Chinese factories struggle to go green when brands won’t budge on price
06/09/2017
Almost all (98%) respondents to China Water Risk and the C&A Foundation’s survey say they are taking actions to be green, 74% are recycling water, 88% have upgraded their wastewater equipment and 84% upgraded equipment for chemicals.
These 85 businesses were selected from 140 respondents, and could reflect businesses that are sustainability focused, but China Water Risk says they come from a “range of regions and factory types thus forming a rounded on-ground consensus”.
The survey found manufacturers face significant regulatory, operational and reputational challenges, as well as knowledge gaps.
“Our survey identified three overarching wishes from manufacturers to help overcome their challenges. They are more training, more help with sourcing and more financial support. However, the underlying issue common to all of their challenges and wishes is how to be compliant within the current low-price business model,” said Dawn McGregor, project leader.
Costs are rising but prices offered by brands and sourcing agents are not reflecting this and so already thin profit margins are being squeezed further.
“Will the fashion industry move the supply chain to another country with lax environmental regulations or work with Chinese manufactures to build a new clean and circular business model?” added Ms McGregor.
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