer at the Fletcher School at Tufts University in Medford, Mass., who focuses on sustainability.

“Because volumes are going to continue to go up.”

In an ambitious new plan, Inditex, Zara’s parent company, announced earlier this month that it will seek to cut its emissions in half by 2030, and become net zero by 2040. It also says it will transition to using materials that last longer and are easier to recycle.

Inditex, Zara’s parent company, announced on July 11 that it will cut its emissions in half by 2030, and become net zero by 2040. — Inditex, the parent company of fast-fashion retailer Zara, announced on July 11 that it will aim to cut its emissions in half by 2030, and become net zero by 2040. (Andrea Comas/Reuters)

Experts say the move signals a shift toward a circular business model — meaning materials get reused and regenerated instead of thrown away — as the fashion industry faces more and more criticism over its outsized environmental footprint.

In 2021, the World Economic Forum identified the fashion industry as the world’s third-largest polluter. And as the trend cycle accelerates, most of the clothing purchased is only worn seven times before it’s thrown out, according to a 2015 British study.

In its new plan, Zara says 40 per cent of the Spanish-based international clothing chain’s fibres will come from recycled material, 25 per cent from sustainably farmed crops, and another 25 per cent from “next-generation materials” that Inditex is investing in.

The big problem, say experts, is that the company shows no signs of slowing production, raising questions around how realistic these targets are.

“To get to their targets, these things all have to happen yesterday. And I worry that there is insufficient financial incentive and time that will compromise their ability to deliver on their goals,” said Pucker.

Ken Pucker is a professor at the Fletcher School at Tufts University in Medford, Mass., who focuses on sustainability. (Submitted by Ken Pucker)

The fast fashion industry is expanding. Companies such as Shein and Fashion Nova, for instance, have gained huge popularity through social media, where Shein has 29.6 million followers on Instagram and people regularly post their fashion hauls on TikTok.

For fast fashion, the need to continually produce and grow presents a paradox, said Shivika Sinha, founder of the U.S.-based sustainable styling service Veneka.

“The paradox is that Zara is one of the originators of the fast-fashion model,” Sinha said. “It’s going to be tough for them to implement.”

Still, Sinha said she believes Zara’s targets are achievable.

“There is enough innovation on recycling for Zara to achieve these goals,” she said. “I think it’s a matter of Zara’s culture and where they prioritize their funding toward these sorts of projects, and how the EU is holding them accountable.”

Motivating companies to make less

Zara’s accelerated new goals come as the European Commission is drawing up a slew of new regulations that will require fashion companies to produce clothes in a more sustainable way and take accountability for their environmental impacts.

The Commission is proposing to introduce Extended Producer Responsibility (EPR) schemes for textiles in all EU member states, making producers responsible for the full life cycle of their products. Once implemented, producers would become responsible for the cost of managing their textile waste.

According to the European Environment Agency, in 2019, 46 per cent of Europe’s used textiles ended up in African countries. The agency says what isn’t fit for reuse often ends up in open landfills and informal waste streams.

The idea behind EPR schemes is to motivate companies to make fewer garments, said Kelly Drennan, executive director of Fashion Takes Action, a non-profit in Toronto.

“The more garments they make, the higher the cost is going to be to manage the end of life. So if they can actually slow down the production, produce less, then that is actually going to save them money in the end,” she said.

Kelly Drennan is the executive director of Fashion Takes Action, a non-profit that works to advance sustainability in the fashion industry. — Kelly Drennan is the executive director of Fashion Takes Action, a Canadian non-profit that works to advance sustainability in the fashion industry. (Submitted by Kelly Drennan)

Drennan says she is hopeful of the impact Europe’s EPR rules could have on Canada.

“We’ll benefit, ultimately, from seeing clothing that is made from more sustainably sourced materials, that is more durable, that has the end of life considered at the time that it is being designed. And hopefully we’ll see less waste as a result.”

Is Canada falling behind?

In Canada, there are no EPR programs in place specifically for textiles, Drennan said. That’s because much of our waste is managed at a provincial or municipal level, with little harmonization across provinces.

Drennan estimates it will take approximately 10 years before Canada builds up to a textile EPR scheme for its own textile companies. Canadians toss nearly 500 million kilograms of fabric items every year, according to researchers at the University of Waterloo.

Without proper legislation, it’s up to companies to take the lead, Drennan said, noting policies like those in Europe are the only way the industry will make significant changes.

“While there are some leaders investing time, money and research into sustainability, circularity and human rights initiatives, most brands are not. And it’s going to take legislation for them to start thinking differently.”

Bales of sorted second-hand clothes are seen being piled up at a facility operated by Zheng-chuan textile recycling factory on July 15, 2022 in New Taipei City, Taiwan. — Bales of sorted second-hand clothes are seen being piled up at a facility operated by Zheng-chuan textile recycling factory in New Taipei City, Taiwan, on July 15, 2022. Canadians alone toss nearly 500 million kilograms of fabric items every year, according to researchers at the University of Waterloo. (Annabelle Chih/Getty)

But even as fast-fashion companies such as Zara attempt to reduce their ecological footprint, Drennan anticipates an even bigger challenge for the industry: ultra-fast fashion.

“Historically, they (Zara, H&M) are the king and queen of fast fashion,” she said.

“The challenging aspect we’re facing right now is a new era of fast fashion, or what we’re calling ultra-fast fashion, with brands like Shein and Fashion Nova and Boohoo that are pumping out thousands of styles every single day. We’re hopeful that EPR legislation will impact those brands down the road.”

Aerial view of used clothes discarded in the Atacama desert, in Alto Hospicio, Iquique, Chile. — An aerial view of used clothes discarded in the Atacama Desert in Alto Hospicio, Chile. (Martin Bernetti/AFP/Getty Images)

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Business

A timeline of events in the bread price-fixing scandal

Published

2 hours ago

September 19, 2024

Anne Joseph

Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.

Here’s a timeline of key events in the bread price-fixing case.

Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.

Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.

Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.

Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).

Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.

June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.

Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”

Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.

July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.

Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)

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Business

TD CEO to retire next year, takes responsibility for money laundering failures

Published

5 hours ago

September 19, 2024

Anne Joseph

TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.

Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.

The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.

As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.

TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.

TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:TD)

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Business

The #1 Skill I Look For When Hiring

Published

2 days ago

September 17, 2024

Nick Kossovan

File this column under “for what it’s worth.”

“Communication is one of the most important skills you require for a successful life.” — Catherine Pulsifer, author.

I’m one hundred percent in agreement with Pulsifer, which is why my evaluation of candidates begins with their writing skills. If a candidate’s writing skills and verbal communication skills, which I’ll assess when interviewing, aren’t well above average, I’ll pass on them regardless of their skills and experience.

Why?

Because business is fundamentally about getting other people to do things—getting employees to be productive, getting customers to buy your products or services, and getting vendors to agree to a counteroffer price. In business, as in life in general, you can’t make anything happen without effective communication; this is especially true when job searching when your writing is often an employer’s first impression of you.

Think of all the writing you engage in during a job search (resumes, cover letters, emails, texts) and all your other writing (LinkedIn profile, as well as posts and comments, blogs, articles, tweets, etc.) employers will read when they Google you to determine if you’re interview-worthy.

With so much of our communication today taking place via writing (email, text, collaboration platforms such as Microsoft Teams, Slack, ClickUp, WhatsApp and Rocket.Chat), the importance of proficient writing skills can’t be overstated.

When assessing a candidate’s writing skills, you probably think I’m looking for grammar and spelling errors. Although error-free writing is important—it shows professionalism and attention to detail—it’s not the primary reason I look at a candidate’s writing skills.

The way someone writes reveals how they think.

Clear writing = Clear thinking
Structured paragraphs = Structured mind
Impactful sentences = Impactful ideas

Effective writing isn’t about using sophisticated vocabulary. Hemingway demonstrated that deceptively simple, stripped-down prose can captivate readers. Effective writing takes intricate thoughts and presents them in a way that makes the reader think, “Damn! Why didn’t I see it that way?” A good writer is a dead giveaway for a good thinker. More than ever, the business world needs “good thinkers.”

Therefore, when I come across a candidate who’s a good writer, hence a good thinker, I know they’re likely to be able to write:

Emails that don’t get deleted immediately and are responded to
Simple, concise, and unambiguous instructions
Pitches that are likely to get read
Social media content that stops thumbs
Human-sounding website copy
Persuasively, while attuned to the reader’s possible sensitivities

Now, let’s talk about the elephant in the room: AI, which job seekers are using en masse. Earlier this year, I wrote that AI’s ability to hyper-increase an employee’s productivity—AI is still in its infancy; we’ve seen nothing yet—in certain professions, such as writing, sales and marketing, computer programming, office and admin, and customer service, makes it a “fewer employees needed” tool, which understandably greatly appeals to employers. In my opinion, the recent layoffs aren’t related to the economy; they’re due to employers adopting AI. Additionally, companies are trying to balance investing in AI with cost-cutting measures. CEOs who’ve previously said, “Our people are everything,” have arguably created today’s job market by obsessively focusing on AI to gain competitive advantages and reduce their largest expense, their payroll.

It wouldn’t be a stretch to assume that most AI usage involves generating written content, content that’s obvious to me, and likely to you as well, to have been written by AI. However, here’s the twist: I don’t particularly care.

Why?

Because the fundamental skill I’m looking for is the ability to organize thoughts and communicate effectively. What I care about is whether the candidate can take AI-generated content and transform it into something uniquely valuable. If they can, they’re demonstrating the skills of being a good thinker and communicator. It’s like being a great DJ; anyone can push play, but it takes skill to read a room and mix music that gets people pumped.

Using AI requires prompting effectively, which requires good writing skills to write clear and precise instructions that guide the AI to produce desired outcomes. Prompting AI effectively requires understanding structure, flow and impact. You need to know how to shape raw information, such as milestones throughout your career when you achieved quantitative results, into a compelling narrative.

So, what’s the best way to gain and enhance your writing skills? As with any skill, you’ve got to work at it.

Two rules guide my writing:

Use strong verbs and nouns instead of relying on adverbs, such as “She dashed to the store.” instead of “She ran quickly to the store.” or “He whispered to the child.” instead of “He spoke softly to the child.”
Avoid using long words when a shorter one will do, such as “use” instead of “utilize” or “ask” instead of “inquire.” As attention spans get shorter, I aim for clarity, simplicity and, most importantly, brevity in my writing.

Don’t just string words together; learn to organize your thoughts, think critically, and communicate clearly. Solid writing skills will significantly set you apart from your competition, giving you an advantage in your job search and career.

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Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.