ARITZIA Sustainability Manual

Manual for a Sustainable Approach

Manual for a Sustainable Approach

Manual for a Sustainable Approach

Introduction SUSTAINABILITY MANUAL

This Aritzia Manual outlines a strategy for increasing the current efforts and yielding greater results in the area of sustainability. This Manual is focused on creating, meeting and exceeding Aritzia’s sustainability goals, while leveraging its influence to challenge the status quo of the current fashion systems and implement radical transparency in the process.

Aritzia’s sustainability values:

•

Delivering quality product that endures well beyond one or two seasons is central to Aritzia’s business model and the right choice for our planet. Yet, Aritzia knows this is not enough. Environmental and social issues are at a critical turning point. We all have to come together to do what we can to make a meaningful impact.

Aritzia’s guiding principles to achieving sustainability:

•

Aritzia has taken an evidence-based approach to sustainability, with a focus on driving long term impact over short term trends. The steps are simple:

1.

2.

3.

4.

UNDERSTAND our Social and Environmental impact IDENTIFY opportunities for improvement both short and long term ACTION positive and meaningful change BUILD a roadmap for the future

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Manual for a Sustainable Approach

Contents SUSTAINABILITY MANUAL

P.3 Introduction P.4 Sustainability at Aritzia ‘A’ P.6 Sustainability Objectives ‘B’ P.7 Plan for achieving Objectives ‘C’ P.10 Materials •Strategy for Aritzia •Industry Trends P.14 Production •Strategy for Aritzia •Industry Trends P.18 People •Strategy for Aritzia •Industry Trends P.22 Business Operations •Strategy for Aritzia •Industry Trends P.26 Product End-of-Life •Strategy for Aritzia •Industry trends P.31 Summary P.33 References | P.3

Manual for a Sustainable Approach

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Manual for a Sustainable Approach

Sustainability at Aritzia |‘A’ ABOUT

In order to create an effective roadmap for the future, it is pivotal we gather comprehensive data, both quantitative and qualitative, that reflects Aritzia’s achievements in the area of sustainability thus far. This will help create an effective strategy for the future by identifying the deficiencies in the current approach, as well as areas where results can be maximized.

This has been Aritzia’s trajectory over the last 10 years:

Banned fur in all products

Partnered with Debrand to address reverse logistics

Started a Social Impact monitoring program

Rolled out Aritzia Code of Conduct to 100% of manufacturing partners

Conducted a materiality assessment

Started to roll out the Higg Facility Environmental module to first and second tier suppliers

Joined the Better Cotton Innitiative

2010

Joined the Better Work Program

2020 Launched the Community brand to incubate sustainability

Made the CanopyStyle commitment

Commitment to Responsible Down Standard

Removed plastic from e-commerce packaging and repalced it with renewable and recyclable papaer

Joined the Sustainable Apparel Coalition

Conducted an OLCA

Kicked off a polyethilene bag reduction program

Established first Became sustainable members product goals of the Textile Exchange

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Manual for a Sustainable Approach

Sustainability Objectives |‘B’ ABOUT

In 2017 Aritzia conducted a more comprehensive assessment of its business to benchmark its social and environmental risks and impacts, which included three areas.

•

•

•

Materiality assessment of operations, including supply chains Labour and human rights assessment throughout the supply chains An Environmental Organizational Lifecycle Assessment (OLCA) for emissions, water usage and waste generation1

Results from the Assessments prompted Aritzia to create a dedicated team of sustainability experts accountable for determining the impacts, developing targets and roadmaps and cross-functional partnering to deliver change.

Below are the goals Aritzia has commited to: PRODUCT:

•

From safeguarding Human Rights in factories and decreasing water usage in production processes to increasing the adoption of more sustainable raw materials, Aritzia is committed to putting meaningful effort against improving the sustainability of its products.

OPERATIONS:

• Beyond just product, reducing emissions, waste and packaging impacts

within Aritzia’s operations is critical to the health of the planet.

COMMUNITY:

• Aritzia is committed to growing its giving program with a focus on creating

opportunity for women and girls. Ensuring Diversity and Inclusion are cen-

tral tenants for both the People and the Customers, while also ensuring

support for those women who need it the most. | P.6

Manual for a Sustainable Approach

Plan for Achieving Objectives |‘C’ ABOUT

Aritzia’s overarching aim is to become a fully sustainable apparel company by 2025. Although this recognizably, may be an ambitious goal, the main obstacle in Aritzia’s path to achieving this plan is the fact that the fast fashion business model is inherently unsustainable. However, in order to support and maximize efforts towards making Aritzia an increasingly socio-environmentally sustainable business, we have developped the following multi-pronged approach.

We examined five key areas of Aritzia’s business and outlined steps to integrate more sustainable practices within each of these parts, that push beyond just the industry standard. Many of these rely on Aritzia’s willingness to commit to notions of radical transparency and undertsanding of big picture impacts of its business.

The five areas of focus are: • MATERIALS

Aritzia has made some progress in sourcing environmentally less damaging materials,

however, the scale of use of virgin synthetics and unsustainably grown/manufactured

fibres versus sustaianble alternatives still remains disproportionate. In order to emph asize these efforts, we propose that Aritzia focus on focus on scaling the use of renewable

and eco-friendly fabrications, switch to using 100% recycled polyester and/or other recycled synthetics and introduce dead-stock materials as a good way test new styles, generally produced in significanlty smaller runs.

• PRODUCTION

Over the last ten years, Aritzia has spent majority of its efforts in attaining a multitude of

certifications attesting to its efforts in creating a cleaner, more enivonmentaly-friendly

production processes with its manufacturing partners. To actively validate these

efforts, we recommend Aritzia transparently declares its Higg Index results on a regular basis, to both its customers, shareholders and relevant stakeholders.Additionally, we recommend Aritzia creates a system of educating the conusmer on the environmental impact of each of its garments as well as be an early adopter of the Cradle to Cradle strategy by keeping technical and bilogical resource loops closed. | P.7

Manual for a Sustainable Approach

Plan for Achieving Objectives |cont’d ABOUT

• PEOPLE In efforts to increase its impacts on the social sustainability front, Aritzia has employed

various strategies mostly contingent upon its Vendor Code of Conduct2. To elevate its

performance in this area, we suggest the company addresses these issues more comprehensively by partnering with fellow brands to create communal codes of conduct to eliminate ambiguity in their application at manufacturing facilities. As well we

recommend Aritzia partners in to support organizations on the ground in the local

communities where its growing and manufacturing facilities are, to create impactful

longer lasting community change. Lastly, we suggest Aritzia engages with the idea of

localism and local production.

• BUSINESS OPERATIONS Although Aritzia has committed to some steps in improving the sustainability within its

business operations, there are various important actionable items still left ahead. The company needs to ensure that its in-store waste diposal includes adequate recycling. In

terms of logistics on a micro level the optimization of how many units are being shipped per box to the stores will help energy waste reduction, and applying localism by developping local supply chain partners would help curb Aritzia’s carbon footprint due to macro logistic and transportation.

• PRODUCT END-OF-LIFE

Most of Aritzia’s efforts in this area have been concentrated on ways of managing its own

left-over product waste. However, the company needs to address the growing issue of over accumulation of post conumer waste. To do this we suggest Aritzia engages with the notion of PSS (Product Service Systems) to offer tailoring and mending and well as product take-back systems to slow the process of its clothing ending up at the landfill. Additionally,

we suggest Aritzia labels its garments to provide ‘best-practices’ for disposing of each item.

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Manual for a Sustainable Approach

NATIONAL BUREAU OF ECONOMIC RESEARCH

“In a matched sample of 180 ‘High Sustainability’ companies and ‘Low Sustainability’ companies over an 18year period, the High Sustainability group outperformed the Low Sustainability group by 4.8 percent on a value-weighted base. The outperformance is stronger in sectors where the customers are individual consumers, where companies compete on the basis of brands and reputation, and where companies’ products significantly depend upon extracting large amounts of natural resources.”

From the report “The Impact of a Corporate Culture of Sustainability on Corporate Behaviour & Performance”3

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Materials

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MATERIALS

Strategy for Aritzia CURRENTLY: Aritzia has made a significant push in attaining various industry certifications in respect to the sustainability of its materials.

•

Aritzia uses naturally derived materials such as viscose, Tencel®, modal and lyocell, derived out of wood pulp from forests from around the world.

•

With viscose suppliers and Canopy, a non-profit organization focused on the protection of ancient and endangered forests, Aritzia promotes the use of renewable sources of wood pulp4.

•

Aritzia works to source more sustainable alter- natives, including organic and Better Cotton, and is a member of the Better Cotton Initiative5.

OPPORTUNITIES: The scale at which sustainable and eco-friendly fabrications are being used is far lesser, compared to virgin polyester. Thus the use of more conscientious materials needs be expanded, which includes producution using less brand-new, or ‘virgin’ fabrics.

•

Scaling the use of renewable and ethical fibres such as Tencel®, Organic Cotton, hemp, linen...

•

Minimizing the use of virgin polyester; switching to recycled polyester and nylon

• Using Deadstock fabric for capsule collections/ new styles

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MATERIALS

Strategy for Aritzia SCALING THE USE OF RENEWABLE MATERIALS

• The use of ecologically sound and renewable

materials is paramount in achieving sustainabil ity. From Tencel® to Organic Cotton it is

important to not only introduce them to replace

virgin synthetics and other unethically produced

materials, but scale their use across all in-house

brands and product categories.

• By tipping the scales in favour of sustainable

material fabrications compared to non-sustain able ones, Aritzia would transoform its environ mental impact score by drastically reducing

chemical and energy usage in the growing and

manufacturing stage, reducing its carbon foot print and protecting the health of workers at the

bottom of its suplly chain6. Aritzia needs to go

past the certifications and implement these

strategies more broadly.

SWITCH TO RECYCLED POLYESTER

• The manufacturing and use of virgin polyester and nylon, should be limited if not completely eliminat-

ed, as it uses vast amounts of energy and produces exponential amounts of non-biodegradable waste.

Recycled polyester, not only eliminates waste from the environment, but also supports a circular design system.

•

Even the most intensive forms of synthetic fibre recycling, where poly or nylon is taken back to polymer and re-extruded into a new product, is around 80% less energy intensive than the manufacturing of virgin fibre, even for those fabrics that are shredded and re-spun- the savings are substantial6.

DEADSTOCK

•

Fashion brands are changing industry standards by building business models that incorporate used or leftover fabric into new collections, reducing reliance on raw resources7.

•

Due to the inconsistent supply of deadstock, Aritzia could commit to making its 3 seasonal capsule lines, that are produced in very limited quanitities, from it. This would increase the product exclusivity and promote the boutque aesthetic Aritzia strives towards with its capsules, as well as generate additional value via positive environmental impact and waste reduction. | P.12

Manual for a Sustainable Approach

MATERIALS

Industry Trends SCALING THE USE OF RENEWABLE MATERIALS Business case: NUDIE JEANS

•

95% of all the fibers used in Nudie’s garments is Organic, Fairtrade or Recycled cotton, as the largest environmental impact of their products is from growing the raw material. The first goal was reached in 2012 when all the denim was made in organic cotton and in 2017, they reached the same goal for the rest of their products. Exploring new sustainable fabrics is also part of the design process at Nudie Jeans - in 2018, Nudie Jeans included more recycled fibers thereby decreasing its environ­mental impact8.

SWITCH TO RECYCLED POLYESTER Business case: PATAGONIA

•

Patagonia has been making recycled polyester from post-consumer soda bottles since 1993 making it the first company to turn trash into fleece.

Now the company makes its recycled polyester fibers from a blend of soda bottles, manufacturing waste, and worn-out apparel. Recycled polyester is in a wide range of Patagonia’s products from t-shirts to cold weather gear10.

DEADSTOCK Bussiness Case: REFORMATION

• Deadstock can be an efficient way for brands to

experiment. About 15 per cent of Reformation’s

products are made with deadstock, which it uses

as a source of novelty and speciality fabrics. “If

we want to try something different, deadstock

allows us to do that without developing new fab-

rics or ordering a minimum amount,” vice

president of sustainability Kathleen Talbot states9.

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Production

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Manual for a Sustainable Approach

PRODUCTION

Strategy for Aritzia

CURRENTLY: In terms of practices implemented throughout the production processes, Aritzia has made various steps to drive environmental sustainability throughout its manufacturing supply chain.

MANUFACTURING PROCESS:

• Higg Index

To monitor the environmental performance of its supply chain partners, Aritzia adopted the Higg Facility

Environmental Module (Higg FEM) in 2018, an industry tool created by the Sustainable Apparel Coali-

tion. The Higg FEM is a self-assessment tool used by suppliers to report on their environmental

management and performance against seven key areas: energy management systems,

water, effluent, chemicals, energy, emissions and waste.By 2020 independant Higg FEM self-assessment

had been completed at strategic facilites, which make up over 60 per cent of Aritzia’s finished goods apparel factories11.

MATERIAL SOURCING: • Better Cotton Initiative (BCI) Aritzia joined the Better Cotton Initiative in 2017. The initiative upholds the following principles12:

•Minimize the use of harmful pesticides and preserve fibre qaulity •Care for water and land stewardship •Enhance biodiveristy and responsible land use

• Responsible Down Standard (RDS) Every step of Aritzia’s supply chain, down to the farm has been inspected by an accredited independent

certification body that upholds the RDS’s strict requirements - ensuring Aritzia’s down is sourced from

geese who receive adequate food, shelter, space and fresh water and who are never live-plucked13.

APPAREL GOODS FINISHING: • GreenScreen® Certification Aritzia’s Italian denim manufacturers, use a bio-based softener that’s GreenScreen® certified,

paired with laser technology, that reduces the use of water and harmful chemicals in distressing

and finishing denim14.

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PRODUCTION

Strategy for Aritzia OPPORTUNITIES: The main opportunites Aritzia faces in optimizing its efforts in achiving environmental sustainability across its manufacturing supply chain have to do not only with individual certifications, but with considering the big picture. Metrics matter and combined with radical transparency, Aritzia’s efforts can be validated and maximized. To achive this, Aritzia should focus on:

•

Public transparency with declaring where the company stands in terms of quanitative and qualitative Higg Index results (year over year)

•

Consumer transparency in regards to the envi- ronmental impact of every garment/SKU

•

Adopting, even if only for one in-house brand, the Cradle to Cradle strategy15

HIGG INDEX RESULTS

•

With sustainability, the most pivotal factor is transparency. Declaring Aritzia’s Higg Index results either annually, or quarterly (with its financial statements to the public shareholders), the company will provide insight not only to the relevant stakeholders, but to consumers. Transparency with achieved sustainbility milestones, as well as areas where the company fell short are paramount.

• This will indirectly increase the value of the products itself, as consumers and shareholders would be

able to better understand how their money is impacting the company’s sustainability performance.

GARMENT IMPACT SCALE

•

To reinforce the idea of radical transparency, Aritzia should take it a step further. The company should develop a comprehensive environmental impact disclosure system, that communicates the environmen- tal impact of each and every product, through both labeling and its website.

• This would allow for greater transparency surrounding sustainability, would speak to the importance

sustainability holds within Aritzia’s business and would also work to educate the consumer.

CRADLE TO CRADLE CERTIFIED™ (C2C) • The C2C Certified Products Program targets safe chemistry; by going deeper into the supply chain,

and integrating “design for next use” into the chemistry itself. C2C promotes the idea of separating the

biological and technical resource loops, as the next step in reinforcing sustainbility within the produc- tion system16.

• By separating these two resource loops Aritzia will be able to support efforts in recycling and re purposing post-consumer clothing waste. | P.16

Manual for a Sustainable Approach

PRODUCTION

Industry Trends TRANSPARENCY WITH SUSTAINABILITY REPORT Business case: H&M

• H&M has spent the last two decades restructur ing its operations towards achieving greater sus tainbility and showing consumers that the pillars

of this process rely on transparency. For that

reason H&M has released an annual Sustainabil ity Report since 2001, as well as reports

in accordance with GRI Standards: Core Option since 201617.

GARMENT IMPACT SCALE Business case: REFORMATION

•

RefScale is a tool that tracks Reformation’s environmental footprint by adding up the pounds of carbon dioxide emitted, gallons of water used, and pounds of waste generated. The whole equation follows the lifecycle of their clothes —every thing from growing textile fibers and making fabric, dyeing, manufacturing, packaging, shipping, garment care, and recycling.This infor- mation is on every product page of their website aiming to educate and empower consumers18.

SEPARATING RESOURCE LOOPS THROUGH CRADLE TO CRADLE Business case: A.BCH •

A.BCH’s Courtney Holm decided when she started her brand that resource circularity will be pivotal to achieving sustainability. For this reason she has chosen for her products to remain within the bilogical system stream, by eliminating all matrieal blends and ensuring every single part of a garment is biodegradable, down to the trims and notions. This method of design and produc- tion helps to consider the product end-of-life19.

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People

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Manual for a Sustainable Approach

PEOPLE

Strategy for Aritzia CURRENTLY: Aritzia has made important initial steps in legislating ethical labour practices throughout its supply chains:

•

Created a Vendor Code of Conduct which is communicated to and signed by their supply chain partners, and is implemented by the Aritzia Corporate Responsibility department2.

•

This Vendor Code of Conduct was developed using established international frameworks, such as the International Bill of Human Rights, the ILO Fundamental Principles and Rights at Work, and the ETI Base Code2.

•

Evaluating is carried out by local independant specialists Elevate and Impactt. Inspections are announced or unannounced and involve compul- sory interviews with workers2.

OPPORTUNITIES: However, there is still room for improvement. Aritzia needs to consider the bigger picture, and create a strategy for long lasting community impowerment, overseas, as well as locally by:

•

Collaborating with multiple brands manufacturing at the same facilities to align on Code of Conduct expectations, so these can be enforced without ambiguity

•

Partnering with local organizations that advocate for long lasting community empowerment

• Engaging with the notion of ‘localism’ to support

local communities and have better oversight of manufacturing facilities | P.19

Manual for a Sustainable Approach

PEOPLE

Strategy for Aritzia STANDARDIZING CODES OF CONDUCT

•

Aritzia’s Vendor Code of Conduct, although established using international frameworks, is difficult to enoforce as Aritzia does not own its manufacturing facilities. The factories Aritzia partners with work with a range of brands with varying codes of conduct, making it complex for the facility to decide which code to go by, and when and how to enforce it.

•

By creating cooperatives with the brands producing at the same facilities, Aritzia could standardize one code of conduct that eliminates ambiguity in the application and validation process. This would hold all the relevant stakeholders accountable to the same standard.

EMPOWERING LOCAL COMMUNITIES

•

Aritzia’s goals for its Community is to provide support for women that need it the most, and this should encompass the women throughout the supply chain. Creating local initiatives in overseas communities that are home to Aritzia’s manufacturing facilities would be an important step towards elevating the workers’ quality of life.

•

Codes of conduct are usually loosley enforced, with rare oversight, however, promoting long term community change, and becoming a part of the social fabric would vastly help support those at the bottom of Aritzia’s supply chains.

LOCALISM

•

Engaging with localism permits a business to earnestly engage with sustainability. Localism not only addresses environmental concerns, it forces companies to relationship-build with local manufacturers, know the people working in their factories, respect familiar labour laws and empower local communities and economies through job creation20.

•

By developping solid relationships with local manufacturers, Aritzia would gain greater agility in responding to changing trends as well as purchase and sell-through patterns. | P.20

Manual for a Sustainable Approach

PEOPLE

Industry Trends STANDARDIZING CODES OF CONDUCT Business case: FOREST CERTIFICATION IN CANADA

• Canadian forestry industry is one of the largest of

its kind in the world and houses almost 40% of

the world’s certified forests. Certifications

provide assurance of legal and sustainable forest

practices. Currently there are three forest certifi

cation systems used in Canada: Canadian Stan

dards Association, the Forest Stewardship

Council and the Sustainable Forestry Initiative.

However, all there certifications meet riggorous

standards that are universal and are collectively

rely on the same third party for inspections21.

EMPOWERING LOCAL COMMUNITIES Business case: MAYAMIKO • Mayamiko produces clothing and accessories

that are made ethically by women in Malawi. All of

their prints are sourced by a local cooperative of

women traders. As a leading advocate for

better labor rights, it has created the Mayamiko

Trust, a charity which works in the community

to train and empower disadvantaged women.

The Mayamiko Lab, was designed to provide

skills training, education, nutrition, sanitation

and promote fairer trade practices22.

LOCALISM Business case: REFORMATION

More than just a pretty dress

• Almost 70% of Reformation’s manufacturing and

production facilities are located in California, USA23. By engaging in local production, Refor mation gives fair imployment, wages and benefits

to women and people of minoroties, and is pow erful advocate for Latin American immigrants,

whom they support on their way to becoming American citizens24. | P.21

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Business Operations | P.22

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BUSINESS OPERATIONS

Strategy for Aritzia CURRENTLY: Aritzia is increasingly trying to address sustainability throughout its business operations and logistics by:

• Retrofitting all 90 stores with LED lightbulbs, to

mitigate energy consumption

• Commitment to reducing the amount of individ--

ual clear poly bags, commonly used to transport

goods from the factory to the distribution centre

•

Signing of the Arctic Shipping Corporate Pledge launched by Ocean Concervancy as a commitment not to send ships through the globally significant habitats of the Arctic25

OPPORTUNITIES: Aritzia’s Operatonal sustainability goeals are to reduce emissions, waste and packaging impacts on the environment. On both a macro and micro level, there are ways to further optimize and address the larger deficiencies in Aritzia’s day-to-day business operations:

• Waste recycling and adequate garbage disposal in-stores

•

Optimizing the amount of units being sent per box from the warehouse to the stores

• Engaging with the idea of ‘localism’ to curb larger

carbon footprint due to wide spread global supply chains20

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Manual for a Sustainable Approach

BUSINESS OPERATIONS

Strategy for Aritzia IN-STORE WASTE RECYCLING

•

Aritzia is facing an issue with its in-store waste disposal. Carboard is disposed of in the carboard processor, however, all plastics, paper and organic waste goes into the same garbage. There is no recycling sorting or composting in Aritzia’s stores, and this is due to the way the malls, where Aritzia rents its realestate, have been set up.

•

With 30 large renovated stores in the GTA that are driving mall foot-traffic, Aritzia has substantial leverage. Signing costly lease contracts with Cadillac-Fairview and Oxford Properties, allows Aritzia to introduce the idea of recycling and proper garbage management systems as a clause. Aritzia employees have certanly been asking for this for a long time and would help champion this change.

OPTIMIZING PRODUCT TRANSPORTATION AND MICRO LOGISTICS •

Although optimizing the number of units packaged in a box has been successfuly done by many large companies, Aritzia still faces opportunities in this area. The box sizes are standardized, while the number of units each box can fit is not, resulting in space wastage and ultimately energy wastage during transport.

• This is a low hanging fruit, when it come to optimizing Aritzia’s logistics and busienss operations. A test

could be conducted across all product categories to determine how many of each item type and in which

combination should be packaged to reduce energy wastage.

•

Lastly, this system would have to be implemented in Aritzia’s 3PL facilities, as they are directly responsi ble for packaging cartons of merchandise that are bound for the stores.

LOCALISM TO REDUCE SUPPLY CHAIN ENERGY WASTAGE AND CARBON FOOTPRINT

•

Aritzia’s current supply chain spans across four continents and countries ranging from India, China, Vietnam to Peru and Italy, Portugal to New Zealand26. Needless to emphasize, transporting products and raw materials across the globe, is hugely impactful when it comes to a company’s carbon footprint.

•

The notion of localism is a recurring theme in elevating Aritzia’s sustainability performance. By creating a network of local, North American supply chain partners Aritzia would drastically reduce its carbon | P.24

Manual for a Sustainable Approach

BUSINESS OPERATIONS

Industry Trends IN-STORE WASTE RECYCLING Business case: REFORMATION

• All of Reformation’s California stores are Califor

nia Green Business Network certified27. Among

other things this means they recycle materials

by diverting waste from the landfill through reuse,

recycling and composting, they avoid waste by

eliminating unnecessary packaging, printing,

and purchasing and they prevent pollution by

eliminating and/or properly disposing of harmful chemicals28. Sustainability involves a wholistic

approach, and having your retail spaces reflect

the values of the company is mission critical.

OPTIMIZING PRODUCT TRANSPORTATION AND MICRO LOGISTICS Business case: ZARA •

When it comes to packing delivery cartons of new products for the Ontario stores, Zara Canada like Aritzia relies on a warehouse in Mississauga, ON. Zara has two types of cartons: one that is wider and flatter economically packed with items that are already hanging, and the other that stores generally folded items like knitwear, denim, etc. Zara has developped an optimal amount of units that fits in its boxes, lowering the carton quantity by packacking the box to the brim, with no wasted space within.

Thus maximizing efficiency and minimizing waste29.

LOCALISM TO REDUCE SUPPLY CHAIN ENERGY WASTAGE AND CARBON FOOTPRINT Business case: GRAMMAR

• GRAMMAR shirts are made from 100% organic

cotton sourced from an ethical producer in India and

they belive in supporting the excellent local artisans

and women and minority-owned businesses in New

York City. By producing locally, they are able to

minimize the impact of their supply chain, lower

carbon emissions and ensure that their extremely

high quality standards are met on every garment30. | P.25

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Product End-of-Life | P.26

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PRODUCT END-OF-LIFE

Strategy for Aritzia

CURRENTLY: As far as product end-of-life, Aritzia has taken some steps to ensure its pre-consumer clothing waste is diverted from the landfill:

• Working with local Vancouver women’s charities

that support underprivileged women by donating

clothing (Good 360, The Shoebox Project and

Dress for Success)31.

• Working with a Vancouver based company,

Debrand, in order to sustainably dispose

of the products it can no longer sell, through

mechanical shredding of textiles that are

later used to create rags for the the automotive

industry or car insulation32.

OPPORTUNITIES: Aritzia’s charitable efforts and internal waste recycling systems work mostly on eliminating leftover product after each season.

However, a significant amount of post-consumer waste, to which Aritzia contributes, is being accumulated in the landfills. Aritzia should take responsibility and mitigate the amount clothing waste that gets disposed of as well as find ways to help the consumer dispose of it adequately by:

•

Extending product lifespan by offering services such as tailoring with purchase, as well as mending and waranties on zippers.

•

Offering Aritzia product take-back services in order to re-use fabrics and minimize the amount of waste in landfill.

•

Labeling ways in which consumers should dispose of items, to decrease the amount of textile waste in the landfills, that could easily be repurposed or recycled.

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PRODUCT END-OF-LIFE

Strategy for Aritzia PSS - TAILORING AND MENDING • Most common reasons for premature disposal of

clothing are fit, fashion change, boredom, and

damaged/worn out goods, which could be

addressed through PSS models designed to

reduce disposal while raising the customer’s sat isfaction with the product. This way, fit issues

could be addressed via tailoring services

sold in the fitting room or at point-of-sale33.

• By offering alteration services, Aritzia could deter

returns, ensure the client has a longer

lasting item and ultimately have a higher value

built into the price of the garment.

PSS - TAKE-BACK PROGRAMS • PSS models are service based, affording the

clothing retailer many opportunities to interact

with customers. This offers the retailer to become

more responsive to customers’ needs as well as

an opportunity to build brand loyalty33.

• Services such as take-back programs can incentiv

ize the customer with a discount or store credit to

return to the store and make another purchase.

They also give additional raw resources in terms

of materials and can serve as alternative revenue

streams if the items are repaired and sold to sec ondary used-goods retailers33.

LABELING TO INDICATE PROPER WAYS OF DISPOSAL

• The care label on the product should specify

what customers should do with unwanted items.

This may include donating, recycling, disassem bling, throwing in the compost, or returning it to your company34.

• The company could provide customers this infor-

mation in other places as well, like at the point of

purchase or on the website. | P.28

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PRODUCT END-OF-LIFE

Industry Trends PSS - TAILORING AND MENDING Business case: UNIQLO • In its efforts to improve its sustainability per formance and create added value for its products,

fast fashion brand Uniqlo has introduced a free

tailoring services for jeans and trousers. This

service is available in stores on the spot as well as

for online purchases35. It is proven that items that

fit better, stay in our closets for longer, ultimately

reducing the amount of disposed clothing in the

landfills.

PSS - TAKE-BACK PROGRAMS Business case: RENEW by EILEEN FISHER

• Eileen Fisher offers a take-back program for

brand’s garments that are no longer in use. They

take items back in any condition, to be resold or

renewed through techniques like overdyeing and

mending. The pieces they can’t use, they save

because they’re tomorrow’s raw materials and

damaged garments are resewn into one-of-a-kind designs36 .

LABELING TO INDICATE PROPER WAYS OF DISPOSAL Business case: A.BCH • Sustainable brand A.BCH’s product labels have

a unique product code on them, which allows

the consumer or anyone down the line dealing

with the product to find out the details of the

composition, how the garment was made as well

how to safely dispose of it. The system is hosted

on their web-page, so that at any point in the near

or far future, a consumer has full access to all the

relevant information pertaining to the product in

question37. | P.29

Manual for a Sustainable Approach

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Manual for a Sustainable Approach

Summary SUSTAINABILITY MANUAL

The scope of this Aritzia Manual is extensive and outlines a multitude of strategies across various business areas that would complement Aritzia’s current sustainability efforts. All the strategies draw upon Aritzia’s overarching goals for achieving a stronger sustainbility performance in areas of Product, Operations and Community. The intention behind all the recommendations is for Aritzia to consider thinking beyond certifications and implement solutions on a broader scale (i.e. Standardizing Codes of Conduct), or implement solutions that address various issues simultaneously (i.e. Localism).

As a billion dollar company, Aritzia has the responsibility of understanding and ackgnowledging all the impacts its products and operations have on both the environment and the people it takes resources from. In order to elevate Aritzia’s sustainbility efforts the approach needs to be comprehensive, and it needs to address issues not only in the supply chain, but also frontline retail, such as in-store recycling and waste management as well as product end-of-life, such as labeling instructions for adequate product disposal.

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Manual for a Sustainable Approach

Summary SUSTAINABILITY MANUAL

To implement these strategies Aritzia would need to commit to concrete time frames, as well as reassess the aim of becoming ‘a fully sustainable company by 2025’. The goal, however, should be to maximize efforts to mitigate the company’s negavtive socio-environmental impacts, and become sustainbly-positive by 2030.

Below is a possible milestone completion timeline:

Start working to Standardize Codes of Conduct with brands working with the same facilities

Start local innitiatives in over-seas communities to help support and empower them

Create a network of local manufacturing facilities and shift at least 30% of production to North America

Scale the use of sustainable and renewable materials

Develop a take back program, that would serve as a catalyst for the switch to recycled polyester

Develop a garment impact scale, published on Aritzia website against every SKU

Start separating and closing bilogical and technical resource loops for at least one in-house brand

2030

2020 Transparency with sustainbility report

Optimize product transport and micrologistics

PSS Tailoring and Mending

In store recycling and adequate waste disposal systems

Start using deadstock for capsule collections

Switch to recycled polyester, nylon and minimize use of virgin synthetics

Lebleling garments to indicate proper ways of disposal

Shift at least 60% of production to North America, resulting in significant Carbon footprint decrease

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Manual for a Sustainable Approach

References SUSTAINABILITY MANUAL

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